Q2 2025 Camping World Holdings Inc Earnings Call

July 30, 2025

Well listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that this call is being recorded and the reproduction of the call in whole or in part is not permitted without written authorization from the company.

Acre to face here How's the desk.

<unk> expansion going and if you can provide any commentary with regard to capex there expected the earnings contribution in.

Joining me on the call today are Marcus Lagoon is chairman and Chief Executive Officer, Matthew Wagner, President, Tom Curran, Chief Financial Officer, Lindsay Kristen Chief administrative and legal officer, and Brett Andrus Senior Vice President Investor Relations I will turn the call over to Mr. Chris.

And progress.

Okay.

Yes. This is John I'll take those so.

Morristown is moving along extremely well we're going to look.

Maybe you could go into commissioning and go live on that.

And we're expecting in October so call it mid Q4.

And to get Us started.

Really pleased about the progress we've made there on getting ready to go it's obviously going to take a bit of time commissioning. It's a big plant is a.

Thank you and good morning, everyone. A press release covering the company's second quarter ended June 30th 2025 financial results was issued yesterday afternoon, and a copy of that press release can be found in the Investor Relations section on the company's website Mad.

A bit complex so.

<unk> time to work through the bugs in that.

Initially but.

Really pleased to have.

But an expectation that they will be humming by early to mid next year.

Management's remarks on this call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These remarks may include statements regarding our business plans and goals macroeconomic and industry trends customer trends inventory strategy future growth of our off.

Then a start probably like call it mid Q4.

Just a hand full projects industrial and are moving along well of course, we have the crush project, it's in our joint venture with Chevron.

We're expecting that to come on probably caught late Q2 of next year.

Operations capital allocation and future financial results and position.

And then forward probably about a month later by the barge unloading project, which is 100% owned project are both going along well.

Actual results may differ materially from those indicated by these statements as a result of various important factors, including those discussed in the risk factors section in our Form 10-K, our form 10, Qs and other reports on file with the SEC any forward looking statements represent our views only as of today and we undertake.

And largely obviously most of the Capex will be completed on those three projects by the end of this year, a little bit of spillover on industrial and industrial hemp projects into next year.

Into 2026 first half.

No obligation to update them.

And then the other Big project, we have of course is our west plant in Europe.

Please note that we will be referring to certain non-GAAP financial measures on today's call such as EBITDA adjusted EBITDA and adjusted earnings per share diluted which we believe may be important to investors to assess our operating performance.

That's probably been delayed a bit just given some contractor issues.

And look in probably in early 2012 2027 commissioning.

On that plant versus late 2006 at this point I would say all in all.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial statements are included in our earnings release and on our website all.

Projects are moving along well and themes.

Teams or teams or doing it safely and effectively and and.

All comparisons of our 2025 second quarter are made against the 2024 second quarter results unless otherwise noted I'll now turn the call over to Marcus.

We're optimistic that all these are going to be good projects when raptor.

<unk>.

Perfect and the other thing I wanted to ask case.

What does your outlook I guess on the meal side in the U S. Both on the amount of whether that's domestic or export market, but also supply because obviously, we're talking with the RVO is above the improved outlook for the oil side.

Morning, Thank you Lindsay along with Lindsay and.

The rest of the team is joining Matt Tom Brad and myself.

We obviously will cover all of the operational and financial highlights as we go through the prepared remarks, and the Q&A, but I think before we jump into very particular numbers, we want to give a broad overview of how we're feeling about our business, particularly inside of the backdrop of both the RV industry and the general macro environment.

It looks like.

Still I think probably a good 10, 15% to meal supplying North America in the next two years.

And obviously <unk> will be lower.

Yes, I think that the key is to continue to watch their good economics in the <unk>.

When the quarter started it was obviously a nerve wracking situation for all of US Liberation that you had started tariffs headset in the general market was in a bit of a free fall in a volatile situation and people were obviously concerned about what was going to happen to a discretionary item like rvs.

Animal protein segment, so demand has been very good and they like using soybean meal it prices itself.

Into the Formula.

<unk>.

The other factor is that North America has added some export capabilities and so we've got a lower supply chain cost to get from the interior plants to the export and get it on a ship making.

I'm proud to tell you that our 12000 team members purely simply delivered for the quarter.

We set a record selling more rvs than we ever have and an entire quarter 45000 units we.

The U S more competitive in the global markets as well.

You remember, we sell more soybean meal than we produce where our net short so we're able to find the best market for that whether it's being consumed domestically or going to our customers in the global market.

We set a record in our finance and insurance Department highest amount of revenue we've ever generated $200 million.

And we set a revenue record for good Sam.

All in the backdrop of what looked like an industry that was in free fall with shipments and new registrations that.

Salvatore just so that.

We've seen the meal deal.

Now we never ever started this company are built this company under the premise that market share was the most important thing.

Situation coming obviously and the.

The expansion of our industrial hand barge unloading facility.

Our pure execution, just delivered that market share, we don't wake up everyday thinking about how many units we're going to sell in terms of market share. We think about how many units we're going to sell how much money, we're going to make on those transactions and how those customers enter our ecosystem.

Experience, we did at our <unk> facility or bolt intended to take on some of that soybean meal that alright.

Go next door.

Great. Thank you very much.

The next question comes from Heather Jones from Heather Jones Research. Please go ahead.

Both from the first purchase of buying a newer used RV all the way through F&I service, good Sam et cetera, we're starting to really see file size growth in fact for the quarter. Our file size growth was up 80000, new customers. If you go back and you look over the previous years, you may say well the file size looks down but.

Good morning, Congratulations on closing the terror.

Good morning, Thank you.

Alright.

And our first question is on your RSA business.

Assuming a relatively benign FRE outcome.

As we've shed ourselves of businesses that are noncore and gotten out of certain things we have flushed through that on a 48 month trailing basis.

Demand for North American Veg oil set to explode and the vast majority of your big already producers now have TT use in place.

As we look at the overall business.

I'm wondering do you think this is going to set up a situation in which refining margins could potentially go to zero.

Look at the results and you try to shy away from the big glaring number of new and used RV sales and the improvement in F&I and the improvement margin in service you come down to one simple number which is what's the bottom line look like and while we were happy with beating what analysts call consensus we were probably.

In the U S and so.

Your outlook for the rest of the world.

That still allow for a normalized EBIT target of about $400 million I think is what you all laid out in 'twenty two.

Really not as happy as one would imagine.

Let me start I'll, let John come back remember when we talked in the past.

Through the quarter, we continued to consolidate locations looking to really get more proficiency and efficiency out of every single one of our locations. We will look at the number of units we sell per location. We look at the SG&A per location, we look at the overall head count and disappointed to tell you that we're a thousand people down.

We expected the refining margins.

To moderate over time and that was always our plan some of that will work back into the crush margin because the demand for crude and of course will go up and so kind of depending on that balance who's running how hard theyre running the pre treatment.

What we've had to get rid of since January that's never something to be braggadocio about that's an unfortunate circumstance, but we have made the hard cuts.

We will make a difference on where the refining margin.

Falls out but.

Yes.

It probably will keep it.

I'm also happy that with the pressure that we've seen in the general macro environment, our nimbleness and our knowledge of inventory and our ability to act quickly has put the right kind of inventory on the ground on both the new side and the used side.

Tighter than historical but not long term historical but not better than kind of the peak period and of course, if you remember we had much lower in our in our model.

I would just add Heather if you look at the last couple of calls.

