RDNW

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements and the related notes and the MD&A included in our 2025 10-K, as well as our Unaudited Condensed Consolidated Financial Statements and the accompanying condensed notes included in Item 1 of this Quarterly Report on Form 10-Q. This discussion may contain forward-looking statements. See “Forward-Looking and Cautionary Statements” for a discussion of the uncertainties and risks associated with these statements. Terms not defined in this MD&A have the meanings ascribed to them in the consolidated financial statements and related footnotes. Unless otherwise noted, comparisons are of results for the quarter ended June 30, 2026, or second quarter, to the quarter ended June 30, 2025. Overview Incorporated in Nevada in 2013, we operate a powersports dealership group which has primarily grown through acquisitions. Prior to January 1, 2026, we operated through two operating segments: a powersports dealership group and as a vehicle transportation services provider. In December 2025, we ceased operations related to our vehicle transportation services business. We believe our powersports business is the largest powersports retail group in the United States offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles (“ATV”), utility terrain or side-by-side vehicles (“SXS”), personal watercraft (“PWC”), and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. Further, we offer a full suite of powersports repair and maintenance services. As of June 30, 2026, we operated 47 retail dealerships located predominantly in the Sunbelt region. Additionally, we source high quality pre-owned inventory directly from consumers via our proprietary RideNow Cash Offer tool. Macroeconomic Conditions Our results of operations and financial condition are significantly influenced by general macroeconomic conditions that affect consumer confidence and discretionary spending. During the second quarter of 2026, we continued to navigate a complex macroeconomic environment characterized by persistent inflationary pressures, fluctuating interest rates, and critical legal developments reshaping trade policy. During the quarter, the U.S. Supreme Court issued a decision concerning federal tariff authority and enforcement regimes. While this ruling establishes a definitive framework for current and upcoming tariff structures, we do not expect these legal developments or the resulting tariff structures to elevate our cost of sales or necessitate increases to our vehicle manufacturers suggested retail price “MSRPs”. Through our strategic supply chain alignment and agreements with our Original Equipment Manufacturer (OEM) partners, we believe our operations are insulated from these tariff impacts. We do not currently expect the recently announced tariff structures to have a material impact on our cost of sales or vehicle pricing. However, the ultimate impact of tariff-related developments remains uncertain and will depend on, among other things, OEM pricing decisions, supply chain responses, consumer demand and broader macroeconomic conditions. While we continue to monitor the broader industry-wide effects of this ruling, including potential relief from recently introduced tariff refund systems, we do not currently anticipate tariff-related margin compression or pricing adjustments, though wider macroeconomic trade barriers could still influence overall consumer demand due to price elasticity. Additionally, our business is sensitive to the interest rate environment. Elevated interest rates affect us in in the following ways: •Consumer Financing: Higher borrowing costs increase the monthly payment burden for our customers, many of whom rely on financing for their purchases. This can lead to a shift in product mix toward lower-priced units or a decrease in overall unit volume. •Floorplan Carrying Costs: Our floorplan interest expense is tied to variable rates. While we have implemented aggressive inventory management strategies, sustained high rates increase the cost of maintaining our inventory. 