8-K: Camping World Reports Strong Q2 2025 Results with Over 30% Growth in Net Income and Adjusted EBITDA

Camping World Holdings, Inc. announced robust second quarter 2025 financial results, achieving over 30% growth in net income and Adjusted EBITDA, driven by record unit sales and effective cost management.

Summary

• Net income for the second quarter of 2025 increased by $34.1 million, or 145.7%, to $57.5 million.
• Adjusted EBITDA grew by $36.6 million, or 34.7%, to $142.2 million for the second quarter of 2025.
• Revenue was $2.0 billion for the second quarter, an increase of $169.4 million, or 9.4%.
• Combined new and used vehicle unit sales reached an all-time quarterly record of 45,602 units, an increase of 7,818 units, or 20.7%.
• New vehicle unit sales increased 20.9% to 26,696 units, while used vehicle unit sales increased 20.4% to 18,906 units.
• Same store new vehicle unit sales increased 22.2%, and same store used vehicle unit sales increased 20.8%.
• Gross profit was $592.3 million, an increase of $44.6 million, or 8.1%, with total gross margin at 30.0%.
• Selling, general and administrative expenses (SG&A) were $437.5 million, an increase of 4.2%, but SG&A Excluding SBC increased 3.6% to $429.1 million.
• Floor plan interest expense decreased 24.5% to $21.0 million, attributed to lower interest rates and principal balances.
• The company reduced headcount by over 900 and consolidated 16 locations to improve cost efficiency and per-rooftop productivity.
• Debt has been paid down by over $75 million in total since October of last year, including payments in July 2025.
• Revisions were made to prior period condensed consolidated financial statements for June 30, 2024, related to deferred tax assets, net, additional paid-in capital, and retained earnings, which were deemed immaterial.

Sentiment

Score: 8

Explanation: The company reported strong financial performance with significant increases in net income and Adjusted EBITDA, driven by record unit sales and effective cost management. Strategic initiatives like cost controls, debt reduction, and market share expansion are yielding positive results. While new vehicle ASPs declined, the company's ability to offset this with volume and efficiency improvements, along with positive future outlook, indicates a very positive sentiment.

Positives

• Net income increased by 145.7% to $57.5 million for Q2 2025, demonstrating strong profitability growth.
• Adjusted EBITDA grew by 34.7% to $142.2 million for Q2 2025, indicating robust operational performance.
• Achieved an all-time quarterly volume record of 45,602 combined new and used vehicle unit sales, up 20.7%.
• Strong same-store unit growth with new vehicle sales up 22.2% and used vehicle sales up 20.8%.
• Used vehicle gross margin improved by 149 basis points to 20.5%.
• Products, service and other gross margin increased by 411 basis points to 47.8%.
• Reduced floor plan interest expense by 24.5% to $21.0 million due to lower interest rates and principal balances.
• Implemented structural changes to fixed costs, including reducing headcount by over 900 and consolidating 16 locations, improving per-rooftop productivity.
• Paid down over $75 million in debt since October of last year, demonstrating commitment to deleveraging.
• Anticipates annual cash tax savings of $15 to $20 million in 2025 due to the One Big Beautiful Bill Act, which will prioritize debt paydown.
• Expressed confidence in achieving a mid-cycle earnings power scenario of over $500 million of adjusted EBITDA based on current store count.
• Increased the medium-term market share goal for new and used combined vehicles to 20% plus, up from the previous 15% goal.
• Set an internal mandate to accelerate gross margin by 100 basis points, further bolstering confidence in the business model's earnings power.
• Contract manufacturing capabilities create white space to address untapped demand and generate incremental volume, gross profit, and customer lifetime value.

Negatives

• Average selling price of new vehicles sold decreased by 10.6% to $34,279.
• Average selling price of used vehicles sold decreased by 1.2% to $30,269.
• New vehicle gross margin decreased by 149 basis points to 13.8%.
• Products, service and other revenue decreased by 5.5% due to reallocation of service labor and the divestiture of the RV furniture business.
• Good Sam Services and Plans gross margin decreased by 777 basis points to 59.5% due to higher roadside assistance claim costs.
• Total gross margin slightly decreased by 34 basis points to 30.0%.
• Selling, general and administrative expenses (SG&A) increased by $17.8 million, or 4.2%.
• The total number of store locations decreased by a net of 14 (6.5%) from June 30, 2024.
• Active Customers decreased by 11.4% and Good Sam Club members decreased by 11.6%.

