diff --git a/CHANGELOG.md b/CHANGELOG.md
index caffef8..667bfcd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,7 @@
 # main [(unreleased)](https://github.com/fastruby/next_rails/compare/v1.4.4...main)
 
 - [BUGFIX: example](https://github.com/fastruby/next_rails/pull/<number>)
+- [Move rails_version compatibility to its own class](https://github.com/fastruby/next_rails/pull/137)
 
 * Your changes/patches go here.
 
diff --git a/exe/bundle_report b/exe/bundle_report
index 0708464..25bbc8a 100755
--- a/exe/bundle_report
+++ b/exe/bundle_report
@@ -67,9 +67,9 @@ at_exit do
   when "outdated" then NextRails::BundleReport.outdated(options.fetch(:format, nil))
   else
     if options[:ruby_version]
-      NextRails::BundleReport.compatibility(ruby_version: options.fetch(:ruby_version, "2.3"))
+      NextRails::BundleReport.ruby_compatibility(ruby_version: options.fetch(:ruby_version, "2.3"))
     else
-      NextRails::BundleReport.compatibility(rails_version: options.fetch(:rails_version, "5.0"), include_rails_gems: options.fetch(:include_rails_gems, false))
+      NextRails::BundleReport.rails_compatibility(rails_version: options.fetch(:rails_version, "5.0"), include_rails_gems: options.fetch(:include_rails_gems, false))
     end
   end
 end
diff --git a/lib/next_rails.rb b/lib/next_rails.rb
index 27412cf..ec8481e 100644
--- a/lib/next_rails.rb
+++ b/lib/next_rails.rb
@@ -5,6 +5,7 @@
 require "next_rails/init"
 require "next_rails/bundle_report"
 require "next_rails/bundle_report/ruby_version_compatibility"
+require "next_rails/bundle_report/rails_version_compatibility"
 require "deprecation_tracker"
 
 module NextRails
diff --git a/lib/next_rails/bundle_report.rb b/lib/next_rails/bundle_report.rb
index 771035c..76fec87 100644
--- a/lib/next_rails/bundle_report.rb
+++ b/lib/next_rails/bundle_report.rb
@@ -8,69 +8,18 @@ module NextRails
   module BundleReport
     extend self
 
-    def compatibility(rails_version: nil, ruby_version: nil, include_rails_gems: nil)
-      return puts RubyVersionCompatibility.new(options: { ruby_version: ruby_version }).generate if ruby_version
+    def ruby_compatibility(ruby_version: nil)
+      return unless ruby_version
 
-      incompatible_gems = NextRails::GemInfo.all.reject do |gem|
-        gem.compatible_with_rails?(rails_version: rails_version) || (!include_rails_gems && gem.from_rails?)
-      end.sort_by { |gem| gem.name }
-
-      incompatible_gems.each { |gem| gem.find_latest_compatible(rails_version: rails_version) }
-
-      incompatible_gems_by_state = incompatible_gems.group_by { |gem| gem.state(rails_version) }
-
-      puts erb_output(incompatible_gems_by_state, incompatible_gems, rails_version)
+      options = { ruby_version: ruby_version }
+      puts RubyVersionCompatibility.new(options: options).generate
     end
 
-    def erb_output(incompatible_gems_by_state, incompatible_gems, rails_version)
-      template = <<-ERB
-<% if incompatible_gems_by_state[:found_compatible] -%>
-<%= Rainbow("=> Incompatible with Rails #{rails_version} (with new versions that are compatible):").white.bold %>
-<%= Rainbow("These gems will need to be upgraded before upgrading to Rails #{rails_version}.").italic %>
-
-<% incompatible_gems_by_state[:found_compatible].each do |gem| -%>
-<%= gem_header(gem) %> - upgrade to <%= gem.latest_compatible_version.version %>
-<% end -%>
-
-<% end -%>
-<% if incompatible_gems_by_state[:incompatible] -%>
-<%= Rainbow("=> Incompatible with Rails #{rails_version} (with no new compatible versions):").white.bold %>
-<%= Rainbow("These gems will need to be removed or replaced before upgrading to Rails #{rails_version}.").italic %>
-
-<% incompatible_gems_by_state[:incompatible].each do |gem| -%>
-<%= gem_header(gem) %> - new version, <%= gem.latest_version.version %>, is not compatible with Rails #{rails_version}
-<% end -%>
-
-<% end -%>
-<% if incompatible_gems_by_state[:no_new_version] -%>
-<%= Rainbow("=> Incompatible with Rails #{rails_version} (with no new versions):").white.bold %>
-<%= Rainbow("These gems will need to be upgraded by us or removed before upgrading to Rails #{rails_version}.").italic %>
-<%= Rainbow("This list is likely to contain internal gems, like Cuddlefish.").italic %>
-
-<% incompatible_gems_by_state[:no_new_version].each do |gem| -%>
-<%= gem_header(gem) %> - new version not found
-<% end -%>
-
-<% end -%>
-<%= Rainbow(incompatible_gems.length.to_s).red %> gems incompatible with Rails <%= rails_version %>
-      ERB
-
-      erb_version = ERB.version
-      if erb_version =~ /erb.rb \[([\d\.]+) .*\]/
-        erb_version = $1
-      end
-
-      if Gem::Version.new(erb_version) < Gem::Version.new("2.2")
-        ERB.new(template, nil, "-").result(binding)
-      else
-        ERB.new(template, trim_mode: "-").result(binding)
-      end
-    end
+    def rails_compatibility(rails_version: nil, include_rails_gems: nil)
+      return unless rails_version
 
