10-Q: Camping World Reports Strong Q2 2025 Earnings with Soaring Net Income and Revenue Growth

Camping World Holdings, Inc. announced a significant increase in net income and revenue for the second quarter and first half of 2025, driven by robust RV sales and reduced interest expenses.

Summary

• Total revenue for the three months ended June 30, 2025, increased by 9.4% to $1.98 billion, up from $1.81 billion in the prior year.
• Net income attributable to Camping World Holdings, Inc. for Q2 2025 surged by 209.2% to $30.2 million, compared to $9.8 million in Q2 2024.
• Diluted earnings per share (EPS) for Q2 2025 rose to $0.48 from $0.22 in Q2 2024.
• Adjusted EBITDA for Q2 2025 increased by 34.7% to $142.2 million, with Adjusted EBITDA Margin improving to 7.2% from 5.8%.
• New vehicle unit sales increased by 20.9% in Q2 2025, despite a 10.6% decrease in average selling price per unit.
• Used vehicle unit sales increased by 20.4% in Q2 2025, with a 1.2% decrease in average selling price per unit.
• For the six months ended June 30, 2025, total revenue increased by 6.9% to $3.39 billion, up from $3.17 billion in the prior year.
• Net income attributable to Camping World Holdings, Inc. for H1 2025 was $17.9 million, a significant improvement from a net loss of $12.5 million in H1 2024.
• Diluted EPS for H1 2025 improved to $0.28 from a loss of $0.28 in H1 2024.
• Adjusted EBITDA for H1 2025 increased by 52.3% to $173.4 million, with Adjusted EBITDA Margin improving to 5.1% from 3.6%.
• Floor plan interest expense decreased by 24.5% in Q2 2025 and 29.4% in H1 2025 due to lower average borrowing rates and balances.
• Other interest expense, net, decreased by 14.7% in Q2 2025 and 15.1% in H1 2025.
• The company operated 201 locations as of June 30, 2025, a decrease from 215 locations in June 2024, reflecting 10 new openings and 22 closures.
• Active Customers decreased by 11.4% to 4.22 million, and Good Sam Club members decreased by 11.6% to 1.66 million, partly due to the introduction of a free basic plan and price increases.
• Acquired assets of 8 RV dealerships for approximately $92.2 million and purchased real property for $72.4 million during the first half of 2025.
• Divested one RV dealership in June 2025 for $10.3 million, resulting in a $0.3 million loss.

Sentiment

Score: 8

Explanation: The filing indicates strong financial performance with significant increases in net income, revenue, and Adjusted EBITDA. The company is effectively managing inventory and reducing interest expenses. While there are noted declines in Good Sam memberships and an unremediated material weakness in internal controls, the overall financial trajectory and strategic expansion through acquisitions are highly positive, suggesting robust operational health and growth potential.

Positives

• Significant increase in net income attributable to Camping World Holdings, Inc. for both the three-month (209.2%) and six-month (from loss to profit) periods.
• Strong revenue growth across key segments, particularly new and used vehicle sales, with total revenue up 9.4% in Q2 and 6.9% in H1.
• Substantial improvement in Adjusted EBITDA and Adjusted EBITDA Margin, indicating enhanced operational efficiency.
• Reduced floor plan interest expense and other interest expense, net, due to lower borrowing rates and balances, positively impacting profitability.
• Increased unit sales for both new (20.9% in Q2) and used (20.4% in Q2) vehicles, demonstrating strong demand.
• Improved gross margins for used vehicles (149 bps in Q2, 128 bps in H1) and products, service and other (411 bps in Q2, 483 bps in H1).
• Successful resolution of Weissmann and Tumbleweed legal proceedings in the company's favor, with judgments entered on July 8, 2025.
• Active expansion strategy through the acquisition of 8 RV dealerships and purchase of real property in H1 2025.

