Thank you for standing by. This is the conference operator, and welcome to the RumbleOn Second Quarter 2022 Earnings Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would like now to turn the conference over to Will Newell, Investor Relations Officer. Please go ahead. Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us on this conference call to discuss RumbleOn's second quarter 2022 financial results. Joining me on the call today are Marshall Chesrown, RumbleOn's Chairman and Chief Executive Officer, and Narinder Sahai, RumbleOn's Chief Financial Officer. Our Q2 results are detailed in the press release we issued this morning, and supplemental information will be available in our second quarter Form 10-Q that will be filed later today. Before we start, I'd 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 that involve 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's 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 non-GAAP financial measures, please see our earnings release issued earlier this morning. Now, I'll turn the call over to Marshall. Marshall? Thank you, Will. Good morning, everyone, and thank you for joining us today. We saw strong demand for our offering in the second quarter and delivered another quarter of profitable growth while driving gross margin expansion and robust cash generation. We are building the future of powersports by delivering an unparalleled customer experience through our unique omni-channel offering, and we continue to capture market share. It's a pleasure to be reporting another quarter of record results. During today's call, I'm going to focus on three main themes. First, we are executing on our financial and operational goals as we continue to take share in the powersports industry, led primarily by our high-quality used vehicle offering, which uniquely positions us to continue building market share against the backdrop of a challenging macroeconomic environment. Second, we are investing prudently in core areas of the business that will provide us the sustainable long-term competitive advantage and scale. Finally, we remain true to our North Star, providing customers an unparalleled choice of products and services as well as an unmatched buying, selling, and service experience both online and in our retail locations. We delivered over half a billion in quarterly revenue for the first time in RumbleOn's history, expanded our gross profit margin to over 25%, and we increased net income 54% and adjusted EBITDA 41% quarter-over-quarter. We are reiterating our full-year financial outlook of $1.9 billion-$2 billion in revenue and at least $145 million in adjusted EBITDA. We sold over 20,700 powersports units, led by over 41% growth in used retail units quarter-over-quarter, delivered more than $414 million in powersports revenue, and grew powersports gross profit to $130 million. In a quarter marked by macroeconomic uncertainty, we are executing, and we are capturing market share. Our strategic competitive advantage, our highly differentiated used powersports retail and online inventory acquisition strategy certainly drives our outperformance. Our used acquisition strategy, driven by unmatched technology, is driving incredible results. Used inventory is not subject to supply chain constraints and will continue to be an important organic growth driver for RumbleOn. Looking at the second quarter, as compared to Q4 in 2021, which was our first quarter as a combined company, we grew used retail powersports sales 86% from $66 million in Q4 to over $122 million by Q2. This is due to continuous improvements in our processes, and by leveraging the use of our unparalleled data, we nearly doubled the total sales with just a 10% increase in used inventory. Days' supply went down from 123 days to just 77 days in Q2, which is an improvement of 45 days. Further in that regard, we also improved the vehicle GPU from $1,920 in Q4 to now over $2,600 in Q2. We achieved an increase in GPU from the increased used vehicle flow in parts and service as well as F&I and merchandise. The affordability factor of used inventory is giving consumers options for ownership that didn't exist in the past, even more so in times of uncertainty in the economic backdrop. Our offering has been well-received, as evidenced by our continued growth in our used business amid tightening household budgets, higher interest rates, and discretionary spending pressures. While we are monitoring these macro headwinds closely, our consumer has proven resilient. We are not immune, but we are insulated. Our business model affords us flexibility to move rapidly in reaction to market changes. We are uniquely positioned to provide high quality, affordable funds with our depth and breadth of used inventory sourced directly from the consumer and our captive finance options. Additionally, thanks to the real-time versatility of our Cash Offer Tool, we are nimble in our ability to control inventory level and days' supply. We are presently the largest retailer of new and used powersports in the country. Our next objective is to launch a fully online, paperless and friction-free experience to transact powersports. RumbleOn's omni-channel experience will bring together the largest inventory in a no-hassle format without boundaries for the consumer and will be the next leg up of organic growth for the company. We are building RumbleOn for the future and continue to invest in our mission to deliver unparalleled value to our customers. At the beginning of the year, we laid out the strategic priorities for 2022 to invest prudently in technology, facilities, people and processes. We continue to make measurable progress in all these areas. On facilities, we are building our fulfillment center network for efficient inventory acquisition, distribution and fulfillment for new, used, parts and merchandise. We opened a fulfillment operation in Concord, North Carolina in Q2, and just opened our second location in Orlando, Florida last week. We believe a streamlined fulfillment network will be a significant advantage and plan to expand into more strategic locations as we continue to scale. Further, the majority of our stores are located in the Sunbelt region, which provides minimal