Estimated incremental revenue & profit
Massimo Motor’s press release says the 100‑plus new dealer locations will be the “first wave” of a broader national rollout. In the most recent quarter (Q2 2025) the company reported $420 million of net sales generated by roughly 850 active dealers, which works out to an average of ≈ $0.49 million in revenue per dealer per quarter (≈ $1.96 million per dealer on an annual basis). If the new 100 + dealers perform at the same historical per‑dealer level, the incremental top‑line contribution would be:
- Annual revenue: 100 × $1.96 M ≈ $196 million (≈ $49 million per quarter).
- Profit: Massimo Motor’s FY 2025 net‑margin was about 7 % (net income ≈ $30 million on $420 million sales). Applying the same margin to the new‑dealer sales yields an annual incremental profit of ≈ $13–$14 million (≈ $3.5 million per quarter).
Trading implications
The $200 million‑plus revenue boost represents roughly a 4–5 % lift to the company’s FY 2025 sales base and a comparable upside to earnings, which is sizable enough to move the stock on the news. The market has already priced in the expansion’s strategic value (the stock is trading near its 52‑week high, with the 20‑day SMA still above the price), but the incremental earnings are not yet fully reflected. A modest pull‑back on the next session—say a 2–3 % dip on volume‑light days—could present a buying opportunity with upside potential of 8–10 % if the new‑dealer rollout proceeds on schedule and the quarterly updates confirm the per‑dealer sales assumptions. Keep an eye on the upcoming earnings call for any forward‑looking guidance on the “next wave” of locations, as a higher per‑dealer average (e.g., through cross‑selling or regional marketing) would further amplify the upside.