8-K: Camping World Reports Q3 2025: Record Unit Volume, Adjusted EBITDA Soars

Camping World Holdings, Inc. announced strong third-quarter 2025 results, achieving record new and used vehicle unit volume and over 40% Adjusted EBITDA growth, despite a GAAP net loss driven by tax adjustments.

Summary

• Total revenue for the third quarter was $1.8 billion, an increase of 4.7% compared to the prior year.
• Combined new and used vehicle unit sales reached a record 38,980 units, up 14.6% year-over-year.
• Used vehicle unit sales increased significantly by 32.9% to 18,694 units, while new vehicle unit sales rose 1.7% to 20,286 units.
• Adjusted EBITDA grew by 41.8% to $95.7 million for the quarter.
• The company reported a GAAP net loss of $(29.4) million, primarily due to a $175.4 million valuation allowance for deferred tax assets and a $149.2 million Tax Receivable Agreement liability adjustment.
• Diluted loss per share of Class A common stock was $(0.64), while Adjusted earnings per share diluted was $0.43, an increase of 230.8%.
• Year-to-date, the company achieved a record 13.5% market share of new and used units, an over 200 basis point combined improvement.
• Selling, general and administrative expenses (SG&A) decreased by 0.8% to $411.0 million.
• The total number of store locations was 197 as of September 30, 2025, a net decrease of 10 locations, including the consolidation of 15 stores for cost efficiency.

Sentiment

Score: 7

Explanation: The sentiment is positive due to strong operational performance, including record unit volume and significant Adjusted EBITDA growth, coupled with market share gains and a confident outlook for 2026. The GAAP net loss is primarily attributable to non-cash tax adjustments, which are not indicative of underlying business weakness. However, the decline in active customers and Good Sam members, along with conservative new volume growth assumptions, temper the overall score slightly.

Positives

• Achieved record breaking new and used vehicle unit volume, with combined unit sales up 14.6% to 38,980 units.
• Delivered over 40% Adjusted EBITDA growth this quarter, reaching $95.7 million.
• Outperformed the industry in every category, achieving a record 13.5% market share year-to-date, an over 200 basis point combined improvement.
• Used vehicle revenue increased by 31.7% to $589.1 million, driven by a 32.9% increase in unit sales.
• Selling, general and administrative expenses (SG&A) decreased by 0.8% to $411.0 million, primarily due to lower employee cash compensation and advertising costs.
• Floor plan interest expense decreased by 19.3% to $18.1 million, and other interest expense, net, decreased by 13.6% to $31.0 million, both due to lower average interest rates.
• Products, service and other gross margin increased by 124 basis points to 45.2%, driven by higher labor billing rates and improved inventory management.
• Management expressed confidence in outperforming the RV industry, growing earnings, and reducing leverage in 2026, with an expectation of Adjusted EBITDA growth starting in the low $300 million range.

Negatives

• Reported a GAAP net loss of $(29.4) million for the quarter, a significant change from net income of $8.056 million in the prior year.
• Diluted loss per share of Class A common stock was $(0.64), compared to diluted earnings per share of $0.09 in the prior year.
• New vehicle revenue decreased by 7.0% to $766.8 million, and the average selling price of new vehicles sold decreased by 8.6%.
• Products, service and other revenue decreased by 7.2% to $208.6 million, primarily due to increased allocation of labor towards used reconditioning and away from customer pay work.
• A significant charge to income tax expense of $175.4 million resulted from a full valuation allowance against deferred tax assets.
• An additional $37.3 million was recorded to income tax expense related to the revaluation of deferred tax assets due to a $149.2 million adjustment to the Tax Receivable Agreement liability.
• Active Customers decreased by 8.4% to 4,229,138, and Good Sam Club members decreased by 10.9% to 1,608,107.
• Total gross margin experienced a slight decrease of 27 basis points to 28.6%.

Risks

• General economic conditions, including inflation, interest rates, and tariffs, could impact business.
• Availability of financing for the company and its customers is a key concern.
• Fuel shortages, high fuel prices, or changes in energy sources could affect demand.
• Success of manufacturers and changes in consumer preferences pose risks.
• Competition in the industry could intensify.
• Risks related to acquisitions, new store openings, and expansion into new markets.
• Failure to maintain the strength and value of brands could negatively impact the business.
• Ability to manage inventory effectively is crucial.
• Fluctuations in same store sales and the cyclical/seasonal nature of the business are inherent risks.
• Dependence on adequate capital and risks related to debt levels.
• Ability to execute and achieve expected benefits of cost-cutting initiatives.
• Reliance on fulfillment and distribution centers.
• Impacts from natural disasters, including pandemics and health crises.
• Dependence on relationships with third-party suppliers and lending institutions.
• Risks associated with selling goods manufactured abroad.
• Ability to retain senior executives and attract/retain other qualified employees.
• Risks associated with leasing substantial amounts of space.
• Risks associated with private brand offerings.
• Potential for asset impairment charges for goodwill, intangible assets, or other long-lived assets.
• Tax risks, regulatory risks, data privacy and cybersecurity risks.
• Risks related to intellectual property.
• Impact of ongoing or future lawsuits against the company and its officers/directors.
• Risks related to climate change and other environmental, social, and governance matters.
• Risks related to the company's organizational structure.