The amount of refined oil going into energy has been insignificant to our overall.

Customers walk in our front door, we don't try to drive them to one specific unit, we try to drive them to a transaction.

And still is.

And folks different levels of affordability and different preferences around floor plan and our sales process leads them to a transaction that ends up closing.

Been solid on the food side, so that we would expect to continue.

And we will see what the.

Thank you ramp up on the.

D side, we'll see what kind of demand there, but just to point out are by far most of our refined oils going into the food industry.

I'm also happy to report that our gross margins.

So any idea that we grew our volume on the backs of heavy discounting that would be false.

Okay.

A follow on is like you mentioned Greg about.

Earlier in the year I think probably in January or February we set a short term goal of reducing our SG&A by 6% to 700 basis points, let me be crystal clear that goal isn't moving.

The demand for crude oil is obviously going to skyrocket, so just thinking of the interplay between those.

Refining margins get really compressed in the U S but.

How do you think about the normalized range for soy and soft crush margins.

We made a lot of progress in the quarter. Despite the ASP pressure that the general market gave us.

Given that crude oil demand is going to surge and Youre also going to have this very large and Neal production.

We're not going to stop selling affordable inexpensive units. The goal is to build the file build the transactions get lifetime value out of people put them in good Sam had been by warranties come back for service have them buy parts, and then trade and again and do it all over again.

Don't know until we know and just how are you all thinking about that.

That set up.

Potential there.

I think as we start to look at what is the general backdrop of the overall industry, we have to make the assumption that in the short term the new RV market is going to stay relatively in the range that it's in today I think in 2026, we'll get a small pump instead of being in the $3 40 range I think we could see a <unk>.

Yes, I mean, I think we're we're encourage you got big bean crops.

Good animal profitability on the on the meal takeaway and inclusion rates.

You've got the biofuel policy.

The RVO being constructed in the U S. And then you got to be 15.

Coming on in Brazil, So from an overall setup exactly how it will play out.

20000 unit increase in 2020 and of course, we will get our lion's share.

We've got our theories, but the one thing I'm really glad is that we're running what is now a pretty balanced global crushing footprint.

But for US the growth both on the top line and on the bottom line is largely going to come from our recent pivot back into used if you go back and look at our Covid numbers, our profitability was driven by our used trucks and then when the market got a little dislocated on new pricing, we had to pull back.

Foot print.

In soy and soft so I think we will we feel the balance of supply and demand is going to be pretty good and I think we'll be able to most efficiently serve it from from the best origins.

And more recently, we've gotten back in it and we've delivered massive growth on the used it's important to note that that massive growth. It's okay. We're happy with it but it's against the backdrop of a pretty easy numbers last year.

Okay. Thank you so much.

Thank you.

The next question comes from Derrick Whitfield with Texas Capital. Please go ahead.

We're committing to you going forward is that we expect double digit growth.

Good morning, all and thanks for taking my questions.

Good morning, Timna similar to Heather's question, given the meaningful step up in domestic SBA demand for fuel how do you see the interplay between SPL and other <unk> as it relates to food in the U S.

And I'm not going to pin in whether it's going to be 10, or 11% or 19%, we expect double digit growth to continue on the used side.

As we look at the SG&A, we believe we have another $10 million to $15 million of fixed cost opportunity reductions to happen through the balance of the year through unfortunately, head count reduction and or location consolidation.

Yes, as I said I think the good news is we've seen a bit of a test run on this and is as market.

For those people who have been hyper focused on the number of locations. We've operated we don't want you to be want you to be focused on the productivity of the locations. We have the profitability and revenue per employee and the contribution that we dropped to the bottom line and doing that.

Tightens up on the on the demand you have certain food customers that will switch to other oils.

Some of that functionality some of that is from a price standpoint. So we're working with those so we like being able to offer the full suite.

Well, we were surprised to see us through consolidating 16 locations over the last call. It five six months our unit count per store has risen our profitability per store has risen and our margin profile per store has risen.

Of the seat oils.

To our customers so we see it as a as opportunities.

Terrific and then with regard to the one big vehicle Bill. It appears forty-five Z policy will have a longer and greater impact on spo economics based on the removal of the indirect land use charge.

We understand that the important part of getting to six to 700 basis points of improvement in SG&A are not as complicated as one would think sure the big pressure point and all of that is what's happening on the average selling price not because of the price itself, but when margins remained constant the amount of gross profit generated.

Do you guys have a sense of how material I look is on average.

Per transaction is just simply lower here's the good news we have already started to see a rebound in our average selling price in July close to $1000 already and we expect that to continue to accelerate.

We don't see however, it getting back to $40 for the full year as we did last year, but we hope to see that March back towards 40 happen over the next six 810 12 15 months.

We can't predict what's going to happen, we don't know what's going to happen with the general economy and interest rates, but as we have proven we will continue to make the adjustments to our business to reach the level of profitability that we believe we should have.

When we look at the balance of this year. Many have said well if your asps are going to be lowering your SG&A is going to be higher youre mathematically you're going to make less so we don't know what's going to happen to the asps and we're being conservative and giving you a range of what they could be in terms of the downside and quite frankly, we're comfortable giving you that.

And sticking to it when it comes to SG&A of $3 to 400 basis points of improvement that we've experienced so far we know that theres more to take out in fact, if we pro forma at some of the expense reductions we made in the second quarter. The number when our ABB better and Youll see some of those benefits happened in Q3, and then again in Q4.

As we look forward our capital allocation and.

And you can see the $180 million of cash on our balance sheet. The amount of inventory, we owned free and clear the amount of real estate that we own without a mortgage or balance sheet quite frankly has never been stronger.

So far for the year, we've de Levered, a pretty significant amount and Tom will address that in his results in.

In his comments a little later.

As we think about growth for this business. We want you to think about capital being allocated this way.

For the first time in a very long time, we are in heavy discussions and looking at alternatives around what acquisitions are what investments good Sam could make to start to really grow its business. When you look at the good Sam a revenue number for the quarter is I think a record revenue number when you look at the profitability is slightly down but it's slightly.

Marcus Lemonis: Year, the amount of real estate that we own without a mortgage, our balance sheet, quite frankly, has never been stronger. So far, for the year, we've delevered a pretty significant amount, and Tom will address that in his results, in his comments a little later. As we think about growth for this business, we want you to think about capital being allocated this way. For the first time in a very long time, we are in heavy discussions at looking at alternates around what acquisitions or what investments Good Sam could make to start to really grow its business. When you look at the Good Sam revenue number for the quarter, it's, I think, a record revenue number. When you look at the profitability, it's slightly down, but it's slightly down for two simple reasons. One, we're investing in that business to grow it.

Without a mortgage or balance sheet quite frankly has never been stronger.

So far for the year, we've deleveraged, a pretty significant amount and Tom will address that in his results.

Down for two simple reasons, one we're investing in that business to grow it and the way that revenue happens in the recognition of revenue happens you realize the expense today you realize the revenue over a period of time, so you'll see that start to blossom over the next several years. The second thing is that our views are out using our views around using.

In his comments a little later.

As we think about growth for this business. We want you to think about capital being allocated this way.

For the first time in a very long time, we are in heavy discussions and looking at alternatives around what acquisitions are what investments good Sam could make to start to really grow its business. When you look at the good Sam revenue number for the quarter. It's I think a record revenue number when you look at the profitability is slightly down but it slightly.

