Business Context and Reporting Period
Company: Camping World Holdings, Inc. (CWH)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Business Overview: CWH is the largest retailer of recreational vehicles (RVs) and related products and services in the U.S., operating under the Camping World and Good Sam brands. As of December 31, 2025, the company operated 196 store locations. The company operates two reportable segments: Good Sam Services and Plans (high-margin recurring revenue) and RV and Outdoor Retail (vehicle sales and services).
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenue | $6.37 billion | $6.10 billion |
| Gross Profit | $1.88 billion | $1.83 billion |
| Gross Margin | 29.5% | 29.9% |
| Income from Operations | $180.2 million | $148.6 million |
| Net Loss | $(105.6) million | $(78.9) million |
| Net Loss Attributable to CWH | $(89.8) million | $(38.6) million |
| Adjusted EBITDA | $242.9 million | $178.8 million |
| Adjusted EBITDA Margin | 3.8% | 2.9% |
| Cash and Cash Equivalents | $215.0 million | $208.4 million |
| Working Capital | $435.1 million | $590.3 million |
| Total Debt (Outstanding) | $3.21 billion | $3.21 billion (approx.) |
Note: Net loss for 2025 was significantly impacted by a $182.8 million valuation allowance on deferred tax assets and a $37.3 million tax expense related to the Tax Receivable Agreement (TRA) liability adjustment.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 4.4% to $6.37 billion, driven primarily by a 22.1% increase in used vehicle revenue and a 6.6% increase in finance and insurance revenue. New vehicle revenue declined 2.3% due to a 7.5% decrease in average selling price.
- Profitability: Operating income increased 21.3% to $180.2 million. However, GAAP net loss widened due to significant non-cash tax charges. Adjusted EBITDA improved 35.8% to $242.9 million, reflecting operational efficiency and lower interest rates.
- Store Count: The company reduced its footprint from 206 locations in 2024 to 196 locations in 2025, closing 17 dealerships while opening 9, as part of a strategy to optimize the same-store base.
- Inventory: Total RV and Outdoor Retail inventory increased 15.9% to $2.11 billion, with used vehicle inventory rising 28.4% to support higher sales volumes.
- Interest Expense: Total interest expense decreased significantly due to lower average interest rates on the Floor Plan Facility (6.35% vs 7.63%) and Term Loan Facility (6.87% vs 7.80%).
Guidance, Outlook, and Management Commentary
- Dividend Policy: In February 2026, the Board of Directors determined to pause the regular cash dividend program. This decision was driven by forecasted tax distributions, reduced availability of excess tax distributions due to recent tax law changes, and a strategic focus on reducing net debt leverage.
- Tax Receivable Agreement (TRA): The company recorded a full valuation allowance against its net deferred tax assets, concluding it is not more likely than not to realize the benefits. Consequently, the TRA liability was reduced from $150.4 million to $1.4 million, resulting in a $149.0 million gain in the income statement but a corresponding $37.3 million tax expense.
- Capital Allocation: The company expects capital expenditures for expansion and acquisitions to range between $39.0 million and $49.0 million over the next twelve months. A stock repurchase program expired on December 31, 2025, with no shares repurchased during the year.
- Management Changes: Marcus A. Lemonis retired as CEO and Chairman effective December 31, 2025. Matthew D. Wagner was appointed CEO and President effective January 1, 2026. Brent Moody was appointed Chairman of the Board.
- Risks: Key risks include economic conditions affecting consumer spending, interest rate fluctuations, fuel prices, and reliance on key manufacturers (Thor Industries and Forest River account for ~93% of new RV inventory).
Important Facts for Investors to Verify
- Dividend Suspension: Confirm the implications of the paused dividend program on shareholder returns and the company's cash flow strategy.
- Tax Valuation Allowance: Verify the sustainability of the full valuation allowance on deferred tax assets and the potential for future reversals or additional tax charges.
- TRA Liability: Monitor the remaining $1.4 million TRA liability and the conditions under which future liabilities might be recognized if tax benefits become realizable.
- Used Vehicle Mix: Assess the sustainability of the 22.1% growth in used vehicle revenue and the impact of inventory levels on future margins.
- Debt Covenants: Review compliance with financial covenants, particularly the Total Net Leverage Ratio, which limits borrowing capacity on the Revolving Credit Facility.