Negatives

• Good Sam Services and Plans gross profit and margin decreased due to incremental roadside assistance claims costs and new tire rescue program costs.
• New vehicles gross profit decreased due to a 149 basis point decrease in gross margin, driven by lower average selling prices.
• Products, service and other revenue decreased by 5.5% in Q2 and 6.3% in H1, partly due to reallocation of service labor and divestiture of RV furniture business.
• Decline in Active Customers (11.4%) and Good Sam Club members (11.6%), attributed to a free basic plan and price increases impacting renewal rates.
• Selling, general, and administrative expenses increased due to higher commissions, outside services, stock-based compensation, advertising, and employee cash compensation costs.
• The company's total number of retail locations decreased from 215 to 201, reflecting more closures than openings.
• A material weakness in the design and operation of income tax controls remains unremediated as of June 30, 2025.

Risks

• General economic conditions, including inflation and interest rates, and the health of the RV industry, pose ongoing economic and financial uncertainties.
• Availability and cost of financing for the company and its customers could impact business operations.
• Fuel shortages, high fuel prices, or changes in energy sources could affect RV usage and demand.
• Dependence on the well-being, popularity, and quality reputation of manufacturers, particularly Thor Industries, Inc. and Forest River, Inc.
• Changes in consumer preferences for products or failure to gauge those preferences could impact sales.
• Competition in the market for RV services, protection plans, products, and resources.
• Risks associated with expansion into new, unfamiliar markets, businesses, or product lines, and delays in opening new RV dealership locations.
• Unforeseen expenses, difficulties, and delays in connection with acquisitions.
• Ability to maintain the strength and value of company brands.
• Ability to successfully order and manage inventory to reflect consumer demand in a volatile market and anticipate changing consumer preferences and buying trends.
• Fluctuations in same-store revenue and whether such revenue will be a meaningful indicator of future performance.
• Cyclical and seasonal nature of the business, with potential for greater adverse impact from risks during peak sales seasons.
• Ability to operate and expand the business depends on the availability of adequate capital.
• Restrictive covenants imposed by Senior Secured Credit Facilities and Floor Plan Facility.
• Ability to execute and achieve expected benefits of cost-cutting initiatives; impairment charges may be higher than expected.
• Reliance on fulfillment and distribution centers, susceptible to natural disasters or disruptions.
• Natural disasters, unusual weather, epidemic outbreaks, terrorist acts, and political events.
• Dependence on relationships with third-party service providers; disruption of these relationships or operations.
• Delays, new or increased tariffs, increased costs, or quality control deficiencies in imported products.
• Uncertainty whether third-party lending institutions and insurance companies will continue to provide financing for RV purchases, insurance, and extended service contracts.
• Ability to retain senior executives and attract and retain other qualified employees.
• Risks associated with leasing substantial amounts of space.
• Private brand offerings expose the company to various risks.
• Potential for asset impairment charges for goodwill, intangible assets, or other long-lived assets.
• Business is subject to numerous federal, state, and local regulations and litigation risk.
• Risks related to failures in e-commerce operations, security breaches, and cybersecurity risks.
• Inability to maintain or upgrade information technology systems or convert to alternate systems efficiently.
• Risks related to disruptions or breaches involving IT systems or confidential information, or failure to meet regulatory requirements.
• Material weaknesses in internal control over financial reporting.
• Risks relating to organizational structure and ownership of Class A common stock.
• Inability to collect amounts owed from legal judgments (Weissmann and Tumbleweed cases).

Future Outlook

Management expects used vehicle revenue and unit sales to outpace comparative 2024 periods for much of 2025. The company anticipates capital expenditures for expansion of existing and new dealerships through construction and acquisition to cost between $60.0 million and $77.0 million over the next twelve months, excluding acquired inventories primarily financed through the Floor Plan Facility. The company believes its current liquidity and capital sources will be sufficient to finance operations, growth strategy, dividends, Tax Receivable Agreement payments, and other expenses for at least the next twelve months. The company is evaluating the impact of the 'One Big Beautiful Bill Act' (OBBBA) but does not expect a material impact on its effective income tax rate.

