Camping World Holdings, Inc. Q4 FY2025 earnings call

• Matt Wagner noted full year 2025 adjusted EBITDA growth over 35%, same - store unit sales improvement over 14%, and Good Sam's record revenue. - Focus on 3 strategic priorities: grow new and used RV sales, optimize SG&A, and accelerate Good Sam's growth. - In Q4, same - store sales volume for new and used vehicles increased 4% and market share held at 13%. - Weather disruption in late January and early February led to an estimated miss of about 1,500 new and used unit sales or $13.5 million of gross profit. - Completed about $25 million of annualized SG&A expense reductions. - Board changed capital allocation strategy to prioritize balance sheet health, pausing the dividend and retaining cash for debt reduction and growth. - Good Sam has been the bedrock of the RV community for nearly 60 years, driving high margins and customer service.

In the fourth quarter, revenue was $1.2 billion, with used unit volumes up 14% and new unit volumes down 7%. New ASPs were slightly down from Q4 2024. Good Sam generated record revenue. Parts, service and other category had improved gross margins. For 2026, adjusted EBITDA guidance is $275 million to $325 million. New RV sales strategy includes expanding exclusive brands, improving used RV procurement, partnerships like with Costco, and accelerating inventory turnover. Good Sam is a key growth driver with positive top - line momentum in services and plans revenue in Q4.

• 2026 adjusted EBITDA range is $275 million to $325 million. - About 50% of annual adjusted EBITDA expected in first half of 2026. - Inventory cleansing could negatively impact EBITDA by about $35 million in 2026, particularly in the front half. - Goal to get net debt leverage below 4.7 by end of 2026 and below 4 by end of 2027. - New ASPs for full year expected to be in $39,000 to $40,000 range for new RVs and $31,500 range for used RVs.

• Weather disruption can lead to loss of unit sales and gross profit. For example, widespread weather in late January and early February resulted in an estimated miss of about 1,500 new and used unit sales or $13.5 million of gross profit. - Inventory turnover acceleration may have a near - term negative impact on gross profit per unit for both new and used vehicles. - Dependence on certain RV categories like travel trailers which have shown softness in sales. - Uncertainty in industry retail sales trends which affect earnings expectations.

Q: Craig Kennison of Baird asked about weather - impacted units and tax refund season impact.

A: Matt Wagner said a large portion of weather - impacted units may be lost, but hope some will come back in March, and tax refund season could benefit certain consumer cohorts, with more potential in March.

Q: Joe Altobello of Raymond James asked about bridging EBITDA guidance.

A: Matt Wagner explained inventory cleansing impact, SG&A savings, and industry retail sales expectations factor into the EBITDA range.

Q: James Hardiman of Citi asked about inventory cleansing.

A: Matt Wagner said inventory turnover is important for carrying costs, depreciation, and opportunity costs, with first half headwind and potential second half tailwind, and plans for service CRM and tech training.

Q: Jack Weisenberger of ROTH Capital asked about parts and services segment.

A: Matt Wagner said reallocation of internal work affected parts and services last year, but focusing on service capabilities, tech training, service CRM, and parts process with manufacturers.

Q: Brett Andress of Investor Relations asked about trade - in cycle.

A: Brett Andress said trade - in cycle is a long - duration event with minimal impact in 2026.

Q: Noah Zatzkin of KeyBanc Capital Markets asked about inventory optimization.

A: Matt Wagner said noncore assets include old model year units and aged used assets, affecting ordering and margins.

Q: Tristan Thomas - Martin of BMO Capital Markets asked about noncore RV assets and inventory strategy impact on OEMs.

A: Matt Wagner said reordering more frequently on best - selling products, working with OEMs for real - time demand visibility.

Q: Brandon Rollé of Loop Capital asked about weather impact and retail trends.

A: Matt Wagner said weather impacted certain regions, and retail trends show strength in fifth wheels and entry - level motorized, but travel trailers are soft.

Q: James Chartier of Monness, Crespi, Hardt asked about gross margin targets and EBITDA margin.

A: Matt Wagner said new margins expected to be in 12.5% range and used in 17.5% range in 2026, with goal to return to historical EBITDA margins through optimization.