Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company has achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy includes focusing on used RV sales, service businesses, and Good Sam services as core revenue drivers [11] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, citing potential resistance due to rising prices and economic uncertainty [7][20] - The company plans to maintain a conservative approach to inventory and sales forecasts, allowing flexibility to adjust based on market conditions [24][65] - Management believes that the used RV business will continue to provide stability and growth opportunities, mitigating risks associated with the new RV market [91] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without associated mortgages [13][14] - The management team emphasized the importance of maintaining a clean inventory position heading into 2026 [35] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some stabilization observed earlier in the year, but current trends indicate potential softening due to economic factors [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges for consumers [26][27] Question: Can you clarify your EBITDA guidance for the year? - Management set a conservative EBITDA floor of $310 million for 2026, with expectations for growth driven primarily by used RV sales [33][64] Question: What is the outlook for M&A activity? - Management is focused on smaller, accretive acquisitions, with a goal to return to a 10% to 15% run rate of acquisitions, depending on market conditions [81][46] Question: What are the average price increases from OEMs for model year 2026? - The average price increase is expected to be around 5% to 7%, with potential for adjustments based on market demand [70][73]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy focuses on enhancing used RV sales, service, and Good Sam businesses as core differentiators [8][11] - The company is investing in AI and technology to improve operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer sentiment and labor markets, anticipating challenges due to rising OEM pricing and economic uncertainty [7][28] - The company is preparing for a conservative outlook for 2026, emphasizing the importance of maintaining clean inventory and managing cash flow effectively [35][66] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without an associated mortgage [13][14] - Management highlighted the importance of a conservative approach to inventory and forecasting to avoid miscalculations that could lead to excess inventory [24][66] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some resistance from consumers due to rising prices and economic uncertainty [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges [26][27] Question: What are the building blocks to reach the $310 million floor? - Management identified used business growth, cost savings, dealership acquisitions, and new RV sales as key drivers for achieving the target [33][34] Question: What is the outlook for M&A activity? - Management expressed a cautious approach to M&A, focusing on smaller, accretive acquisitions that align with their growth strategy [46][61] Question: How do you see the financing landscape? - Management noted that while short-term rates have dropped, there may be a lag in passing these savings to consumers, with expectations for more significant changes in early 2026 [99]

Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [11] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [5][11] - SG&A as a percentage of gross profit improved by 360 basis points year over year [12] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [5] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [11] - The used RV sales segment showed significant growth, with expectations of yielding approximately $6 million of adjusted EBITDA for every additional 1,000 used units sold [9] Market Data and Key Metrics Changes - The RV industry is experiencing high single-digit declines in new RV sales, while the company has been outperforming the market [19] - The company anticipates entering 2026 with uneven consumer sentiment and rising OEM pricing on like-for-like models [6] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [7] - The strategy focuses on market-leading used sales, service, and Good Sam businesses, with a long-term objective of achieving mid-cycle adjusted EBITDA of $500 million [10] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [45][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, acknowledging potential resistance due to rising prices and economic uncertainties [20][31] - The company believes that the used RV market will continue to thrive, providing a buffer against potential declines in new RV sales [22][108] - Management emphasized the importance of maintaining a conservative approach to inventory and forecasting to avoid overstocking [24] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without an associated mortgage [12][13] - The management team highlighted the significant improvement in the balance sheet and net leverage, aiming to reach a target of 4 or below by the end of 2026 [50] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted that while there was some stabilization in the new RV market, they are still seeing year-over-year declines, and consumer resistance to price increases is a concern [19][20] Question: How do you view the building blocks to reach the $310 million floor? - Management indicated that the used business is a significant driver of additional EBITDA, alongside cost savings and dealership acquisitions [38][39] Question: What is the outlook for financing and consumer credit profiles? - The credit profile has remained stable, with expectations that retail lending rates may decrease in the upcoming months [121][124]