-    def gem_header(_gem)
-      header = Rainbow("#{_gem.name} #{_gem.version}").bold
-      header << Rainbow(" (loaded from git)").magenta if _gem.sourced_from_git?
-      header
+      options = { rails_version: rails_version, include_rails_gems: include_rails_gems }
+      puts RailsVersionCompatibility.new(options: options).generate
     end
 
     def compatible_ruby_version(rails_version)
diff --git a/lib/next_rails/bundle_report/rails_version_compatibility.rb b/lib/next_rails/bundle_report/rails_version_compatibility.rb
new file mode 100644
index 0000000..8d661ef
--- /dev/null
+++ b/lib/next_rails/bundle_report/rails_version_compatibility.rb
@@ -0,0 +1,84 @@
+class NextRails::BundleReport::RailsVersionCompatibility
+  def initialize(gems: NextRails::GemInfo.all, options: {})
+    @gems = gems
+    @options = options
+  end
+
+  def generate
+    erb_output
+  end
+
+  def incompatible_gems_by_state
+    @incompatible_gems_by_state ||= begin
+      incompatible_gems.each { |gem| gem.find_latest_compatible(rails_version: rails_version) }
+      incompatible_gems.group_by { |gem| gem.state(rails_version) }
+    end
+  end
+
+  private
+
+  def erb_output
+    template = <<-ERB
+<% if incompatible_gems_by_state[:found_compatible] -%>
+<%= Rainbow("=> Incompatible with Rails #{rails_version} (with new versions that are compatible):").white.bold %>
+<%= Rainbow("These gems will need to be upgraded before upgrading to Rails #{rails_version}.").italic %>
+
+<% incompatible_gems_by_state[:found_compatible].each do |gem| -%>
+<%= gem_header(gem) %> - upgrade to <%= gem.latest_compatible_version.version %>
+<% end -%>
+
+<% end -%>
+<% if incompatible_gems_by_state[:incompatible] -%>
+<%= Rainbow("=> Incompatible with Rails #{rails_version} (with no new compatible versions):").white.bold %>
+<%= Rainbow("These gems will need to be removed or replaced before upgrading to Rails #{rails_version}.").italic %>
+
+<% incompatible_gems_by_state[:incompatible].each do |gem| -%>
+<%= gem_header(gem) %> - new version, <%= gem.latest_version.version %>, is not compatible with Rails #{rails_version}
+<% end -%>
+
+<% end -%>
+<% if incompatible_gems_by_state[:no_new_version] -%>
+<%= Rainbow("=> Incompatible with Rails #{rails_version} (with no new versions):").white.bold %>
+<%= Rainbow("These gems will need to be upgraded by us or removed before upgrading to Rails #{rails_version}.").italic %>
+<%= Rainbow("This list is likely to contain internal gems, like Cuddlefish.").italic %>
+
+<% incompatible_gems_by_state[:no_new_version].each do |gem| -%>
+<%= gem_header(gem) %> - new version not found
+<% end -%>
+
+<% end -%>
+<%= Rainbow(incompatible_gems.length.to_s).red %> gems incompatible with Rails <%= rails_version %>
+    ERB
+
+    erb_version = ERB.version
+    if erb_version =~ /erb.rb \[([\d\.]+) .*\]/
+      erb_version = $1
+    end
+
+    if Gem::Version.new(erb_version) < Gem::Version.new("2.2")
+      ERB.new(template, nil, "-").result(binding)
+    else
+      ERB.new(template, trim_mode: "-").result(binding)
+    end
+  end
+
+  def gem_header(_gem)
+    header = Rainbow("#{_gem.name} #{_gem.version}").bold
+    header << Rainbow(" (loaded from git)").magenta if _gem.sourced_from_git?
+    header
+  end
+
+  def incompatible_gems
+    @incompatible_gems ||= @gems.reject do |gem|
+      gem.compatible_with_rails?(rails_version: rails_version) || (!include_rails_gems && gem.from_rails?)
+    end.sort_by { |gem| gem.name }
+  end
+
+  def rails_version
+    @options[:rails_version]
+  end
+
+  def include_rails_gems
+    @options[:include_rails_gems]
+  end
+end
diff --git a/spec/next_rails/bundle_report/rails_version_compatibility_spec.rb b/spec/next_rails/bundle_report/rails_version_compatibility_spec.rb
new file mode 100644
index 0000000..eda4ca4
--- /dev/null
+++ b/spec/next_rails/bundle_report/rails_version_compatibility_spec.rb
@@ -0,0 +1,40 @@
+# frozen_string_literal: true
+
+require "spec_helper"
+
+RSpec.describe NextRails::BundleReport::RailsVersionCompatibility do
+  describe "#generate" do
+    it "returns non incompatible gems" do
+      output = NextRails::BundleReport::RailsVersionCompatibility.new(options: { rails_version: 7.0 }).generate
+      expect(output).to match "gems incompatible with Rails 7.0"
+    end
+
+    it "returns incompatible with compatible versions" do
+      next_rails_version = 7.1
+      specification = Gem::Specification.new do |s|
+        s.name = "audited"
+        s.version = "5.1.0"
+        s.add_dependency "rails", ">= 5.0", "< 7.1"
+      end
+      audited = NextRails::GemInfo.new(specification)
+      gems = [audited]
+
+      allow_any_instance_of(described_class).to receive(:incompatible_gems_by_state)
+        .and_return({ found_compatible: gems })
+
+      allow(audited).to receive(:latest_compatible_version).and_return(Gem::Version.new("5.8.0"))
+
+      output =
+        NextRails::BundleReport::RailsVersionCompatibility.new(
+          gems: gems,
+          options: { rails_version: next_rails_version, include_rails_gems: false }
+        ).generate
+
+      expect(output).to include("Incompatible with Rails 7.1 (with new versions that are compatible):")
+      expect(output).to include("These gems will need to be upgraded before upgrading to Rails 7.1.")
+      expect(output).to include("- upgrade to 5.8.0")
+      expect(output).to include("gems incompatible with Rails 7.1")
+    end
+  end
+end
+
diff --git a/spec/next_rails/bundle_report/ruby_version_compatibility_spec.rb b/spec/next_rails/bundle_report/ruby_version_compatibility_spec.rb
index ff416f3..be617c9 100644
--- a/spec/next_rails/bundle_report/ruby_version_compatibility_spec.rb
+++ b/spec/next_rails/bundle_report/ruby_version_compatibility_spec.rb
@@ -1,7 +1,6 @@
 # frozen_string_literal: true
 