18 •Credit Agreement: Our Credit Agreement is tied to variable rates. Accordingly, our interest expense will fluctuate with changing market conditions and will increase if interest rates rise. General macroeconomic uncertainty, including concerns regarding labor market stability and persistent cost-of-living increases, has led to more cautious spending patterns among our core demographic. While we have seen resilience in certain premium segments, the broader consumer base is increasingly focused on affordability. If economic conditions deteriorate or if "stagflationary" pressures, where inflation persists alongside cooling economic growth intensify, we may experience declines in same-store revenue and unit sales. Key Operating Metrics We regularly review a number of key operating metrics such as revenue, sales volume and gross profit in order to manage the business and evaluate financial and operating performance. Key factors impacting our operating results include increasing brand awareness; maximizing the opportunity to source vehicles from consumers, dealers, and auctions; and enhancing the selection and timing of vehicles we make available for sale to our customers. We review these metrics in total. As previously disclosed, we sold or closed five underperforming stores during 2025. As a result, management has also begun reviewing metrics on a same store basis. Same store measures reflect results for stores that were operating during the three and six months ended June 30, 2026 and 2025, and exclude fleet sales. We believe same store metrics assist in providing insight on operating trends within our core business. Revenue Revenue is comprised of powersports vehicle sales, finance and insurance products bundled with retail vehicle sales (“F&I”), and parts, service and accessories/merchandise (“PSA”). We sell both new and pre-owned powersports vehicles through retail and wholesale channels. F&I and PSA revenue is earned through retail channels. Retail channels provide the opportunity to maximize profitability by increased sales volume and lower average days to sale and are impacted by customer demand, market conditions and inventory availability. The wholesale channel provides the opportunity to move excess inventory or inventory that does not meet our needs for retail. The number of vehicles sold varies from period to period due to these factors. Factors primarily affecting pre-owned vehicle sales include inventory levels and the availability of inventory, as well as the number of retail pre-owned vehicles sold and the average selling price of these vehicles. Gross Profit Gross profit generated on vehicle sales reflects the difference between the vehicle selling price and the cost of revenue associated with acquiring the vehicle and preparing it for sale. Cost of revenue includes the vehicle acquisition cost, inbound transportation cost, and particularly for pre-owned vehicles, reconditioning costs. The aggregate gross profit and gross profit per vehicle vary across vehicle type, make, model, etc. as well as through retail and wholesale channels, and with regard to gross profit per vehicle, are not necessarily correlated with the sale price. Vehicles sold through retail channels generally have a higher gross profit per vehicle given the vehicle is sold directly to the consumer. Pre-owned vehicles sold through wholesale channels, including directly to other dealers or through auction channels, including the dealer-to-dealer auction market, generally have lower margins and do not enable any other ancillary gross profit attributable to F&I and PSA. Factors affecting gross profit from period to period include the mix of new versus pre-owned vehicles sold, the distribution channel through which they are sold, the sources from which we acquired such inventory, retail market prices, our average days to sale, and our pricing strategy. We may opportunistically choose to shift our inventory mix to higher or lower cost vehicles, or to opportunistically raise or lower our prices relative to market to take advantage of demand/supply imbalances in our sales channels, which could temporarily lead to gross profits increasing or decreasing in any given channel. Vehicles Sold We define vehicles sold as the number of vehicles sold through retail and wholesale channels in each period. This metric is the primary driver of our revenue and gross profit and also impacts complementary revenue streams, such as F&I and PSA. Additionally, vehicles sold increases our base of customers and improves brand awareness and repeat sales. 