seasonality in the winter months. However, we do see some seasonality softness in the hottest summer months. Q2 is typically the seasonally strongest quarter of the year, whereas Q3 is the weakest, attributable to the temperatures across the markets in July and August. As we continue to strengthen our national presence, we will continue to evaluate opportunities outside of the Sunbelt. We are making big strides designing our first-ever customer experience center in Dallas-Fort Worth market. We are creating a destination for powersports enthusiasts to interact and engage with not only the products they desire, but also the broader powersports community and with our brand. We are in the design phase now and look forward to moving into execution phase in the coming months. We expect to add this location to our fulfillment network by the end of the year and look forward to a grand opening of our largest powersports center in 2023. We believe this will be a game changer for RumbleOn and powersports enthusiasts around the country. On technology, we are testing new ways to leverage both our technology and data advantage. We continue to march towards full digital inventory integration of our retail locations via new innovative websites, integrated CRMs and centralized inventory, which is all on track for later this year. Our Cash Offer Tool, a key differentiator for us, has been rolled out in all 55 RumbleOn locations and continues to increase our capture rates. We're also building a system for improved lead management and customer assistance strategies, which will support our vision in creating a paperless, friction-free experience for customers regardless of their location or the location of what unit they might be interested in. On people and processes, we've already reaped extraordinary benefits and efficiencies from the regional management structure that we implemented in Q1, enshrining our unique culture and ensuring stable footing for our continued growth. In Q2, we expanded deeper into the organization, adding resources across critical SG&A functions. By broadening and deepening our in-house processes and core competencies, we are building a solid foundation for the future organic and acquisition growth of RumbleOn. At RumbleOn, we are never satisfied with the status quo, and we will never stand still in the pursuit of our North Star. We have worked hard to create a culture based on innovation and the constant desire to excel, and we've been heads down testing and learning countless ways we can improve the customer experience from pricing strategies, hours of operations and customer service techniques, online engagement and lead management. Through all of this, we are remaining focused on our commitment, providing customers an unparalleled choice of products and services and an unmatched buying, selling and servicing experience both in our retail locations and online. With that, I'll now pass the call over to Narinder, and then I'll rejoin you for some closing comments. Thank you, Marshall, and good morning, everyone. We entered the second quarter with strong momentum. While the macro environment has changed meaningfully since we last reported earnings in May, we have established ourselves as a market leader in new and used powersports, and we continue to see resilient consumer demand. We are focused on driving profitable growth and our exceptional second quarter results demonstrate the progress we have made, all while investing in our business. Please refer to our earnings press release and Form 10-Q to be filed later today for full details of the quarter. Unless otherwise specified, all of the second quarter growth figures cited in my remarks today are quarter-over-quarter or sequential comparisons. Moving on to some key highlights. In the second quarter, we sold 23,300 total units, up over 20% sequentially and grew total powersports unit sales by over 23.5%. Powersports unit sales were driven by a 41% increase in used retail units, offset by a decline in wholesale units as we continue to channel more used units through our retail locations. New units were up approximately 17.5% sequentially. The contribution from the Freedom Powersports acquisition, which closed on February eighteenth, 2022, was a tailwind to unit growth. Our used vehicle acquisition model enables us to have significant control over our inventory, enabling us to react quickly to changing demand environments. We delivered record revenue of over $546 million in the seasonally strong second quarter. Revenue from finance and insurance net grew 34%, and parts, service, and accessories grew over 19% from the first quarter. These revenue increases are highly correlated with retail unit sales. Total gross profit for the second quarter was approximately $138 million, up 31% from the first quarter. Total gross profit margin was 25.3%, up 239 basis points from 22.9% in the first quarter. Total SG&A expenses were approximately $100 million, or 18.3% of revenue compared to over $78 million or 17% of revenue in the first quarter. As a percentage of gross profit, SG&A improved 160 basis points sequentially. We have continued to make prudent investments in the near-term priorities we outlined at the beginning of the year. Technology, facilities, and people and processes. We are pursuing strategic technology projects focused on inventory management, infrastructure, and integration efforts, which will be a continued focus area for RumbleOn. Additionally, our SG&A reflects our marketing activity focused on used inventory acquisition, general and administrative costs focused on a larger organization, and incremental facility lease expenses. We are focused on hiring personnel in strategic positions to continue to build our world-class team. The investments we are making will provide the foundation for long-term sustainable growth as we continue to scale RumbleOn. However, we do not expect leverage from SG&A expenses this year. Within SG&A, total stock-based compensation was approximately $2.8 million, up from $1.9 million in the first quarter. As you saw in our press release, we introduced adjusted net income this quarter, which was $19.3 million, and adjusted diluted earnings per share, which was $1.20. Adjusted net