Camping World Holdings, Inc. (CWH) delivered over 40 percent Adjusted EBITDA growth for the third quarter ended September 30, driven by record-breaking new and used vehicle volume.

Revenue was $1.8 billion for the third quarter, an increase of 4.7 percent year-over-year y/y. Still, the better-than-expected news was short-lived as the company reported a correction to accounting misstatements from a year ago and a decline in new-vehicle sales, sending CWH shares down nearly 25 percent for the day.

  • New vehicle revenue was $766.8 million for the third quarter, a decrease of 7.0 percent y/y, and new vehicle unit sales were 20,286 units, an increase of 343 units, or 1.7 percent y/y.
    • Average selling prices of new vehicles sold decreased 8.6 percent year-over-year.
    • Same-store new vehicle unit sales increased 2.9 percent for the third quarter.
  • Used vehicle revenue was $589.1 million for the third quarter, an increase of 31.7 percent, and used vehicle unit sales were 18,694 units, an increase of 4,629 units, or 32.9 percent.
    • Average selling prices of used vehicles sold decreased 0.9 percent.
    • Same-store used vehicle unit sales increased 33.4 percent.
  • Combined new and used vehicle unit sales were 38,980, an increase of 4,972 units, or 14.6 percent. Combined same-store new and used vehicle unit sales increased 15.6 percent.
  • Products, services, and other revenue were $208.6 million, a decrease of $16.2 million, or 7.2 percent, primarily due to increased labor allocation toward used reconditioning and away from customer-pay work as used-vehicle sales volumes increased.

“Year-to-date, our company achieved a record 13.5 percent market share of new and used units, an over 200 basis point combined improvement,” stated Matthew Wagner, president Camping World Holdings, Inc. “Total new and used same store unit volume momentum continues in October, increasing low double-digit percent year-over-year as used remains a compelling value proposition for consumers focused on affordability. We expect continued progress in 2026, driven by used vehicle unit volume, improving ASPs, and over $15 million of potential cost takeout opportunity.”

Third Quarter Profitability and Expenses
Gross profit was $517.0 million, an increase of $18.5 million, or 3.7 percent, and total gross margin was 28.6 percent, a slight decrease of 27 basis points. The gross profit increase was mainly driven by the $26.7 million higher used vehicle gross profit from the increase in used vehicle unit sales and $12.0 million increase in finance and insurance (F&I) net gross profit, largely from the 14.6 percent increase in combined new and used vehicle unit sales and new F&I offerings. The slight gross margin decrease was primarily due to a reduced average selling price per new vehicle sold, which was partially offset by higher finance and insurance, net revenue that contributes 100.0 percent to gross margin.

  • New vehicle gross margin was 12.7 percent, a decrease of 81 basis points, driven primarily by the 8.6 percent decline in the average selling price per new vehicle, partially offset by a 7.8 percent reduction in the average cost per new vehicle.
  • Used-vehicle gross margin was 18.3 percent, an increase of 16 basis points, primarily due to a 1.1 percent decrease in the average cost per unit sold, partially offset by a 0.9 percent decline in the average selling price.
  • Products, services and other gross margin were 45.2 percent, an increase of 124 basis points, driven by higher labor billing rates and improved inventory management.

Selling, general and administrative expenses (SG&A) were $411.0 million, a decrease of $3.2 million, or 0.8 percent y/y. This decrease was said to be primarily driven by a $10.8 million decrease in employee cash compensation costs excluding commissions, and a $5.1 million decrease in advertising expenses, partially offset by a $5.3 million increase in outside service provider fees related primarily to legal, audit, and computer software expenses and maintenance, a $5.2 million increase in commissions costs, and a $2.2 million increase in employee stock-based compensation (SBC) expense. SG&A excluding SBC was $403.4 million, a decrease of $5.4 million, or 1.3 percent year-over-year.

Floor plan interest expense was $18.1 million, a decrease of $4.3 million, or 19.3 percent, primarily due to lower average interest rates.

Other interest expense, net was $31.0 million, a decrease of $4.9 million, or 13.6 percent, due to lower interest rates and, to a lesser extent, lower principal balances.

The company evaluated both positive and negative evidence and concluded that a full valuation allowance was necessary for the deferred tax assets of the public holding company, CWH, due to cumulative historical operating results for income tax purposes over the past several years in each tax jurisdiction in which it operates. This valuation allowance resulted in a $175.4 million charge to income tax expense. Additionally, an adjustment to the Tax Receivable Agreement liability for the change in the determination of the realizability of tax benefits underlying the estimate of future payments under the Tax Receivable Agreement was recorded for $149.2 million with an additional $37.3 million recorded to income tax expense for the associated revaluation of the deferred tax assets relating to the change in the balance of Tax Receivable Agreement liability.

Net loss was $29.4 million for the third quarter of 2025, a change of negative $37.4 million. Adjusted EBITDA was $95.7 million, an increase of $28.2 million, or 41.8 percent.

Diluted loss per share of Class A common stock was 64 cents, a change of 73 cents year-over-year. Adjusted earnings per share, diluted, of Class A common stock, were 43 cents, a positive change of 30 cents.

The total number of store locations was 197 as of September 30, 2025, a net decrease of 10 from September 30, 2024, or 4.8 percent, reflecting the consolidation of 15 store locations to improve the overall cost efficiency of the remaining locations.

Marcus Lemonis, chairman and CEO of CWH, commented, “As our team prepares for 2026, we are extremely confident in our ability to once again outperform the RV industry, grow our earnings, and continue to reduce our leverage year-over-year. As expected, affordability is still top of mind for consumers, and rising prices could create resistance on demand. This is leading us to deliberately set conservative new volume growth assumptions. Our company will continue to rely on our market-leading used, service, and Good Sam businesses as our financial performance differentiator. While it is early in our forecasting, we see a consecutive year of Adjusted EBITDA growth, starting in the low $300 million range, and a plan to outperform it.”

Lemonis concluded, “Our management team believes this judicious conservatism, combined with our fortified balance sheet and improving leverage, has set the stage for our return to measured and accretive M&A activity across the business.”

Revisions to Prior Period Condensed Consolidated Financial Statements
Subsequent to the issuance of the company’s condensed consolidated financial statements for the three and nine months ended September 30, 2024, the company’s management identified prior period misstatements related to the measurement of the realizable portion of the company’s outside basis difference deferred tax asset in CWGS Enterprises, LLC (CWGS, LLC, including the associated valuation allowance. As a result, deferred tax assets, net, additional paid-in capital, and income tax benefit (expense) as of and for the years ended December 31, 2023, and 2022 were revised in the company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025. The misstatements impacted the beginning balances of deferred taxes, net, additional paid-in capital, and retained earnings, which have been revised from the amounts previously reported as of September 30, 2024. The company evaluated the materiality of these errors, both qualitatively and quantitatively, and determined that the effect of these revisions was not material to the previously issued financial statements.

The following table presents the effect of the immaterial misstatements on the company’s consolidated balance sheet for the period indicated:

Image, Data and Tables courtesy Camping World Holdings, Inc.