CWH — Camping World Holdings, Inc.

CWH Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: $1.8 billion, up 5% year-over-year.
• Adjusted EBITDA: $95.7 million, a significant increase of over 40% from $67.5 million in Q3 2024.
• New Average Selling Price (ASP): Just under $38,000, a 9% decline year-over-year, but better than expected due to a favorable mix.
• Gross Margin: Remained stable despite ASP declines, with new vehicle gross margin around 13%.
• Cash Position: $230 million in cash on the balance sheet, with $427 million in used inventory owned outright.

2. Strategic Updates and Business Highlights:

• CWH sold nearly 14% of new and used RVs in North America, achieving record volume year-to-date.
• Focus on improving net leverage, which has decreased by nearly 3 turns since the beginning of the year through debt paydown and cash generation.
• Continued emphasis on used RV sales, service, and Good Sam businesses as key differentiators.
• Plans to implement AI technologies to enhance operational efficiency and customer experience, potentially yielding additional cost savings.

3. Forward Guidance and Outlook:

• 2026 Adjusted EBITDA Floor: Set at $310 million, which does not include potential upsides from cost savings, used unit sales, or M&A activity.
• Anticipated continued growth in used RV sales, with expectations for another record year in combined new and used unit volume.
• Cautious outlook for new RV sales due to rising OEM prices and consumer affordability concerns, with expectations of low-to-mid single-digit declines in the new RV market.

4. Bad News, Challenges, or Points of Concern:

• New RV Demand: Signs of resistance in the new RV market due to rising prices and economic uncertainties, including job market fluctuations and inflation.
• Fourth Quarter Outlook: Potential impacts from previous year benefits (Good Sam loyalty breakage and F&I actuarial benefits) that may not recur, leading to a cautious approach.
• Consumer Sentiment: Uneven consumer sentiment and labor market conditions may hinder sales growth.
• Competitive Pressures: The RV industry is facing challenges from rising costs and pricing pressures, making it difficult to predict future demand accurately.

5. Notable Q&A Insights:

• Management acknowledged that while they have seen stabilization in new RV sales, they remain cautious due to macroeconomic factors and consumer resistance.
• The company is focusing on maintaining a conservative inventory strategy to avoid overstocking and potential future discounting.
• There is a clear path for market share growth, particularly in the used RV segment, which is expected to continue to outperform the new segment.
• M&A activity is being considered, but only for accretive opportunities that align with their strategic goals, particularly in smaller dealerships.
• The company is optimistic about the potential for AI to drive efficiencies and improve customer engagement, which could lead to significant upside in the coming years.

Overall, CWH demonstrated strong financial performance in Q3 2025, with a focus on strategic initiatives to enhance growth, despite facing challenges in the new RV market and economic uncertainties.