0001104659-26-053079
SEC filingRevenue declined 4.2% to $1.35B on lower unit sales, while operating income rose 6.0% due to cost cuts, narrowing net loss.
Revenue for Q1 2026 decreased 4.2% to $1.35 billion, driven by a 9.0% decline in new vehicle unit sales and 3.4% drop in used units, partially offset by a 3.9% increase in new vehicle average selling price. Gross profit fell 6.1% to $403.3 million, with gross margin contracting 62 basis points to 29.8%. The margin compression was most acute in new vehicles (down 148 bps to 12.2%) due to a 5.7% rise in average cost per unit. Despite top-line pressure, operating income improved 6.0% to $22.1 million, benefiting from a 7.5% reduction in SG&A expenses ($29.1 million) from headcount reductions, lower advertising, and decreased commissions. Net loss widened to $26.7 million from $24.7 million, largely due to a $3.4 million decline in income tax benefit as the company maintained a full valuation allowance against deferred tax assets.
Good Sam Services and Plans delivered resilient growth, with revenue up 4.9% to $48.5 million driven by strong sales of extended vehicle warranty programs. Segment Adjusted EBITDA rose 4.6% to $22.1 million, though gross margin slipped 67 bps to 61.0% due to higher costs in roadside assistance and travel programs. In contrast, RV and Outdoor Retail faced headwinds: revenue declined 4.5% to $1.31 billion as total unit sales fell 6.5%. Same-store new vehicle units dropped 8.7%, though management noted outperformance relative to industry registration declines. Segment Adjusted EBITDA plunged 34.1% to $8.6 million, pressured by lower volume, a 148 bps decline in new vehicle gross margin, and a 19.2% increase in floor plan interest expense ($3.5 million) from higher average borrowings, partially offset by reduced SG&A.
Management provided no explicit financial guidance but highlighted several industry trends and strategic actions. The RVIA projects 2026 wholesale shipments of 349,900 units (+2.2% YoY), though Q1 shipments fell 12.1%. The company expects its same-store new vehicle sales to continue outperforming the industry. Key uncertainties include the U.S.-Iran conflict, which may raise gas prices and inflation, and new tariffs on steel and aluminum (core RV materials) enacted in April 2026, which could increase procurement costs despite domestic assembly advantages. The company paused its quarterly dividend in February 2026 to prioritize debt reduction and maintain financial flexibility. Capital expenditures for the next twelve months are forecast between $26 million and $31 million for dealership expansion. No revenue or earnings guidance was provided.
As of March 31, 2026, Camping World held $199.8M in cash, down from $215.0M at year-end. Total debt (including floor plan notes payable) rose to $3.088B from $3.075B, driven by a $67.8M increase in floor plan borrowings partially offset by a $55.1M reduction in term loan and real estate facilities. Shareholders' equity dropped to $349.5M from $371.8M due to a net loss and RSU withholdings. Inventory increased to $2.187B, up 3.5% from December 2025.
The Notes disclose purchase commitments of $60.0M for vehicles approved under the floor plan facility but not yet received. No other material purchase commitments or contractual obligations were detailed. The company also has outstanding letters of credit ($15.4M under floor plan; $4.9M under credit facilities) and surety bonds ($24.5M).
No open-market share repurchases occurred in Q1 2026; only $0.5M in RSU withholding transactions. Dividends were suspended (zero in Q1 2026 vs. $7.8M in Q1 2025). Debt management included $56.3M in long-term debt payments and $99.6M net floor plan borrowings. Capital expenditures totaled $36.0M (primarily RV and Outdoor Retail), down from $72.1M a year ago.
Two reportable segments: Good Sam Services and Plans (revenue $49.4M, Segment Adjusted EBITDA $22.1M, margin 44.7%) and RV and Outdoor Retail (revenue $1.308B, Segment Adjusted EBITDA $8.6M, margin 0.7%). The RV segment saw a 4.5% revenue decline and a 34% drop in profitability, while Good Sam services grew modestly. No geographic breakdown is provided in the segments note.
Net loss of $26.7M improved slightly from $24.7M loss, but operating cash flow swung from -$232.5M to -$65.6M, a $166.9M improvement. Key drivers were a $160.6M reduction in inventory build ($70.1M vs $230.8M) and increased accounts payable ($84.4M vs $101.6M). Depreciation and noncash items remained stable. The working capital volatility is typical of seasonal RV demand, but the magnitude decreased significantly.
Capital expenditures (PP&E) increased to $34.7M from $23.5M, indicating continued investment. Investing activities were net positive at $9.5M due to real property sales of $52.4M, offset by $7.0M in business acquisitions. Financing activities provided $40.9M, largely from floor plan borrowings ($99.6M) less debt repayments ($56.3M). No dividends were paid in Q1 2026 (compared to $7.8M in prior year), preserving cash.
The company did not report free cash flow, but CFO plus capex yields -$100.2M, compared to -$256.0M in Q1 2025, a significant reduction in cash burn. The Tax Receivable Agreement payment of $1.4M was a minor outflow. Overall, cash generation improved markedly, but remains negative, requiring reliance on financing activities.