Their unit so our claims on roadside assistance are also sure theres a little bit of inflation related to the claims cost. We think we have some ways to mitigate that here in the next 12 to 15 months, but as we look to grow the profitability.

Marcus Lemonis: The way that revenue happens and the recognition of revenue happens, you realize the expense today, you realize the revenue over a period of time. So you'll see that start to blossom over the next several years. The second thing is that RVs are out using RVers are out using their unit. So our claims on roadside assistance are also up. Sure, there's a little bit of inflation related to the claims costs. We think we have some ways to mitigate that here in the next 12 to 15 months. But as we look to grow the profitability, we know that raising our gross margin on an annualized basis above 30% is a great target for us. We know that keeping the guideposts of new revenue growth and new unit growth and used unit growth, those are all things that they're going to continue.

We know that raising our gross margin on an annualized basis above 30% is a great target for us we know that keeping the guideposts of NN.

New revenue growth and new unit growth in used unit growth those are all things that they're going to continue and because the clock strikes 12 on December 31, we're not going to come out with a new set of ideas. The idea is to continue to sell more rvs take fixed costs out of the business grow our good Sam business and deliver the kind of EBITDA.

Their unit so our claims on roadside assistance are also up sure. There is a little bit of inflation related to the claims costs. We think we have some ways to mitigate that here in the next 12 to 15 months, but as we look to grow the profitability.

Performance that we know we're capable of when I look at the performance for the quarter of 140, whatever number it was 140, some odd million dollars.

We know that raising our gross margin on an annualized basis above 30% is a great target for us we know that keeping the guide posts of.

I have to tell you that thats, probably the best performance that I've seen in my 20 years in light of the backdrop of what's happening in the macro.

Marcus Lemonis: Because the clock strikes 12 on December 31st, we're not going to come out with a new set of ideas. The idea is to continue to sell more RVs, take fixed costs out of the business, grow our Good Sam business, and deliver the kind of EBITDA performance that we know we're capable of. When I look at the performance for the quarter of 140, whatever number it was, 140 some odd million dollars, I have to tell you that that's probably the best performance that I've seen in my 20 years, in light of the backdrop of what's happening in the macro. For those people that are wondering, we believe that the macro environment in 2025 was actually tougher than 2024. A lot more uncertainty with tariffs and interest rates and just the general overall economic environment.

For those people that are wondering we believe that the macro environment in 2025 was actually tougher than 2020 for.

<unk> performance that we know we're capable of.

When I look at the performance for the quarter of 140, whatever number it was 140, some odd million dollars.

To tell you that that's probably the best performance that I've seen in my 20 years in light of the backdrop of what's happening in the macro for.

Thanks, Marcus as Mark has suggested earlier, we cannot be more proud of our team and the outsized results that they delivered within the second quarter. Our same store unit growth trends continue to show promising signs as we move into the third quarter July month to date, we're already seeing unit growth tracking up in the high teens on use RV sales and high single digit.

For those people that are wondering we believe that the macro environment in 2025 was actually tougher than 2020 for.

A lot more uncertainty with tariffs and interest rates and just the general overall economic environment and that's why we go into the next quarter into next year with a very very high level of confidence I'll now turn the call over to Matthew Thanks, Marcus as Mark has suggested earlier, we cannot be more proud of our team and the outsized <unk>.

On new RV sales year over year and on a multiyear basis. Both of these trends are in line compared to what we saw on a record record setting second quarter.

Marcus Lemonis: That's why we go into the next quarter, into next year, with a very, very high level of confidence. I'll now turn the call over to Matthew.

We also continue to make significant gains in our new and used market share achieving the distinction of selling over 14% of all new and used rvs registered in North America year to date.

Matthew Wagner: Thanks, Marcus. As Marcus suggested earlier, we cannot be more proud of our team and the outsized results that they delivered within the second quarter. Our same-store unit growth trends continue to show promising signs as we move into the third quarter. July month to date, we are already seeing unit growth tracking up in the high teens on used RV sales and high single digits on new RV sales year over year. On a multi-year basis, both of these trends are in line compared to what we saw in our record-setting second quarter. We also continue to make significant gains in our new and used market share, achieving the distinction of selling over 14% of all new and used RVs registered in North America year to date. We continue to separate ourselves from the competition, and we are driving these results with fewer but more productive rooftops.

<unk> they delivered within the second quarter, our same store unit growth trends continue to show promising signs as we move into the third quarter July month to date, we're already seeing unit growth tracking up in the high teens on use RV sales and high single digits on new RV sales year over year and on a multiyear basis. Both of these trends are in line.

We continue to separate ourselves from the competition and we are driving these results with fewer but more productive rooftops.

On a trailing 12 month basis, our new and used retail same store growth is now tracking up in excess of 10%, which compares to an industry that continues to track down in excess of high single digits.

Paired to what we saw on a record record setting second quarter.

We also continue to make significant gains in our new end use market share achieving the distinction of selling over 14% of all new and used rvs registered in North America year to date.

A year ago, we set a long term goal of achieving 15% combined market share of new and used rvs.

Given our performance and consistent ability to navigate a complex industry backdrop, we now see a 20% market share of all new and used retail sales as a very realistic medium term goal during.

We continue to separate ourselves from the competition and we are driving these results with fewer but more productive rooftops.

Matthew Wagner: On a trailing 12-month basis, our new and used retail same-store growth is now tracking up in excess of 10%, which compares to an industry that continues to track down in excess of high single digits. A year ago, we set a long-term goal of achieving 15% combined market share of new and used RVs. Given our performance and consistent ability to navigate a complex industry backdrop, we now see 20% market share of all new and used retail sales as a very realistic medium-term goal. During the second quarter, we further developed and enhanced our used procurement methodology, resulting in a record amount of used RVs purchased within the quarter. As I look out over the next several quarters, I am most optimistic about the capabilities and the scalability that we have built into our used RV supply chain.

During the second quarter, we further developed and enhanced our use procurement methodology, resulting in a record amount of used rvs purchased within the quarter.

As I look out over the next several quarters I'm, most optimistic about the capabilities and the scalability that we've built into our used RV supply chain.

A year ago, we set a long term goal of achieving 15% combined market share of new and used rvs.

Given our performance and consistent ability to navigate a complex industry backdrop, we now see a 20% market share of all new and used retail sales as a very realistic medium term goal.

We approach this segment with a very long term mindset, having made significant investments into our centralized team with the ability to flex up and down our values and buy in real time.

During the second quarter, we further developed and enhanced our youth procurement methodology, resulting in a record amount of used rvs purchased within the quarter.

We know that use RV sales is going to be the key to our continued idiosyncratic earnings growth in the years ahead I will now turn the call over to Tom.

As I look out over the next several quarters I'm, most optimistic about the capabilities and the scalability that we built into our used RV supply chain.

Thanks, Matt for the second quarter, we recorded revenue of $2 billion.

An increase of over 9% driven by unit volume increases in both new and used in excess of 20%.

Matthew Wagner: We approach this segment with a very long-term mindset, having made significant investments into a centralized team with the ability to flex up and down our values and buy in real time. We know that used RV sales is going to be the key to our continued idiosyncratic earnings growth in the years ahead. I will now turn the call over to Tom.

We approach this segment with a very long term mindset, having made significant investments into our centralized team with the ability to flex up and down our values and buy in real time.

New and used gross margins in both performed in line with their historical averages.

Within good Sam the business continues to post positive topline growth with the organization positioned for margin stabilization as we make additional investments in our roadside business and lapped claims cost increases.

