CWH — Camping World Holdings, Inc.

Camping World Holdings (CWH) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $1.35 billion, reflecting a decline in new and used unit sales but 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 declining gross profit, though mitigated by a $29 million reduction in SG&A expenses.
• Gross Margins: New vehicle gross margin decreased by 148 basis points to 12.2%, and used vehicle gross margin declined by 91 basis points to 17.7%.
• Cash Position: Ended the quarter with $200 million in cash; net debt leverage ratio improved to 5.6x from 8.1x year-over-year.
• Same-store RV unit inventory: Down over 10% year-over-year; purchased over 20% fewer units year-to-date.

2. Strategic Updates and Business Highlights

• CWH focused on three key priorities: growing new and used unit share, driving SG&A efficiency, and accelerating the Good Sam brand.
• New unit sales outpaced the industry, particularly in the Fifth Wheel segment, which saw nearly 10% growth year-to-date.
• Good Sam's top-line growth continued, with margins stabilizing year-over-year, supported by an ERP overhaul expected to complete in Q2.
• Significant cost rationalization efforts led to nearly $35 million in annualized savings, with ongoing AI initiatives expected to further enhance efficiency.

3. Forward Guidance and Outlook

• CWH reiterated its full-year 2026 adjusted EBITDA guidance of $275 million to $325 million.
• The new RV industry is expected to track towards the lower end of the 2026 retail outlook (325,000 to 350,000 units), while the used RV market is anticipated to hit the midpoint of its range (715,000 to 750,000 units).
• Management expressed confidence in achieving year-over-year adjusted EBITDA growth despite current market conditions.

4. Bad News, Challenges, or Points of Concern

• The RV industry faced a softer market backdrop, with same-store used sales down 2.6% due to weather disruptions in January and February.
• Gross margins are expected to remain under pressure in Q2 as the company works through aging inventory.
• The ongoing geopolitical situation, particularly the conflict in the Middle East, was noted as a potential headwind affecting consumer sentiment and sales.

5. Notable Q&A Insights

• F&I Dynamics: There was a notable increase in finance and insurance (F&I) per unit, driven by higher down payments from consumers purchasing higher-priced RVs.
• Used Vehicle ASPs: Management indicated that ASPs for used vehicles have seen slight declines, but they expect stabilization moving forward.
• Inventory Management: CWH aims to improve inventory turnover, with expectations of gradual progress throughout the year rather than immediate results.
• Costco Partnership: The partnership with Costco is progressing, albeit slower than anticipated, with improvements expected to be visible in May.
• Consumer Credit Environment: No significant changes in credit profiles or approval rates were noted, and recent trends indicate a decrease in consumer lending rates, which could benefit sales.

Overall, CWH demonstrated resilience in a challenging market, focusing on operational efficiency and strategic growth initiatives while navigating external pressures.