19 Total Gross Profit Per Unit Total gross profit per unit is the aggregate gross profit of the powersports segment in a given period, divided by retail powersports units sold in that period. The aggregate gross profit of the powersports segment includes gross profit generated from the sale of new and pre-owned vehicles, any income related to loans originated to finance the vehicle, revenue earned from the sale of F&I products including extended service contracts, maintenance programs, guaranteed auto protection, tire and wheel protection, and theft protection products, gross profit on the sale of PSA products, and gross profit generated from sales of vehicles in the wholesale market. Results of Operations Revenue and Gross Profit Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change 2026 2025 YoY Change % Change Revenue Powersports vehicles $ 219.7 $ 219.0 $ 0.7 0.3 % $ 411.6 $ 391.0 $ 20.6 5.3 % Parts, service and accessories 50.1 52.4 (2.3) (4.4) % 96.8 98.5 (1.7) (1.7) % Finance and insurance, net 27.0 27.2 (0.2) (0.7) % 48.8 48.3 0.5 1.0 % Total powersports revenue 296.8 298.6 (1.8) (0.6) % 557.2 537.8 19.4 3.6 % Vehicle transportation services — 1.3 (1.3) (100.0) % — 6.8 (6.8) (100.0) % Total Revenue $ 296.8 $ 299.9 $ (3.1) (1.0) % $ 557.2 $ 544.6 $ 12.6 2.3 % Gross Profit Powersports vehicles 33.6 31.6 2.0 6.3 % 61.4 55.8 5.6 10.0 % Parts, service and accessories 24.2 24.9 (0.7) (2.8) % 46.2 45.7 0.5 1.1 % Finance and insurance, net 27.0 27.2 (0.2) (0.7) % 48.8 48.3 0.5 1.0 % Total powersports gross profit 84.8 83.7 1.1 1.3 % 156.4 149.8 6.6 4.4 % Vehicle transportation services — 0.2 (0.2) (100.0) % — 1.3 (1.3) (100.0) % Total Gross Profit $ 84.8 $ 83.9 $ 0.9 1.1 % $ 156.4 $ 151.1 $ 5.3 3.5 % Total revenue for the quarter decreased $3.1 million compared to the same period in 2025. The primary driver was the result of operating four fewer stores than the prior year period. Further contributing to the decrease is a $1.3 million reduction in our vehicle transportation services business, which, as discussed, was wound down at the end of 2025. Additional information on our revenue is depicted in the tables below. Total revenue for the first half increased $12.6 million compared to the first half of last year. Driven by an increase in vehicle unit sales, partially offsetting the increase is a $6.8 million reduction in our vehicle transportation business coupled with operating five fewer stores than the prior year-to-date period. Total gross profit increased $0.9 million for the quarter and $5.3 million for the first half driven by an improvement in Powersports gross profit of $1.1 million for the quarter and $6.6 million for the first half of the year, partially offset by the termination of Vehicle Transportation Services of $1.3 million. Additional detail on our gross profit is depicted in the tables that follow. 20 Key Operating Metrics Three Months Ended June 30, Six Months Ended June 30, ($ in millions except per vehicle) 2026 2025 YoY Change % Change 2026 2025 YoY Change % Change Revenue New retail vehicles $ 156.6 $ 154.8 $ 1.8 1.2 % $ 291.6 $ 274.9 $ 16.7 6.1 % Pre-owned retail vehicles 57.1 59.2 (2.1) (3.5) 109.1 107.3 1.8 1.7 Total retail vehicles 213.7 214.0 (0.3) (0.1) 400.7 382.2 18.5 4.8 Wholesale vehicles 6.0 5.0 1.0 20.0 10.9 8.8 2.1 23.9 Parts, service, accessories 50.1 52.4 (2.3) (4.4) 96.8 98.5 (1.7) (1.7) Finance and insurance, net 27.0 27.2 (0.2) (0.7) 48.8 48.3 0.5 1.0 Total powersports revenue $ 296.8 $ 298.6 $ (1.8) (0.6) % $ 557.2 $ 537.8 $ 19.4 3.6 Gross Profit New retail vehicles $ 23.1 $ 20.5 $ 2.6 12.7 % $ 42.3 $ 36.8 $ 5.5 14.9 % Pre-owned retail vehicles 10.3 11.1 (0.8) (7.2) 19.1 18.9 0.2 1.1 Total retail vehicles 33.4 31.6 1.8 5.7 61.4 55.7 5.7 10.2 Wholesale vehicles 0.2 — 0.2 0.0 — 0.1 (0.1) (100.0) Parts, service, accessories 24.2 24.9 (0.7) (2.8) 46.2 45.7 0.5 1.1 Finance and insurance 27.0 27.2 (0.2) (0.7) 48.8 48.3 0.5 1.0 Total powersports gross profit $ 84.8 $ 83.7 $ 1.1 1.3 % $ 156.4 $ 149.8 $ 6.6 4.4 % Vehicle Unit Sales (#) New retail vehicles 10,807 10,618 189 1.8 % 20,139 18,631 1,508 8.1 % Pre-owned retail vehicles 4,924 5,283 4,924.0 (359) (6.8) % 9,517 9,590 (73) (0.8) % Total retail vehicles 15,731 15,901 (170) (1.1) % 29,656 28,221 1,435 5.1 % Wholesale vehicles 895 1,216 (321) (26.4) % 1,674 2,082 (408) (19.6) % Total powersports unit sales 16,626 17,117 (491) (2.9) % 31,330 30,303 1,027 3.4 % Revenue per vehicle New retail vehicles $ 14,491 $ 14,579 $ (88) (0.6) % $ 14,479 $ 14,755 $ (276) (1.9) % Pre-owned retail vehicles 11,596 11,206 390 3.5 % 11,464 11,189 275 2.5 % Wholesale vehicles 6,704 4,112 2,592 63.0 % 