We know that use RV sales is going to be the key to our continued idiosyncratic earnings growth in the years ahead, I'll now turn the call over to Tom.

Tom Kirn: Thanks, Matt. For the second quarter, we recorded revenue of $2 billion, an increase of over 9%, driven by unit volume increases in both new and used in excess of 20%. New and used gross margins both performed in line with their historical averages. Within Good Sam, the business continues to post positive top-line growth, with the organization positioned for margin stabilization as we make additional investments in our roadside business and lap claims cost increases. Within products, services, and other, our core dealer service revenues and our accessory business showed improved gross profit dollars and margins despite reported top-line pressure from a higher allocation of service hours to used inventory as we deployed our cash towards used RV acquisition throughout the quarter. We also lapped the sale of our furniture business during the second quarter of last year.

Thanks, Matt for the second quarter, we recorded revenue of $2 billion, an increase of over 9% driven by unit volume increases in both new and used in excess of 20%.

Within product services, another our core dealer service revenues on our accessory business showed improved gross profit dollars and margins. Despite reported topline pressure from a higher allocation of service hours to used inventory as we deployed our cash towards used RV acquisition throughout the quarter.

New and used gross margins in both performed in line with their historical averages.

We also lapped the sale of our furniture business during the second quarter of last year.

We reported adjusted EBITDA of $142 2 million compared to $105 6 million last year.

Within product services, another our core dealer service revenues and our accessory business showed improved gross profit dollars and margins. Despite reported topline pressure from a higher allocation of service hours to used inventory as we deployed our cash towards used RV acquisition throughout the quarter.

G&A as a percentage of gross profit improved 276 basis points year over year as we continued to consolidate underperforming locations and pull costs out of the business. The team achieved these improvements despite pressure from lower asps on new vehicles.

We also lapped the sale of our furniture business during the second quarter of last year.

In sum, we've strengthened our operating models enhanced financial performance and created more room to grow.

Tom Kirn: We reported adjusted EBITDA of $142.2 million compared to $105.6 million last year. SG&A as a percentage of gross profit improved 276 basis points year over year as we continued to consolidate underperforming locations and pull costs out of the business. The team achieved these improvements despite pressure from lower ASPs on new vehicles. In sum, we've strengthened our operating models, enhanced financial performance, and created more room to grow. We ended the quarter with about $118 million of cash. We also have paid down $75 million of long-term debt since October, including a prepayment made yesterday. We also have about $519 million of used inventory, net of flooring, and another $193 million of parts inventory. Finally, we own about $247 million of real estate without an associated mortgage. I'll now turn the call back over to Marcus.

We reported adjusted EBITDA of $142 $2 million compared to $105 6 million last year.

We ended the quarter with about $118 million of cash.

We also paid down $75 million of long term debt since October.

Including a prepayment made yesterday.

We also have about $519 million of used inventory net of flooring and another $193 million of parts inventory.

Finally, we own about $247 million.

In sum, we've strengthened our operating models enhanced financial performance and created more room to grow.

Real estate without an associated mortgage I'll now turn the call back over to Marcus.

We ended the quarter with about $118 million of cash.

Thanks, Tom will go ahead and jump right into the Q&A.

We also paid down $75 million of long term debt since October.

Yes.

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Including a prepayment made yesterday.

We also have about $519 million of used inventory net of flooring and another $193 million of parts inventory.

Speakerphone, please pick up your handset before pressing the keys.

If at any time my question has been addressed and you would like to withdraw your question. Please press Star then two.

Finally, we own about $247 million.

At this time, we'll pause momentarily to assemble our roster.

Real estate without an associated mortgage I'll now turn the call back over to Marcus.

Marcus Lemonis: Thanks, Tom. We will go ahead and jump right into the Q&A.

Thanks, Tom will go ahead and jump right into the Q&A.

The first question comes from Joe <unk> with Raymond James. Please go ahead.

We will now begin the question and answer session.

Lindsey Christen: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before planting your feet. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Joe Altobello with Raymond James. Please go ahead.

Thanks, Hey, guys good morning.

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I wanted to ask about Isps not surprisingly you mentioned the weakness on the new side, it's really all mix, but I'm curious what you're seeing from a promotional standpoint.

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This summer our competitors getting more aggressive, particularly as you guys continue to gain pretty significant market share.

At this time, we'll pause momentarily to assemble our roster.

Well I think the important thing is is that we don't see the asps are probably.

We see that as an opportunity to grow our file to build our base to sell them other things through our whole ecosystem and we're happy about it in terms of competitors, we've stopped paying attention to how other people are pricing because we actually we actually are very focused on growing our margins and you saw that margin growth through the quarter breaking 30 <unk>.

The first question comes from Joe <unk> with Raymond James. Please go ahead.

Thanks, Hey, guys good morning.

Joe Altobello: Thanks. Hey, guys. Good morning. I wanted to ask about ASPs, not surprisingly. You mentioned the weakness on the news side is really all mix, but I am curious what you are seeing from a promotional standpoint this summer. Are competitors getting more aggressive, particularly as you guys continue to gain pretty significant market share?

I wanted to ask about Asp's not surprisingly you mentioned the weakness on the new side, it's really all mix, but I'm curious what you're seeing from a promotional standpoint.

Some are our competitors getting more aggressive, particularly as you guys continue to gain pretty significant market share.

<unk>.

I don't know what other dealers are doing right now and quite frankly, what I've told the team every single day that we wake up is Idaho Coeur, what I care about is acute focus on turning that new inventory finding new customers being very profitable on every single one of those transactions, which we are including on the lower price units and driving the growth.

Well I think the important thing is is that we don't see the asps.

Marcus Lemonis: I think the important thing is that we don't see the ASPs as a problem. We see that as an opportunity to grow our file, to build our base, to sell them other things through our whole ecosystem, and we're happy about it. In terms of competitors, we've stopped paying attention to how other people are pricing because we actually are very focused on growing our margins, and you saw that margin growth through the quarter breaking 30%. I don't know what other dealers are doing right now, and quite frankly, what I've told the team every single day that we wake up is I don't care.

We see that as an opportunity to grow our file to build our base to sell them other things through our whole ecosystem and we're happy about in terms of competitors, we've stopped paying attention to how other people are pricing because we actually we actually are very focused on growing our margins and you saw that margin growth through the quarter breaking 30 <unk>.

Our business both on the top and bottom line by focusing on our youth business and Joe let's not forget the competitive advantage that we have with our contract manufacturing and our ability to add additional content features while when we even just have done previous cursory checks of competitors I mean, we're clearly coming in under invoice pricing based upon an OEM brands that.

Percent.

I don't know what other dealers are doing right now and quite frankly, what I've told the team every single day that we wake up is I don't care what I.

Marcus Lemonis: What I care about is an acute focus on turning that new inventory, finding new customers, being very profitable on every single one of those transactions, which we are, including on the lower price units, and driving the growth of our business both on the top and bottom line by focusing on our used business.

I care about it.

<unk> focus on turning that new inventory, finding new customers being very profitable on every single one of those transactions, which we are including on the lower price units and driving the growth of our business both on the top and bottom line by focusing on our youth business and Joe let's not forget the competitive advantage that we have with our contract manufacturing and our ability.

Our own equivalent products. So I don't know that I'm seeing any different type of behavior than we normally would experience I mean, just as well we feel like we've played a much more competitive and intelligent game in terms of our inventory management, Joe one thing that we did discover.

