Executive Summary

Q2 2025 was operationally stronger despite a smaller footprint: total gross margin expanded 590 bps YoY to 26.0% while Adjusted EBITDA loss narrowed to $(6.2)M from $(9.4)M YoY; net loss improved to $(24.6)M (from $(44.2)M), with $7.7M of non-cash impairments weighing on GAAP results .
Revenue fell to $131.3M (vs. $235.6M YoY; sequentially down from $165.8M in Q1) largely due to deliberate divestitures and lower unit volume; mix and pricing drove higher margins across categories .
Balance sheet actions reduced total liabilities by >$200M in 1H’25, with cash flat at $24.7M vs. year-end; reverse stock split (1-for-30) executed in July to support Nasdaq compliance .
No numerical guidance or Q2 call transcript was posted; coverage/consensus from S&P Global was not available, limiting “beat/miss” framing; key stock drivers are margin durability, pace of deleveraging, and execution on footprint optimization .

What Went Well and What Went Wrong

What Went Well
- Broad margin expansion: total gross margin rose to 26.0% (20.1% YoY), with new vehicle margin at 11.0% (9.2% YoY) and pre-owned at 20.3% (19.0% YoY) .
- Liability reduction and liquidity stability: management reduced total liabilities by >$200M in 1H’25 while cash was unchanged vs. 12/31/24 ($24.7M) .
- Management execution on portfolio actions: completed multiple non-core asset sales (Mesa AZ, Ft. Pierce FL, Longmont CO, Tulsa OK), advancing the turnaround and deleveraging .
What Went Wrong
- Top-line pressure from footprint rightsizing: revenue declined to $131.3M vs. $235.6M YoY and down from $165.8M in Q1; total retail units fell to 1,851 vs. 3,185 YoY .
- Impairment charges: Q2 included $7.7M of non-cash impairments (indefinite-lived intangibles and assets held for sale) that widened GAAP loss metrics .
- Interest burden still meaningful: floor plan and other interest totaled $10.7M in Q2; although down YoY, interest expense remains a headwind until deleveraging progresses further .

Financial Results

Key financials (GAAP and non-GAAP) – sequential and YoY context

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Thousands)	$159,879	$165,815	$131,297
Net Loss ($USD Thousands)	$(96,097)	$(9,533)	$(24,589)
Diluted EPS ($)	$(2.39)	$(0.09)	$(6.67)
Adjusted EBITDA ($USD Thousands)	$(24,287)	$(4,025)	$(6,240)
Total Gross Profit Margin (%)	19.0%	26.4%	26.0%

Note: Q2 EPS and share counts reflect a 1-for-30 reverse stock split effective July 11, 2025; Q1 figures were reported pre-split and are not restated in the press release .

Q2 2025 vs Q2 2024

Metric	Q2 2024	Q2 2025
Revenue ($USD Thousands)	$235,602	$131,297
Net Loss ($USD Thousands)	$(44,221)	$(24,589)
Diluted EPS ($)	$(96.53)	$(6.67)
Adjusted EBITDA ($USD Thousands)	$(9,404)	$(6,240)
Total Gross Profit Margin (%)	20.1%	26.0%

Segment/category revenue (as reported)

Revenue Category ($USD Thousands)	Q4 2024	Q1 2025	Q2 2025
New vehicle retail	$94,699	$97,519	$77,463
Pre-owned vehicle retail	$37,233	$40,673	$29,461
Vehicle wholesale	$1,809	$2,056	$870
Consignment vehicle	$1,316	$1,489	$2,078
Finance & insurance	$12,691	$11,502	$10,575
Service, body & parts & other	$12,131	$12,576	$10,850
Total Revenue	$159,879	$165,815	$131,297

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Total Retail Units Sold (units)	2,068	2,148	1,851
New Retail Units (units)	1,172	1,143	1,068
Pre-owned Retail Units (units)	741	805	598
Consignment Units (units)	155	200	185
ASP – New ($/unit)	$80,801	$85,318	$72,531
ASP – Pre-owned ($/unit)	$50,247	$50,525	$49,266
Avg GP/Unit ex-LIFO – New ($)	$9,052	$9,490	$7,962
Avg GP/Unit ex-LIFO – Pre-owned ($)	$5,352	$10,781	$9,998
Avg F&I per Unit ($)	$5,957	$5,153	$5,527
Total Gross Margin (%)	19.0%	26.4%	26.0%
Total GM ex-LIFO (%)	21.4%	23.5%	24.9%

Why results moved:

Revenue/units down on purpose: revenue and unit declines reflect “rightsizing” of the network following asset sales; management emphasized improved channel health and inventory mix as drivers of higher margins despite lower volumes .
GAAP loss elevated by non-cash items: $7.7M in impairments and interest costs pressured GAAP net income; Adjusted EBITDA better YoY reflects core improvement ex-impairement/LIFO/other items .
Balance sheet cleanup continued: asset sales generated cash to pay down floor plan and other debt; inventories fell to $165.6M (from $211.9M at 12/31/24) .

