v3.25.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Business segments are components of an enterprise about which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) to assess operating performance and allocate resources. Our CODM is our Chairman, Chief Executive Officer, and President. Our operations are organized by management into operating segments by line of business. The CODM evaluates performance and allocates resources based on the segment operating income (loss) of the operating segments, which excludes impairment charges, amortization and depreciation that are included in operating income (loss) on the consolidated statements of operations and includes floor plan interest expense, which is not included in operating income (loss) on the consolidated statements of operations. The CODM uses segment operating income in the annual budget and forecasting process, and considers budget-to-actual variances on a periodic basis.
We have two reportable segments: (1) powersports dealership group and (2) vehicle transportation services. The powersports dealership group segment is primarily comprised of powersports dealerships that sell new and pre-owned powersports vehicles; parts, service and accessories; and finance and inventory products for powersports vehicles sold. The vehicle transportation services segment provides nationwide transportation brokerage services between dealerships and auctions. Revenue is all from external customers.
The powersports dealership group segment is significantly larger and requires more investment than our vehicle transportation services segment. The operating income of the powersports segment includes certain operating overhead and corporate costs. Assets are not used for purposes of assessing performance or allocating resources and, as a result, such information has not been presented.
($ in millions)Powersports Dealership GroupVehicle Transportation ServicesUnallocated and AdjustmentsTotal
Three Months Ended September 30, 2025
Revenue:
Powersports vehicles$204.3 $— $— $204.3 
Parts, service and accessories50.8 — — 50.8 
Finance and insurance, net24.9 — — 24.9 
Vehicle transportation services— 1.0 — 1.0 
Total revenue280.0 1.0 — 281.0 
Cost of revenue:
Powersports vehicles177.4 — — 177.4 
Parts, service and accessories26.9 — — 26.9 
Vehicle transportation services— 0.7 — 0.7 
Total cost of revenue204.3 0.7 — 205.0 
Gross profit75.7 0.3 — 76.0 
Compensation and related costs36.7 0.2 — 36.9 
Facilities11.0 0.1 — 11.1 
Other operating expenses(1)
16.3 0.1 — 16.4 
Depreciation and amortization— — 2.2 2.2 
Floor plan interest expense3.1 — (3.1)— 
Operating income (loss)8.6 (0.1)0.9 9.4 
Floor plan interest expense3.1 
Other interest expense10.4 
Other non-operating expense (income)(0.1)
Loss before income taxes$(4.0)
(1) Other operating expenses represent general and administrative expenses, advertising, professional fees and stock-based compensation expenses. The detail for these expenses on a consolidated basis is in Note 5 and is primarily attributable to the Powersports Dealership Group.
($ in millions)Powersports Dealership GroupVehicle Transportation ServicesUnallocated and AdjustmentsTotal
Three Months Ended September 30, 2024
Revenue:
Powersports vehicles$206.4 $— $— $206.4 
Parts, service and accessories49.2 — — 49.2 
Finance and insurance, net24.3 — — 24.3 
Vehicle transportation services— 15.1 — 15.1 
Total revenue279.9 15.1 — 295.0 
Cost of revenue:— 
Powersports vehicles182.6 — — 182.6 
Parts, service and accessories26.5 — — 26.5 
Vehicle transportation services— 11.6 — 11.6 
Total cost of revenue209.1 11.6 — 220.7 
Gross profit70.8 3.5 — 74.3 
Compensation and related costs35.3 1.8 — 37.1 
Facilities12.0 — — 12.0 
Other operating expenses(1)
16.4 0.4 — 16.8 
Depreciation and amortization— — 3.1 3.1 
Floor plan interest expense4.4 — (4.4)— 
Operating income (loss)2.7 1.3 1.3 5.3 
Floor plan interest expense4.4 
Other interest expense12.2 
Other non-operating expense (income)(0.1)
Loss before income taxes$(11.2)
(1) Other operating expenses represent general and administrative expenses, advertising, professional fees and stock-based compensation expenses. The detail for these expenses on a consolidated basis is in Note 5 and is primarily attributable to the Powersports Dealership Group.
($ in millions)Powersports Dealership GroupVehicle Transportation ServicesUnallocated and AdjustmentsTotal
Nine Months Ended September 30, 2025
Revenue:
Powersports vehicles$595.3 $— $— $595.3 
Parts, service and accessories149.3 — — 149.3 
Finance and insurance, net73.2 — — 73.2 
Vehicle transportation services— 7.8 — 7.8 
Total revenue817.8 7.8 — 825.6 
Cost of revenue:
Powersports vehicles512.6 — — 512.6 
Parts, service and accessories79.7 — — 79.7 
Vehicle transportation services— 6.2 — 6.2 
Total cost of revenue592.3 6.2 — 598.5 
Gross profit225.5 1.6 — 227.1 
Compensation and related costs108.6 1.4 — 110.0 
Facilities33.4 0.2 — 33.6 
Other operating expenses(1)
48.2 0.4 — 48.6 
Impairment of franchise rights— — 34.0 34.0 
Depreciation and amortization— — 6.5 6.5 
Floor plan interest expense8.5 — (8.5)— 
Operating income (loss)26.8 (0.4)(32.0)(5.6)
Floor plan interest expense8.5 
Other interest expense32.1 
Other non-operating expense (income)(0.5)
Loss before income taxes$(45.7)
(1) Other operating expenses represent general and administrative expenses, advertising, professional fees and stock-based compensation expenses. The detail for these expenses on a consolidated basis is in Note 5 and is primarily attributable to the Powersports Dealership Group.
($ in millions)Powersports Dealership GroupVehicle Transportation ServicesUnallocated and AdjustmentsTotal
Nine Months Ended September 30, 2024
Revenue:
Powersports vehicles$656.2 $— $— $656.2 
Parts, service and accessories159.0 — — 159.0 
Finance and insurance, net79.8 — — 79.8 
Vehicle transportation services— 44.6 — 44.6 
Total revenue895.0 44.6 — 939.6 
Cost of revenue:— 
Powersports vehicles571.8 — — 571.8 
Parts, service and accessories86.5 — — 86.5 
Vehicle transportation services— 34.5 — 34.5 
Total cost of revenue658.3 34.5 — 692.8 
Gross profit236.7 10.1 — 246.8 
Compensation and related costs117.0 5.3 — 122.3 
Facilities33.8 0.1 — 33.9 
Other operating expenses(1)
54.3 0.7 — 55.0 
Depreciation and amortization— — 9.7 9.7 
Floor plan interest expense12.7 — (12.7)— 
Operating income (loss)18.9 4.0 3.0 25.9 
Floor plan interest expense12.7 
Other interest expense36.2 
Other non-operating expense (income)(0.4)
Loss before income taxes$(22.6)
(1) Other operating expenses represent general and administrative expenses, advertising, professional fees and stock-based compensation expenses. The detail for these expenses on a consolidated basis is in Note 5 and is primarily attributable to the Powersports Dealership Group.