Matthew Wagner: Joe, let's not forget the competitive advantage that we have with our contract manufacturing and our ability to just add additional content features. We even just had done previous cursory checks of competitors. We are clearly coming in under invoice pricing based upon OEM brands that are of equivalent products. I don't know that I'm seeing any different type of behavior than we normally would experience. We feel like we've played a much more competitive and intelligent game in terms of our inventory management.

More clearly in the first six months of this year.

Is that the growth of our new unit volume isn't singularly attributable to selling cheap units the growth of our new models and the growth going forward in the next 12 months to 18 months is that it's really understanding where the elasticity is by type code and so it isn't about just selling in <unk>.

<unk>.

Add additional content features while when we even just have done previous cursory checks of competitors I mean, we're clearly coming in under invoice pricing based upon an OEM brands that are equivalent products.

I don't know that I'm seeing any different type of behavior than we normally would experience I mean, just as well we feel like we've played a much more competitive and intelligent game in terms of our inventory management.

$112 $15000 trailer, that's a very small.

Number inside of our overall business, but it's understanding as you get into larger trailers as you get into fifth wheels, as you get into the CS and BS and as how do we enter into each one of those type codes and start to be disruptive on the opening price points. There, we believe that the slowdown in motorized.

Marcus Lemonis: Joe, one thing that we did discover more clearly in the first six months of this year is that the growth of our new unit volume is not singularly attributable to selling cheap units. The growth of our new models and the growth going forward in the next 12 to 18 months is us really understanding where the elasticity is by type code. It is not about just selling an $11,000, $12,000, $15,000 trailer. That is a very small number inside of our overall business. But it is understanding as you get into larger trailers, as you get into fifth wheels, as you get into C's and B's and A's, how do we enter into each one of those type codes and start to be disruptive on the opening price points there.

Joe One thing that we did discover.

More clearly in the first six months of this year.

Is that the growth of our new unit volume isn't singularly attributable to selling cheap units the growth of our new models and the growth going forward in the next 12 to 18 months is that is really understanding where the elasticity is by type code and so it isn't about just selling it <unk>.

It can be accelerated with less finding price points that trigger customers behavior, and whether thats, a $100000 class a of $69 class C. A $74000 class B, we know that in all of those segments. There is significant volume growth opportunities available.

11%, 12% $15000 trailer, that's a very small number.

Number inside of our overall business, but it's understanding as you get into larger trailers as you get into fifth wheels, as you get into CS and BS and as how do we enter into each one of those type codes and start to be disruptive on the opening price points. There, we believe that the slowdown in motorized.

But to us, but understanding that we take our playbook from the entry level travel trailers, and we start to stratify that across all the different price points, that's where we think we're going to win in the next 12 to 15 months. It is not our focus much like it hasn't ever been to try to adjust generate volume by selling cheap things. It is our.

Marcus Lemonis: We believe that the slowdown in motorized can be accelerated with us finding price points that trigger customers' behavior. Whether that is a $100,000 Class A, a $69,000 Class C, a $74,000 Class B, we know that in all of those segments, there is significant volume growth opportunities available to us. But understanding that we take our playbook from the entry-level travel trailer and we start to stratify that across all the different price points, that is where we think we are going to win in the next 12 to 15 months. It is not our focus, much like it has not ever been, to try to just generate volume by selling cheap things. It is our focus to try to sell as many things as we possibly can and get them into our ecosystem and do all of those transactions profitably.

It can be accelerated with less finding price points that trigger customers behavior, and whether that's a $100000 class a a $69000 class C. A $74000 class B, we know that in all of those segments. There is significant volume growth opportunities available.

Focus to try to sell as many things as we possibly can and get them into our ecosystem and do all of those transactions profitably one thing that I heard yesterday from some feedback that I got is that we look like we're selling units at a loss to try to grow a file or to try to grow market share that is total knee.

But to us, but understanding that we take our playbook from the entry level travel trailers that we start to stratify that across all the different price points, that's where we think we're going to win in the next 12 to 15 months. It is not our focus much like it hasn't ever been to try to just generate volume by selling cheap things. It is our.

<unk> <unk>.

Every transaction that we do cumulatively is intended to be profitable between what we generate in the front, what we generate in F&I, what we generate in service and that cumulative transaction needs to be profitable sure are there cases, where we sell the unit with a front end loss yet because it has some aging because we've made a mistake.

Marcus Lemonis: One thing that I heard yesterday from some feedback that I got is that we look like we are selling units at a loss to try to grow a file or to try to grow market share. That is just total nonsense. Every transaction that we do cumulatively is intended to be profitable between what we generate in the front, what we generate in F&I, what we generate in service, and that cumulative transaction needs to be profitable. Sure, are there cases where we sell the unit with a front-end loss? Yeah, because it has some aging, because we made a mistake trading for it. But when you look at the summation of our transactions, they are profitable and they are meant to be contributory, not market share gains.

Trading for it when you look at the summation of our transactions they are profitable and they are meant to be contributory not market share gains.

I appreciate that and just just quickly on used gross profit margin it looks like it's north of 20% again.

<unk> every transaction that we do cumulatively is intended to be profitable between what we generate on this front, what we generated in F&I, what we generate in service and that cumulative transaction needs to be profitable sure are there cases, where we sell the unit with a front end loss, yes, because it has some.

Is that sustainable or would.

Would you expect to hold 20% in the back half on the <unk> side.

I'm going to stay consistent with what we provided as the guidepost for the year, which is in that 19% 18, 5% to 19, 5% range as we get into the back half, Matt and I have been begun testing some different pricing strategies on us we have a desire to get our used turns up to four times. We have some work to do to get there were <unk>.

<unk>, because we made a mistake trading for it when you look at the summation of our transactions they are profitable and they're meant to be contributory not market share gains.

I appreciate that and just just quickly on used gross profit margin it looks like it's north of 20% again.

Joe Altobello: Appreciate that. Just quickly on used gross profit margin, it looks like it is north of 20% again. Is that sustainable? Would you expect to hold 20% in the back half on the used side?

Sitting at around $3 six to eight right now and so we're testing some different things because we believe the long term prospects of generating more gross profit on that asset getting a better gross margin return on investment and a 12 month period is more important than anything else. We think we can get a quarter return more by giving up.

That sustainable.

Would you expect the whole 20% in the back half on the used side I'm.

Marcus Lemonis: am going to stay consistent with what we provided as a guidepost for the year, which is in that 19%, 18.5% to 19.5% range as we get into the back half. Matthew Wagner and I have begun testing some different pricing strategies on use. We have a desire to get our used terms up to four times. We have some work to do to get there. We are probably sitting at around 3.68 right now, and so we are testing some different things because we believe the long-term prospects of generating more gross profit on that asset, getting a better gross margin of return on investment in a 12-month period is more important than anything else. We think we can get a quarter of a turn more by giving up a half or a quarter of a percent of margin, which is going to yield us more dollars.

A half or a quarter of a percent of margin, which is going to yield us more dollars and so that's the game that we're playing right now so I would expect that same guide post to maintain if we out kick our coverage and come up with 20.

That's a win for us and I mean, this is really a GPU game as Marc was saying for us just to enhance that opportunity, let's not forget Joe coming out of season, we typically like to accelerate ourselves convert those use assets into cash because one September October hits, that's amongst the best time periods actually buy more use heading into next year, there's going to be some consumers that don't want to necessarily pay.

