RideNow Group sold fewer new and pre-owned powersports vehicles in the third quarter and reported a wider net loss as it rolled out a company-wide transparent-pricing model across its U.S. dealership network.
The company reported total revenue of US$244.3 million for the three months ended September 30, down 13.1 per cent from US$281.0 million a year earlier. Total gross profit declined 13.8 per cent to US$65.5 million, while the net loss widened to US$13.9 million from US$4.1 million. Adjusted EBITDA, a non-GAAP measure, fell to US$5.3 million from US$12.3 million.
Unit volume carried most of the pressure
RideNow recorded 8,127 new retail units, down 17.9 per cent, and 4,055 pre-owned retail units, down 13.7 per cent. Total retail volume was 12,182 units, a 16.6-per-cent decline. The comparison includes the effects of store consolidation, so the same-store figures provide a cleaner view of existing operations.
On that basis, new-unit volume fell 11.3 per cent and pre-owned volume declined 10.0 per cent. Same-store total retail volume was down 10.9 per cent. Same-store powersports revenue fell 7.9 per cent to US$241.4 million.
Same-store powersports gross profit per retail unit rose 2.5 per cent to US$5,401.40. RideNow calculates that measure by dividing total same-store powersports gross profit by retail vehicles sold. The numerator includes parts, service, accessories, finance and insurance income as well as vehicle-sale gross profit. It is therefore a composite store-performance measure, not the margin on an individual vehicle transaction. It can rise when unit sales fall faster than total gross profit. Dealers need the underlying category results before concluding that vehicle-sale margins improved.
Clear Price enters the operating data
RideNow attributed the same-store revenue decline to lower consumer discretionary spending and the initial market implementation of its Clear Price model. The company introduced the strategy across the group in August and says it is designed to align with U.S. Federal Trade Commission guidance and enforcement priorities on vehicle pricing and fee transparency.
Management attributed part of the quarter's volume pressure to the initial rollout. It said fourth-quarter performance had begun to rebound and expected Q4 adjusted EBITDA to exceed Q3. The company did not isolate the pricing strategy's effect from wider demand conditions. Its comments about the fourth quarter are management's outlook; the release reports completed financial results only through September.
The disclosure places price transparency alongside demand, conversion and operating costs as a dealership-management issue. A displayed price that includes required dealer charges can make comparison easier for customers, but it can also expose a retailer to competitors that advertise a lower headline number before adding fees later in the process. The commercial question is whether trust, conversion and repeat business eventually offset any early loss of traffic.
Fixed operations held up better than vehicles
Same-store parts, service and accessories revenue declined 4.1 per cent to US$47.0 million. Gross profit from that category was US$22.9 million, down only 0.4 per cent. Finance and insurance revenue fell 9.5 per cent to US$19.9 million.
Those figures reinforce the stabilizing role of fixed operations. Service and parts did not escape the slowdown, but gross profit was much steadier than unit revenue. A dealer with a strong installed customer base, effective scheduling, accurate parts availability and disciplined follow-up has more ways to earn through a softer sales quarter.
Inventory and financing still require attention. RideNow ended September with US$329.2 million in inventory, up from US$257.4 million at the end of 2025. Floorplan notes payable rose to US$291.9 million from US$218.4 million. The group reported US$149.4 million of total available liquidity: US$47.6 million in cash, cash equivalents and restricted cash, plus US$101.8 million available under powersports floorplan facilities. The cash figure includes US$18.4 million of restricted cash, so the liquidity total is not a measure of unrestricted cash on hand. It also completed a new US$220-million senior secured term loan maturing in September 2031 and said it was in advanced discussions for a US$50-million asset-based revolving facility.
The Canadian read-through
RideNow operates in the United States, and FTC guidance does not govern Canadian dealers. Provincial consumer-protection and vehicle-advertising rules vary, so a Canadian retailer must follow the requirements that apply in its own market. The results are still relevant because customers on both sides of the border compare advertised prices, financing offers and trade values online before visiting a store.
Canadian dealers can use the quarter as a stress test for their own reporting. Track lead-to-appointment conversion before and after a pricing change. Separate total-store declines from same-store performance. Measure vehicle-sale and finance-and-insurance gross profit separately, alongside fixed-operations absorption, used-unit ageing and floorplan expense. A transparent price should be supported by a documented explanation of taxes, optional products, finance terms and any charges that remain outside the advertised figure.
RideNow's quarter does not prove that transparent pricing fails or succeeds. It shows the cost of changing a large retail process while demand is already uneven. The reported quarter supports a narrower conclusion: lower unit volume and total gross profit outweighed the increase in the composite per-unit measure. Management's Q4 expectations remain subject to demand and execution, and the pricing change cannot be evaluated separately from those conditions using this release alone.
