All eligible stockholders as of the record date will have the opportunity to participate in the $100 million proposed rights offering on a pro rata basis. The special committee has not yet determined the subscription price to be paid upon exercise of the subscription rights but expects to announce the remaining terms prior to the commencement of the rights offering. Now moving to our third quarter financial results. All comparative financial results are sequential and do not include the discontinued automotive operations. October of 2022 marks the final month of what I would characterize as the COVID bump as the powersports market drastically normalized in November 2022. I believe after this quarter our comparisons will revert back to a more standard year-over-year versus sequential comparison.
Starting with the third quarter units. We sold 17,573 retail units including 10,851 new units and 5,619 used units, down 13.3% from the prior quarter due primarily to normal seasonality. Moving to revenue in the third quarter, we generated $338.1 million, which is down 11.7% or $44.6 million from the prior quarter due to normal seasonality. Total third quarter gross profit was $91.9 million, down $14.5 million from the prior quarter. Gross margin was 27.2%. Gross margin has troughed and normalized. The quarter-over-quarter reduction in gross profit dollars was driven entirely by reduced vehicle sales due to normal seasonality as all other profit centers, which include F&I, parts and accessories and service tend to flow in concert with vehicle sales.
Total powersports gross profit per unit was $5,380, up $32 from the prior quarter and in line with our 2023 guidance of 5,300 to 5,400 GPU. Turning to our Asset Light Vehicle Logistics segment. Vehicle Logistics gross profit was $3.4 million, roughly flat for the quarter. Moving down to expenses. Total third quarter SG&A expenses were $85 million down $15.4 million or 15.3% sequentially, related primarily to a reduction in compensation, professional fees in general and administrative, partially offset by increased facilities. We continue to work on reducing our facility expense through sublease initiatives. Additionally, in the month of October, we made significant headcount reductions at our corporate office. These positions were all fixed cost and will provide more flow through to the bottom line in Q4 and going forward.
Turning to inventory. We still have work to do in Q4 to completely correct some of our oldest new inventory but overall day supply for used is at 87%, which is in line with our internal benchmark as we work to improve the mix. With very few exceptions, new inventories back to pre-pandemic levels. We plan to make more room for the 2024 model year and are making progress by aggressively marketing the non-current model year product. Adjusted EBITDA was $13.2 million in the third quarter, down 44% from the second quarter of 2023, driven by normal seasonality and a lag in expense reductions made during the quarter. Adjusted net loss from continuing operations was $11.9 million and adjusted diluted earnings per share was negative $0.71. Turning to the balance sheet and cash flow.
At the end of the quarter, we had $41.4 million of unrestricted cash. At the end of Q3, we had $32.2 million of unfloored equity in our used inventory, which could be used to help fund the business. Our net debt, not inclusive of floor plan at the end of the third quarter was $311 million. This includes the principal balance of our term debt, convertible notes and finance portfolio line of credit, not inclusive of reductions for debt discount and issuance costs less unrestricted cash in the bank. By the end of the year, after the completion of the $100 million rights offering and sale of other non-core assets, net debt should be below $200 million. Now let me provide additional details on our outlook for the remainder of 2023. For the full year, we are reiterating our guidance for all metrics.
We expect our two operating segments, powersports and asset-light logistics to generate combined revenue within the range of $1.38 billion to $1.48 billion. We continue to expect to generate a full year gross profit per unit similar to Q3 of 5,300 to 5,400. We expect our full year 2023 adjusted EBITDA in the range of $55 million to $65 million. The range is somewhat broad because new management is just getting started, fully identifying business needs, and this requires time to right-size and short-term inventory issues. And with that operator, we will open it up to questions.
