Lazydays Holdings(GORV) - 2025 Q2 - Quarterly Results

Executive Summary & Company Overview Lazydays Holdings, Inc. reports Q2 2025 financial and operational highlights, detailing turnaround progress, improved margins, and debt reduction Second Quarter 2025 Financial Highlights Lazydays advanced its Q2 2025 turnaround plan, achieving increased gross profit margins, reducing liabilities by over $200 million through divestitures, and reporting a reduced net loss and improved Adjusted EBITDA despite lower revenue - The company advanced its turnaround plan, focusing on operational performance and streamlining its footprint through asset divestitures[2] - Gross profit margins increased across all products and services compared to the prior year period[2] - Divestitures reduced total liabilities by over $200 million during the first half of the year, with the cash balance remaining unchanged at June 30, 2025, compared to December 31, 2024[2] Q2 2025 vs Q2 2024 Key Financials | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (YoY) | | :------------------------- | :------------------- | :------------------- | :----------- | | Total Revenue | 131.3 | 235.6 | -44.3% | | Net Loss | (24.6) | (44.2) | +44.4% | | Adjusted EBITDA | (6.2) | (9.4) | +34.0% | | Net Loss per Diluted Share | (6.67) | (96.53) | +93.1% | About Lazydays Lazydays Holdings, Inc. is a prominent RV industry player since 1976, offering exceptional sales, service, and parts, and is publicly listed on Nasdaq under 'GORV' - Lazydays has been a prominent player in the RV industry since 1976, known for exceptional RV sales, service, and ownership experiences[4] - The company offers a wide selection of RV brands, state-of-the-art service facilities, and an extensive range of accessories and parts[5] - Lazydays is a publicly listed company on the Nasdaq stock exchange under the ticker 'GORV'[6] Consolidated Results of Operations This section details Lazydays' Q2 and YTD 2025 financial performance, covering revenue, profitability, and net loss, with significant year-over-year changes Revenue Analysis Total revenue for Q2 2025 and the six months ended June 30, 2025, significantly decreased by 44.3% and 41.3% respectively, primarily due to declines in new and pre-owned vehicle retail sales Revenue Breakdown (Three Months Ended June 30) | Revenue Category | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :------------------------ | :----------------- | :----------------- | :------------- | | New vehicle retail | 77,463 | 143,333 | -46.0% | | Pre-owned vehicle retail | 29,461 | 57,254 | -48.5% | | Finance and insurance | 10,575 | 16,041 | -34.1% | | Service, body and parts | 10,850 | 15,144 | -28.3% | | Total revenue | 131,297 | 235,602 | -44.3% | Revenue Breakdown (Six Months Ended June 30) | Revenue Category | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :------------------------ | :----------------- | :----------------- | :------------- | | New vehicle retail | 174,982 | 296,024 | -40.9% | | Pre-owned vehicle retail | 70,134 | 136,282 | -48.5% | | Finance and insurance | 22,077 | 34,370 | -35.8% | | Service, body and parts | 23,426 | 28,885 | -18.9% | | Total revenue | 297,112 | 505,722 | -41.3% | Profitability and Expenses Gross profit decreased in Q2 and YTD 2025 despite reduced costs and operating expenses, with substantial impairment charges impacting operating loss Profitability and Expenses (Three Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Total cost applicable to revenue | 97,108 | 188,198 | -48.4% | | Gross profit | 34,189 | 47,404 | -27.9% | | Depreciation and amortization | 3,400 | 4,956 | -31.4% | | Selling, general, and administrative | 35,826 | 52,010 | -31.1% | | Impairment charges | 7,676 | — | N/A | | Loss from operations | (12,713) | (9,562) | -33.0% | | Floor plan interest expense | (3,269) | (5,708) | +42.7% | | Other interest expense | (7,398) | (5,837) | -26.8% | Profitability and Expenses (Six Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :----------------------------------- | :----------------- | :----------------- | :------------- | | Total cost applicable to revenue | 219,081 | 420,552 | -47.9% | | Gross profit | 78,031 | 85,170 | -8.3% | | Depreciation and amortization | 7,982 | 10,417 | -23.4% | | Selling, general, and administrative | 74,455 | 100,896 | -26.2% | | Impairment charges | 10,576 | — | N/A | | Loss from operations | (14,982) | (26,143) | +42.7% | | Floor plan interest expense | (7,859) | (13,384) | +41.3% | | Other interest