Overview

• U.S. powersports retailer's Q1 revenue rose 6.4%, slightly beating analyst expectations

• Adjusted EBITDA for Q1 beat consensus, rising to $9.3 mln

• Company reduced net loss to $4.3 mln from $9.7 mln, citing execution of initiatives

Outlook

• Company did not provide specific guidance for the current qtr or full yr

Result Drivers

• SAME STORE SALES GROWTH - Same store powersports revenue rose 13.1%, driven by a 16.3% increase in unit sales

• GROSS PROFIT IMPROVEMENT - Powersports gross profit increased 8.3%, outpacing revenue growth

• COST DISCIPLINE - SG&A expense grew 1.6% and declined as a percentage of gross profit

Company press release: ID:nPn3BYhQpa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$260.40 mln	$258.71 mln (3 Analysts)
Q1 EPS		-$0.11
Q1 Net Income		-$4.30 mln
Q1 Adjusted EBITDA	Beat	$9.30 mln	$7.70 mln (3 Analysts)
Q1 Gross Profit		$71.60 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for RideNow Group Inc is $7.00, about 11.3% below its May 13 closing price of $7.89

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