6,511 4,227 2,284 54.0 % Parts and service and other 3,185 3,295 (110) (3.3) % 3,264 3,490 (226) (6.5) % Finance and insurance, net 1,716 1,711 5 0.3 % 1,646 1,711 (65) (3.8) % Total revenue per retail vehicle(1) $ 18,486 $ 18,464 $ 22 0.1 % $ 18,422 $ 18,745 $ (323) (1.7) % Gross Profit per retail vehicle New vehicles $ 2,138 $ 1,931 $ 207 10.7 % $ 2,100 $ 1,975 $ 125 6.3 % Pre-owned vehicles 2,092 2,101 (9) (0.4) % 2,007 1,971 36 1.8 % Parts and service 1,538 1,566 (28) (1.8) % 1,558 1,619 (61) (3.8) % Finance and insurance, net 1,716 1,711 5 0.3 % 1,646 1,711 (65) (3.8) % Total gross profit per retail vehicle(2) 5,391 5,264 127 2.4 % 5,274 5,308 (34) (0.6) % (1) Calculated as total powersports revenue, excluding wholesale revenue and vehicle transportation services revenue, divided by new and pre-owned retail units sold. (2) Calculated as total gross profit, excluding vehicle transportation services, divided by new and pre-owned retail units sold. Same store revenue and same store gross profit are calculated on the same basis but excludes fleet sales and the effects in all periods presented of the five stores that were closed or sold in 2025. These metrics follow: 21 Same Store Key Operating Metrics Three Months Ended June 30, ($ in millions except per vehicle) 2026 2025 YoY Change % Change Same Store Revenue New retail vehicles $ 156.5 $ 148.5 $ 8.0 5.4 % Pre-owned retail vehicles 57.1 56.4 0.7 1.2 % Total retail vehicles 213.6 204.9 8.7 4.2 % Wholesale vehicles 3.5 2.6 0.9 34.6 % Parts, service, accessories 50.1 50.7 (0.6) (1.2) % Finance and insurance, net 24.3 24.7 (0.4) (1.6) % Total revenue $ 291.5 $ 282.9 $ 8.6 3.0 % Same Store Gross Profit New retail vehicles $ 23.6 $ 22.0 $ 1.6 7.3 % Pre-owned retail vehicles 10.3 10.5 (0.2) (1.9) % Total retail vehicles 33.9 32.5 1.4 4.3 % Wholesale vehicles 0.1 (0.1) 0.2 NM Parts, service, accessories 24.7 24.3 0.4 1.6 % Finance and insurance 24.3 24.7 (0.4) (1.6) % Total gross profit $ 83.0 $ 81.4 $ 1.6 2.0 % Same Store Vehicle Units Sold New retail vehicles 10,789 10,120 669 6.6 % Pre-owned retail vehicles 4,924 5,033 (109) (2.2) % Total retail vehicles 15,713 15,153 560 3.7 % Wholesale vehicles 527 808 (281) (34.8) % Total vehicles sold 16,240 15,961 279 1.7 % Same Store Revenue per vehicle New retail vehicles $ 14,506 $ 14,674 $ (168) (1.1) % Pre-owned retail vehicles 11,596 11,206 390 3.5 % Wholesale vehicles 6,641 3,218 3,423 NM Parts and service and other 3,188 3,346 (158) (4.7) % Finance and insurance, net 1,546 1,630 (84) (5.2) % Total revenue per retail vehicle(1) 18,329 18,498 (169) (0.9) % Same Store Gross Profit per retail vehicle New vehicles $ 2,187 $ 2,174 $ 13 0.6 % Pre-owned vehicles 2,092 2,086 6 0.3 % Parts and service 1,572 1,604 (32) (2.0) % Finance and insurance, net 1,546 1,630 (84) (5.2) % Total gross profit per retail vehicle(2) 5,282 5,372 (90) (1.7) % (1) Calculated as same store revenue, excluding wholesale revenue and vehicle transportation services revenue, divided by new and pre-owned retail powersports units sold. (2) Calculated as same store gross profit, excluding vehicle transportation services, divided by new and pre-owned retail units sold. 22 Same Store Key Operating Metrics Six Months Ended June 30, ($ in millions except per vehicle) 2026 2025 YoY Change % Change Same Store Revenue New retail vehicles $ 291.1 $ 265.6 $ 25.5 9.6 % Pre-owned retail vehicles 109.1 102.5 6.6 6.4 % Total retail vehicles 400.2 368.1 32.1 8.7 % Wholesale vehicles 7.0 4.6 2.4 52.2 % Parts, service, accessories 96.8 95.3 1.5 1.6 % Finance and insurance, net 45.7 43.8 1.9 4.3 % Total revenue $ 549.7 $ 511.8 $ 37.9 7.4 % Same Store Gross Profit New retail vehicles $ 42.8 $ 38.3 $ 4.5 11.7 % Pre-owned retail vehicles 19.0 18.2 0.8 4.4 % Total retail vehicles 61.8 56.5 5.3 9.4 % Wholesale vehicles (0.2) (0.2) — — % Parts, service, accessories 46.7 45.1 1.6 3.5 % Finance and insurance 45.7 43.8 1.9 4.3 % Total gross profit $ 154.0 $ 145.2 $ 8.8 6.1 % Same Store Vehicle Units Sold New retail vehicles 20,050 17,880 2,170 12.1 % Pre-owned retail vehicles 9,517 9,151 366 4.0 % Total retail vehicles 29,567 27,031 2,536 9.4 % Wholesale vehicles 1,122 1,352 (230) (17.0) % Total vehicles sold 30,689 28,383 2,306 8.1 % Same Store Revenue per vehicle New retail vehicles $ 14,519 $ 14,855 $ (336) (2.3) % Pre-owned retail vehicles 11,464 11,201 263 2.3 % Wholesale vehicles 6,239 3,402 2,837 83.4 % Finance and insurance, net 