income and adjusted diluted earnings per share were $31.3 million and $1.98, respectively, for the six months ended June 30, 2022. We believe that adjusted net income, which excludes charges and credits primarily related to purchase accounting, transaction costs, and other associated expenses, provides greater clarity into the earnings power of the business and enables normalized, sequential, and year-over-year comparisons. Adjusted EBITDA was over $44 million in the second quarter, up 41% over the first quarter and nearly $76 million year to date, or 7.5% of first half revenues. Year to date, we have generated $50 million in cash flow from operations. As of June 30, cash and cash equivalents, including restricted cash, was $77 million. Our total liquidity, defined as cash and cash equivalents, including restricted cash plus availability under our short-term revolving credit facilities totaled approximately $270 million. As a reminder, we have over $86 million of equity in owned used powersports inventory, which could provide additional liquidity if we choose to finance this inventory. We will continue to prioritize our investments to areas that we believe will drive the most long-term value for all of our stakeholders. Our top capital allocation priority remains to invest in our business. These investments will take both organic and inorganic forms. We are fortunate to have an incredible investment opportunity set, talent, and capital to execute on both. As I have said before, we will balance our investments with a continuing focus on profitability, margin improvement, and cash generation. We are monitoring the macro environment and industry trends closely. While we are not immune to the impact of inflation, rising interest rates, and economic uncertainty are having on consumers, it is important to understand and acknowledge two things. One, we are not currently seeing any measurable reduction in demand indicators for our powersports segment or any evidence of customers trading down. We are continuing to fulfill this demand with available new and used inventory. Second, we remain prepared and are confident in our ability to respond to any changes quickly and prudently. We have several levers that enable us to move with agility. Because we acquire used powersports inventory directly from consumers, either through our Cash Offer Tool online or trades at our retail locations. We are uniquely positioned to ensure our used inventory acquisition matches demand in near real time. Our sales data informs our used inventory in not only make, model, and price, but also our pace of used inventory acquisition. For new inventory, we are only really constrained by availability due to manufacturers' production or distribution constraints as demand continues to be quite resilient. Finally, RumbleOn Finance provides us the flexibility to offer financing solutions to our customers. Now turning to outlook. We delivered exceptional growth during the seasonally strongest second quarter and are pleased to reiterate our full year 2022 outlook for revenue in the range of $1.9 billion-$2 billion and adjusted EBITDA of at least $145 million. While there is minimal seasonality between the first half and the second half of the year, we do experience some seasonality on a quarterly basis, as Marshall noted earlier, with the second quarter being the seasonally strongest quarter of the year and the third quarter being the weakest. As such, we anticipate the third quarter revenue to decline sequentially, with the return to sequential growth in the fourth quarter. As you will recall, we gave our full year 2022 guidance in mid-March when we reported our fourth quarter earnings. At that time, due to ongoing manufacturer supply chain constraints, our full year outlook assumed new powersports units would be flat to slightly down on a year-over-year basis. However, since then, and normalized for Freedom, new powersports unit volumes have declined in the mid-single digits in the first half of this year on a year-over-year basis. Our reaffirmed outlook now assumes that new powersports units for the full year will decline in the mid-single digits on a year-over-year basis. Consistent with our prior expectations, which remains unchanged, we anticipate growth in the used retail powersports units to be in excess of 50% year-over-year, offsetting the year-over-year decline in the new powersports units for the year. For used powersports, we will continue to align our supply with demand, adjusting used inventory levels and channeling this inventory through our retail locations. We believe that used powersports represent a significant opportunity for RumbleOn to gain market share. For non-powersports segments, we now expect revenue from these segments in the second half of the year to be approximately consistent with the first half. The progress we are making with the integration of RideNow and Freedom acquisitions, as well as accelerating the used powersports units to our omni-channel platform are important performance levers while we make prudent investments in our business. As a reminder, our adjusted EBITDA outlook includes up to $20 million of incremental operating and capital investments in key strategic areas we previously discussed. RumbleOn has a durable business model with unique advantages enabling us to continue to deliver revenue growth and profitability with strong unit economics and robust cash generation. I will now pass the call back to Marshall for closing remarks before we open the call for questions. Thanks, Narinder. I wanna close by saying the progress we've made to this point wouldn't be possible without the incredible hard work and dedication of our team. They're working tirelessly to provide a personalized, multi-touch, and seamless omni-channel customer experience. We will stay focused on pursuing initiatives to deliver unparalleled value for our customers and capture market share, including the investments we are making to transform the customer experience, enhance our technology stack, and further develop and improve our people and processes. Operator, we're ready for questions. Thank you. We will now begin the Q&A session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Eric Wold