CWH — Camping World Holdings, Inc.

Summary of Camping World Holdings (CWH) Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $1.35 billion, reflecting a decline in new and used unit sales offset by a richer product mix, with new vehicle average selling prices (ASPs) up approximately 4% year-over-year.
• Adjusted EBITDA: $28 million, down from $31.2 million in Q1 2025, primarily due to gross margin pressures.
• Gross Margins: New vehicle gross margin decreased by 148 basis points to 12.2%, while used vehicle gross margin declined by 91 basis points to 17.7%.
• SG&A Expenses: Reduced by $29 million (7.5%) year-over-year, with a 135 basis point improvement in SG&A as a percentage of gross profit.
• Cash Position: Ended the quarter with $200 million in cash and improved net debt leverage ratio to 5.6x from 8.1x in Q1 2025.
• Debt Repayment: Paid down $56 million in debt during the quarter.

2. Strategic Updates and Business Highlights

• Market Performance: CWH outperformed the broader RV market, particularly in new unit sales, attributed to an exclusive brand strategy. New Fifth Wheel segment sales increased nearly 10% year-to-date.
• Inventory Management: Same-store RV unit inventory down over 10% year-over-year, with a 20% reduction in unit purchases year-to-date. Daily sales velocity improved in April.
• Good Sam Progress: Continued top-line growth with stabilized margins. An ERP overhaul is expected to be completed in Q2, enhancing market entry capabilities.
• AI Initiatives: Ongoing AI projects are anticipated to yield significant cost savings and improve dealership productivity.

3. Forward Guidance and Outlook

• 2026 Adjusted EBITDA Guidance: Reiterated guidance range of $275 million to $325 million, with expectations for new RV industry sales at the lower end of the previous range (325,000 to 350,000 units) and used RV sales at the midpoint (715,000 to 750,000 units).
• Cost Management: Continued focus on SG&A efficiency and inventory turnover, with expectations for improved margins in the latter half of 2026.

4. Bad News, Challenges, or Points of Concern

• Market Conditions: Softer than expected RV industry backdrop, with same-store used sales down 2.6% in Q1, attributed to weather disruptions and overall market volatility.
• Gross Margin Pressure: Expected to continue in Q2 due to aging inventory, with a need for careful management of pricing and inventory levels.
• External Risks: Concerns about geopolitical events (e.g., Middle East conflict) impacting consumer sentiment and spending patterns.
• Trade-in Dynamics: Limited increase in trade-in percentages, though a gradual recovery is anticipated as consumers with negative equity begin to return.

5. Notable Q&A Insights

• F&I Dynamics: Increased finance and insurance (F&I) penetration driven by higher consumer down payments and product attachment rates, particularly for higher-priced RVs.
• Used Vehicle ASP Trends: A slight decrease in used vehicle ASPs noted, but management remains optimistic about stabilization as the selling season progresses.
• Inventory Turnover Goals: Management aims for gradual improvement in inventory turnover, with a focus on pushing aged units through the system.
• Costco Partnership: The partnership is progressing slowly, with improvements expected in May as new pricing algorithms and product listings are implemented.
• Credit Environment: No significant changes in consumer creditworthiness or approval rates, with recent trends showing favorable lending rates.

Overall, CWH demonstrated resilience in a challenging market, with strategic initiatives aimed at cost reduction and market share growth, while navigating external pressures and maintaining a cautious outlook for the remainder of the year.