RumbleOn CEO Mike Kennedy, who took the reins of the company in November 2023, used his first year-end earnings announcement to roll out the “Vision 2026” plan in detail to analysts and employees. "This three-year operating plan reflects input from our board, our team and my observations over the past few months,” Kennedy explained. He also announced RideNow’s plan to pilot its first standalone brick & mortar pre-owned dealership.
"The plan's three strategic pillars will ultimately create a better experience for riders and a better environment for our team members while always focusing on maximizing long-term per share value,” he noted. “That's a 'triple win.' Now it's time to get to work and make it happen."
The three strategic pillars of Vision 2026 are:
1) Operate the best performing dealerships in America.
2) Leverage the RideNow Cash Offer Tool to accelerate growth of the pre-owned vehicle business.
3) Allocate capital to maximize long-term per share value.
"The first pillar is simple in its measurement, but broad in its execution," said Kennedy. "Our plan to operate the best performing dealerships in America will be measured on Net Profit and Customer Satisfaction. There's a lot that goes into delivering on these metrics, from simplifying and focusing our organization, attracting, retaining and properly incentivizing team members, and strengthening relationships with our OEM's. I'm excited about the progress we've already made. I've met with our largest OEM partners and they share my enthusiasm about the direction in which we're moving."
"The RideNow Cash Offer Tool directly connects us with riders and allows us to acquire high quality, pre-owned powersports vehicles at scale. It can work even harder for us and for all our dealership locations,” continued Kennedy. “Integrating more deeply with the tool, both online and in-store, will help us grow our pre-owned retail business, and align our RideNow Powersports dealerships around this opportunity. That's why the second pillar of Vision 2026 is to grow our pre-owned business by leveraging this unique and impactful resource. And, that’s why, in 2024, we plan to pilot our first standalone brick & mortar pre-owned dealership."
"The third pillar of Vision 2026 is to make certain we strategically allocate capital to its highest and best use to maximize long-term per share value,” continued Kennedy. “We have lots of options when it comes to capital allocation. Our current priorities for capital are investing in our business and acquiring additional dealerships. As we think about capital allocation, we will never take our eye off of our first principle at every stage of the journey; creating long-term per-share value for our shareholders."
Bottom line for Vision 2026: Deliver annual revenue exceeding $1.7 billion, annual adjusted EBITDA of greater than $150 million and annual adjusted free cash flow of $90 million or more by calendar year 2026.