8-K: Camping World Reports Mixed 2025 Results, Pauses Dividend

Camping World Holdings, Inc. announced a 35% Adjusted EBITDA growth for 2025 but reported an increased net loss and paused its regular cash dividend program.

Summary

• Full year 2025 revenue increased by 4.4% to $6.4 billion.
• Full year 2025 Adjusted EBITDA grew over 35% to $242.9 million.
• Full year 2025 net loss increased to $(105.6) million, primarily due to significant deferred tax asset and Tax Receivable Agreement liability adjustments.
• Fourth quarter 2025 revenue decreased by 2.6% to $1.2 billion, with a net loss of $(109.1) million.
• The company achieved a record combined new and used market share of over 13% in 2025.
• Net debt leverage ratio improved to 5.7x at year-end 2025 from 8.1x at year-end 2024.
• The Board of Directors paused the regular cash dividend program in February 2026 to prioritize deleveraging and due to tax law changes.
• An additional $50 million of long-term debt has been repaid in 2026 to date.
• The company issued streamlined 2026 guidance, expecting Adjusted EBITDA between $275 million and $325 million.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a mixed report. While strong Adjusted EBITDA growth and debt reduction are positive, the increased net loss due to significant tax adjustments and the dividend pause introduce considerable caution.

Positives

• Full year 2025 Adjusted EBITDA increased by 35.8% to $242.9 million, demonstrating significant operational improvement.
• Combined new and used market share reached a record level of over 13% by the end of 2025.
• Net debt leverage ratio improved substantially to 5.7x at December 31, 2025, from 8.1x at December 31, 2024.
• An additional $50 million of long-term debt has been repaid in 2026 to date, continuing deleveraging efforts.
• Full year used vehicle unit sales increased by 24.6%, and same-store used vehicle unit sales increased by 24.3%.
• Full year new vehicle unit sales increased by 5.6%, and same-store new vehicle unit sales increased by 6.9%.
• Products, service and other gross margin increased by 348 basis points for the full year to 46.9%.

Negatives

• Full year 2025 net loss increased significantly to $(105.6) million from $(78.8) million in 2024.
• Fourth quarter 2025 revenue decreased by 2.6% to $1.2 billion.
• Fourth quarter 2025 net loss increased to $(109.1) million from $(59.5) million in Q4 2024.
• The regular cash dividend program was paused in February 2026.
• A full valuation allowance for deferred tax assets resulted in a $182.8 million charge to income tax expense.
• An adjustment to the Tax Receivable Agreement liability for $149.0 million, with an additional $37.3 million recorded to income tax expense.
• New vehicle gross margin decreased by 291 basis points in Q4 2025 and 120 basis points for the full year.
• Used vehicle gross margin decreased by 277 basis points in Q4 2025.
• Products, service and other revenue decreased by 11.6% in Q4 2025 and 7.7% for the full year.

Risks

• Prevailing trends in the RV industry, including consumer interest rate trends, consumer confidence, and labor market trends, may influence overall demand.
• Competitive dynamics in the RV market could impact performance.
• Other key macroeconomic factors may influence overall demand.
• Expected gross margin headwinds in the first half of 2026 due to strict, corrective inventory management objectives.
• The cyclical and seasonal nature of the business can lead to fluctuations in results.
• Dependence on the availability of adequate capital and risks related to the company's debt structure.

Future Outlook

Camping World expects Adjusted EBITDA for 2026 to be in the range of $275 million to $325 million. This outlook is supported by early season RV show momentum and confidence in outpacing broader RV unit industry trends. The company anticipates gross margin headwinds in the first half of 2026 due to strict inventory management objectives, which are expected to become tailwinds in the second half of the year and beyond. The guidance considers prevailing RV industry trends, including consumer interest rates, confidence, labor market, competitive dynamics, and macroeconomic factors.

Management Comments

• Matthew Wagner, CEO and President, stated, '2025 was a pivotal year for our organization. We returned the business to growth, delivering Adjusted EBITDA growth in excess of 35%. We again grew our combined new and used market share to a record level, ending the year at over 13%.'
• Mr. Wagner also commented, 'We are focused on three well defined goals in 2026; new and used unit growth, accelerating Good Sams growth, and SG&A cost efficiency.'
• Mr. Wagner added, 'Early season RV show momentum underscores our confidence in our ability to outpace broader RV unit industry trends and meaningfully grow our Adjusted EBITDA in 2026.'
• Tom Kirn, CFO, remarked, 'I'm pleased with the progress we've made in 2025 by reducing our net debt leverage by over two turns. To date in 2026, we've continued that momentum, paying down an incremental $50 million of long-term debt.'

Industry Context

StockSavvy.ai notes that Camping World's focus on inventory management and deleveraging reflects broader industry challenges and a cautious approach to consumer demand, which is sensitive to interest rates and economic confidence. The growth in used vehicle sales and market share suggests a shift in consumer preference or affordability, potentially indicating a more value-conscious RV buyer. The company's strategic dealership optimization aligns with efforts across retail sectors to enhance efficiency and profitability in a dynamic market.

Comparison to Industry Standards

• The reported 2025 Adjusted EBITDA growth of over 35% is strong, especially given the challenging macroeconomic environment for discretionary consumer purchases like RVs. This outpaces many general retail and automotive sectors that faced headwinds in 2025.
• The improvement in net debt leverage from 8.1x to 5.7x is a significant deleveraging effort, positioning the company more favorably compared to highly leveraged peers in cyclical industries.
• The record combined new and used market share of over 13% indicates Camping World is gaining ground against competitors in a fragmented RV dealer market, such as smaller regional dealerships or other national chains like Lazydays Holdings (LAZY) or RV Retailer, LLC (private).

Management Changes

Stakeholder Impact

• Shareholders: The pause of the regular cash dividend program will negatively impact income-focused shareholders. The increased net loss and diluted loss per share are also negative.
• Creditors: The significant reduction in net debt leverage and ongoing debt repayment efforts are positive for creditors, indicating improved financial health and reduced risk.
• Employees: The filing mentions a $13.1 million decrease in cash compensation expenses (other than commissions) for Q4, partially offset by increased stock-based compensation, which could have mixed impacts depending on employee level.
• Customers: Reinvestment in the customer experience and efforts to accelerate inventory turns aim to improve customer satisfaction and product availability.

Next Steps

• Focus on new and used unit growth in 2026.
• Accelerate Good Sam's growth in 2026.
• Improve SG&A cost efficiency in 2026.
• Proactively accelerate new and used inventory turns.
• Reinvest in the customer experience across the enterprise.
• Reprioritize cash flows to fortify the balance sheet.
• The Board of Directors will monitor factors and re-evaluate the future of the dividend program at a later date.
• A conference call to discuss results is scheduled for February 25, 2026.

Key Dates

Recommendation

While Camping World demonstrated strong Adjusted EBITDA growth and significant deleveraging in 2025, the substantial increase in net loss due to tax adjustments and the decision to pause the dividend are significant concerns. The weak fourth-quarter performance and anticipated gross margin headwinds in early 2026 suggest near-term challenges. The 2026 Adjusted EBITDA guidance is positive, but the overall picture is mixed, warranting a 'hold' as the company navigates inventory adjustments and aims for sustained growth.

Keywords

RV Dealer, Recreational Vehicle, Camping World, CWH, Financial Results, Adjusted EBITDA, Net Debt, Dividend Pause, Market Share, Inventory Management, Good Sam