with B. Riley Securities. Please go ahead. Thanks. Good morning, and thanks, Marshall and Narinder, for taking my questions. A few questions. I guess one, I just wanna dive in a little bit more on the comments around seasonality that you've been focused on in your opening comments. Anything different in these trends from what you've seen in prior years that may be exacerbated by, you know, recent weather, regional economic changes, anything like that, or this is just really kinda normal course for you? And then just how large of a seasonal decline is it we could see in Q3 versus Q2? Well, thanks, Eric. Good question, and happy to expand on it. As we've talked about in the past and numbers that we have reported, on a pro forma basis, it was pretty clear that pre-COVID and through COVID that, for instance, the RideNow Group was about 51% in the first half and 49% in the second half. You know, typically, not the swing that you would expect, and I think what drives that is a couple of things, and I'll get a little bit more detail in just a second. If we look at it overall, you know, RumbleOn originally was buying from, you know, all over the country and redistributed into the dealer channel. The dealer channel has nationwide significant seasonality, primarily, you know, weather driven obviously. Because of our focus with 52 of our 55 locations in the Sun Belt, we almost have a reverse effect. As we drilled into the numbers and met with the management teams that have been doing this for a long, long time, it was very clear, and pretty surprising really for me, to see that the down months were really July and August. If you think about it, where our locations are, you know, heavily saturated in Arizona. Arizona, we do primarily off-road. It's by far the majority of our business. The areas in which they utilize those vehicles aren't even open this time of year because of the heat. In Dallas, Texas, we haven't had a day under 100, I don't think, since May. If you're a motorcycle rider or an ATVer, it really isn't a very comfortable opportunity. Even at the point of personal watercraft, it's too hot. Our next market would be Florida, and of course the same things exist. We aren't expecting a significant amount of seasonality presently. Again, if you look at our previous recorded numbers, it shows more seasonality, but again, that was because we were feeding it all into the dealer channel, and the dealer channel as a whole does have a fairly significant seasonality. Hopefully that explains it a little better. No, that is helpful. Thank you. And then, Narinder, when you're talking about the outlook and the updated or the kind of reaffirmed guidance, you said you're not seeing any measurable, you know, evidence of declines in demand for powersports vehicles or any kind of evidence of consumers trading down. You know, I mean, I know you're also not immune, as you talked about. Is anything on the margin at all that would get you concerned about, you know, any parts of the business, whether, you know, you're seeing regional changes in demand, specific price points, you know, seeing more pressure, credit availability, anything that would give you a sense, or is it truly just demand still remaining robust across the board? Yeah. It's really nothing, you know, in any of those things you mentioned. I think it's really if you look at, you know, look at the units, and if you look at it from a new powersports standpoint, I think that's where we think from a volume standpoint, you know, it's gonna be, you know, for the full year, going to be down in the mid-single digits%. You know, on the used side, obviously, you know, we continue to, you know, source that inventory from our consumers directly, not seeing any, you know, measurable change there. When we think about it, you know, flow through on the sales side, again, not really any measurable change where people are looking for new and then, you know, they're trading down to say used because they can't afford it anymore. Don't see that either. It's been really fairly consistent, you know, except the seasonality factor that Marshall mentioned. Nothing really of note there, Eric. Yeah. Eric, I would add to that. I don't see any pressures, surprisingly, but I think what happens a lot of times because there isn't another public comp out there on the powersports side, we kinda get thrown in with the automotive group. The automotive group, keep in mind, has a significantly higher price point. Thus, the difference in average selling price, ASP, actually causes, you know, some of that constraint, if you will, on the customer's ability to buy. We are not dependent, as you can see from our gross margin makeup, we are not solely dependent on finance. Although we do extremely well in finance and we see that continuing to improve, and we feel we can continue that march, we certainly feel the same on pre-owned. As the data gets better and better, our customer experience continues to improve. We are clearly seeing we can improve margins in that regard. Then the last piece on that is with regards to the other things that, like, increase in used volume does for the business, if you look at the growth in our parts, service, and merchandise as an example, obviously, with less new vehicles being sold because of lack of availability. By the way, on the availability side, primarily driven by Harley-Davidson, we have a significant downturn in availability in that regard. We are starting to see some relief in some of the others, whether that be some of the bigger players, whether it be Polaris or BRP or others. We do see some light at the end of that tunnel. With that, you know, obviously, with less new vehicle sales that do get a lot of additional items added to them, which affects your parts and service, we're more than making that up on the used side because of reconditioning, the ability to, you know, put parts on vehicles and certainly the after-sale opportunity. Because a lot of our buyers today is, on the used side, are first-time buyers. I think that is such a huge message for the industry because this, from my perspective and management's perspective, we really feel that's been the missing link. This has been an industry that hasn't spent a lot of