Executive Summary

Q3 2023 reflected a soft RV demand backdrop and margin compression: revenue fell to $280.7M and diluted EPS was $(0.48), with total gross margin at 19.4% (down 320 bps YoY) .
Mix and pricing pressure were evident: average gross profit per new unit ex-LIFO dropped to $9.1K vs $12.6K in Q2 and $14.3K in Q3’22; pre-owned unit gross profit also fell YoY .
Management executed portfolio actions: acquired Buddy Gregg (Knoxville) and Century RV (Longmont), opened a Wilmington, OH greenfield (and Fort Pierce, FL on Nov 1), and closed two locations, estimating $125M steady-state revenue from new stores .
Capital plan in focus: the company commenced a rights offering (effective Oct 23) at a $6.399 subscription price; if fully subscribed, net proceeds estimated at ~$99.6M for growth and potential debt actions—a key near-term stock narrative .
S&P Global consensus estimates were unavailable for LAZY for Q3 2023; we cannot formally score beats/misses vs Street (third-party sites indicated a miss, but we anchor to S&P and note unavailability) [Values retrieved from S&P Global unavailable].

What Went Well and What Went Wrong

What Went Well
- Network expansion and footprint optimization: acquisitions (Knoxville, Longmont) and Wilmington greenfield; management estimates ~$125M steady-state revenue contribution from new stores .
- Liquidity sources identified: $67.8M estimated liquidity at quarter-end and ~$80.6M potential from unfinanced real estate; rights offering sized at ~$99.6M if fully subscribed, bolstering growth and flexibility .
- Services resilience: “Service, body and parts and other” revenue was relatively stable YoY (-1.2%) and grew YTD (+3.8%), with segment gross margin still strong at 50.0% in Q3 .
What Went Wrong
- Margin compression: total gross margin declined to 19.4% from 22.6% YoY; new vehicle gross margin slid to 10.8% (down 590 bps YoY), reflecting competitive pricing and normalization post-pandemic .
- Unit volume declines: total retail units sold fell 13.6% QoQ (3,208 vs 3,367) and 13.6% YoY; pre-owned units fell, pressuring F&I and overall gross profit dollars .
- Interest expense headwind: floor plan interest expense rose to $6.3M (vs $2.6M in Q3’22), lifting total other expense and contributing to the net loss .

Financial Results

Core P&L (QoQ and sequential trend)

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($M)	$295.7	$308.4	$280.7
Diluted EPS ($)	$(0.17)	$0.12	$(0.48)
Adjusted Diluted EPS ($)	$0.00	$0.14	$(0.29)
Total Gross Margin (%)	21.6%	22.0%	19.4%
Operating Margin (%) (as reported)	2.0%	4.1%	0.6%
Net Income Margin (%) (as reported)	(0.1)%	1.2%	(2.0)%

YoY snapshot (Q3 2023 vs Q3 2022)

Metric	Q3 2022	Q3 2023
Revenue ($M)	$333.8	$280.7
Diluted EPS ($)	$0.35	$(0.48)
Total Gross Margin (%)	22.6%	19.4%

Segment revenue (QoQ and YoY)

Segment ($M)	Q3 2022	Q2 2023	Q3 2023
New vehicle retail	$203.5	$182.8	$172.9
Pre-owned vehicle retail	$90.7	$91.0	$75.1
Vehicle wholesale	$6.6	$1.7	$2.1
Finance & insurance	$18.6	$17.7	$16.5
Service, body & parts & other	$14.4	$15.2	$14.2
Total	$333.8	$308.4	$280.7

KPIs (retail units, ASPs, per-unit profitability)

KPI	Q1 2023	Q2 2023	Q3 2023
Retail units sold – New	1,980	1,979	2,046
Retail units sold – Pre-owned	1,304	1,388	1,162
Avg selling price – New ($)	89,266	92,346	84,505
Avg selling price – Pre-owned ($)	65,012	65,555	64,595
Avg gross profit per retail unit ex-LIFO – New ($)	11,826	12,552	9,148
Avg gross profit per retail unit ex-LIFO – Pre-owned ($)	13,227	13,461	13,224
F&I gross per unit ($)	4,929	5,029	4,954

Non-GAAP adjustments in Q3: LIFO charge $2.663M; acquisition expense $0.727M; severance/transition $0.625M. Adjusted net loss improved to $(2.9)M and adjusted diluted EPS to $(0.29) versus GAAP $(5.6)M and $(0.48), respectively .