Future Outlook

Management expects continued progress in 2026, driven by used vehicle unit volume, improving average selling prices, and over $15 million of potential cost takeout opportunities. The company anticipates outperforming the RV industry, growing earnings, and reducing leverage year-over-year. Despite affordability concerns potentially creating resistance on demand, leading to conservative new volume growth assumptions, the company plans to rely on its market-leading used, service, and Good Sam businesses. Adjusted EBITDA growth is projected for a consecutive year in 2026, starting in the low $300 million range, with a plan to outperform this estimate. The fortified balance sheet and improving leverage are expected to enable a return to measured and accretive merger and acquisition activity.

Management Comments

• Matthew Wagner, President, stated that the company delivered over 40% Adjusted EBITDA growth this quarter, driven by record breaking new and used vehicle volume, demonstrating their ability to navigate macroeconomic changes and outperform the industry.
• Mr. Wagner also highlighted the company's year-to-date record 13.5% market share of new and used units, a combined improvement of over 200 basis points, and anticipated continued progress in 2026 driven by used vehicle volume, improving ASPs, and over $15 million in potential cost takeout.
• Marcus Lemonis, Chairman and CEO, expressed extreme confidence in the team's ability to outperform the RV industry, grow earnings, and reduce leverage in 2026, while deliberately setting conservative new volume growth assumptions due to consumer affordability concerns.
• Mr. Lemonis emphasized the company's reliance on its market-leading used, service, and Good Sam businesses as a financial performance differentiator and projected a consecutive year of Adjusted EBITDA growth in 2026, starting in the low $300 million range.
• Mr. Lemonis concluded that judicious conservatism, combined with a fortified balance sheet and improving leverage, has prepared the company for a return to measured and accretive M&A activity.

Industry Context

The filing indicates that Camping World Holdings is successfully navigating a challenging macroeconomic environment characterized by 'constant macroeconomic changes' and 'affordability still top of mind for consumers, and rising prices could create resistance on demand.' The company's strategy to focus on used vehicle unit volume and leverage its service and Good Sam businesses aligns with broader industry trends where consumers prioritize value and affordability. Its reported market share gains and outperformance 'in every category' suggest it is taking share in a potentially contracting or stagnant new RV market, positioning itself as a leader in adapting to evolving consumer needs within the outdoor and recreational vehicle sector.

Comparison to Industry Standards

• The company reported 'outperforming the industry in every category,' indicating stronger performance relative to its competitors in the RV retail sector.
• Achieved a 'record 13.5% market share of new and used units' year-to-date, representing 'an over 200 basis point combined improvement,' demonstrating significant market share gains within the RV dealership industry.
• Management explicitly stated confidence in their ability to 'once again outperform the RV industry' in 2026, suggesting a consistent track record of exceeding industry benchmarks.

Legal Proceedings

• The company acknowledges risks related to 'ongoing or future lawsuits against us and certain of our officers and directors' in its forward-looking statements, but no specific new legal proceedings are detailed in this filing.

Stakeholder Impact

• Shareholders: Potential for increased value through strong operational performance, anticipated earnings growth, and a return to accretive M&A activity, despite a GAAP net loss driven by non-cash tax adjustments.
• Employees: Impacted by changes in employee cash compensation costs and stock-based compensation, as well as labor allocation shifts towards used vehicle reconditioning.
• Customers: Benefit from a compelling value proposition in used vehicles and the continued focus on affordability, alongside services from the Good Sam businesses.
• Creditors: Positive impact from the company's commitment to reducing leverage year-over-year and a fortified balance sheet.
• Suppliers (Manufacturers): Affected by the company's conservative new volume growth assumptions, but potentially benefit from overall market share gains.

Next Steps

• Hold an earnings conference call on October 29, 2025, to discuss the third quarter 2025 financial results.
• Continue efforts to drive used vehicle unit volume and improve average selling prices in 2026.
• Implement cost takeout opportunities, with over $15 million identified for 2026.
• Focus on outperforming the RV industry, growing earnings, and reducing leverage year-over-year in 2026.
• Return to measured and accretive merger and acquisition (M&A) activity, leveraging a fortified balance sheet and improving leverage.

Key Dates

Recommendation

Camping World Holdings demonstrated robust operational performance in Q3 2025, marked by record new and used vehicle unit volume and a substantial 41.8% increase in Adjusted EBITDA. This indicates strong underlying business health and effective navigation of macroeconomic challenges, including outperforming the RV industry and gaining market share. While a GAAP net loss was reported, it was primarily driven by a significant non-cash valuation allowance against deferred tax assets and a Tax Receivable Agreement liability adjustment, rather than core operational weakness. Management's conservative yet confident outlook for 2026, focusing on used vehicle strength, cost efficiencies, and a return to accretive M&A, suggests a positive trajectory. The focus on affordability and used vehicles aligns with current consumer trends. Therefore, the stock warrants a 'buy' rating for investors looking for a company with strong operational momentum and strategic clarity, despite the temporary GAAP accounting impact.

Keywords

Camping World, RV Dealer, Recreational Vehicle, Good Sam, Financial Results, Q3 2025, Adjusted EBITDA, Unit Volume, Market Share, Used Vehicles, Outdoor Retail, SEC Filing, Earnings Report