Risks

• General economic conditions, including inflation, interest rates, and tariffs, can impact business performance.
• The availability of financing to the company and its customers is crucial for sales and operations.
• Fuel shortages, high prices for fuel, or changes in energy sources could affect consumer demand for RVs.
• The success of manufacturers is vital, as the company relies on their products.
• Changes in consumer preferences could shift demand away from RVs or specific types of vehicles.
• Competition in the industry may impact market share and profitability.
• Risks are associated with acquisitions, new store openings, and expansion into new markets.
• Failure to maintain the strength and value of the company's brands could negatively affect business.
• The ability to effectively manage inventory is critical for profitability and operational efficiency.
• Fluctuations in same-store sales can indicate underlying business challenges or opportunities.
• The cyclical and seasonal nature of the business can lead to revenue and profit volatility.
• Dependence on adequate capital and risks related to debt can impact financial stability.
• The ability to execute and achieve the expected benefits of cost-cutting initiatives is not guaranteed.
• Reliance on fulfillment and distribution centers poses operational risks.
• Impacts from natural disasters, including pandemics and health crises, can disrupt operations.
• Dependence on relationships with third-party suppliers and lending institutions is a key operational risk.
• Risks are associated with selling goods manufactured abroad, including supply chain and geopolitical factors.
• The ability to retain senior executives and attract and retain other qualified employees is essential for sustained performance.
• Risks are associated with leasing substantial amounts of space, including lease obligations and market conditions.
• Private brand offerings expose the company to various risks, including product liability and brand reputation.
• The company may incur asset impairment charges for goodwill, intangible assets, or other long-lived assets.
• Tax risks, including changes in tax laws or interpretations, could impact financial results.
• Regulatory risks, including compliance with various laws and regulations, can lead to penalties or operational changes.
• Data privacy and cybersecurity risks pose threats to customer data and business operations.
• Risks related to intellectual property, including infringement or loss of rights, could impact competitive advantage.
• The impact of ongoing or future lawsuits against the company and its officers and directors could result in significant costs.
• Risks related to climate change and other environmental, social, and governance matters may affect operations and reputation.
• Risks related to the organizational structure (Up-C) may make it difficult to compare results with traditionally structured companies.

Future Outlook

The company expects new unit volume to grow in excess of high-singles compared to the prior year, with new vehicle average selling prices potentially lower by 10-12% for the full year. Despite this, the company anticipates 300-400 basis points of improvement in SG&A as a percentage of gross profit, with further efficiency expected as ASPs rebound. Cash flow is expected to benefit from the One Big Beautiful Bill Act, leading to $15 to $20 million in annual cash tax savings in 2025, which will prioritize debt paydown. Management is confident in achieving over $500 million of adjusted EBITDA in a mid-cycle earnings power scenario and aims for a 20% plus combined new and used market share in the medium term, alongside an internal mandate to accelerate gross margin by 100 basis points.

Management Comments

• "I am unbelievably pleased with our Company’s financial performance in the quarter, driven by volume, margin performance and aggressive cost controls." Marcus Lemonis, Chairman and Chief Executive Officer.
• "We continue to surgically manage our inventory to find volume and gross profit opportunities leveraging our new and used supply chains, our contract manufacturing relationships, our sophisticated data analytics, and the strength of our balance sheet to put the right inventory on the ground at the right time and the right price. Our nimbleness is a true testament to the differentiation and durability of our model." Marcus Lemonis, Chairman and Chief Executive Officer.
• "We have made structural changes to our fixed costs compared to last year, reducing our headcount by over 900, consolidating 16 locations, and selling 7,818 more units; meaningfully improving our per-rooftop productivity and proving we can adapt to the near-term ASP contribution margin environment in new vehicles." Marcus Lemonis, Chairman and Chief Executive Officer.
• "Our same store unit growth trends July month-to-date are tracking up high-teens percent on used vehicles and up high-singles on new vehicles compared to the prior year, both in line on a multi-year basis with our second quarter performance." Matthew Wagner, President.
• "Our guideposts for the full year remain largely unchanged, although our new unit volume is now expected to be higher, growing in excess of high-singles compared to the prior year. New vehicle ASP is expected to improve seasonally in the third and fourth quarter but could be lower by 10-12% for the full year compared to the prior year. Despite this drop in ASP we are expecting to accomplish 300-400 basis points of improvement in SG&A as a percentage of gross profit, recognizing that this efficiency will improve further as ASPs rebound." Matthew Wagner, President.
• "We expect cash flow to benefit from the passage of the One Big Beautiful Bill Act through the immediate deductibility of floorplan interest expense on travel trailers and fifth wheels. We estimate annual cash tax savings of $15 to $20 million in 2025 and expect to prioritize debt paydown and deleveraging activities with those savings. Including payments in July 2025, we’ve paid down debt by over $75 million in total since October of last year." Tom Kirn, Chief Financial Officer.
• "We enter the second half more confident than ever in our mid-cycle earnings power scenario of over $500 million of adjusted EBITDA based on today’s store count, particularly as the Company’s per rooftop productivity accelerates, resulting in better earnings, better leverage, and a greater willingness to explore new market expansion opportunities." Marcus Lemonis, Chairman and Chief Executive Officer.
• "Given results year-to-date, we believe that more upside exists in the 15% new and used combined market share goal we set last year, with 20% plus emerging as a realistic medium-term goal. The team also set an internal mandate to accelerate gross margin by 100 basis points, further bolstering our confidence in the earnings power of our business model." Marcus Lemonis, Chairman and Chief Executive Officer.