time on the future, riders. I think that this affordability factor of pre-owned is really changing that dynamic. I think we'll actually see our total addressable market grow over time. That's fantastic. Final question, if I may. You kinda hit on it a little at the end, Marshall, around new vehicle availability and Harley being the main issue. I guess how constrained were you on new vehicles? Obviously, up nicely sequentially from where it was in Q1. Any sense of just how much you were constrained? And then I know, Narinder, you said that people aren't trading to used because of affordability, but are you seeing people go to used because they can't get the new they want and just wanna get a vehicle now? Or are they going to kind of leverage your used vehicle platform for that, or are they waiting for new? Yeah. I think, you know, the new vehicle buyer remains the new vehicle buyer. I think a lot of people are sitting on the sidelines. I think we have an unmeasured amount of pent-up demand that we haven't been able to fulfill. I mean, all the fast-moving product, all the high gross margin product that is in high demand is virtually unavailable. I mean, I had a request yesterday from a longtime friend for four personal watercraft, and out of 55 stores, we did not have a single unit in stock to sell him and nothing inbound in 2022. We have to now convert him to a 2023 buyer. I think that's just one example, but I think that's pretty widespread. Another thing about this particular issue is the cost increases. The cost increases from the manufacturers have been fairly minimal, but again, because our ASP is at where it is, it really isn't visible to the customer, and the effect is so small with regards to payments. Really that's what it comes down to, right? Is how much am I comfortable spending on my toys on a monthly basis, and are we able to fill that need? Awesome. Thank you both. Thanks, Eric. The next question comes from Michael Baker with D.A. Davidson. Please go ahead. Hi. Thanks. I actually wanted to follow up on that inventory question, both new and used. That story you just told Marshall sounds like it's still very tight in the new vehicle inventory area. Then you had said that besides Hog, it's getting better, and we're hearing that from other channel checks. Could you just clarify that, you know, if there's 0 available in personal watercraft, how is that getting better? Then on the used inventory side, you know, with you're not seeing any economic concerns in terms of demand, but is it easier to acquire inventory because, you know, people are clearing out their garage and, you know, trying to sell stuff to make a little bit of money? Thanks. Well, I'll start with the used. Obviously, the finding of the used inventory has really become a situation where the brand is very, very well known now and synonymous with creating cash liquidity for consumers. Our ability to acquire the inventory has been extremely consistent. We continue to ramp that opportunity. As said before, the majority of our marketing spend, which is, you know, as a percent of whether you look at it as a percent of gross margin or you look at it on a per unit basis, is, you know, extremely low from our perspective. It is generating a significant interest. As far as additional interest in vehicles being offered for sale because of the economy, we have not seen it demonstrated in the capture rates. Again, a lot of what we're seeing, I think, is a little bit masked just because of execution on the pre-owned side and, quite honestly, the lack of competition has really, you know, the traffic in the showroom floor, as example, or the traffic I've talked about on our websites, we have just not seen any downturn in that regard. Again, the question is how much pent-up demand do we really have? On the inventory you asked about, you know, we are seeing an increase. I used an example of probably a, you know, low production product, be it personal watercraft. If you look in our mainstream stuff, right, like off-road in Phoenix, Arizona, it's just turning as fast as it hits the floor. If you look at our inventory, say on ridenow.com, you'll see that new inventory continues to shrink, but our turn is significantly higher. On the used side, you know, the thing that I tried to explain in my remarks is that, you know, we have more than doubled the sales over the last six months. We're ending with only 10% more inventory at the end of the month. That's really strategically done. You know, we think that 90 days of inventory in powersports is a very reasonable number. We don't have the depreciation factors that they have in the automobile business. You know, my history was probably about 2% a month on the pre-owned side. The industry on the pre-owned used has not fluctuated like it has in automotive, and it certainly hasn't been under any pressure that we've seen. Though really the last three years, we did not see the normal downturn in valuations of pre-owned inventory in fourth quarter, and we're not anticipating it this year either. We watch the auctions. We don't buy at auction. We sell non-retail units through auction. But we're watching the auction values, and they continue to be extremely robust on the powersports. Okay. Thanks for that color. If I could ask one more question. Any color you're willing to provide in terms of different types of vehicles, you know, motorcycles versus personal watercraft or ATVs, et cetera, and also any color by brand in terms of where you're seeing better or worse trends? Well, on the new, literally, like we're just, you know, we're selling whatever they send us, so we don't get too caught up in what we're seeing on the trend side. As you know, as we've shared before, our business remains, as a company, over 50% off-road, and about 40% of that, and I'm talking about new, ends up being on-road, and about 10% is personal watercraft. With that said, that is not the mix on our pre-owned side, and that's primarily because of the inventory that's available has a heavy lean towards Harley-Davidson, and on-road vehicles is significantly more than 40% on the pre-owned side. If you think about the type of vehicle when people are using them off-road, just to put it simply, they beat the