Camping World (CWH) Q3 2025: Used RV Volume Up 30% Drives EBITDA Upside, Sets Conservative $310M Floor for 2026
Camping World’s Q3 saw a decisive pivot to used RVs, with unit volume up over 30%, fueling a 40%+ adjusted EBITDA gain and reinforcing the company’s structural shift toward margin stability and cash generation. Management set a conservative $310 million EBITDA floor for 2026, deliberately excluding upside from cost takeouts, M&A, or new unit recovery, signaling a focus on execution and risk management amid persistent macro and OEM pricing headwinds. Investors should watch for the company’s ability to unlock upside from AI-driven SG&A efficiency, used RV scale, and disciplined dealership acquisition as the RV cycle remains unpredictable.
Summary
- Used RV Momentum: Volume growth and supply chain improvements anchor margin resilience as new unit headwinds persist.
- AI-Driven Cost Strategy: SG&A efficiency and agentic AI initiatives create tangible upside not yet in guidance.
- Disciplined Outlook: Management’s conservative 2026 EBITDA floor sets the stage for upside from M&A, used, and new RV recovery.
Performance Analysis
Camping World’s Q3 results were defined by a robust shift toward the used RV segment, with unit volumes rising more than 30% year-over-year, offsetting ongoing pressure in new RV demand. Revenue exceeded $1.8 billion, up 5%, as the company captured nearly 14% of all North American new and used RV sales year-to-date, a record share that validates its value-focused strategy. New RV average selling price (ASP) landed just under $38,000, down 9% YoY, reflecting both mix and OEM price pressures, but sequential improvement in ASPs and record used volumes supported gross profit stability.
Adjusted EBITDA grew over 40% to $95.7 million, with SG&A as a percentage of gross profit improving 360 basis points, reflecting earlier cost actions and operational leverage. Good Sam, the company’s membership and roadside assistance business, returned to top-line growth, while Product Services & Other (P&S&O) margins remained stable as technician time was reallocated to used RV reconditioning. Importantly, net leverage improved by nearly three turns year-to-date, underpinned by debt paydown, cash generation, and disciplined inventory management.
- Used RV Outperformance: Used unit sales and supply chain efficiency are now the primary margin and cash flow engine.
- SG&A Leverage: Cost discipline and AI-driven process improvements are beginning to flow through the P&L.
- Inventory and Balance Sheet: Clean inventory, $230 million cash, and $260 million unencumbered real estate position CWH for opportunistic M&A and further deleveraging.
While new RV retail remains challenged by OEM price hikes and consumer sensitivity, CWH’s ability to flex toward used, service, and membership businesses is providing operational stability and setting a new baseline for earnings power.
Executive Commentary
"Our mandate remains clear, improve revenue and earnings while improving net leverage. I'm encouraged by our company's financial performance in the quarter, growing adjusted EBITDA by over 40% to 95.7 million. The team drove record volume on a year-to-date basis and sold nearly 14% of all new and used RVs in North America. This sales milestone further intensifies and proves out our thesis that consumers are focused on value and affordability across every single segment in the RV industry."
Marcus Leminis, Chairman and Chief Executive Officer
"SG&A, as a percentage of gross profit, improved 360 basis points year over year as we start to fully realize more of the run rate savings from earlier in the year and the sequential improvement in new ASPs. Lastly, as we think about the remainder of 2025, we expect our fourth quarter to experience impacts from the previously mentioned new unit trends, and we will be lapping a couple of important items to call out from last year."
Tom Kern, Chief Financial Officer
Strategic Positioning
1. Used RVs as Structural Growth Engine
Camping World’s pivot to used RVs is now a core business model pillar, not just a cyclical hedge. Management highlighted that for the first time, new and used sales split 50-50, with used margins expected to remain in the 18% to 20% range. The used market is “essentially double the size of new,” offering both volume and margin upside, and the company’s supply chain investments allow for scalable, repeatable growth. Each incremental 1,000 used units yields ~$6 million in adjusted EBITDA, providing direct leverage to volume gains.
2. AI and SG&A Efficiency as Upside Levers
Agentic AI and enterprise automation initiatives are expected to unlock at least $15 million in cost savings in 2026, with potential for more as implementation scales. These efficiencies span marketing, CRM, and customer experience, and management sees the opportunity for “significant upside to staffing efficiency” and sales conversion. Notably, none of these savings are included in the $310 million 2026 EBITDA floor, positioning AI as a key incremental driver.