1,546 1,620 (74) (4.6) % Parts, service, accessories 3,274 3,526 (252) (7.1) % Total revenue per retail vehicle(1) $ 18,355 $ 18,764 $ (409) (2.2) % Same Store Gross Profit per retail vehicle New vehicles $ 2,135 $ 2,142 $ (7) (0.3) % Pre-owned vehicles 1,996 1,989 7 0.4 % Finance and insurance, net 1,546 1,620 (74) (4.6) % Parts, service, accessories 1,579 1,668 (89) (5.3) % Total gross profit per retail vehicle(2) $ 5,209 $ 5,372 $ (163) (3.0) % 23 Selling, General and Administrative Expenses Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change 2026 2025 YoY Change Compensation and related costs $ 38.7 $ 39.1 $ (0.4) $ 75.8 $ 73.1 $ 2.7 Facilities 10.8 11.3 (0.5) 21.0 22.5 (1.5) General and administrative 6.9 8.0 (1.1) 13.7 15.1 (1.4) Advertising, marketing and selling 4.3 4.0 0.3 8.1 7.8 0.3 Professional fees 3.2 3.3 (0.1) 6.6 8.0 (1.4) Stock-based compensation 0.8 0.6 0.2 1.4 0.5 0.9 Technology and software 0.3 0.4 (0.1) 0.5 0.8 (0.3) Total SG&A expenses $ 65.0 $ 66.7 $ (1.7) $ 127.1 $ 127.8 $ (0.7) Total SG&A as a % of gross profit 76.7% 79.5% 81.3% 84.6% Selling, general and administrative expenses for the quarter decreased $1.7 million, as compared to the same period in 2025. The primary driver of the decrease were lower professional fees, general and administrative expenses, compensation and related costs and facilities. Partially offsetting this reduction was an increase in advertising, marketing and selling expenses. Selling, general and administrative expenses for the first half decreased $0.7 million, as compared to the same period in 2025. The primary driver of the decrease were lower facilities, general and administrative and professional fees. Partially offsetting these decreases were increases in compensation and related costs and stock based compensation expense. Depreciation and Amortization Three Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change Depreciation and amortization $ 1.9 $ 2.0 $ (0.1) (5.0) % Depreciation and amortization did not materially change when compared to the prior period. Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change Depreciation and amortization $ 3.8 $ 4.3 $ (0.5) (11.6) % Depreciation and amortization decreased $0.5 million primarily due to certain intangible assets becoming fully amortized during the six months ended June 30, 2025. Impairment of Franchise Rights We did not recognize an impairment charge for the three or six months ended June 30, 2026, compared to a non-cash impairment charge of $34.0 million related to franchise rights in the three and six months ended June 30, 2025. The absence of a comparable impairment charge in 2026 was a significant driver of the improvement in operating results, including the operating income of $17.9 million for the three months ended June 30, 2026 from an operating loss of $18.8 million for the prior-year period, and operating income of $25.5 million for the six months ended June 30, 2026 from an operating loss of $15.0 million for the prior-year period. 24 Floor plan interest expense Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change 2026 2025 YoY Change % Change Floor plan interest expense $ 2.3 $ 2.6 $ (0.3) (11.5) % $ 4.7 $ 5.4 $ (0.7) (13.0) % We have floor plan agreements with both manufacturer-affiliated finance companies and with related and non-related third parties for most new and certain pre-owned vehicles. The interest rates on these floor plan notes payable commitments vary by lender and are variable rates. See Note 4 and Note 12 for more information. Other Interest Expense Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change 2026 2025 YoY % Term loan $ 7.6 $ 9.8 $ (2.2) (22) % $ 15.3 $ 19.6 $ (4.3) (22) % Finance lease obligation 1.1 1.2 (0.1) (8) % 2.3 2.3 0.0 0 % Subordinated loans 0.3 — 0.3 0 % 0.7 — 0.7 NM Other, including interest income — (0.1) 0.1 (100) % 0.1 (0.2) (0.1) 50 % Other interest expense $ 9.0 $ 10.9 $ (1.9) (17) % $ 18.4 $ 21.7 $ (3.3) (15.2) % NM = not meaningful. Other interest expense consists primarily of interest on the term loan facility, finance lease obligation, and beginning in the third quarter of 2025, the Subordinated Loans, as defined in Note 12. Other interest expense decreased for the quarter due primarily to lower average borrowings and a lower interest rate on the term loan in 2026 compared to 2025. Other interest expense decreased during the six months primarily due to lower average