hell out of them. It's a little bit harder to acquire those in volume. We're working on several different initiatives and tests to try to improve that and increase it, and we have been able to make fairly large improvements. Then the last thing on that that drives that used mix being heavy to Harley-Davidson, which is fine. We do very, very well with Harley-Davidson with really great margins. One thing that drives that is Harley has a much higher percentage of people that have debt on that, on those vehicles. Many of the non-Harley branded vehicles, because of price point, are free and clear title. The demand is, you know, when we expect the Harley-Davidson demand to continue to be robust, because there are people now that need to sell their toy and get out from under that $500 a month payment. Sure. Yeah. Makes sense. Okay. I appreciate the caller. Thank you. You bet. Thanks, Mike. The next question comes from Craig Kennison with Baird. Please go ahead. Hey, good morning. Thanks for taking my questions as well. I think, Marshall, you mentioned that, prices, used prices remain robust. I'm just wondering what the impact on affordability is, especially in a period of rising interest rates as well. We just, we have not seen the effect, as we've said, and obviously you can see that demonstrated in the numbers. You know, we talk about seasonality, but you know, we continue to see growth and a march forward through current, as current as now. I think that you know, interest rates at some point obviously will have an impact on those vehicles that are financed. The finance penetration on used is not equal to the finance penetration on new. Again, it's because of ASP. When you know, you're selling a $5,000 or $6,000 asset, it has a high likelihood of being a cash transaction. This is, you know, it really has different dynamics. We've never been under pressure on the interest rates side. As I mentioned earlier, you know, our business model is just not dependent on financing. I think that some of the messiness you're seeing in the used car business right now really revolves around models that are dependent on gross margin from financing activities. As those interest rates go up, those models become really challenging. You might have seen it, we haven't talked about used, I mean, cars much, but I wanna touch on it just real quick since you brought up pricing. Obviously, we sell a lot of used. Keep in mind, our used is purely wholesale distribution. We sell to dealers, so we have absolutely zero reliance on consumer financing as part of our strategy and as part of our margin makeup. With that, you know, we made a very conscious decision, as you can see from our numbers, to not chase volume to chase profitability, and we will continue to do that. It is a very, very messy world out there right now in the used car business, but it is 180 degrees from what we're seeing in the powersports business. Thanks for that. Another question, difficult to ask. I'm trying to figure out, you know, as you make acquisitions and enter new markets, there's an opportunity for you to be discovered by people who might be selling their units. Just shed any light that you can on how when you bought like Freedom, for example, how do you encourage, I guess, discovery about, you know, the RumbleOn platform as a place to sell your vehicles and sell consumer vehicles and is there any metric you can share that just shows how that adoption curve evolves in time? Well, we haven't shared any metrics, but what I will share with you is some concepts. Keep in mind, all of our websites are being completely rebuilt internally, and we plan to launch that per our previous conversations. Right now, we use third-party providers. They are very old school from our perception websites. They are not omni-channel, you know, functional. One thing we have done is we've added the RumbleOn Cash Offer Tool for trade evaluation on the majority of our websites, even using third-party. That's really been a huge mover of our ability to acquire. More importantly, I think what it has done for the stores is when the customer comes into the showroom floor now, much like a CarMax transaction, he feels like he's somewhat armed, right? He knows, you know, in some of our stores, we're testing some different pricing strategies as well. With regards to the trade, he walks in with a fixed price on his trade, and that's one piece that he doesn't have to feel he has to negotiate. We just think that giving the people the opportunity online to get pre-approved, which we now have executed on, is proving very, very successful. The fact that they can get a fair trade value on their vehicle before they come to the showroom floor. These are the beginnings of building a true omni-channel transaction. Once we have the infrastructure of centralized inventory control, and you know, integrated CRMs and integrated common websites, you will see a significant change, and that will launch the first opportunity for us to be the only one. Today, no transactions in this industry are transacted 100% online. There is no way to buy online. If you live in South Dakota and you see an asset in Ocala, Florida, there is no dealer facilitating that today. RumbleOn already has the technology to do the full transaction, because we were doing them before, obviously. Now what we have to have is we have to have all the infrastructure underneath that, such as websites and CRM and so forth, so that we can standardize that process. That we see as a very exciting future opportunity to be another big leg up in organic growth. You touched on acquisitions. I'll just cover real quick. Obviously, second quarter was a quiet quarter. That was intentional. Our phone continues to ring off the hook. We are in discussions with many dealers. I would tell you that we continue to be extremely excited because we think that these are gonna be very accretive to our business model, number one. Number two, even these really well-run stores that we are having the opportunity to acquire aren't in the used bike business. We already know what we can do by adding additional inventory into an existing store that is not in that business, and what that will do to drive the business. We think the acquisitions, we'll