Camping World Holdings(CWH) - 2025 Q2 - Quarterly Results

Executive Summary & Business Outlook Camping World Holdings, Inc. reported strong Q2 2025 financial performance, driven by record unit sales and cost controls, with a positive full-year outlook Q2 2025 Performance Highlights Camping World Holdings, Inc. reported strong Q2 2025 results, with net income and Adjusted EBITDA up over 30% on record unit volumes - Net Income and Adjusted EBITDA grew by more than 30% in Q2 2025, attributed to strong cost execution and record quarterly volume[1] Q2 2025 Performance Highlights | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :-------------------------------- | :------ | :------ | :----- | :------- | | Revenue | $2.0 billion | $1.8 billion | $169.4 million | 9.4% | | New vehicle unit sales | 26,696 | 22,084 | 4,612 | 20.9% | | Used vehicle unit sales | 18,906 | 15,700 | 3,206 | 20.4% | | Combined new and used vehicle unit sales | 45,602 | 37,784 | 7,818 | 20.7% | | Net income | $57.5 million | $23.4 million | $34.1 million | 145.7% | | Adjusted EBITDA | $142.2 million | $105.6 million | $36.6 million | 34.7% | | Diluted EPS | $0.48 | $0.22 | $0.26 | 118.2% | | Adjusted diluted EPS | $0.57 | $0.38 | $0.19 | 50.0% | Management Commentary & Strategic Initiatives Management highlighted successful inventory management, aggressive cost controls, and fixed cost reductions, prioritizing debt paydown and leveraging tax savings - The company surgically manages inventory for volume and gross profit opportunities, leveraging new and used supply chains, contract manufacturing, data analytics, and balance sheet strength[2] - Structural changes to fixed costs include reducing headcount by over 900 and consolidating 16 locations, leading to improved per-rooftop productivity[2] - Expected annual cash tax savings of $15 to $20 million in 2025 from the 'One Big Beautiful Bill Act' will be prioritized for debt paydown and deleveraging[2] Full Year Outlook & Goals The company maintains its full-year guideposts, with an upward revision in new unit volume expectations and anticipated SG&A efficiency improvements - New unit volume is now expected to grow in excess of high-singles compared to the prior year[2] - New vehicle Average Selling Price (ASP) is expected to improve seasonally in Q3 and Q4 but could be lower by 10-12% for the full year compared to the prior year[2] - Expects 300-400 basis points of improvement in SG&A as a percentage of gross profit for the full year[2] - Mid-cycle earnings power scenario of over $500 million of adjusted EBITDA based on today's store count, with a medium-term goal of 20%+ combined new and used market share and an internal mandate to accelerate gross margin by 100 basis points[2] Second Quarter Operating Highlights This section details Camping World Holdings, Inc.'s Q2 2025 revenue, unit sales, pricing, gross margin, operating expenses, and inventory performance Revenue and Unit Sales Performance Camping World Holdings, Inc. reported a 9.4% increase in total revenue to $2.0 billion for Q2 2025, driven by strong unit sales across both new and used vehicles Q2 2025 Revenue Performance | Category | Q2 2025 Revenue (in millions) | Q2 2024 Revenue (in millions) | Change (in millions) | % Change | | :------------------------ | :-------------- | :-------------- | :----- | :------- | | Total Revenue | $1,975.9 | $1,806.5 | $169.4 | 9.4% | | New vehicles | $915.1 | $847.1 | $68.0 | 8.0% | | Used vehicles | $572.3 | $480.8 | $91.5 | 19.0% | | Products, service and other | $222.9 | $235.9 | ($13.1) | (5.5%) | | Finance and insurance, net | $201.2 | $179.0 | $22.2 | 12.4% | Q2 2025 Unit Sales Performance | Category | Q2 2025 Units | Q2 2024 Units | Change | % Change | | :------------------------ | :------------ | :------------ | :----- | :------- | | New vehicles | 26,696 | 22,084 | 4,612 | 20.9% | | Used vehicles | 18,906 | 15,700 | 3,206 | 20.4% | | Combined new and used | 45,602 | 37,784 | 7,818 | 20.7% | | Same store new vehicles | 24,360 | 19,936 | 4,424 | 22.2% | | Same store used vehicles | 17,528 | 14,509 | 3,019 | 20.8% | | Combined same store | 41,888 | 34,445 | 7,443 | 21.6% | Pricing and Gross Margin Trends Average selling prices for both new and used vehicles decreased in Q2 2025, while used vehicle and products/service gross margins improved significantly Q2 2025 Average Selling Price (ASP) | Category | Q2 2025 ASP | Q2 2024 ASP | Change | % Change | | :---------------- | :---------- | :---------- | :----- | :------- | | New vehicles | $34,279 | $38,358 | ($4,079) | (10.6%) | | Used vehicles | $30,269 | $30,623 | ($354) | (1.2%) | Q2 2025 Gross Margin by Category | Category | Q2 2025 Gross Margin (%) | Q2 2024 Gross Margin (%) | Change (bps) | | :-------------------------- | :------------------- | :------------------- | :----------- | | New