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RumbleOn, Inc. (NASDAQ:RMBL), a $130 million market cap company specializing in computer programming services, has announced the appointment of Rachel Richards as a new independent director to its Board. The appointment, effective as of Monday, fills the vacancy left by Michael Kennedy’s resignation on January 13, 2025. According to InvestingPro data, the company has faced challenges recently, with its stock down 33% year-to-date and trading near its 52-week low of $3.12.
Richards brings a wealth of industry experience, with over 38 years in the automotive sector, including tenures at Ford Motor Company (NYSE:F) and Sonic Automotive (NYSE:SAH). Prior to her retirement at the beginning of this year, she served as Chief Marketing Officer and Vice President of Retail Strategy for Sonic Automotive. Her appointment comes as RumbleOn manages $1.2 billion in annual revenue while facing profitability challenges, with a -26% gross profit margin. Richards holds a Bachelor of Science in Business Administration from Shippensburg University.
The Board has confirmed that Richards meets the independence criteria set by the Nasdaq listing requirements. In addition to her director role, she will serve as a member of the Nominating & Corporate Governance Committee. Richards’s term as a director will be subject to re-election at RumbleOn’s 2025 annual meeting of shareholders.
Richards will receive compensation as per the company’s non-employee director compensation program, details of which are available in the proxy statement filed with the SEC on April 24, 2024.
RumbleOn has disclosed that there are no familial ties between Richards and any of the company’s current directors or executive officers. Moreover, there are no financial transactions or arrangements involving Richards that would necessitate disclosure under SEC regulations.
This announcement is based on a press release statement and provides investors with the latest governance developments at RumbleOn, Inc. For deeper insights into RMBL’s financial health, governance metrics, and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, RumbleOn Inc. reported its Q4 2024 financial results, revealing an earnings per share (EPS) of -$1.58, which significantly missed the forecasted -$0.29. The company’s revenue also fell short, coming in at $269.6 million against an expected $279.9 million, marking a decrease of 13.4% year-over-year. Despite this, RumbleOn achieved a positive adjusted EBITDA of $2.2 million, a notable improvement from a slight loss in the previous year. The company announced it would discontinue its Vision 2026 plan to focus on profitability and shareholder value.
In related developments, DA Davidson analysts adjusted their expectations for RumbleOn by reducing the price target on the company’s shares to $4.00 from $5.00, while maintaining a Neutral rating. This adjustment followed the company’s earnings report, which highlighted ongoing challenges within the powersports industry. Analysts noted that while RumbleOn’s management effectively reduced costs and strengthened the balance sheet, the path to recovery may be prolonged. The company’s financial health remains a focal point, with efforts to navigate the industry’s downturn through cost-cutting and financial stability measures.
RumbleOn’s management has also indicated plans to optimize the capital structure, including potential debt refinancing, to enhance the company’s financial position. The company ended the quarter with a total cash balance of $96.7 million and non-vehicle debt of $182.1 million. Looking ahead, RumbleOn expects positive EBITDA from its Wholesale Express segment in 2025, despite challenges such as global tariffs and consumer spending constraints impacting the broader market.
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