continue to make them. We're probably more disciplined and prudent with the current economic situation and making sure that we're making great moves. Narinder has got his both hands around the purse strings, so I have to negotiate diligently to release those. That's great. Thanks so much, Marshall. You bet. As a reminder, if you wish to ask a question, please press star then one. The next question comes from Seth Basham with Wedbush Securities. Please go ahead. Yeah. Hi, this is Nathan Friedman on for Seth Basham. Thanks for taking my questions. You experienced another strong sequential gross margin improvement this quarter. It doesn't seem to be one time in nature, which is nice to see. Just curious if you could share your expectations for gross margins and GPUs for the back half of the year and any key drivers that may cause a significant change in a given quarter, one versus the other. Thanks. Let's start with new. I think if new continues to be constrained as we presently see, and the mix of the inventory that we are given from the OEMs does not change dramatically, we really don't see anything that's gonna pressure that. We continue to see increases in finance, in insurance, and we anticipate that going forward. With regards to pre-owned, you know, Nate, we have a lot of enthusiasm around what we think we can do over time. We're gonna march, you know, diligently, but once we have complete control over the inventory being centralized and have control over the pricing, we really think there's a huge opportunity there. If we look at the difference of GPU on a per store basis, it's all over the board, and a lot of that is because data and technology is not driving that pricing strategy, and that's what will happen going forward. We think we can continue to march all departments. I think the one that probably gets left out. When we looked at acquiring, you know, or getting into the retail channel through the acquisition of RideNow, I think the one opportunity that I missed was with regards to service. These service departments are overwhelmed. The level of customer service is extremely poor in my estimation. We just think the fulfillment of getting that used vehicle processing, the bolting together of new vehicles that come in in a box, all those types of functions outside of these dealerships and allow these dealerships to concentrate on better customer service that is very high margin, right? You know, which you can see from our numbers. We think there's a tremendous amount of opportunity in service as well. We would expect that even if new GPU stays flat, we think we can continue to march those gross profits. With regard back to the service one, though, just as a you know flag, we don't intend to build the percentage of gross profit in that. We intend to do significantly more work. You know, the example is we have a lot of stores that, in our estimation, are capable of doing twice as much service work. With 80% gross margins, if we can do twice as much work and by paying technicians more, only realize, and I'm not suggesting this is the number, but we only realize 70% growth. I would much rather have 70% growth on twice as much business than 80% on half as much. Just tons of opportunity on the GPU side. Give us time. Let us get some of this, organization done. Let us continue to work on the, customer experience that just has a wealth of opportunity. That should be reflected in GPU, at least in my experience, it always has been in other businesses. Yeah. Just to, Nate, add a couple of points to that. I think two areas, you know, continue to be focused. I think maintaining the discipline on pricing on the used side of the business. I mean, that's where we will continue to focus, you know, continue to look at the data, continue to drive that. As Marshall mentioned, the second thing I think we definitely have opportunity on is on the service side of the house. You know, that's where we are focused as well. I mean, I wouldn't model anything significantly different than what you have seen in the first half of the year versus the back half of the year. You know, there is some small seasonality like we talked about, but nothing really noticeable from a margin standpoint that we can see. Got it. Thank you for the color there. Wanted to just shift over to cash flow. Seems like you're operating in a period with still elevated demand for your business. How should we be thinking about free cash flow? Do you view that this is the right run rate moving forward as the business environment starts to normalize and maybe pent-up demand comes down? Any puts and takes there would be appreciated. Yeah. Nate, we haven't given, you know, specifically, we haven't put a free cash flow number out there or haven't talked about how we think about free cash flow. If you look at, you know, two main components of that, one is, you know, cash from operations, and the other is, you know, what we are doing and how we are investing that cash. If you look at cash from operations, I think you will probably see some, you know, gyrations quarter-over-quarter, and that's, you know, going to be primarily driven by how we see the volumes coming in and how we see the seasonality kind of flowing through the numbers. I wouldn't expect a significant change in the key drivers in the cash flow from operations. You know, we continue to monitor inventory, so I wouldn't, you know, model anything significantly, you know, different there. You know, obviously, we look at all components of working capital, you know, receivables and payables and all those things that, you know, make up the cash from operations. We'll continue to drive, you know, GAAP profitability, continue to make sure, you know, we are, you know, seeing the flow through of that down to the net income line. So I think, you know, if you look at that, you know, I would just look at how you are thinking about the volumes and how you're thinking about, you know, the key components, as far as the working capital goes. As far as the investment side of the house goes, I think the first half of the year should give you a fairly good indication on where we are focused. You know, they will be continuing investments on the technology side. You know, for