Greetings, and welcome to the RumbleOn, Inc.'s First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Elliot Wagner, Vice President of Finance. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us on this conference call to discuss RumbleOn's first quarter 2025 financial results. Joining me on the call today is Michael Quartieri, RumbleOn's Chief Executive Officer. Our Q1 results are detailed in the press release we issued this morning and supplemental information will be available in our Form 10-Q once filed. Before we start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to, RumbleOn's market opportunities and future financial results and involves risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in RumbleOn periodic and other SEC filings. The forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and RumbleOn assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please see our earnings release issued earlier this morning. Now I'll turn the call over to Michael Quartieri, RumbleOn's CEO. Mike?

Good morning, everyone, and thank you for joining us for RumbleOn's first quarter 2025 earnings call. The first quarter of 2025 has been a period of rapid change and opportunity for our business. Although we continue to experience year-over-year volume declines amidst a difficult backdrop for consumers, I am pleased with our team's progress on our turnaround and my confidence in our path forward is growing every day as our most recent financial and strategic initiatives are beginning to take hold. Now that I've become fully immersed in the organization, it's a good time to highlight what I believe drives the core of success in any company, the people who collectively buy in to make the long-term vision attainable. It is critical for our executive team to set the tone and create an environment where our team moves forward with confidence, urgency and a sense of purpose that starts from the top and emanates down through all levels of our organization. It is important to emphasize this mindset is not only relevant to today's dynamic operating environment but also over the longer term as we drive to create the future state of the business and ensure consistent success. As CEO, it is my job to ensure everyone within our organization is on board, and operates with a team-based winning mindset. I'm focused on driving positive change into the organization that will position the company for long-term success. At the core of this, is putting the right leaders, in the right places and filling out missing skill set gaps within our employee base where they exist. When you establish and empower leaders that align with your winning mindset, the rest falls in place as their team members below them buy into the vision. To that end, I'm incredibly excited to announce…

[Operator Instructions] Your first question is from Eric Wold from Texas Capital Securities. Your line is now open.

Thank you. Good morning. . I appreciate taking my questions. So obviously, you're seeing some stronger demand on the preowned vehicle side. I guess with that and with the expectation that may continue this environment, how aggressive do you want to be with the Cash Offer tool in bringing in additional preowned inventory as opposed to new vehicles from the OEM partners? And how would you characterize your pre-owned inventory levels right now versus where you feel would be appropriate for this environment?

Yes. So let me start with the Cash Offer tool then get to where the inventory levels are. So -- we can be as aggressive as we want to be with the Cash Offer tool, but it only makes sense when the inventory is right, and we can know we can make the right profit and move that product pretty quickly. So it's really more of a function of the quality of the inventory that's put in front of us. But we have no restriction in our own operating environment on being able to utilize that tool effectively to get the right levels of inventory. Where we stand today with our inventory, we're feeling good. Obviously, when you look at a year ago, we were well over our inventory levels, both from a new and used perspective. That's what project Diet was, that was implemented by the prior management team that reduced those inventory levels throughout the year. So I think we'd always be looking for the best inventory possible on the Cash Offer tool, and we'll take advantage of that accordingly.

Got it. And then just second question. As you look at our inventories now, obviously, inventories, you went up a little bit, I think, which is normal for this time of year into the spring/summer period. Where would you expect inventories at year-end to look like? Would you expect them to be down year-over-year in the environment we're currently in, assuming the trends don't improve materially? Or do you think they may actually increase from here -- well, from year end -- from year-end?

Yes. Look, I would think by the time we get to the end of the year, we should be right about where we ended up 2024, maybe a little bit higher than that, just given normal inflationary factors that takes place throughout the course of the year.

Perfect. Thank you.

Thank you. [Operator Instructions] Our next question is from Craig Kennison from Baird. Your line is open.

Hi, good morning. Thanks for taking my question. I'm curious with this tariff environment, what's the general message you get from your OEM partners? And how do they expect to help you navigate what it looks like a very difficult environment on tariffs?

Yes. I think we break it down from an OEM perspective, look, the majority of our exposure from our top OEMs is going to come from Mexico, Canada and Japan. China right now is not a significant risk to us when it comes to finished product. But we all know that a lot of our other OEMs that are producing from Canada, Mexico and Japan, there's always the opportunity that they're using China component parts to finish their manufacturing in those areas. So there's a little bit of exposure there. But given the current state of the consumer, I think, for the most part, OEMs are absorbing that cost of the tariff at this point in time. But again, it's still early in the process. I think we would be all expecting -- I'm hoping in the next 45 days that a lot of this noise is cleaned up. Deals are signed and everybody is back to a normal operating environment. But I think where it stands right now, we're not seeing any real impact from the OEM perspective on tariffs.

And it doesn't sound like consumers have to fear a big price increase given what you just said about OEMs may be absorbing some of that price. But has there been any evidence of a pull forward in demand as consumers say better to buy now?

Look, I think I'll go -- if I look at Q1 results, new units being down 20-plus percent, doesn't feel like there's a whole lot of pull forward that's taking place, where we've seen a bit of, I'd say, better performance, meaning less down year-over-year on the used side doesn't yield into the mantra of consumers are returning in groves because they're trying to pull forward demand from potential increases in tariffs. I think when it comes to power sports, the increase in the price as a result of the tariff pretty much gets spread out over a number of different products. So it's not like I say, a new car where a 25% tariff on an $80,000 car is a meaningful price increase. I don't see it that case being in the powersports groups.

Great. Thank you.

Thank you. Ladies and gentlemen, that concludes the question-and-answer session for today. The conference has now ended. Thank you all for joining. You may all disconnect your lines.