A half or a quarter of a percent of margin, which is going to yield us more dollars and so that's the game that we're playing right now so I would expect that same guideposts to maintain if we out kick our coverage and come up with 20.

Storage fees don't necessarily hold onto their assets are paying assurance, but rather just buy a new one in March or April of next year. So we will certainly take advantage of those opportunities over the ensuing months to give you a little insight as we look at July our margins look pretty close to 20 and our same store sales number is pretty close to also 'twenty. So we're seeing.

Marcus Lemonis: So that is the game that we are playing right now. So I would expect that same guidepost to maintain. If we outkick our coverage and come up with 20, then you know that is a win for us.

That's a win for us and I mean, this is really a GPU game as Mark is saying for us just to enhance that opportunity, let's not forget Joe coming out of season, we typically like to accelerate ourselves convert those use assets into cash because one September October hits, that's amongst the best time periods actually buy more use heading into next year, there's going to be some consumers that don't want to necessarily pay the.

Matthew Wagner: This is really a GPU game, as Marcus Lemonis is saying, for us. Just to enhance that opportunity, let's not forget, Joe Altobello, coming out of season, we typically like to accelerate our sales, convert those used assets into cash because once September, October hits, that's amongst the best time periods to actually buy more used heading into next year. There's going to be some consumers that don't want to necessarily pay the storage fees, don't want to necessarily hold on to their assets or pay insurance. They'd rather just buy a new one in March or April of next year. So we'll certainly take advantage of those opportunities over the ensuing months.

That momentum will continue and we're excited about the prospects going forward.

Super Thank you.

Our next question comes from James Hardiman with Citi. Please go ahead.

Storage fees don't necessarily hold on to their assets are paying insurance, but rather just buy a new one in March or April of next year. So we will certainly take advantage of those opportunities over the ensuing months to give you a little insight as we look at July our margins look pretty close to 20 and our same store sales number is pretty close to also 'twenty. So we're seeing there.

Hey, good morning, Thanks for taking my questions. So you touched on a lot of it but maybe just a quick summary, if we think about these various guideposts right new and used.

Marcus Lemonis: To give you a little insight, as we look at July, our margins look pretty close to 20%, and our same-store sales number is pretty close to also 20%. We are seeing that momentum continue, and we are excited about sort of the prospects going forward.

Unit price margin whats changed and what hasn't changed.

<unk>.

That momentum will continue and we're excited about the prospects going forward.

Ultimately, obviously, you guys don't give guidance but.

Lending point.

Super Thank you.

Joe Altobello: Super. Thank you.

As we think about.

EBITDA for the year, how should that be.

Our next question comes from James Hardiman with Citi. Please go ahead.

Lindsey Christen: Our next question comes from James Hardiman with Citi. Please go ahead.

Keeping your internal models, how was that meeting.

Yes, so we haven't taken our projections up on new I think we had originally started the year at.

Joe Altobello: Hey, good morning. Thanks for taking my questions. So I mean, you have touched on a lot of this, but maybe just a quick summary as we think about these various guideposts, right? New and used units price margin, what has changed and what has not changed. The landing point, ultimately, obviously, you guys do not give guidance, but the landing point as we think about EBITDA for the year, how should that be, you know, at least in your internal models, how is that moving?

Hey, good morning, Thanks for taking my questions. So you touched on a lot of it but maybe just a quick summary, if we think about these various guideposts right new and used.

Q3, 45%, we're taking that up from here.

Unit price margin whats changed and what hasn't changed.

Keeping our used number relatively consistent but we believe we can out kick our coverage. There we believe that our gross margin. Our goal is to keep that above 30%, that's a little bit higher than we originally entered the year in our mines and we will continue to make progress on the SG&A, we feel like the SG&A goal of 6%.

Should the landing point ultimately.

You guys don't give guidance.

Landing point.

As we think about.

EBITDA for the year, how should that be.

In your internal models, how was that meeting.

Marcus Lemonis: We have taken our projections up on new. I think we had originally started the year at, you know, 2%, 3%, 4%, 5%. We are taking that up from here. We are keeping our used number relatively consistent, but we believe we can outkick our coverage there. We believe that our gross margin, our goal is to keep that above 30%. That is a little bit higher than we originally entered the year in our minds. We will continue to make progress on the SG&A. We feel like the SG&A goal of 600 to 700 points is not moved. It feels like it just had some headwind in front of it based on what happened with Liberation Day and some of the other things.

Yes, so we haven't taken our projections up on new I think we had originally started the year at.

700 points is it moved it feels like you just had some headwind in front of it based on what happened with Liberation day, and some of the other things as I look at the balance of the year, though just to be very candid as we're tracking here, we think that getting closer to $3 50 to 400 on the SG&A side is a goal unless.

234, 5%, we're taking that up from here.

Keeping our use number relatively consistent but we believe we can I'll kick our coverage there we believe that our gross margin. Our goal is to keep that above 30%, that's a little bit higher than we originally entered the year in our mines and we will continue to make progress on the SG&A, we feel like the SG&A goal of six to seven.

We see those asp's unlock by thousands of dollars here in the back half and we could potentially break 400. The goal to 6% to 700 will take just plain and simple and you can see the slides that we've attached will take the requirement for us to get our Asp's back up closer to 38 38 five for us.

100 points isn't moved it feels like you just had some headwind in front of it based on what happened with Liberation day, and some of the other things as I look at the balance of the year, though just to be very candid as we're tracking here, we think that getting closer to $3 50 to 400 on the SG&A side is the goal unless.

Marcus Lemonis: As I look at the balance of the year, though, just to be very candid, as we are tracking here, we think that getting closer to 350 to 400 on the SG&A side is a goal unless we see those ASPs unlock by thousands of dollars here in the back half, and we could potentially break 400. The goal to 600 to 700 will take, plain and simple, and you can see the slides that we have attached, will take the requirement for us to get our ASPs back up closer to 38, 38.5 for us to get to that 600 or 700. We think that is very possible. We think it is even possible in the back half of 2026.

To get to that six or 700, we think thats very possible and we think it's even possible in the back half of 'twenty six but in the short term. We think we are still going to have a little bit of pressure from the affordable. We're hopeful that an interest rate cut here in the next several months will be part of that fuel.

Got it that's helpful and then.

Mark you made the point in the prepared remarks.

Driving he doesn't change once the calendar flips.

It seems like other RV companies are really going out of their way to tell us.

Get to that six or 700, we think thats very possible and we think it's even possible in the back half of 'twenty six but in the short term. We think we're still going to have a little bit of pressure from the affordable. We're hopeful that an interest rate cut here in the next several months will be part of that fuel.

Fiscal 2016.

Unlikely to be significantly better than fiscal 2025, obviously there are some differences there.

Marcus Lemonis: In the short term, we think we are still going to have a little bit of pressure from affordability. We are hopeful that an interest rate cut here in the next several months will be part of that fuel.

Gain in market share handle okay.

Got it that's helpful and then.

Joe Altobello: Got it. That's helpful. Then, Marcus Lemonis, you made the point in the prepared remarks that the strategy doesn't change once the calendar flips. It seems like other RV companies are really going out of their way to tell us that fiscal 2026 is unlikely to be significantly better than fiscal 2025. Obviously, there are some differences there, right? They're gaining market share hand over fist.

Yes, I think James earlier early.

Mark you made the point in the prepared remarks.

The question.