borrowing in 2026 compared to 2025. Amortization of debt discount and issuance costs of $1.6 million and $3.2 million for the three and six months ended June 30, 2026, respectively, and $2.4 million and $4.9 million for the three and six months ended June 30, 2025, respectively, were included in term loan interest expense depicted above. Seasonality The powersports industry is seasonal with the strongest traffic and sales generally occurring in the spring and summer quarters. Sales and traffic are typically slower in the winter quarter but increase moving into the spring season and coinciding with tax refunds and improved weather conditions. As a result of the above, we expect our quarterly results of operations, including our revenue, gross profit, profit/loss, and cash flow, to vary accordingly. Liquidity and Capital Resources Our primary sources of liquidity are cash and amounts available under our floor plan lines of credit. We had the following liquidity resources available as of June 30, 2026 and December 31, 2025: ($ in millions) June 30, 2026 December 31, 2025 Cash $ 46.7 $ 29.5 Restricted cash(1) 16.4 13.4 Total cash and restricted cash 63.1 42.9 Availability under powersports floor plan lines of credit 95.1 123.1 Total available liquidity $ 158.2 $ 166.0 (1) Amounts included in restricted cash are primarily comprised of the deposits required under our various floor plan lines of credit. 25 Our financial statements reflect estimates and assumptions made by management that affect the carrying values of our assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. The judgments, assumptions and estimates used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ materially, which could have a material impact on the carrying values of our assets and liabilities and the results of operations. Our future liquidity and capital requirements will depend upon numerous factors, including our results of operations, the timing and magnitude of capital expenditures or strategic initiatives, and other business and risk factors described under “Risk Factors” in our 2025 10-K. We believe that current cash balances plus cash generated from operations will be sufficient to meet both the operating and capital requirements of our ordinary business operations through at least the next twelve months from the date of issuance; however, there can be no assurance that we will not require additional financing within this time frame. Our Unaudited Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which assumes the continuity of operations, the realization of assets and satisfaction of liabilities as they come due in the normal course of business. We believe that current working capital, results of operations, and existing financing arrangements are sufficient to fund operations for at least twelve months from the date of issuance. The Company may need to obtain additional financing to support its long range plans and to refinance its indebtedness on or prior to its maturity. Our Credit Agreement includes milestones requiring the commencement of a refinancing process prior to September 30, 2026 and completion on or prior to November 30, 2026. If we do not satisfy these milestones, an event of default may occur unless we satisfy specified alternative requirements, including reducing the outstanding principal amount of the Senior Loans to the required level or forming a special committee and engaging an acceptable investment banker or financial advisor to evaluate and execute strategic alternatives. While we have made substantial progress on our refinancing efforts, there can be no assurance that we will complete a refinancing or satisfy the applicable alternative requirements within the required time periods. Failure to do so could have a material adverse effect on our liquidity, capital resources and ability to continue to operate our business in the ordinary course. We were in compliance with all covenants under our Credit Agreement as of June 30, 2026. On April 15, 2026, certain of our subsidiaries received a conditional credit increase letter (the "Credit Increase Letter") from Polaris Acceptance ("Polaris"), and on May 15, 2026, we entered into an Amended and Restated Inventory Financing Agreement (the "Polaris Floorplan Credit Facility") with Polaris and the dealer subsidiaries of the Company party thereto (collectively, the "Dealers"). Pursuant to the Credit Increase