Lazydays Holdings, Inc. (GORV)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 showed clear operational improvement despite lower volumes: revenue was $165.8M, gross profit rose to $43.8M, and total gross margin expanded to 26.4% vs. 14.0% in Q1 2024, with loss from operations narrowing to $(2.3)M and net loss to $(9.5)M .
• Management executed the turnaround plan by completing the sale of five dealerships and deleveraging by approximately $145M (floor plan, mortgage, revolver), with SG&A down meaningfully and margin gains across product lines; excluding impairment, operating income would have been ~$0.6M .
• Mix and pricing improved: new vehicle ASP increased to $85.3K; average gross profit per unit rose to $9.5K for new and $10.8K for pre-owned; F&I per unit remained strong at $5.2K with ~70% finance penetration .
• No formal numeric guidance was provided; narrative points to continued SG&A reduction and footprint optimization, plus monitoring potential tariff impacts on demand; management’s tone was constructive and focused on execution .
• Stock-relevant catalysts: visible margin recovery, deleveraging progress, and footprint streamlining (including LOI to sell three additional stores), which may support estimate revisions and narrative shift toward stabilization and profitability .

What Went Well and What Went Wrong

What Went Well

• Broad margin expansion: “gross profit margins were up across all product lines,” driving gross profit to $43.8M and total margin to 26.4% despite lower sales volume .
• Deleveraging and footprint optimization: completed sale of five dealerships and repaid ~$145M in debt; management emphasized ongoing actions to refine the footprint and reduce SG&A .
• Unit economics and F&I resilience: average gross profit per unit improved sharply (new $9.5K; pre-owned $10.8K) and F&I per unit held above $5K with ~70% finance penetration, supporting profitability per unit .

What Went Wrong

• Top-line compression: revenue fell to $165.8M from $270.1M in Q1 2024 (-39%), with new units down 36% and pre-owned units down 48%, reflecting divestitures and prior-year discounting .
• Continued losses and non-cash charges: net loss was $(9.5)M with $(2.9)M impairment and $(4.6)M floor plan interest; adjusted EBITDA remained negative at $(4.0)M (improved YoY) .
• Macro/tariffs uncertainty: management observed some demand softness tied to tariffs and broader macro headwinds; while optimistic on relief, risks remain to unit volume trajectory .

Financial Results

Headline P&L (YoY and Sequential)

Note: Management stated Q1 gross margin excluding LIFO was ~24% vs. the press release table’s 23.5%, a minor discrepancy likely due to rounding/presentation differences .

Revenue Breakdown by Category

KPIs and Unit Economics

Guidance Changes

No formal numeric guidance was issued. Management reiterated focus areas and transaction timelines; entries below reflect qualitative updates.

Earnings Call Themes & Trends

Management Commentary

• “Gross profit margins were up across all product lines, leading to a notable increase in gross profit despite a lower volume of sales.” – Ron Fleming, Interim CEO .
• “Our new unit sales were up 18% in the first quarter versus the fourth quarter… used unit sales were up 19%… gross profit per unit sold increased 39%… total gross profit margin was 26% in the first quarter compared to 19% in the fourth quarter.” – Amber Dillard, COO (sequential, excluding effects of divestitures) .
• “During the quarter, we reduced debt by $145 million… contributing to meaningful deleveraging of the business.” – Jeff Needles, CFO .
• “We are closely monitoring any potential price change for new RV units… While we are seeing some data suggesting decreased customer demand as a result of tariffs, we are optimistic that those concerns will diminish…” – Ron Fleming .

Q&A Highlights

• The company did not host a Q&A session for Q1 2025; prepared remarks emphasized operational progress, deleveraging, and footprint optimization, including exclusion of impairment implying ~$0.6M operating income .

Estimates Context

• S&P Global consensus data for Q1 2025 EPS and revenue was not available via our feed; therefore, we cannot compute beat/miss versus Street for Q1 2025. Values retrieved from S&P Global.*
• Actuals for Q1 2025: revenue $165.8M and diluted EPS $(0.09) per press release/8‑K .
• EBITDA actuals (S&P Global feed) differed from press release presentation; we rely on company-reported EBITDA/Adjusted EBITDA for performance assessment . Values retrieved from S&P Global.*

*Values retrieved from S&P Global.

Key Takeaways for Investors

• Execution over optics: sequential operational improvement with margin expansion and reduced SG&A demonstrates turnaround traction despite lower volumes from footprint rationalization .
• Deleveraging is material: ~$145M debt reduction in Q1 materially lowers risk and interest burden, sharpening the path to breakeven and future profitability .
• Unit economics improved: ASP and GP/unit gains indicate healthier inventory/channel mix; F&I per unit and ~70% penetration offer resilient contribution in a softer demand environment .
• Narrative shift potential: completing the General RV divestitures and sustaining margin gains should support a stabilization narrative that could drive estimate revisions when Street coverage normalizes .
• Watch macro/tariffs: management flagged tariff-linked demand softness; monitor OEM pricing, unit volumes, and mix shifts (towables vs. motorized) for potential pressure or relief .
• Reconcile margin data points: small variance between call-stated ex-LIFO margin (~24%) and press release table (23.5%) should be tracked, but both signal substantial improvement QoQ and YoY .
• Prior quarters context: Q4 2024 was affected by hurricanes and heavy charges; Q1 2025 results show a cleaner, more focused operation with visible progress, de-risking the thesis .