We expect to continue to grow our new business in 2006, and outsize our growth in used in 2006, and we expect to do that with fewer rooftops and a tighter expense structure and thats not something thats going to start or stop today, it's going to it's continuing today and it's going to continue until we get to our goals and then we're going to set new goals.

Driving he doesn't change once the calendar flips.

It seems like other RV companies are really going out of their way to tell us.

Fiscal 'twenty, it seems unlikely to be significantly better than fiscal 2025, obviously there are some differences there.

So we're not expecting 2006 to be anything but up for us we don't really give a <expletive> about everybody else to be totally honest and I don't mean to be that punchy about it but we're putting a big market share numbers and we're going to continue to punish the competitors.

Gaining market share and overcame.

Yes, I think James earlier early.

Marcus Lemonis: Yeah, I think.

Joe Altobello: I guess, you know, early thoughts on 2026 is the question.

Great question.

Marcus Lemonis: We expect to continue to grow our new business in 2026 and outsize our growth in used in 2026. We expect to do that with fewer rooftops and a tighter expense structure. That is not something that is going to start or stop today. It is continuing today, and it is going to continue until we get to our goals, and then we are going to set new goals. We are not expecting 2026 to be anything but up for us. We do not really give a shit about everybody else, to be totally honest. I do not mean to be that punchy about it, but we are putting up big market share numbers, and we are going to continue to punish the competitors. You did not have to hang up on that one, though. I do not know who is next. I think he may have dropped off operator.

We expect to continue to grow our new business in 2006, and outsize our growth and used in 2006, and we expect to do that with fewer rooftops and a tighter expense structure and thats not something thats going to start or stop today, it's going to it's continuing today and it's going to continue until we get to our goals and then we're going to set new goals.

You didn't have to hang up on that one.

No.

He may have dropped off operator.

Alright. Our next question comes from Alex Perry with Bank of America. Please go ahead.

Hey, Thanks for taking my questions here too.

Two questions I think they're kind of related to each other.

Not surprisingly on pricing, but I guess, just more granularly can you talk through sort of the embedded pricing expectations in the back half across both new and used.

For new or are you expecting similar levels of decline year over year as you saw in the second quarter and then maybe just provide a bit more color in terms of any green shoots in terms of higher continent units starting to sell.

You didn't have to hang up on that one I don't know who is in fact I think he may have dropped off operator.

Lindsey Christen: All right. Our next question comes from Alex Perry with Bank of America. Please go ahead.

Our next question comes from Alex Perry with Bank of America. Please go ahead.

Hey, Thanks for taking my questions here.

Patrick Buckley: Hey, thanks for taking my questions here. Two questions, I think they are kind of related to each other, not surprisingly, on pricing. But I guess just more granularly, can you talk through sort of the embedded pricing expectations in the back half across both new and used? For new, are you expecting similar levels of decline year over year as you saw in the second quarter? Then maybe just provide a bit more color in terms of any green shoots in terms of higher continent units starting to sell. Are we starting to see an unlock in fifth wheel or motorized? What is driving the higher ASPs in July? Are you starting to see a bit of a mixed benefit there? Thank you.

Starting to see an unlock and fifth wheel or motorized and what is driving the higher asps in July.

Two questions I think they're kind of related to each other.

Not surprisingly on pricing, but I guess, just more granularly can you talk through sort of the embedded pricing expectations in the back half across both new and used.

Are you starting to see a bit of a mixed benefit there. Thank you.

I understand I apologize I understood the back half of the questions I just need to understand the pricing I heard pricing dislocation of some kind can you just clarify that scrap pricing, yes, more about the embedded pricing expectations in the back half for both new and used to get to your.

For new are you expecting similar levels of decline year over year as you saw in the second quarter and then maybe just provide a bit more color in terms of any green shoots in terms of higher content than units starting to sell our U.

Down 10% sort of guide that you laid out in terms of Asps.

Starting to see an unlock and fifth wheel or motorized and what is driving the higher asps in July.

Is there an embedded asps recovery in the back half.

Are you starting to see a bit of a mixed benefit there I need to understand I apologize I understood. The back half of the questions I just need to understand the pricing.

Across both new and used just just trying to think through what.

Marcus Lemonis: I need to understand, I apologize. I understood the back half of the questions. I just need to understand the pricing. I heard pricing dislocation of some kind. Can you clarify that?

What you're sort of anticipating there.

So on the new side.

I heard pricing dislocation of some kind can you clarify that scrap pricing, yes, more about the embedded pricing expectations in the back half for both new and used to get to your <unk>.

As you may be aware, we were just slightly over $40000 on a new ASP in 2024.

Patrick Buckley: Yeah, more about the embedded pricing expectations in the back half for both new and used to get to your, you know, down 10% sort of guide that you laid out in terms of ASP. Is there an embedded ASP recovery in the back half, across both new and used? Just trying to think through what you're sort of anticipating there.

And we're operating today far below that but we've already started to see that number tick up the range that we gave of 10% to 12% down was our very conservative finger in the air guests that number could be as low as 8% or 7%. If we get a little pop here the growth that we're seeing in our asps in.

Down 10% sort of guide that you laid out in terms of Asps.

They're an embedded asps recovery in the back half.

Across both new and used just just trying to think through.

What you're sort of anticipating there.

July and in the back half are really not that peculiar we normally see seasonal improvement in our pricing.

Marcus Lemonis: On the new side, as you may be aware, we were just slightly over $40,000 on a new ASP in 2024. We are operating today far below that, but we have already started to see that number tick up. The range that we gave of 10% to 12% down was our very conservative finger in the air guess. That number could be as low as 8% or 7% if we get a little pop here. The growth that we are seeing in our ASPs in July and in the back half are really not that peculiar. We normally see seasonal improvement in our pricing.

So on the new side.

As you may be aware, we were just slightly over $40000 on a new ASP in 2024, and we are operating today far below that but we've already started to see that number tick up the range that we gave of 10% to 12% down was our very conservative finger in the air guests that number could be at.

Really Alex the confidence stems from the fact that we historically will take a very bullish position on lower priced assets heading into the season, and then our inventory mix and ergo, our sales mix. It was modified in accordance with whatever our inventory mixes. So as we sit here today I mean, the cost of our average new.

As low as 8% or 7%, if we get a little pop here the growth that we're seeing in our Asps in July and then in the back half are really not that peculiar we normally see seasonal improvement in our pricing.

Piece of inventory and rolling stock has gone up in excess of 12%, which is going to be just the norm that we see in terms of our inventory mix and therefore that would give us the confidence just to suggest that seasonally in Q3, Q4, youre going to see our new Asps increase however, when you look at it on a year over year basis.

Matthew Wagner: Really, Alex Perry, the confidence stems from the fact that we historically will take a very bullish position on lower priced assets heading into season. Our inventory mix, and ergo our sales mix, is modified in accordance with whatever our inventory mix is. As we sit here today, the cost of our average new piece of inventory in rolling stock has gone up in excess of 12%, which is going to be just the norm that we see in terms of our inventory mix. Therefore, that would give us the confidence to suggest that seasonally, in Q3, Q4, you are going to see our new ASPs increase. However, when you look at it on a year-over-year basis, we still expect that there is going to be year-over-year decline, much in line with the percentage year-over-year declines that we saw in Q1 and Q2.

We still expect that theres going to be year over year declines much in line with the percentage year over year declines that we saw in Q1 and Q2. So in other words you can just track throughout the balance of the year just to suggest that that same 10% to 12% decline is what we would anticipate between now and the end of the year, which is still higher exactly everything toward it takes out I think Q4 was <unk> 44.