3. Disciplined Capital Allocation and M&A
Balance sheet strength and deleveraging remain top priorities, with net leverage targeted below 4x by end of 2026. While M&A is not embedded in baseline guidance, the pipeline supports a return to 10+ dealership acquisitions per year, focusing on accretive, smaller targets in white space markets. Management is clear that acquisitions must be earnings and leverage accretive, and that capital will be deployed judiciously given macro uncertainty.
4. Innovation and Private Label Product Strategy
Contract manufacturing and exclusive product innovation are driving market share gains, with private label and contract manufactured units expected to comprise 40% of new sales by year-end. This approach enables CWH to tailor offerings to consumer payment sensitivity and test new segments, supporting both ASP and margin management. Management credits innovation, not just price, for outperformance in new RV share.
5. Good Sam and Service as Resilient Differentiators
Good Sam, membership and roadside, and Product & Service businesses provide earnings stability, with Good Sam showing stabilization and growth in both paid and free tiers. Service technician time is increasingly devoted to used reconditioning, supporting used volume and margin. These segments are considered “bedrock” and key to mitigating RV industry cyclicality.
Key Considerations
Camping World’s Q3 marks a strategic inflection, with management deliberately setting a conservative base and highlighting four clear paths to upside. The quarter’s context is defined by macro uncertainty, OEM price increases, and a consumer focused on monthly affordability, but also by operational agility and a strong balance sheet.
Key Considerations:
- Used RV Scale: Continued outperformance in used volumes and margin is critical to offsetting new RV headwinds and stabilizing earnings.
- AI Adoption Pace: The speed and effectiveness of AI-driven SG&A and process improvements will determine the realization of cost takeout upside.
- Inventory and Cash Discipline: Clean inventory and cash-rich balance sheet enable opportunistic M&A and reduce risk of forced discounting.
- Market Share Ambition: Management targets 50-100bps share gains in 2026, with used growth as the primary driver and new share dependent on innovation and pricing flexibility.
- Macro and OEM Pricing Sensitivity: Persistent uncertainty around rates, tariffs, and OEM price hikes necessitates conservative new unit planning and ongoing flexibility.
Risks
Macro unpredictability, including consumer sentiment, interest rates, and OEM pricing, remains a material risk to new unit demand and overall volume. Management’s conservative approach reflects recognition of these uncertainties, but a prolonged downturn or unexpected tariff/regulatory shifts could pressure both top line and margin. Aggressive AI investment brings execution risk, and M&A, while accretive in theory, could strain leverage targets if not carefully managed.
Forward Outlook
For Q4 2025, management expects:
- Continued pressure on new unit sales and margins due to OEM price increases and consumer affordability constraints.
- Used RV momentum and service margin to offset new unit softness.
For full-year 2026, management set a conservative adjusted EBITDA floor of $310 million, explicitly excluding:
- SG&A cost takeout upside from AI and process improvements
- Incremental used unit sales above baseline
- M&A contribution
- Potential new unit recovery if macro improves
Management emphasized that the 2026 plan is intentionally conservative, with upside possible from four clear drivers (SG&A, used, M&A, new RVs), and reiterated its commitment to further deleveraging and disciplined capital deployment.
Takeaways
Camping World’s Q3 results and 2026 outlook reflect a business in transition, moving from cyclical RV volume dependence to a more balanced, margin-anchored model built on used, service, and membership pillars.
- Used RV Scale is Now Structural: The company’s ability to flex to used volume and margin is a durable competitive advantage in a value-seeking consumer environment.
- AI and Cost Discipline Provide Real Upside: Tangible SG&A savings and process improvements are likely to be unlocked in 2026, with more to come as initiatives scale.
- Conservative Guidance Sets a Base for Outperformance: Management’s $310 million EBITDA floor is designed to be hurdled, with multiple levers for incremental growth as macro conditions evolve.
Conclusion
Camping World enters 2026 with a fortified balance sheet, operational discipline, and a clear pivot to used RV and service-led earnings growth. While the macro and OEM pricing environment remain headwinds, the company’s conservative guidance and multiple upside levers position it as a relative outperformer in a volatile RV cycle.
Industry Read-Through
The Q3 results underscore a broader RV industry shift toward used inventory, affordability, and operational flexibility, as OEM price increases and macro uncertainty weigh on new unit demand. Dealers with strong used supply chains, service businesses, and membership models are best positioned to weather volatility. The increased emphasis on AI-driven SG&A efficiency and cost takeout is likely to become a sector-wide theme, with early adopters gaining margin advantage. Investors should monitor how RV dealers and related aftermarket players adapt to persistent consumer affordability constraints and the pace of interest rate normalization.