Letter, the credit commitment available to us under the Polaris Floorplan Credit Facility was increased from approximately $74.7 million to approximately $108.0 million, subject to, among other things, the joinder of two additional dealer entities to the Polaris Floorplan Credit Facility, execution of related guaranty and intercreditor joinder amendments, and delivery of certain insurance certificates, within a specified time period. The Polaris Floorplan Credit Facility is used by the Dealers to finance the purchase inventory from approved vendors and for other purposes. Borrowings under the Polaris Floorplan Credit Facility are secured by the inventory financed thereunder. The credit increase under the Polaris Floorplan Credit Facility was entered into as part of a broader series of floor plan financing transactions undertaken by us to increase the aggregate capacity available under our existing floor plan credit facilities. 26 Our outstanding principal amount of indebtedness is summarized in the table below: ($ in millions) June 30, 2026 December 31, 2025 Asset-based Short-Term Financing: Floor plan notes (financing for inventory) $ 273.9 $ 218.4 Long-Term Debt: Term loan facility 208.7 207.7 Subordinated Loans 10.7 10.0 Fleet notes and other 1.7 1.1 Total principal amount of long-term debt 221.1 218.8 Less: unamortized debt issuance costs (8.0) (11.2) Total long-term debt 213.1 207.6 Total debt, net(1) $ 487.0 $ 426.0 (1) Excludes finance lease obligations, which are included in other long-term liabilities. The following table summarizes our cash flows: Six Months Ended June 30, ($ in millions) 2026 2025 Change Net cash (used in) provided by operating activities (27.7) $ 4.0 $ (31.7) Net cash used in investing activities (2.4) (2.9) 0.5 Net cash provided by (used in) financing activities 50.3 (38.0) 88.3 Net change in restricted cash $ 20.2 $ (36.9) $ 57.1 Operating Activities Our primary sources of operating cash flows result from the sales of vehicles and ancillary products. Our primary use of cash from operating activities are purchases of inventory, parts and merchandise; marketing costs; interest payments on trade floor plans, long-term debt, and finance lease obligations; rental costs for facilities; and personnel-related expenses. Operating cash flow for the six months ended June 30, 2026, decreased $31.7 million from the comparable period in the prior year. The change was primarily driven by higher inventory to support revenue growth. Inventory levels represent a primary driver of our operating cash flow. We remain focused on optimizing inventory turnover by actively monitoring the mix and volume of new and pre-owned powersports units to ensure alignment with current consumer demand. Investing Activities Six Months Ended June 30, ($ in millions) 2026 2025 Change Purchase of property and equipment (2.1) $ (2.9) $ 0.8 Technology development (0.3) — (0.3) Cash used in investing activities $ (2.4) $ (2.9) $ 0.5 The primary use of cash associated with investing activities is related to purchases of property and equipment and investments in technology development required to support our operations. 27 Financing Activities Six Months Ended June 30, ($ in millions) 2026 2025 YoY Change % Change Repayments of debt $ (0.2) $ (39.0) $ 38.8 (99) % Net increase in non-trade floor plan borrowings 50.6 1.8 48.8 2711 % Other financing — (0.8) 0.8 (100) % Shares redeemed for employee tax obligations (0.1) $ — (0.1) 0 % Net cash provided by (used in) financing activities $ 50.3 $ (38.0) $ 88.3 (232) % Cash flows from financing activities primarily relate to our short and long-term borrowings. Cash flows from financing activities increased $88.3 million as a result of higher non-trade floorplan borrowings period over period in addition to a repayment of the Company’s convertible senior notes in the prior year’s comparable period. In January 2025, we repaid our 6.75% convertible senior notes at their maturity date. Critical Accounting Policies and Estimates See Note 1 - Description of Business and Significant Accounting Policies, included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q for accounting pronouncements and material changes to our critical accounting policies since December 31, 2025. There have been no other material changes to our critical accounting policies and use of estimates from those described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 10-K.