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CW

Camping World Holdings, Inc. (CWH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a top-line and adjusted EPS beat versus S&P Global consensus, driven by record combined new/used unit volume and stronger F&I; revenue was $1.81B (+4.7% YoY), adjusted EPS diluted $0.43, adjusted EBITDA $95.7M, while GAAP diluted EPS was a loss of $(0.64) due to tax valuation allowance and TRA adjustments .
  • Strength in used RVs (unit sales +32.9% YoY; revenue +31.7% YoY) offset pressure in new (ASP −8.6% YoY; revenue −7.0% YoY); total combined units rose 14.6% YoY, with same‑store combined units +15.6% .
  • Management set an initial FY2026 adjusted EBITDA “floor” around ~$310M and outlined ~$15M of incremental SG&A cost takeout and AI-enabled efficiency upside, while signaling conservative new volume assumptions given OEM price hikes (5–7%) and affordability sensitivity .
  • Near-term watch items: Q4 will lap ~$4–5M Good Sam loyalty breakage and ~$4–5M F&I actuarial benefits from last year, and management is prioritizing clean inventory exiting 2025 to support leverage reduction and potential measured M&A in 2026 .

What Went Well and What Went Wrong

What Went Well

  • Used RV momentum: unit sales +32.9% YoY to 18,694; revenue +31.7% to $589.1M; used gross margin held at 18.3% (+16 bps) .
  • F&I strength: finance & insurance net revenue $178.3M (+$12.0M YoY), contributing 100% gross margin and offsetting mix pressure from lower new ASPs .
  • Cost and leverage progress: SG&A declined $3.2M YoY; floor plan interest expense down 19.3% and other interest expense down 13.6%, reflecting lower rates and balances .
  • Quote: “Our Company delivered over 40% Adjusted EBITDA growth this quarter, driven by record breaking new and used vehicle volume” — President Matthew Wagner .

What Went Wrong

  • GAAP loss from tax items: a full valuation allowance for deferred tax assets at the public holdco and TRA liability revaluation drove $175.4M tax expense and related adjustments; GAAP diluted EPS was $(0.64) .
  • New vehicle pressure: revenue −7.0% YoY and ASP −8.6% amid OEM price increases and consumer affordability constraints; new gross margin fell 81 bps to 12.7% .
  • Products, service and other revenue declined 7.2% YoY, as labor was reallocated to used reconditioning; although margins improved to 45.2%, customer-pay service volume remained constrained by technician allocation .

Financial Results

Consolidated Performance vs Prior Quarters

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$1.414 $2.000 $1.806
Gross Margin (%)30.4% n/a28.6%
Adjusted EBITDA ($USD Millions)$31.1 $142.2 $95.7
GAAP Diluted EPS ($USD)$(0.21) n/a$(0.64)
Adjusted EPS – Diluted ($USD)$(0.16) n/a$0.43

Q3 2025 vs S&P Global Consensus

MetricConsensusActual
Revenue ($USD Billions)$1.754*$1.806
Primary EPS ($USD)$0.305*$0.43
EBITDA ($USD Millions)$93.0*$95.7

Values retrieved from S&P Global.*

Segment Revenue and Gross Profit (Q3 2025)

SegmentRevenue ($USD Millions)Gross Profit ($USD Millions)Gross Margin
New Vehicles$766.8 $97.4 12.7%
Used Vehicles$589.1 $107.9 18.3%
Products, Service & Other$208.6 $94.2 45.2%
Finance & Insurance, net$178.3 $178.3 100.0%
Good Sam Services & Plans$52.5 $29.7 56.6%
Good Sam Club$10.8 $9.6 88.4%
Total$1,806.1 $517.0 28.6%

KPIs (Q3 2025)

KPIValue
New Units20,286 (+1.7% YoY)
Used Units18,694 (+32.9% YoY)
Combined Units38,980 (+14.6% YoY)
ASP – New$37,798 (−8.6% YoY)
ASP – Used$31,512 (−0.9% YoY)
Same‑Store Units (New / Used / Total)+2.9% / +33.4% / +15.6%
Average GPU – New$4,800 (−14.1% YoY)
Average GPU – Used$5,771 (flat YoY)
F&I per Vehicle$4,574 (−6.4% YoY)
Stores197 (−10 YoY)
Cash$230.5M
New Vehicle Inventory$1,258.5M (+5.8% YoY)
Used Vehicle Inventory$595.1M (+41.4% YoY)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDAFY 2026n/aFloor “around $310M” with upside from SG&A, used, M&A, and new Initiated
SG&A Cost ReductionFY 2026Targeted 600–700 bps vs 2024 baseline (prior framework) Additional ~$15M SG&A cost takeout via marketing tech, CRMs, and agentic AI not yet embedded Raised savings
New RV OEM PricingModel Year 2026n/aOEM increases 5–7% (like-for-like); conservatively modeled to persist ~12 months New input
Q4 2025 ItemsQ4 2025n/aLapping prior year ~$4–5M Good Sam loyalty breakage and ~$4–5M F&I actuarial benefits Headwind flagged
Margins (Category view)FY 2026n/aNew GM 13–14%; Used GM 18–20% (band depends on mix/seasonality) Initiated ranges
Capital Allocation & LeverageFY 2025–2026Deleveraging underway Goal to reach ~4x or below by end 2026; measured, accretive M&A (smaller doors; $0.5–$2M EBITDA per dealership) Clarified target
DividendQ3 2025n/aDeclared $0.125/share cash dividend; paid Sep 29, 2025 Announced