Management Comments

• We believe that our Good Sam organization and family of highly specialized services and plans, including roadside assistance, protection plans and insurance, uniquely enables us to connect with our customers as stewards of an outdoor and recreational lifestyle.
• We focused on clearing out a significant portion of our higher cost pre-2024 model year new vehicles in late 2023 and the first quarter of 2024.
• The increased mix of lower cost recent model year vehicles during the first quarter of 2025, as well as a mix shift toward more inexpensive entry level travel trailers, resulted in lower average selling prices and average cost per unit of new vehicles with little impact to gross margins.
• Beginning in the fourth quarter of 2024, we took steps to reverse the trend of decreasing used vehicle revenue and unit sales, including the increase in the procurement of used vehicles, which resulted in a 21.5% increase in used vehicles revenue and 24.4% increase in used vehicles unit sales in the first half of 2025.
• We expect used vehicle revenue and unit sales to outpace comparative 2024 periods for much of 2025.
• We believe that exiting the manufacture of RV furniture gained operational efficiencies and allowed us to focus resources on sourcing and selling RV and aftermarket accessory products.
• The sale of one RV dealership allowed us to avoid significant brand-specific capital improvements which would have been required to support the dealership on an on-going basis.
• We believe that our sources of liquidity and capital will be sufficient to finance our continued operations, growth strategy, including the opening of any additional store locations, quarterly cash dividends, required payments for our obligations under the Tax Receivable Agreement, and additional expenses we expect to incur for at least the next twelve months.
• We are committed to maintaining a strong internal control environment and are taking comprehensive actions to remediate the identified material weakness in income tax controls.

Industry Context

The RV industry, particularly in North America, shows signs of modest wholesale shipment growth, with RVIA projecting a 1.0% increase in 2025. However, new RV registrations in the U.S. declined by 4.6% and used RV registrations by 7.5% for the twelve months ended May 31, 2025. Camping World's strategy of increasing used vehicle procurement and focusing on lower-cost new vehicle models aligns with market adjustments to higher interest rates and inflation, which previously led to higher per-unit costs. The company's ability to increase unit sales despite declining average selling prices suggests effective inventory management and adaptation to consumer demand for more affordable options, contrasting with the broader decline in registrations.

Comparison to Industry Standards

• RVIA projected RV wholesale shipments to be approximately 337,000 in 2025, or 1.0% higher than 2024. Camping World's strong unit sales growth (new vehicles +20.9% in Q2, used vehicles +20.4% in Q2) significantly outpaces this industry projection, indicating market share gains or stronger demand capture.
• New RV registrations in the US declined by 4.6% for the twelve-month period ended May 31, 2025, while Camping World's new vehicle unit sales increased by 20.9% in Q2 2025 and 11.4% in H1 2025, demonstrating a counter-trend performance.
• Used RV registrations experienced a 7.5% decline over the same period, whereas Camping World's used vehicle unit sales increased by 20.4% in Q2 2025 and 24.4% in H1 2025, highlighting strong performance in the used vehicle market segment.
• The company's focus on clearing higher-cost inventory and shifting towards more inexpensive entry-level travel trailers, while resulting in lower average selling prices, has maintained gross margins and driven unit sales, adapting effectively to market conditions where competitors might struggle with inventory overhangs.

