0001104659-25-104366
SEC filingQ3 revenue grew 4.7% but net loss widened due to $175M valuation allowance; used vehicle sales surged 31.7%.
Total revenue for Q3 2025 increased 4.7% to $1.81B from $1.72B in the prior-year quarter, driven by a 31.7% jump in used vehicle revenue ($589.1M vs $447.2M) that more than offset a 7.0% decline in new vehicle revenue ($766.8M vs $824.9M). The revenue mix shifted toward lower-priced entry-level travel trailers, pulling down average selling prices. Gross profit rose 3.7% to $517.0M, but gross margin contracted 27 basis points to 28.6% as new vehicle margins fell 81 bps to 12.7%, partially offset by a 16 bps improvement in used vehicle margins to 18.3%. Operating income grew 22.9% to $79.1M (4.4% of revenue vs 3.7%), benefiting from a 0.8% decline in SG&A expenses despite higher commissions and outside service costs. Floor plan interest expense decreased 19.3% to $18.1M due to lower average borrowing rates. Net loss attributable to Camping World Holdings was $40.4M versus net income of $5.5M a year ago, primarily due to a $175.4M income tax expense from establishing a full valuation allowance against deferred tax assets and a $37.3M tax expense from remeasuring deferred tax assets related to the Tax Receivable Agreement. Adjusted EBITDA (non-GAAP) rose 41.8% to $95.7M (5.3% margin).
Good Sam Services and Plans: Revenue grew 3.3% to $52.5M, driven by higher extended warranty and insurance program sales. However, gross profit fell 4.5% and gross margin declined 462 bps to 56.6% due to increased roadside assistance claims and costs from the new tire rescue program. Segment Adjusted EBITDA decreased 8.7% to $21.6M (41.0% margin vs 46.7% a year ago).
RV and Outdoor Retail: Revenue increased 4.7% to $1.75B, with used vehicle revenue surging 31.7% on a 32.9% increase in unit sales, while new vehicle revenue declined 7.0% on an 8.6% drop in average selling price. Gross profit rose 4.3%, with used vehicle gross profit up 32.9% and new vehicle gross profit down 12.6%. Products, service and other revenue fell 7.2% as labor was redirected to used vehicle reconditioning. Segment Adjusted EBITDA jumped 60.5% to $77.2M (4.4% margin vs 2.9%), benefiting from revenue growth, lower floor plan interest, and reduced SG&A (down 1.3% excluding commissions and outside services).
Management expects used vehicle revenue and unit sales to continue outpacing prior-year periods for the remainder of 2025, though at a moderating pace in Q4. Tariff risks on imports from China, Mexico, and Canada are being monitored, with procurement adjustments partially mitigating potential cost increases. Over the next twelve months, capital expenditures for new and existing dealerships are projected between $63M and $81M, excluding inventory financing. The company ended Q3 with $230.5M in cash and $540.7M in working capital. No explicit revenue or earnings guidance was provided.
As of September 30, 2025, Camping World held $230.5M in cash and equivalents. Total debt (including floor plan, finance leases, and long-term debt) stood at $2,980.1M, up $163.7M from year-end 2024 driven largely by increased floor plan borrowings. Shareholders' equity was $483.0M, slightly down from $484.9M. Inventory increased to $2,026.4M, reflecting seasonal buildup and acquisitions. Deferred revenue (RPO) totaled $160.1M.
The company has significant purchase commitments: a $250M aggregate supplier agreement (10-year term) from the CWDS divestiture, and $43.5M in short-term vehicle purchase commitments. Additionally, the Floor Plan Facility has $2.15B total commitment with $685M unencumbered borrowing capacity.
No share repurchase program was active. Dividends totaled $23.5M ($0.125 per share quarterly), a 38.7% increase year-over-year. Debt activity included a $16.5M voluntary principal payment on the Term Loan and net floor plan borrowings increase of $199.6M. Capital expenditures were $207.0M (4.0% of sales), heavily weighted toward the RV segment.
Two reportable segments: Good Sam Services and Plans (Q3 revenue $52.7M, +4.0% YoY) and RV and Outdoor Retail (Q3 revenue $1,757.1M, +4.7% YoY). Segment Adjusted EBITDA for Good Sam was $21.6M (flat), while RV surged 60% to $77.2M, reflecting improved margins and volume. No geographic breakdown was provided.
Operating cash flow (CFO) of $95.2M for 9M FY2025 contrasts sharply with net income of $3.5M, indicating strong cash generation relative to earnings, but the decline from $408.5M YoY is notable. The drop is primarily due to a large working capital outflow: inventories increased by $137.0M (vs. a $270.1M decrease in 2024), and receivables grew $57.0M. Additionally, a $149.2M Tax Receivable Agreement liability adjustment boosted CFO in 2025, but this is non-recurring. Capex intensity rose dramatically: total capex of $207.0M (PP&E $84.1M + real property $122.8M) vs. $69.4M in 2024, representing 217% of CFO. Free cash flow (not explicitly stated) would be deeply negative after capex. Capital returns: dividends of $23.5M consumed 24.7% of CFO, but no share repurchases were made. Investing activities also included $81.2M for business acquisitions. The financing section shows net proceeds of $226.3M from floor plan notes, offsetting the operating cash shortfall. Overall, cash flow quality weakened due to heavy inventory investment and elevated capex, leading to reliance on debt financing.