Guidance Changes

The company did not provide formal quantitative guidance for revenue, EPS, margins, or other P&L items in Q3 materials .
Capital actions (for investor modeling):

Metric	Period	Previous Guidance	Current Update	Change
Rights offering (subscription price)	Oct–Nov 2023	Prior terms evolving	Set at $6.399 per share; expiration Nov 14, 2023; estimated net proceeds ~$99.6M if fully subscribed	Updated terms confirmed
Liquidity	As of Q3’23	N/A	Estimated liquidity $67.8M (cash $32.9M; revolver availability $4.6M; undrawn floorplan/off-set $30.2M); ~$80.6M potential from unfinanced real estate	Disclosure update

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2023)	Current Period (Q3 2023)	Trend
Inventory strategy & mix	Focus on used vehicles to support affordability and demand; financing penetration off highs as rates rose; management emphasized mix optimization and sourcing competitiveness	New ASPs fell and gross profit per new unit contracted materially; new and pre-owned units sold declined; LIFO impacted gross profit	Cautious: tighter pricing/mix; continued optimization
Macro/interest rates	Affordability challenged; shift toward cash buyers; tightening financing dynamics	Floor plan interest expense up sharply YoY; net loss driven in part by higher interest burden	Headwind persists
Footprint expansion	Opened Council Bluffs, IA (Q1); planned Wilmington, OH & Fort Pierce, FL; acquisition pipeline	Acquired Knoxville (Buddy Gregg) & Longmont (Century RV); opened Wilmington (Q3) and Fort Pierce (Nov 1)	Expanding; steady-state revenue adds
Capital & liquidity	Mortgages and revolver usage in Q2; managing liquidity levers	Rights offering effective Oct 23; ~$99.6M potential net proceeds; liquidity outlined	Strengthening balance sheet
Services & parts	Services stable; high-margin revenue stream emphasized	Q3 Services revenue relatively stable YoY with 50.0% segment margin	Resilient contributor

Note: Q3 earnings call transcript is available via third-party sources .

Management Commentary

Strategic focus: “We estimate these stores will add $125 million in revenues at steady state,” referencing Buddy Gregg Motorhomes (Knoxville), Century RV (Longmont), and greenfield expansion, while closing Maryville and Burns Harbor to optimize footprint .
Balance sheet and capital raise: Estimated liquidity of $67.8M with additional unfinanced real estate capacity of ~$80.6M; rights offering effective Oct 23, 2023 at $6.399 subscription price and estimated ~$99.6M net proceeds if fully subscribed, intended for growth initiatives and potential debt actions .
Non-GAAP lens: Adjusted results exclude LIFO ($2.663M), acquisition ($0.727M) and severance/transition costs ($0.625M) in Q3; management presents these to enhance comparability of core operations .

Selected quotes (prior quarter context to illustrate strategy amid Q3 dynamics):

“We’re a lot more concerned with gross and unit sales than revenue… affordability is more difficult for a consumer, you see a natural shift toward more used demand.” – John North, Q2 2023 call .
“It’s competitive… there’s really healthy demand [for used] if you can find the right pieces, and so we’re focused on that.” – John North, Q2 2023 call .

Q&A Highlights

Topics addressed (per Q3 call sources): inventory health and aging, pricing and promotions on prior model years, used mix and sourcing, F&I per-unit sustainability, and rights offering rationale/uses .
Clarifications: Management discussed macro-driven demand softness, higher interest costs impacting floorplan expense, and ongoing actions to improve unit turns and margin dollars (consistent with Q1–Q2 narrative and Q3 press release data) .

Estimates Context

S&P Global (Capital IQ) consensus data were unavailable for LAZY for Q3 2023; as a result we cannot provide a definitive beat/miss vs Street under our S&P anchoring standard (third-party outlets reported a miss, but we do not cite those for consensus benchmarking) [Values retrieved from S&P Global unavailable].

Key Takeaways for Investors

Near-term pressure persists: sequential and YoY margin compression and lower unit volumes underscore a cautious retail environment and pricing normalization on new inventory .
Used remains a lever: while pre-owned unit volumes declined QoQ and YoY, per-unit gross remains relatively resilient vs new, and management continues to emphasize used sourcing to support affordability and turns .
Balance sheet flexibility improving: the rights offering (potential ~$99.6M net proceeds) and real estate liquidity give optionality to pursue accretive M&A/greenfields and de-risk financing costs over time .
Services cushion: services/body/parts revenue and margins provide partial counter-cyclicality amid softer vehicle sales .
Watch F&I per-unit and finance penetration: sustaining ~$5K per unit F&I and healthy penetration is key to offsetting lower vehicle margins; track for durability into seasonally strong periods .
Execution catalysts: integration of Knoxville and Longmont acquisitions, ramp of Wilmington and Fort Pierce, and potential Surprise, AZ opening provide top-line and scale efficiencies ahead of the next retail upturn .
Risk factors: elevated interest costs (floorplan), macro-rate sensitivity of discretionary purchases, and competitive pricing dynamics remain principal headwinds .

Supporting references (additional press releases):

Fort Pierce opening (Nov 1, 2023):
Q3 press release (Nov 3, 2023):
Rights offering effectiveness (Oct 23, 2023):

Cross-referenced internal primary sources:

Q3 2023 8-K/Exhibit 99.1:
Q2 2023 8-K/Exhibit 99.1:
Q1 2023 8-K/Exhibit 99.1:

Lazydays Holdings, Inc. (LAZY)·Q3 2023 Earnings Summary