vehicles | 13.8% | 15.3% | (149) | | Used vehicles | 20.5% | 19.0% | 149 | | Products, service and other | 47.8% | 43.7% | 411 | | Good Sam Services and Plans | 59.5% | 67.3% | (777) | | Finance and insurance, net | 100.0% | 100.0% | unch | | Good Sam Club | 88.1% | 86.8% | 133 | | Total gross margin | 30.0% | 30.3% | (34) | - Total gross profit increased by $44.6 million (8.1%) to $592.3 million, primarily driven by higher used vehicle gross profit and increased finance and insurance (F&I) gross profit[6] Operating Expenses and Profitability SG&A expenses increased by 4.2%, but reduced interest expenses contributed to a substantial improvement in net income and Adjusted EBITDA Q2 2025 Operating Expenses and Profitability | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :-------------------------------- | :------ | :------ | :----- | :------- | | SG&A | $437.5 | $419.7 | $17.8 | 4.2% | | SG&A Excluding SBC | $429.1 | $414.4 | $14.8 | 3.6% | | Floor plan interest expense | $21.0 | $27.8 | ($6.8) | (24.5%) | | Other interest expense, net | $30.8 | $36.2 | ($5.3) | (14.7%) | | Net income | $57.5 | $23.4 | $34.1 | 145.7% | | Adjusted EBITDA | $142.2 | $105.6 | $36.6 | 34.7% | | Diluted EPS | $0.48 | $0.22 | $0.26 | 118.2% | | Adjusted diluted EPS | $0.57 | $0.38 | $0.19 | 50.0% | - The increase in SG&A was primarily driven by a $7.5 million increase in employee cash compensation, a $3.0 million increase in employee stock-based compensation, and $2.9 million in additional advertising expenses[6] Store Locations and Inventory Total store locations decreased by 6.5% due to consolidation, while total RV and Outdoor Retail inventories increased slightly with a significant shift towards used vehicle inventory Q2 2025 Store Locations and Inventory | Metric | June 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------------------- | :------------ | :------------ | :----- | :------- | | Total store locations | 201 | 215 | (14) | (6.5%) | | New vehicle inventory | $1,330.9 million | $1,477.5 million | ($146.5 million) | (9.9%) | | Used vehicle inventory | $536.7 million | $349.8 million | $186.8 million | 53.4% | | Total RV and Outdoor Retail inventories | $2,060.9 million | $2,014.1 million | $46.8 million | 2.3% | | New vehicle inventory turnover | 1.9 | 1.6 | 0.2 | 14.5% | | Used vehicle inventory turnover | 3.3 | 3.3 | (0.0) | (0.3%) | - The net decrease of 14 store locations included the consolidation of 16 store locations to improve overall cost efficiency[6] Customer and Membership Data Active customers and Good Sam Club members both decreased by over 11%, while service bays experienced a slight reduction Q2 2025 Customer and Membership Data | Metric | June 30, 2025 | June 30, 2024 | Change | % Change | | :---------------------- | :------------ | :------------ | :----- | :------- | | Active Customers | 4,221,642 | 4,762,376 | (540,734) | (11.4%) | | Good Sam Club members | 1,662,653 | 1,880,126 | (217,473) | (11.6%) | | Service bays | 2,809 | 2,877 | (68) | (2.4%) | Financial Statements This section presents the consolidated statements of operations, balance sheets, and cash flows for Camping World Holdings, Inc Consolidated Statements of Operations For Q2 2025, total revenue increased by 9.4% to $1.976 billion, with net income attributable to Camping World Holdings, Inc. surging by 209.2% Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :--------------------- | :--------------------- | :-------------------- | :------- | | Total revenue | $1,975,948 | $1,806,505 | $169,443 | 9.4% | | Total costs applicable to revenue | $1,383,693 | $1,258,846 | $124,847 | 9.9% | | Total gross profit | $592,255 | $547,659 | $44,596 | 8.1% | | Total operating expenses | $461,986 | $452,277 | $9,709 | 2.1% | | Income from operations | $130,269 | $95,382 | $34,887 | 36.6% | | Total other expense | ($54,425) | ($64,033) | $9,608 | (15.0%) | | Net income | $57,523 | $23,414 | $34,109 | 145.7% | | Net income attributable to Camping World Holdings, Inc. | $30,216 | $9,771 | $20,445 | 209.2% | Consolidated Balance Sheets As of June 30, 2025, total assets increased to $5.192 billion, driven by higher inventories and cash, while total liabilities also rose due to increased floor plan notes and accounts payable Consolidated Balance Sheet Highlights (June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change (in thousands) | | :------------------------------------------ | :--------------------------- | :-------------------------- | :-------------------- | | Total assets | $5,191,847 | $4,863,277 | $328,570 | | Inventories | $2,061,160 | $1,821,837 | $239,323 | | Cash and cash equivalents | $118,084 | $208,422 | ($90,338) | | Total liabilities | $4,675,268 | $4,378,328 | $296,940 | | Notes payable – floor plan, net | $1,280,102 | $1,161,713 | $118,389 | | Accounts payable | $283,450 | $145,346 | $138,104 | | Total stockholders' equity attributable to CWH | $340,538 | $326,562 | $13,976 | Summary of Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $44.6 million, a significant shift from cash provided in the prior year, while financing activities provided $134.3 million Summary of Consolidated Statements of Cash Flows (Six Months Ended June 30) | Activity | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :------------------------------------ | :-------------------- | :-------------------- | :-------------------- | | Net cash (used in) provided by operating activities | ($44,595) | $84,341 | ($128,936) | | Net cash used in investing activities | ($180,078) | ($54,931) | ($125,147) | | Net cash provided by (used in) financing activities | $134,335 | ($45,314) | $179,649 | | Decrease in cash and cash equivalents | ($90,338) | ($15,904) | ($74,434) | | Cash and cash equivalents at end of the period | $118,084 | $23,743 | $94,341 | Earnings Per Share This section details the basic and diluted earnings per share, along with the reconciliation of the EPS calculations Basic and Diluted EPS For Q2 2025, basic and diluted earnings per share of Class A common stock significantly improved to $0.48 from $0.22 in Q2 2024 Earnings Per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Basic EPS of Class A common stock | $0.48 | $0.22 | $0.26 | | Diluted EPS of Class A common stock | $0.48 | $0.22 | $0.26 | | Weighted-average shares outstanding (basic) | 62,610 | 45,093 | 17,517 | | Weighted-average shares outstanding (diluted) | 62,747 | 45,244 | 17,503 | Reconciliation of EPS This section provides the numerators and denominators for basic and diluted EPS calculations, including adjustments for non-controlling interests and dilutive securities - Net income attributable to Camping World Holdings, Inc. for diluted EPS was $30,243 thousand in Q2 2025, adjusted for reallocation of net income attributable to non-controlling interests from dilutive stock options and RSUs[28] - Dilutive restricted stock units contributed 137 thousand shares to the diluted weighted-average shares outstanding in Q2 2025[28] Non-GAAP Financial Measures This section provides reconciliations and definitions for non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS EBITDA and Adjusted EBITDA The company uses EBITDA and Adjusted EBITDA to provide insights into operating results, with Adjusted EBITDA for Q2 2025 increasing by 34.7% to $142.2 million - EBITDA is defined as net income (loss) before other interest expense, net (excluding floor plan interest expense), provision for income tax expense (benefit), and depreciation and amortization[33] - Adjusted EBITDA further adjusts EBITDA for noncash and other items such as long-lived asset impairment, gains/losses on asset disposal, stock-based compensation, and lease termination costs[33] EBITDA and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :-------------------- | | Net income (loss) | $57,523 | $23,414 | $34,109 | | Subtotal EBITDA | $130,099 | $87,534 | $42,565 | | Adjusted EBITDA | $142,221 | $105,581 | $36,640 | | Adjusted EBITDA margin | 7.2% | 5.8% | 1.4% | | Net income (loss) margin | 2.9% | 1.3% | 1.6% | Adjusted Net Income and Adjusted EPS Adjusted Net Income and Adjusted EPS are non-GAAP measures providing a clearer view of ongoing operating performance by excluding certain noncash and unusual items - Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic adjusts GAAP net income for items like long-lived asset impairment, asset disposal gains/losses, SBC, equity investment losses, lease termination costs, and their tax and non-controlling interest effects[37] - Adjusted Earnings (Loss) Per Share – Diluted considers the assumed redemption of all outstanding common units in CWGS, LLC for Class A common stock, if dilutive, and the dilutive effect of stock options and restricted stock units[39] Adjusted Net Income and Adjusted EPS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | :-------------------- | | Net income (loss) attributable to CWH | $30,216 | $9,771 | $20,445 | | Adjusted net income (loss) attributable to CWH – basic | $35,768 | $16,940 | $18,828 | | Adjusted net income (loss) attributable to CWH – diluted | $35,800 | $16,970 | $18,830 | | Adjusted earnings (loss) per share - basic | $0.57 | $0.38 | $0.19 | | Adjusted earnings (loss) per share - diluted | $0.57 | $0.38 | $0.19 | SG&A Excluding SBC SG&A Excluding SBC is a non-GAAP measure used to evaluate core operating performance, showing 72.5% of gross profit for Q2 2025, an improvement from 75.7% in Q2 2024 - SG&A Excluding SBC is defined as SG&A before stock-based compensation relating to SG&A[43] SG&A Excluding SBC (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :-------------------- | | SG&A | $437,489 | $419,676 | $17,813 | | SBC - SG&A | ($8,344) | ($5,308) | ($3,036) | | SG&A Excluding SBC | $429,145 | $414,368 | $14,777 | | As a percentage of gross profit | 72.5% | 75.7% | (3.2%) | Revisions to Prior Period Financial Statements This section addresses immaterial prior period misstatements and their adjustments to the consolidated balance sheet Immaterial Misstatements and Adjustments The company identified immaterial prior period misstatements related to deferred tax assets, impacting balance sheet items as of June 30, 2024 - Prior period misstatements were identified concerning the measurement of the realizable portion of the deferred tax asset in CWGS Enterprises, LLC, including the associated valuation allowance[7] - The revisions impacted deferred tax assets, net, additional paid-in capital, and retained earnings as of and for the years ended December 31, 2023 and 2022, and the beginning balances as of June 30, 2024[7] Effect of Immaterial Misstatements on Consolidated Balance Sheet (As of June 30, 2024) | Metric | As Previously Reported (in thousands) | Adjustment (in thousands) | As Revised (in thousands) | | :------------------------------------------ | :-------------------------- | :------------------------ | :------------------------ | | Deferred tax assets, net | $150,105 | $43,768 | $193,873 | | Total assets | $4,962,108 | $43,768 | $5,005,876 | | Additional paid-in capital | $100,076 | $33,385 | $133,461 | | Retained earnings | $161,434 | $10,383 | $171,817 | | Total stockholders' equity attributable to CWH | $105,894 | $43,768 | $149,662 | | Total stockholders' equity | $166,637 | $43,768 | $210,405 | | Total liabilities and stockholders' equity | $4,962,108 | $43,768 | $5,005,876 | Company Information & Disclosures This section provides an overview of Camping World Holdings, Inc., its forward-looking statements, dividend policy, and investor communication channels About Camping World Holdings, Inc. Camping World Holdings, Inc. is the world's largest retailer of RVs and related products and services, aiming to make outdoor adventures fun and easy - Camping World Holdings, Inc. is the World's Largest Recreational Vehicle Dealer, headquartered in Lincolnshire, IL[1][11] - The company's vision is to build a business that makes RVing and other outdoor adventures fun and easy, offering a unique and comprehensive assortment of RV products and services[11] - Good Sam organization provides specialized services and plans, including roadside assistance, protection plans, and insurance, connecting with customers as stewards of an outdoor lifestyle[12] Forward-Looking Statements The press release contains forward-looking statements regarding future expectations, which involve known and unknown risks and uncertainties that could cause actual results to differ materially - Forward-looking statements cover topics such as macroeconomic and industry trends, inventory strategy, SG&A reductions, profitability improvement, gross margin improvement, and market share goals[13] - These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause actual results to be materially different[14] - Key risk factors include general economic conditions, financing availability, fuel prices, consumer preferences, competition, and regulatory risks, as detailed in the company's Annual Report on Form 10-K[14][15] Dividend Policy Future declarations of quarterly dividends are subject to the determination and discretion of the Company's Board of Directors, based on various financial and operational factors - Future dividend declarations are at the discretion of the Board of Directors, considering factors like results of operations, financial condition, indebtedness, capital requirements, and contractual restrictions[16] Investor Relations & Social Media The company uses its official social media accounts and investor relations website as distribution channels for material information to comply with Regulation FD - Official Facebook, X (formerly Twitter), and Instagram accounts (@CampingWorld), along with the investor page of the website (investor.campingworld.com), are used as distribution channels for material information[17] - Information posted on these social media channels and the investor webpage may be deemed material, and investors should subscribe to these accounts and investor alerts[17][18] Presentation & Corporate Structure Financial results are presented in accordance with GAAP, supplemented by non-GAAP measures, reflecting the company's 'Up-C' corporate structure and consolidated financials - Financial results are presented in accordance with GAAP, with non-GAAP financial measures used to supplement[10] - The company operates with an 'Up-C' corporate structure, owning 61.1% of CWGS, LLC as of June 30, 2025, and consolidates CWGS, LLC's financial results, reporting a non-controlling interest[10]