Camping World Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $1.58 billion, a decrease of $223.2 million (12.4%) year-over-year.
• Net loss was $320.1 million, an increase of $290.7 million (990.5%) year-over-year, including a $286.7 million noncash goodwill impairment charge.
• Adjusted EBITDA was $36.0 million, a decrease of $59.7 million (62.4%) year-over-year, impacted by a $12.7 million unfavorable F&I chargeback liability adjustment.
• Gross profit was $434.3 million, a decrease of $82.8 million (16.0%), with total gross margin declining 119 basis points to 27.4%.
• Selling, general and administrative (SG&A) expenses were $387.1 million, a decrease of $23.9 million (5.8%), with SG&A excluding stock-based compensation (SBC) at $383.6 million.
• Operating cash flow for the nine months ended September 30, 2026, was $488.0 million.
• Cash and cash equivalents totaled $263.8 million at the end of the third quarter.
• Total outstanding long-term debt was $1.423 billion.
• Net Debt decreased $97.8 million (7.0%) to $1.29 billion compared to the third quarter of 2025.
• Diluted loss per share was $(3.09), compared to $(0.64) in the prior year period; Adjusted diluted loss per share was $(0.19).

Guidance and Future Outlook:

• Full-year 2026 Adjusted EBITDA is expected to be below the previously communicated range of $230 million to $270 million.
• The Company is not providing additional full-year 2026 guidance and intends to discuss its 2027 framework in connection with fourth-quarter results.
• Management anticipates fourth-quarter 2026 SG&A to decline by more than $50 million year-over-year.
• The efficiency program is now projected to yield over $150 million in annualized savings by 2028.
• Industry planning suggests 2027 unit sales may be comparable to 2026, though the Company is building plans around more conservative assumptions.

Business Segments and Product Lines:

• New vehicle revenue was $638.9 million (down 16.7%), with unit sales of 15,126 (down 25.4%); average selling price increased 11.7% to $42,239.
• Used vehicle revenue was $518.5 million (down 12.0%), with unit sales of 17,176 (down 8.1%); average selling price decreased 4.2% to $30,187.
• Combined new and used vehicle unit sales totaled 32,302, a decrease of 6,678 units (17.1%).
• Same store new vehicle unit sales decreased 26.4%, and same store used vehicle unit sales decreased 8.6%.
• New vehicle gross margin was 10.2% (down 252 basis points), driven by a 15.0% increase in average cost per unit.
• Used vehicle gross margin was 18.0% (down 36 basis points), driven by a 4.2% decrease in average selling price.
• Products, service and other revenue was $209.0 million (up 0.2%), with gross margin of 38.3% (down 690 basis points).
• Finance and insurance, net revenue was $147.5 million (down 17.3%), driven by fewer contracts sold and unfavorable chargeback adjustments.
• Good Sam Club revenue was $19.0 million (up 75.6%), driven by a nonrecurring $5.3 million milestone payment and recurring profit sharing.
• Good Sam Services and Plans gross margin expanded 567 basis points to 62.3%.
• Inventory levels decreased, with total RV and Outdoor Retail inventories down 12.7% to $1.77 billion.

Market and Competitive Landscape:

• The Company entered the fourth quarter with the lowest mix of prior model year new units in five years.
• Market pressure on new RV industry demand and promotional pricing in core travel trailer offerings contributed to the goodwill impairment.
• Macroeconomic factors impacting the market include higher consumer interest rates, elevated fuel prices, and declines in consumer sentiment.
• The Company maintains the largest used RV business in the industry.

Risks and Challenges:

• Goodwill impairment of $286.7 million was recorded due to sustained declines in the reporting unit's fair value driven by market and macroeconomic factors.
• F&I chargeback liability adjustments resulted in a $12.7 million unfavorable impact on Adjusted EBITDA.
• New vehicle gross margins face pressure from rising average costs per unit.
• The Company faces risks related to debt refinancing, specifically evaluating alternatives to refinance Senior Secured Credit Facilities to increase financial flexibility.
• Active customers decreased 4.5% to 4.04 million, and Good Sam Club members decreased 14.8% to 1.37 million.

Management Commentary and Tone:

• CEO Matthew Wagner stated the team built on inventory discipline and reduced SG&A by $24 million in the quarter.
• Management accelerated cost actions, implementing over $50 million of incremental annualized savings on top of a previously announced $100 million program.
• Wagner noted the cost base is rebuilt for the current market backdrop and the team is focused on controllable variables.
• CFO Tom Kirn highlighted a 55 basis point decrease in the average floor plan borrowing rate and an 8.3% decrease in the average floor plan balance.
• Management expressed confidence in delivering a step change in the earnings profile when the market turns, citing a lighter cost base and compounding Good Sam business.

Other Key Points:

• The Company amended and extended its M&T real estate facility to 2031 in August 2026.
• Total store locations remained stable at 197 as of September 30, 2026.
• Floor plan interest expense decreased 16.1% to $15.2 million.
• The Company owns 61.6% of CWGS, LLC as of September 30, 2026.
• A $5.3 million nonrecurring milestone payment was recognized from a revised co-branded credit card partner agreement.
• The Company recorded a $12.7 million unfavorable adjustment to variable consideration for F&I chargebacks, compared to a $3.7 million unfavorable adjustment in the prior year.