 require "spec_helper"
-require "next_rails/bundle_report/ruby_version_compatibility"
 
 RSpec.describe NextRails::BundleReport::RubyVersionCompatibility do
   let(:ruby_3_0_gem) do
diff --git a/spec/next_rails/bundle_report_spec.rb b/spec/next_rails/bundle_report_spec.rb
index e159a7a..6eeb17a 100644
--- a/spec/next_rails/bundle_report_spec.rb
+++ b/spec/next_rails/bundle_report_spec.rb
@@ -64,12 +64,21 @@
     end
   end
 
-  describe ".compatibility" do
-    describe "output" do
-      it "returns ERB generated output" do
-        output = NextRails::BundleReport.erb_output({}, [], 7.0)
-        expect(output).to match "gems incompatible with Rails 7.0"
+  describe ".rails_compatibility" do
+    it "returns empty output invalid rails version" do
+      output = with_captured_stdout do
+        NextRails::BundleReport.rails_compatibility(rails_version: nil)
       end
+      expect(output).to be_empty
+    end
+  end
+
+  describe ".ruby_compatibility" do
+    it "returns empty output invalid ruby version" do
+      output = with_captured_stdout do
+        NextRails::BundleReport.ruby_compatibility(ruby_version: nil)
+      end
+      expect(output).to be_empty
     end
   end
 
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index 819479b..1c55882 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -48,3 +48,12 @@
 def with_env(env_hash)
   stub_const("ENV", ENV.to_hash.merge!(env_hash))
 end
+
+def with_captured_stdout
+  old_stdout = $stdout
+  $stdout = StringIO.new
+  yield
+  $stdout.string
+ensure
+  $stdout = old_stdout
+end