LEASES
Supplemental information related to leases as of December 31 was as follows ($ in millions):
LeasesBalance Sheet Classification20252024
Assets:
Operating lease assetsROU assets$150.4 $157.1 
Finance lease assetsProperty and equipment, net42.0 43.8 
Total $192.4 $200.9 
Liabilities:
Current
OperatingAccounts payable and other current liabilities22.7 $24.3 
Non-Current
OperatingLong-term portion of operating lease liabilities 128.0 129.8 
FinanceOther long-term liabilities49.6 48.8 
Total lease liabilities$200.3 $202.9 
The weighted-average remaining lease terms and discount rates for our operating and financing leases as of December 31 for the corresponding year were as follows:
20252024
Weighted average remaining lease term (years):
Operating leases13.513.6
Finance leases37.738.7
Weighted average discount rate:
Operating leases14.2 %14.3 %
Finance leases9.0 %9.0 %
The following table provides information related to the lease costs of finance and operating leases ($ in millions):
Lease ExpenseIncome Statement Classification20252024
Operating(1)
SG&A expenses$32.2 $33.3 
Finance:
Depreciation on assetsDepreciation and amortization expense3.0 3.1 
Interest on lease liabilitiesInterest expense4.6 4.6 
Total lease costs$39.8 $41.0 
(1) Net of sublease income of $2.1 million in 2025 and $0.6 million in 2024.
The following table provides information related to the portion of operating lease assets and liabilities which are attributable to related-party operating leases (described in Note 15) at December 31 ($ in millions):
Leases20252024
Assets:
ROU assets – related party$100.6 $106.3 
All other ROU assets49.8 50.8 
Total$150.4 $157.1 
Liabilities:
Current:
Current portion of lease liabilities – related party
$14.4 $14.6 
Current portion of lease liabilities – all other leases8.3 9.7 
Total current liabilities22.7 24.3 
Non-Current:
Long-term portion of lease liabilities – related party
97.8 101.5 
Long-term portion of lease liabilities – all other leases
30.2 28.3 
Total non-current liabilities128.0 129.8 
Total operating lease liabilities$150.7 $154.1 
Supplemental cash flow information related to leases was as follows:
($ in millions)20252024
Cash payments for operating leases$30.5 $30.5 
New assets obtained in exchange for operating lease liabilities8.0 5.9 
Cash payments for finance leases3.8 3.8 
The following table summarizes the future minimum payments for leases as of December 31, 2025:
($ in millions)Operating LeasesFinance Lease
2026$28.9 $3.9 
202728.0 4.0 
202823.9 4.1 
202922.3 4.2 
203021.8 4.2 
Thereafter235.8 197.4 
Total lease payments360.7 217.8 
Less imputed interest(210.0)(168.2)
Present value of lease liabilities$150.7 $49.6 
2024 Sale-Leaseback Transaction

In December 2024, the Company entered into a sale-leaseback transaction with a related party discussed in more detail in Note 15. Under these agreements, the Company sold one of its dealership properties, including land, buildings and certain improvements, at a price of $4.0 million and then leased the assets back from a related party through the transaction. The assets sold were removed from the Company’s records, and we recognize rent expense related to the leased assets. The ROU asset and liabilities related to this lease are on our consolidated balance sheets.
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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2023Mar 28, 2024
2022Mar 16, 2023
2021Apr 8, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.