Management Changes

Corporate Governance

Legal Proceedings

• Weissmann Complaint: FreedomRoads Holding Company, LLC (FR Holdco) filed a complaint against Steve Weissmann for breach of contractual obligation under a note guarantee. Weissmann counterclaimed alleging fraud, defamation, and RICO violations. Arbitration concluded with an interim award of $4,318,892 plus interest, costs, and attorneys fees in favor of FR Holdco on May 23, 2024. A final award of $4,990,006 was issued on September 12, 2024. Weissmann's petition to vacate was denied, and FR Holdco's petition to confirm was granted on January 16, 2025. Judgment was entered on July 8, 2025, in favor of FR Holdco and other defendants, but collection is not assured.
• Tumbleweed Complaint: Tumbleweed Tiny House Company, Inc. filed a complaint against FR Holdco, CW, Marcus A. Lemonis, and others, alleging fraud, breach of contract, and other claims. The claims were compelled to arbitration and consolidated with the Weissmann complaint. An interim award was issued on May 23, 2024, in favor of all respondents. A final award of $3,793,455 in attorneys fees and $626,611 in costs was issued on September 12, 2024, in favor of FR Holdco, CW, and Lemonis, along with the $4,990,006 award to FR Holdco. Tumbleweed's petition to vacate was denied, and FR Holdco's petition to confirm was granted on January 16, 2025. Judgment was entered on July 8, 2025, in favor of FR Holdco and other defendants, but collection is not assured.

Related Party Transactions

• Marcus A. Lemonis, Chairman and Chief Executive Officer, indirectly controls ML Acquisition Company, LLC, which is a Continuing Equity Owner.
• The company entered into an amended and restated employment agreement with Marcus A. Lemonis in January 2025, granting him 600,000 RSUs and 750,000 PSUs.
• The company's Chairman and Chief Executive Officer personally guaranteed the Lincolnshire Lease for the previous corporate headquarters, which expired in March 2024.

Stakeholder Impact

• Shareholders: Positive impact due to significant increases in net income and EPS, strong revenue growth, and continued quarterly cash dividends of $0.125 per share. The stock repurchase program also provides potential shareholder value. However, the unremediated material weakness in internal controls could be a concern.
• Customers: Impacted by the decline in Good Sam Club members and Active Customers, potentially due to the free basic plan and price increases. The introduction of a new tire rescue program and increased Good Sam branded extended vehicle warranty program sales indicate new offerings and value propositions.
• Employees: Affected by increased commissions costs and other cash compensation costs, as well as increased stock-based compensation expense. The company's expansion plans through acquisitions could create new opportunities.
• Suppliers: The company's increased procurement of used vehicles and continued sourcing of products from various countries indicate ongoing business relationships. The Supplier Agreement with the buyer of the RV furniture business requires the company to purchase $250.0 million of product over 10 years.
• Creditors: The company's ability to reduce floor plan and other interest expenses, along with sufficient liquidity to meet debt obligations and expansion plans, is positive for creditors. Compliance with all financial debt covenants was maintained.

Next Steps

• Continue to execute expansion plans through accretive RV dealership acquisitions.
• Invest between $60.0 million and $77.0 million in capital expenditures for new and existing dealerships over the next twelve months.
• Remediate the material weakness in the design and operation of income tax controls by implementing specific controls, redesigning reports, and conducting training.
• Monitor U.S. trade policy developments and potential tariffs from China, Mexico, and Canada.
• Evaluate the impact of the 'One Big Beautiful Bill Act' (OBBBA) on the effective income tax rate.

Key Dates

Recommendation

The filing demonstrates exceptional financial performance with substantial year-over-year growth in net income, revenue, and Adjusted EBITDA, indicating strong operational leverage and effective cost management, particularly in reducing interest expenses. The company's strategic focus on increasing used vehicle sales and adapting to market demand for lower-cost new vehicles has yielded impressive unit sales growth, significantly outpacing broader industry trends. While the decline in Good Sam memberships and the unremediated material weakness in internal controls are areas to monitor, the overall positive financial trajectory, active expansion through acquisitions, and favorable resolution of legal proceedings present a compelling investment case. The current dividend policy and available stock repurchase program further enhance shareholder value. The company appears well-positioned for continued growth and profitability.

Keywords

RV Retail, Recreational Vehicles, Camping World, Good Sam, RV Dealerships, Outdoor Retail, Financial Performance, SEC Filing, Quarterly Report, Earnings, Revenue, Net Income, EBITDA, Inventory Management, Acquisitions, Debt Management, Consumer Trends, Leisure Industry, Specialty Retail