expense | (13,567) | (10,360) | -31.0% | Net Loss and Earnings Per Share Lazydays reported a reduced net loss and significantly lower net loss per diluted share for Q2 and YTD 2025, partly due to a higher weighted average number of shares Net Loss and EPS (Three Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :------------------------- | :----------------- | :----------------- | :------------- | | Net loss | (24,589) | (44,221) | +44.4% | | Diluted Loss per share | (6.67) | (96.53) | +93.1% | | Weighted average shares | 3,684,277 | 479,163 | +668.9% | Net Loss and EPS (Six Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change (%) | | :------------------------- | :----------------- | :----------------- | :------------- | | Net loss | (34,122) | (66,201) | +48.5% | | Diluted Loss per share | (9.27) | (146.57) | +93.7% | | Weighted average shares | 3,680,539 | 479,060 | +668.3% | Other Key Metrics and Operational Highlights This section presents key operational metrics for Q2 and YTD 2025, covering gross profit margins, retail unit sales, average selling prices, and revenue/gross profit mix Gross Profit Margins by Category Lazydays achieved improved gross profit margins across most categories for Q2 and YTD 2025, with significant expansion in new and pre-owned vehicle retail and service, body and parts Gross Profit Margins (Three Months Ended June 30) | Category | 2025 | 2024 | Change (pp) | | :------------------------ | :------ | :------ | :---------- | | New vehicle retail | 11.0 % | 9.2 % | +1.8 | | Pre-owned vehicle retail | 20.3 % | 19.0 % | +1.3 | | Finance and insurance | 96.7 % | 96.0 % | +0.7 | | Service, body and parts | 54.7 % | 52.8 % | +1.9 | | Total gross profit margin | 26.0 % | 20.1 % | +5.9 | Gross Profit Margins (Six Months Ended June 30) | Category | 2025 | 2024 | Change (pp) | | :------------------------ | :------ | :------ | :---------- | | New vehicle retail | 11.1 % | 6.4 % | +4.7 | | Pre-owned vehicle retail | 20.9 % | 14.8 % | +6.1 | | Finance and insurance | 96.5 % | 96.1 % | +0.4 | | Service, body and parts | 54.7 % | 53.5 % | +1.2 | | Total gross profit margin | 26.3 % | 16.8 % | +9.5 | Retail Unit Sales and Average Selling Price Retail unit sales for new and pre-owned vehicles significantly decreased in Q2 and YTD 2025, while new vehicle average selling price and average gross profit per retail unit generally increased across categories Retail Units Sold (Three Months Ended June 30) | Category | 2025 | 2024 | YoY Change (%) | | :------------------------ | :---- | :---- | :------------- | | New vehicle retail | 1,068 | 2,036 | -47.5% | | Pre-owned vehicle retail | 598 | 1,100 | -45.7% | | Consignment vehicle | 185 | 49 | +277.6% | | Total retail units sold | 1,851 | 3,185 | -41.9% | Average Selling Price & Gross Profit per Retail Unit (Q2 2025 vs 2024) | Metric | 2025 ($) | 2024 ($) | YoY Change (%) | | :------------------------------------ | :------- | :------- | :------------- | | New vehicle retail (ASP) | 72,531 | 70,458 | +2.9% | | Pre-owned vehicle retail (ASP) | 49,266 | 52,049 | -5.4% | | New vehicle retail (Avg GP excl. LIFO)| 7,962 | 6,412 | +24.2% | | Pre-owned vehicle retail (Avg GP excl. LIFO)| 9,998 | 9,909 | +0.9% | | Finance and insurance (Avg GP) | 5,527 | 5,084 | +8.7% | Revenue and Gross Profit Mix Q2 2025 revenue mix showed new vehicle retail's share decreasing while finance and insurance, and service, body and parts increased, with gross profit mix shifts including increased contributions from consignment vehicles and LIFO adjustments Revenue Mix (Three Months Ended June 30) | Category | 2025 | 2024 | | :------------------------ | :------ | :------ | | New vehicle retail | 59.0 % | 60.8 % | | Pre-owned vehicle retail | 22.4 % | 24.3 % | | Finance and insurance | 8.1 % | 6.8 % | | Service, body and parts | 8.2 % | 6.5 % | Gross Profit Mix (Three Months Ended June 30) | Category | 2025 | 2024 | | :------------------------ | :------ | :------ | | New vehicle retail | 24.9 % | 27.8 % | | Pre-owned vehicle retail | 17.5 % | 23.0 % | | Consignment vehicle | 6.1 % | 1.2 % | | Finance and insurance | 29.9 % | 32.5 % | | Service, body and parts | 17.4 % | 16.9 % | | LIFO | 4.3 % | (0.7)% | Condensed Consolidated Balance Sheets As of June 30, 2025, Lazydays reported significant decreases in total assets and liabilities, driven by reduced floor plan notes payable and related party debt Balance Sheet Highlights (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 ($ thousands) | Dec 31, 2024 ($ thousands) | Change (%) | | :--------------------------- | :-------------------------- | :------------------------- | :--------- | | Total assets | 429,064 | 675,830 | -36.5% | | Cash | 24,702 | 24,702 | 0.0% | | Inventories, net | 165,634 | 211,946 | -21.9% | | Current assets held for sale | 6,495 | 86,869 | -92.5% | | Total liabilities | 373,115 | 586,230 | -36.4% | | Floor plan notes payable | 185,460 | 306,036 | -39.4% | | Related party debt | 3,111 | 36,217 | -91.4% | | Total stockholders' equity | 55,949 | 89,600 | -37.6% | - Floor plan notes payable associated with inventories classified as held for sale decreased from $86.8 million as of December 31, 2024, to $6.5 million as of June 30, 2025[12] Statements of Cash Flows For the six months ended June 30, 2025, Lazydays generated positive operating cash flow, received substantial cash from investing activities, and had a net cash outflow from financing Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 ($ thousands) | 2024 ($ thousands) | Change ($ thousands) | | :---------------------------------------- | :----------------- | :----------------- | :------------------- | | Net cash provided by operating activities | 7,358 | 101,315 | -93,957 | | Net cash provided by investing activities | 171,924 | (9,967) | +181,891 | | Net cash used in financing activities | (179,282) | (107,411) | -71,871 | | Net decrease in cash | — | (16,063) | +16,063 | | Cash, end of period | 24,702 | 42,022 | -17,320 | - Net proceeds from the sale of businesses, property, and equipment were $171.9 million in 2025, a substantial increase from $2.95 million in 2024[14] - Net repayments under M&T bank floor plan were $120.7 million in 2025, compared to $114.8 million in 2024[14] Non-GAAP Financial Measures Reconciliation This section defines and reconciles non-GAAP financial measures, EBITDA and Adjusted EBITDA, for insights into core operating performance Definition and Rationale This section defines EBITDA and Adjusted EBITDA as non-GAAP measures, explaining their adjustments for non-operating and non-cash items to evaluate core operating results - EBITDA is defined as net income (loss) excluding interest expense, income tax expense (benefit), and depreciation and amortization expense[15] - Adjusted EBITDA is further adjusted to include floor plan interest expense and excludes stock-based compensation expense, LIFO adjustment, impairment charges, loss (gain) on sale of businesses, property and equipment, and change in fair value of warrant liabilities[15] - Adjusted EBITDA is considered an important measure for evaluating core operating results by removing the impact of capital structure, tax consequences, asset base, non-cash charges, and gains/losses on asset sales[17] EBITDA and Adjusted EBITDA Reconciliation Lazydays reported improved Adjusted EBITDA for Q2 and YTD 2025, with the reconciliation detailing adjustments from net loss to reflect core operating performance EBITDA and Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change ($ thousands) | | :-------------------------- | :----------------- | :----------------- | :----------------------- | | Net loss | (24,589) | (44,221) | +19,632 | | EBITDA | (10,858) | (3,899) | -6,959 | | Adjusted EBITDA | (6,240) | (9,404) | +3,164 | EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change ($ thousands) | | :-------------------------- | :----------------- | :----------------- | :----------------------- | | Net loss | (34,122) | (66,201) | +32,079 | | EBITDA | (4,722) | (15,019) | +10,297 | | Adjusted EBITDA | (10,265) | (27,565) | +17,300 | Forward-Looking Statements This cautionary statement addresses forward-looking information, highlighting inherent risks and uncertainties that may cause actual results to differ from projections Forward-Looking Statements This cautionary statement emphasizes that forward-looking information involves inherent risks and uncertainties, and actual results may differ materially due to various factors, with no obligation for the company to update them - Forward-looking statements involve risks and uncertainties and are not guarantees of future performance[7] - Actual results may differ materially due to factors such as economic and financial conditions, changes in customer demand, relationships with manufacturers and suppliers, indebtedness, and government regulations[7][8] - The company disclaims any obligation to publicly update forward-looking statements to reflect subsequent events or circumstances, except as required by law[8]