the first six months, you see about $2.5 million we spent on technology. There's some more coming for the back half of the year. There's definitely some investments in our property and facilities that we will do, and that's all, you know, included in our guide for the full year. If you think, you know, in those discrete pieces about, you know, that impact free cash flow, that should get you to a pretty good spot. Got it. Thank you for that. One more, if I could sneak it in. It seems like it's still in its early stages, but can you share the latest regarding your RumbleOn Finance platform and any key metrics at this point in time that we should be considering? Go ahead. Yeah. RumbleOn Finance, you know, obviously is a key differentiator for us. That business is fairly small today. We continue to scale that business. Nothing we have shared, you know, publicly on those in terms of the metrics. What I would say is that business, you know, continues to show consistent, you know, growth, you know, month-over-month and week-over-week, continue to maintain the key metrics that, you know, we follow in that business. So I wouldn't, you know, point out anything to you there that you should be modeling in for 2022. I would just add to that as well, you know, kind of repeat what we've talked about before. The ability to have RumbleOn Finance is really to backstop any opportunities that are not available to our captives. We still, we're the largest consumer retail contract provider for Harley-Davidson Financial Services, as we use Polaris Financial Services and Yamaha Financial Services and all the others. How our system works is you know, we aren't building our platform based on our success in our third party finance, in our captive finance. This is really about being there to provide financing when it doesn't fit the current portfolio makeup for the captives. That really becomes important on the used side because, you know, that isn't something that they have really ever been focused on nor have they needed to be. That's one thing. The second thing is there's a lot of other opportunities. For instance, you know, some of these off-road vehicles end up getting thousands and thousands of dollars of parts and accessories bolted to them at the time of sale. The traditional finance companies really don't dabble in that. It requires a significantly higher down payment. We're able to step in on those kinds of situations as well. It's really about just being a backstop where we see opportunities. The success of the portfolio and the growth of the portfolio is on track of where we anticipated to be. The last thing I would say in that regard is I think we have a management team that runs that company out of Nevada for us that are as seasoned as it gets. As I like to say, they've already seen the movie several times. We're very comfortable with the position there. As you know, we don't take on a lot of risk on our balance sheet. That's where we're gonna stay with the finance program, at least through 2022, and maybe we'll talk about other opportunities as we go forward. Understood. Thanks so much for the time. Congrats on a nice quarter and best of luck. Thank you so much. The next question comes from Rommel Dionisio with Aegis Capital. Please go ahead. Good morning. Thanks. I wonder if you could just, without asking for specific transactions, obviously, just maybe characterize the acquisition pipeline that you see today. A lot of moving parts with interest rates, oil prices, inflation, all the rest. I wonder if you could just give us a feel for what you're seeing in terms of multiples opportunities. Are they still present for you as you look to, you know, perhaps expand geographically here in the U.S. through acquisition? Thanks. You know, our Cash Offer Tool continues to grow daily, weekly, monthly, so forth. Our capture rates through this economic period here have really not changed. You know, we typically are ± a half a percent in our capture rate. So it's really about driving more into the funnel. We continue to see more and more repeat visitors, and our capture rate on repeat visitors is extremely higher than the first time. What drives some of that, Rommel, is the guy, you know, puts it in and he gets a $10,000 offer, he thinks it's way too low. He goes and sees a dealer, and the dealer either doesn't want the trade, because he isn't able to from a capital perspective or whatever, or he hits him at 50 cents on the dollar. We see a higher number as we continue to build that, on the repeat business. We measure our cash offers on unique VINs, and you know, we don't believe there's any better pre-owned data out there to drive that. You know, we are expecting, if it continues, that we'll see a little bit of more opportunity in the higher cost units, primarily because if people need to sell them to you know, get out from under the debt, we'll be there to back that up. Last thing on Cash Offer Tool. Keep in mind, this is all real-time data. If there are fluctuations both up and down, whether that be seasonality driven, whether it be economically driven, our system is capturing that real time and making adjustments. As long as we manage our days' supply and we have very little risk on the depreciation side, you know, we're gonna continue to press hard to continue to add to these stores. We still have several of the Freedom stores as an example, that we haven't even hardly started with supplying because the RideNow guys, which came in first, are turning it so fast, we're having to feed those mouths first. Great. That's very helpful. Thanks, Marshall. You bet. This concludes the Q&A session. I would like now to turn the conference back over to Marshall Chesrown, CEO, for any closing remarks. Yeah, we're basically out of time, so I'll just thank everybody for joining us again. As you know, we're all very accessible, so feel free to reach out to Will or any of us, and we're happy to dive more into our business. But thanks everybody for all your support and we look forward to some great calls in the quarter, in the future. Have a great day and we'll look forward to seeing many of you on the roadshow here in the next few weeks. Thank you. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.