0001558370-25-009795
SEC filingRevenue grew 9.4% to $1.98B driven by vehicle unit sales, but gross margin contracted 34 bps; net income surged 145.7% on operating leverage.
For the three months ended June 30, 2025, total revenue increased 9.4% to $1,975.9 million, driven primarily by a 20.9% increase in new vehicle unit sales and a 20.4% increase in used vehicle unit sales. This was partially offset by lower average selling prices: new vehicles down 10.6% to $34,279 and used vehicles down 1.2% to $30,269. Gross profit rose 8.1% to $592.3 million, but gross margin contracted 34 basis points to 30.0% as mix shifted toward lower-margin used vehicles and Good Sam Services margin declined. Operating income surged 36.6% to $130.3 million, benefiting from lower long-lived asset impairment (none vs. $4.6 million) and reduced floor plan interest expense. Net income attributable to Camping World Holdings more than tripled to $30.2 million, with basic earnings per share of $0.48 versus $0.22 in the prior-year quarter.
Good Sam Services and Plans: Revenue increased 3.2% to $54.2 million, driven by higher extended warranty and tire rescue program sales. However, gross margin plummeted 777 bps to 59.5% due to incremental roadside assistance claims and new program costs, leading to a 11.3% decline in Segment Adjusted EBITDA to $25.2 million.
RV and Outdoor Retail: Revenue grew 9.6% to $1,921.7 million. New vehicle revenue rose 8.0% despite lower ASPs, as unit sales climbed 20.9%. Used vehicle revenue jumped 19.0% on 20.4% unit growth and a 149 bps gross margin improvement to 20.5%. Products, service and other revenue fell 5.5% due to labor reallocation and the divestiture of a furniture business. Finance and insurance net revenue increased 12.4%. Segment Adjusted EBITDA soared 50.4% to $122.0 million, reflecting higher volume and lower floor plan interest expense.
Management expects used vehicle revenue and unit sales to continue outpacing prior-year periods for much of 2025, supported by increased procurement and improving residual values. The company plans to invest $60-77 million over the next twelve months in dealership expansion, funded by operating cash flows and credit facilities. While inflation and tariff risks remain, the company has adjusted procurement practices to mitigate impacts. No formal quantitative guidance was provided, but the strong operational leverage in the quarter suggests improving profitability ahead.
As of June 30, 2025, Camping World held $118.1 million in cash and equivalents, down from $208.4 million at December 31, 2024, reflecting significant investing and financing outflows. Total debt stood at $2.93 billion, comprising floor plan notes ($1.28B), long-term debt ($1.51B), and finance leases ($148M). Shareholders' equity increased to $516.6 million from $484.9 million at year-end 2024. Inventory rose to $2.06 billion, driven by new and used RV stock. Deferred revenue (including non-current) totaled $157.4 million, matching the total unsatisfied performance obligations disclosed.
The company has two notable purchase commitments: (1) a Supplier Agreement from the CWDS divestiture requiring $250 million of product purchases over approximately 10 years (no financial penalty for shortfall, only term extension); and (2) vehicle purchase commitments of $26.9 million for floor plan financed units not yet received. Additionally, lease obligations, financial assurances (standby letters of credit $19.2M, surety bonds $26.1M), and a Tax Receivable Agreement liability of $150.4 million are present.
Capital allocation in the first half of 2025 included $15.7 million in dividends ($0.125 per share quarterly, unchanged from 2024), minimal share repurchases ($1.2M for tax withholding on RSUs), and net debt reduction of $10.1 million (excluding floor plan). Capital expenditures totaled $122.1 million (3.6% of sales), heavily weighted toward RV Retail ($117M) and real property purchases ($72.4M). No open market buyback program was disclosed. The floor plan facility was increased to $2.15 billion with extended maturity.
The company operates two reportable segments: Good Sam Services and Plans and RV and Outdoor Retail. For Q2 2025, RV Retail generated $1.926 billion revenue (up 9.5% YoY) and Segment Adjusted EBITDA of $122.0 million (up 50.4% YoY). Good Sam Services contributed $54.3 million revenue (up 2.9%) with Segment Adjusted EBITDA of $25.2 million (down 11.3% YoY). The strong EBITDA growth in RV Retail reflects improved margins and cost control, while Good Sam experienced slight margin compression. No further geographic breakdown is provided.
Net income for the six months ended June 30, 2025 was $32.8M, but CFO was negative at -$44.6M, indicating significant cash consumption despite profitability. The gap is primarily due to large working capital outflows: receivables and contracts in transit increased by $124.2M, and inventories rose by $171.4M. These were partially offset by a $156.8M increase in accounts payable. On the other hand, prior year (2024) net loss of $(27.4)M was accompanied by positive CFO of $84.3M, driven by a $39.4M decrease in inventories and a $121.1M increase in payables.
CapEx (purchases of property and equipment) remained stable at $49.7M vs $48.6M, but total investing cash outflow surged to $180.1M due to $72.4M in real property purchases and $81.2M in business acquisitions. Financing activities provided $134.3M, largely from net floor plan borrowings of $168.1M, offset by dividends of $15.7M and debt payments.
Notable anomalies: The company did not generate free cash flow (CFO minus CapEx = -$94.3M) in the current period, contrasting with +$35.8M in the prior year. The deteriorating working capital trend and heavy investment in real estate and acquisitions warrant scrutiny. The dividend payout of $15.7M was covered by financing activities rather than operating cash flow.
Overall, while net income was positive, the company relied on external financing to fund operating shortfalls and investment activities, pointing to weak cash flow quality in the current period.