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
AI/Technology InitiativesNot highlighted in Q1 PR Focus on SG&A leverage and operational efficiency Launching agentic AI and enterprise AI to drive ~$15M+ SG&A savings; efficiency and conversion gains Accelerating
Supply Chain & Used ProcurementReallocation of service labor to used reconditioning Record used purchasing; scalable supply chain Used supply chain scale underpinning growth; unit turns target ~4x Strengthening
Tariffs/Macro & AffordabilityMinimal discernable impact noted; ASPs lower; SG&A focus “Liberation Day” tariffs; affordability strategy; ASP rebound targeted OEM price increases 5–7%; conservative new outlook; affordability remains key Conservative stance
Product Performance & Contract ManufacturingN/APrivate label innovation across type codes; ASP recovery Exclusive products and innovation cited as share drivers across B/C/A; expanding segments (e.g., Super C) Expanding footprint
Lending Rates & CreditN/ADiscussed ASP and SG&A dynamicsRetail lending rates expected to decline lagged into Q1 2026; credit profile stable Constructive setup
Parts & Service (PS&O)Margin uplift post divestiture; reallocating labor to reconditioning Improved gross profit; capacity allocation balancing internal vs external work Reallocation continued; initiatives to grow parts/accessories and service via marketplaces/partners Building
Market ShareRecord combined share in Q1 >14% combined YTD; medium-term 20% goal 13.5% YTD; realistic +50–100 bps combined over next year Uptrend sustained

Management Commentary

  • “Year-to-date our Company achieved a record 13.5% market share of new and used units… We expect continued progress in 2026, driven by used vehicle unit volume, improving ASPs, and over $15 million of potential cost takeout opportunity” — Matthew Wagner .
  • “We see a consecutive year of Adjusted EBITDA growth, starting in the low $300 million range, and a plan to outperform it” — Marcus Lemonis .
  • “Our business has made tremendous strides on improving our net leverage… reducing net leverage by nearly three turns since the beginning of the year” — Marcus Lemonis .
  • “We see $15 million of additional cost takeout opportunities next year through marketing technology, the launch of two additional CRMs, and implementation of agentic AI” — Matthew Wagner .

Q&A Highlights

  • New demand and pricing: OEM price increases (5–7%) and affordability are creating resistance in new; used comps in Sep/Oct were “amongst the best,” buoying overall unit performance .
  • FY2026 building blocks: ~$310M adjusted EBITDA floor with upside from SG&A (-$15M), used (≈$6M EBITDA per +1,000 units), measured M&A (smaller doors, $0.5–$2M EBITDA/deal), and potential new segment innovation .
  • Q4 setup and lapping: Expect lapping of prior ~$4–5M Good Sam loyalty breakage and ~$4–5M F&I actuarial benefits; pushing to exit 2025 with clean inventory to reduce leverage into 2026 .
  • Margin outlook: 2026 new GM 13–14%; used GM 18–20% subject to mix and seasonal dynamics; Q3 new margin at 12.7% reflected richer mix .
  • Lending rates: Ten-year below 4% supports retail lending rate declines into early 2026; consumer credit profile stable .

Estimates Context

  • Q3 beats: Revenue ($1.81B vs $1.75B*) and “Primary EPS” ($0.43 vs $0.305*) both exceeded consensus; adjusted EBITDA outperformed consensus modestly (company-reported $95.7M vs $93.0M*), noting definitional differences in EBITDA across sources .
  • Forward consensus (directional): Q4 2025 revenue ~$1.16B* and EPS negative (−$0.48*), aligning with management’s caution on lapping one-time benefits and conservative new outlook; 1H 2026 consensus shows seasonal recovery (Q2 revenue ~$2.04B*, EPS ~$0.80*) consistent with unit seasonality .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Mix shift to used is structural and effective, providing earnings resilience against affordability and OEM price headwinds; expect continued used-led growth in unit volume and margin stability .
  • The quarter’s adjusted EPS and revenue beat were driven by unit volume and F&I expansion; GAAP loss reflects tax valuation and TRA adjustments rather than operating deterioration — important for narrative framing .
  • FY2026 framework is conservative on new but embeds identifiable upside levers (SG&A/AI, used volume, measured M&A, contract manufacturing innovation), making estimate revisions likely to drift upward as visibility improves .
  • Near-term: anticipate softer Q4 comps from lapping last year’s Good Sam/F&I tailwinds and deliberate inventory housekeeping; monitor retail lending rate transmission and OEM pricing behavior through show season .
  • Deleveraging remains a priority; expect capital allocation to balance debt paydown with small, accretive acquisitions and targeted investment in Good Sam and AI capabilities to improve ROIC .
  • Dividend continuity was affirmed with a $0.125 payment in Q3; board retains discretion, but improving leverage and cash generation support ongoing returns longer term .