Guidance Changes

No numerical guidance was provided for revenue, margins, EBITDA, EPS, tax, or capex.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3	Not provided	Not provided	—
Gross Margin	FY/Q3	Not provided	Not provided	—
Adjusted EBITDA	FY/Q3	Not provided	Not provided	—
EPS	FY/Q3	Not provided	Not provided	—
Capex/OpEx/Tax/Segments	FY/Q3	Not provided	Not provided	—

Earnings Call Themes & Trends

Note: No Q2 2025 call transcript was posted on the investor site or major transcript aggregators at the time of analysis; Q1 had prepared remarks and no Q&A .

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Footprint optimization/divestitures	LOI to divest 3 stores; Camping World sales completed (5 stores) to streamline footprint and de-lever .	Closed Mesa AZ, Ft. Pierce FL, Longmont CO; Tulsa OK sale closed to Ron Hoover .	Continued execution
Margins/inventory mix	New and used gross margins up; focus on healthier mix and consignment program .	Margins up across all categories; total GM 26.0% (20.1% YoY) .	Improving
SG&A/cost structure	$10M YoY SG&A reduction in Q1; expect further declines as divestitures complete .	Ongoing cost discipline implied; no numeric update in Q2 release .	Stable/ongoing
Macro/tariffs	Monitoring tariffs; some demand softness but optimism for relief; leveraging affordability/used channel .	No new Q2 commentary beyond PR; mix remains supportive .	Watch item
Capital structure/debt	~$145M debt reduction in Q1; deleveraging priority .	Total liabilities down >$200M in 1H’25; cash unchanged vs. 12/31/24 .	Improving
Listing/Nasdaq compliance	N/A in Q1; Q4 highlighted challenges .	1-for-30 reverse split effected July 11, 2025 .	Completed action

Management Commentary

“We continued to advance our turnaround plan... Our focus on operational performance resulted in increases in gross profit margins across all products and services... These divestitures allowed us to reduce our total liabilities by over $200 million during the first half of the year, while our cash balance remained unchanged at June 30, 2025 compared to December 31, 2024.” — Ron Fleming, CEO (Q2 press release) .
“This transaction furthers our commitment to rightsizing our dealership footprint and continuing our operational turnaround plan.” — Ron Fleming on Mesa AZ sale .
“We are closely monitoring any potential price change for new RV units [from tariffs]... 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 (Q1 call) .
“Gross profit per unit sold increased 39% in the first quarter... reflective of actions to optimize our inventory mix and brand offerings.” — Amber Dillard, COO (Q1 call) .

Q&A Highlights

No Q2 2025 earnings call transcript was posted; in Q1 2025, the company delivered prepared remarks and did not field Q&A on the call .
MarketBeat listed the Q2 call timing, but third-party transcript and company archive were not available at analysis time .
As a result, there were no new analyst Q&A takeaways for Q2; guidance clarifications were not provided in the press release .

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q2 2025 were not available for EPS or revenue at the time of retrieval (no coverage/consensus returned). Values retrieved from S&P Global.
Comparison framework: Actual Q2 revenue was $131.3M; EPS was $(6.67). In the absence of consensus, estimate revisions/beat-miss framing cannot be determined from S&P Global data . Values retrieved from S&P Global.

Metric (Q2 2025)	Consensus (S&P Global)	Actual
Revenue	N/A	$131.3M
Primary EPS	N/A	$(6.67)

Key Takeaways for Investors

Margin resilience despite a smaller footprint: total GM at 26.0% and per-unit profitability improved across categories; focus on mix/F&I offsets lower unit volumes .
Deleveraging is real and ongoing: >$200M liability reduction in 1H’25 with cash flat vs. year-end; monitor interest expense trajectory as floor plan and mortgage balances fall .
GAAP noise from non-cash items: $7.7M impairments in Q2 impacted EPS; Adjusted EBITDA trends better reflect core progress vs. 2024 low point .
Execution risk shifts to organic growth: with significant divestitures complete, sequential sales stabilization and throughput per store are next proof points; watch units, ASP, and F&I per unit in 2H .
Limited Street coverage: lack of consensus reduces near-term “beat/miss” catalysts; stock likely trades on operational KPIs (margins, SG&A run-rate), balance sheet progress, and macro RV demand .
Technical factor: 1-for-30 reverse split completed in July to support Nasdaq compliance; can introduce short-term trading volatility/technical flows .
Watch macro/tariffs and inventory health: management is monitoring tariff effects on demand and continuing to optimize inventory turns; mix-driven margin gains must persist into peak selling periods .

Appendix: Balance Sheet and Cash Flow Highlights (Q2 snapshot)

Inventories down to $165.6M (from $211.9M at YE’24); cash $24.7M; floor plan notes $185.5M (from $306.0M at YE’24) .
1H’25 operating cash flow $7.4M, investing inflow $171.9M (asset sales), financing outflow $(179.3)M (debt paydown) .

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