Industry Context

The RV industry is experiencing shifts in average selling prices, particularly for new vehicles, but Camping World is demonstrating resilience and adaptability through strategic inventory management, cost controls, and leveraging contract manufacturing. While the broader industry (excluding CWH) saw a decline in new and used unit sales year-over-year, Camping World significantly outperformed, indicating market share gains. The company's focus on affordability through contract manufacturing addresses a growing segment of new RV buyers, aligning with broader trends of attracting younger and more diverse demographics to the RV lifestyle.

Comparison to Industry Standards

• New and Used Industry Unit Sales in Q2 2025 were down 15% compared to 2019 levels, while Camping World achieved a 20.7% increase in combined new and used unit sales year-over-year, significantly outperforming the broader market.
• Camping World's rolling TTM new and used units show positive growth, contrasting with a decline in the industry excluding CWH, indicating substantial market share gains.
• The company's mid-cycle earnings power scenario targets over $500 million Adjusted EBITDA based on its current store count and accelerating per-rooftop productivity, aiming for a 20% plus combined market share, an increase from its previous 15% goal, demonstrating aggressive growth targets relative to industry peers.
• The company expects SG&A as a percentage of gross profit to improve by 300-400 basis points year-over-year, showcasing strong operational efficiency gains despite lower new vehicle average selling prices, a key indicator of effective cost management in the retail sector.

Stakeholder Impact

• Shareholders: Positive impact due to significant increases in net income, Adjusted EBITDA, and earnings per share, along with debt reduction and increased market share goals.
• Employees: Headcount reduction of over 900 indicates potential negative impact for some, but improved per-rooftop productivity for remaining employees.
• Customers: Benefit from strategic inventory management, contract manufacturing relationships, and focus on affordability, potentially leading to better pricing and product availability.
• Creditors: Positive impact from debt paydown and deleveraging activities, improving financial health and reducing risk.

Next Steps

• Meet with investors and analysts beginning July 29, 2025, to discuss sales trends in the company's business and industry, as well as a general business update.
• Hold a conference call on July 30, 2025, to discuss the second quarter 2025 financial results.
• Prioritize debt paydown and deleveraging activities with the anticipated annual cash tax savings of $15 to $20 million in 2025 from the One Big Beautiful Bill Act.
• Explore new market expansion opportunities as the company's per-rooftop productivity accelerates.
• Accelerate gross margin by 100 basis points as an internal mandate.

Key Dates

Recommendation

The company delivered exceptional Q2 2025 results, significantly exceeding prior period performance in key profitability metrics like net income (up 145.7%) and Adjusted EBITDA (up 34.7%). The record unit sales volume, coupled with effective cost controls and strategic inventory management, demonstrates strong operational execution and adaptability in a dynamic market. Management's proactive measures, including headcount reduction, store consolidation, and debt paydown, are clearly enhancing per-rooftop productivity and financial efficiency. The anticipated $15-20 million in annual cash tax savings from new legislation further bolsters cash flow for deleveraging. The increased medium-term market share goal to 20%+ and the internal mandate for 100 basis points of gross margin acceleration signal robust future growth and profitability potential. Despite a decline in new vehicle ASPs, the company's ability to drive volume and improve SG&A efficiency indicates a resilient business model. These factors collectively point to a strong investment opportunity.

Keywords

RV, Recreational Vehicle, Camping World, CWH, Good Sam, RV Dealer, Financial Results, Earnings, EBITDA, Net Income, Unit Sales, Market Share, Cost Control, Debt Reduction, RV Industry, Outdoor Retail, SEC Filing, 8-K