Lazydays Holdings(GORV) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2025 was $101.434 million, a decrease of 50.8% compared to $205.961 million in Q3 2024[11] - New vehicle retail revenue was $60.150 million, down 50.7% from $122.291 million year-over-year[11] - Net loss for Q3 2025 was $82.381 million, compared to a net loss of $17.665 million in Q3 2024, representing a significant increase in losses[11] - The company reported a gross profit of $19.576 million for Q3 2025, down 56.7% from $45.313 million in Q3 2024[11] - For the nine months ended September 30, 2025, the company reported a net loss of $116.5 million, compared to a net loss of $83.9 million for the same period in 2024, representing a 39% increase in losses year-over-year[17] - Total revenue for the nine months ended September 30, 2025, was $398.5 million, a decrease of $313.1 million, or 44.0%, compared to the same period in 2024[197] Asset and Liability Management - Total current assets decreased to $203.106 million from $353.774 million as of December 31, 2024, a decline of 42.4%[10] - Total liabilities decreased to $359.473 million from $586.230 million as of December 31, 2024, a reduction of 38.7%[10] - Cash and cash equivalents decreased to $9.501 million from $24.702 million as of December 31, 2024, a decline of 61.6%[10] - Stockholders' equity showed a deficit of $26.302 million as of September 30, 2025, compared to equity of $89.600 million as of December 31, 2024[10] - The company had total debt obligations of $40.2 million related to mortgages, term loans, and revolving credit facilities, along with floor plan notes payable of $184.0 million[25] Impairment and Charges - The company incurred impairment charges of $63.915 million in Q3 2025, compared to no impairment charges in Q3 2024[11] - The company recorded a non-cash impairment charge of $22.9 million on indefinite-lived intangible assets in Q3 2025, driven by asset sales[188] - The company incurred impairment charges of $74.5 million during the nine months ended September 30, 2025[17] - The company recorded an impairment loss of $11.9 million on assets held for sale during Q3 2025, contributing to a total impairment charge of $15.3 million for the nine months ended September 30, 2025[69] Asset Sales and Liquidation - The company entered into an Asset Purchase Agreement on October 6, 2025, to sell substantially all of its assets, with proceeds expected to be used to repay outstanding obligations under the Credit Agreement[27] - The company expects to complete the Asset Sales between November 17, 2025, and November 26, 2025, with an outside date of December 1, 2025, for the agreement[27] - The company’s stockholders approved a Plan of Dissolution on October 14, 2025, which may lead to liquidation of remaining assets after the Asset Sales[29] - The company plans to liquidate its assets and dissolve after the final closing of the Asset Sales, with no remaining assets expected for distribution to stockholders[140] Operational Changes - The company had 12 dealerships as of September 30, 2025, all of which were reclassified to held for sale[19] - The company has notified employees of expected terminations effective November 16, 2025, in connection with the closing of the Asset Sales[145][146] - The company completed asset sales resulting in net proceeds of $113.9 million, which were used to repay $61.2 million of floor plan notes payable and $46.1 million of term loan and mortgage debt[57] Revenue Breakdown - New vehicle retail revenue decreased by $62.1 million, or 50.8%, primarily due to a 52.1% decrease in new vehicle retail units sold[177] - Pre-owned vehicle retail revenue decreased by $28.2 million, or 55.0%, driven by a 55.4% decrease in pre-owned retail units sold[179] - Vehicle wholesale revenue decreased by $1.3 million, or 73.5%, due to a strategic decision to right-size RV inventory[181] - Finance and insurance revenue fell by $8.0 million, or 48.7%, in Q3 2025, driven by a 50.6% decrease in total retail units sold[183] - Service, body, and parts revenue decreased by 34.2%, with gross profit down 38.3% in Q3 2025, largely due to divestitures resulting in a $5.3 million revenue drop[184] Stock and Shareholder Information - The weighted average shares used for EPS calculations in Q3 2025 were 3,745,484, compared to 481,329 in Q3 2024[11] - A reverse stock split of 1-for-30 was executed on July 11, 2025, to increase the per share market price to meet Nasdaq listing requirements[34] - The Company anticipates delisting its common stock from Nasdaq, with the delisting expected to occur on or about November 28, 2025[143] Future Projections and Concerns - The company is facing substantial doubt about its ability to continue as a going concern due to uncertainty regarding its financial condition and liquidity needs[31] - The Company is required to comply with certain financial covenants, including maintaining liquidity above $5.0 million during the waiver period[84] - The Company must complete asset sales and repay outstanding obligations under the Credit Agreement by the end of the September 2025 Waiver Period[86]