Modified in accordance with whatever our inventory mixes so as we sit here today I mean, the cost of our average new piece of inventory and rolling stock has gone up in excess of 12%, which is going to be just the norm that we see in terms of our inventory mix and therefore that would give us the confidence just to suggest that seasonally in Q.

Yes, really Alex to transition to your second question are we seeing green shoots, yes, absolutely and most of the Green shoots are a byproduct of the time investment that we made into our contract manufacturing, where it's no coincidence that our best selling class B class C class, a or a contract manufactured units within each of those specific segments.

Three Q4, youre going to see our new Asps increase however, when you look at it on a year over year basis, we still expect that theres going to be year over year declines much in line with the percentage year over year declines that we saw in Q1 and Q2. So in other words you can just track throughout the balance of the year just to suggest that that same 10% to 12%.

Matthew Wagner: In other words, you could track throughout the balance of the year to suggest that that same 10% to 12% decline is what we anticipate between now and the end of the year.

We have taken different approaches to continue to expand our lineup heading into next year inclusive of adding different elements like in the class B a different pop top optionality to increase the sleeping capacity, we're looking at a Super C. As an example, which we are seeing that being one of the few segments within motorized space, it's actually growing year over year, and we really don't have a meaningful footprint.

Decline is what we didn't anticipate between now and the end of the year, which is still higher exactly everything toward it takes off I think Q4 was 44000, yes really Alex to transition to your second question are we seeing green shoots, yes, absolutely and most of the Green shoots are a byproduct of the time investment that we made into our contract manufacturing, where it's no coincidence that our best selling class B.

Marcus Lemonis: Which is still higher.

Matthew Wagner: Exactly.

Marcus Lemonis: Since everything sort of takes off. I think Q4 was $44,000.

Matthew Wagner: Yeah. Really, Alex Perry, to transition to your second question, are we seeing green shoots? Yeah, absolutely. Most of the green shoots are a byproduct of the time investment that we made into our contract manufacturing, where it is no coincidence that our best-selling Class B, Class C, Class A are our contract manufactured units within each of those specific segments. We have taken different approaches to continue to expand that lineup heading into next year, inclusive of just adding different elements like in a Class B, a different pop-top optionality to increase the sleeping capacity. We are looking at a Super C as an example, which we have seen that being one of the few segments within the motorized space that is actually growing year over year. We really do not have a meaningful footprint in that segment.

In that segment, so we see a lot of opportunity to weave into and out of different areas segments enhance up content a lot of our assets while at the same time, maintaining what we're doing where we feel like we've been the market driver over the last two years and you could take us out of the market in this industry has gone backwards a substantial amount.

Class eight class a or a contract manufactured units within each of those specific segments and we have taken different approaches to continue to expand that lineup heading into next year inclusive of just adding different elements like in our class B a different pop top optionality to increase the sleeping capacity, we're looking at a Super C. As an example, which we've seen that.

Very clear and very helpful Best of luck going forward.

One of the few segments within motorized space, that's actually growing year over year, and we really don't have a meaningful footprint in that segment. So we see a lot of opportunity to weave into and out of different areas segments enhance end up content a lot of our assets while at the same time, maintaining what we're doing where we feel like we've been the market driver.

Okay. Thanks, Thank you.

Our next question comes from Tristan Thomas Martin with BMO capital markets. Please go ahead.

Matthew Wagner: So we see a lot of opportunity to weave into and out of different area segments to enhance and up content a lot of our assets, while at the same time maintaining what we are doing, where we feel like we have been the market driver over the last two years. You take us out of the market, and this industry has gone backwards a substantial amount.

Hey, good morning.

Matt I kind of a follow up on that question in markets and one of the previous questions. You said you could reaccelerate price points.

Over the last two years and you take us out of the market in this industry has gone backwards a substantial amount.

Line going lower to Reengage customers. So how should we think about mix and kind of pricing in calendar 'twenty six.

Very clear and very helpful Best of luck going forward.

Patrick Buckley: Very clear and very helpful. Best of luck going forward.

You should think about us putting products on the ground that the customers want to buy and so our ability is to be like the win we're going to adjust to whatever is happening with the general consumer we do however want to start to track drops in potential interest rates and our ability to raise the type of unit if somebody could buy.

Matthew Wagner: Thanks, Alex.

Marcus Lemonis: Thank you.

Thanks, Thank you.

Lindsey Christen: Our next question comes from Tristan Thomas-Martin with BMO Capital Markets. Please go ahead.

Our next question comes from Tristan Thomas Martin with BMO capital markets. Please go ahead.

Joe Altobello: Hey, good morning. Matt, I kind of want to follow up on that question. Marcus, in one of the previous questions, you said you could reaccelerate price points, kind of implying going lower to re-engage customers. How should we think about mix and kind of pricing in calendar 2026?

Hey, good morning.

Matt.

To follow up on that question in markets and one of the previous questions. You said, you could reaccelerate price points kind of implying going lower to reengage customers.

<unk> be in the $13 17, B in the 2017, which are our entry level units are meant to bring people into the lifestyle. That's the goal of them. It's not meant to gain market share. It's meant to bring people into our ecosystem. So that's a lifetime value of that customer can start earlier in the trade cycle can start faster.

Should we think about mix and kind of pricing in calendar 'twenty six.

Marcus Lemonis: You should think about us putting products on the ground that the customers want to buy. Our ability is to be like the wind. We are going to adjust to whatever is happening with the general consumer. We do, however, want to start to track drops in potential interest rates and our ability to raise the type of unit that somebody could buy. The 13B and the 13R and the 17B and the 17R, which are our entry-level units, are meant to bring people into the lifestyle. That is the goal of them. It is not meant to gain market share. It is meant to bring people into our ecosystem so that the lifetime value of that customer can start earlier and the trade cycle can start faster. Those units that I just identified are some of our most popular traded-in units.

Those units that I just identified our some of our most popular traded in units and so we know that the traditional trade cycle of three five to four years. It gets materially accelerated when they buy that entry level unit and then we get to make money on them multiple times throughout their journey and really start to diversify the places that they go into.

And the $13 17, B in the 2017, which are our entry level units are meant to bring people into the lifestyle. That's the goal of them. It's not meant to gain market share. It's meant to bring people into our ecosystem. So that's a lifetime value of that customer can start earlier in the trade cycle can start faster those units.

Out of our organization, particularly inside of good Sam So as we look at 2026, we expect to see a growth in ASP.

For a variety of reasons, we expect to see growth in our new and used combined ASP because.

I just identified our some of our most popular traded in units and so we know that the.

Because we continue to see nice stabilization on the used side, but if the market tells us to go up we're going to follow it if the consumer tells us to go down we're going to follow it our job is to do what the consumer tells us to do which is why we have domination on all categories of our business. We have really good insight interest in to into the <unk>.

Marcus Lemonis: We know that the traditional trade cycle of 3.5 to 4 years gets materially accelerated when they buy that entry-level unit. We get to make money on them multiple times throughout their journey and really start to diversify the places that they go inside of our organization, particularly inside of Good Sam. As we look at 2026, we expect to see a growth in ASP for a variety of reasons. We expect to see growth in our new and used combined ASP because we continue to see nice stabilization on the used side. If the market tells us to go up, we are going to follow it. If the consumer tells us to go down, we are going to follow it. Our job is to do what the consumer tells us to do, which is why we have domination on all categories of our business.

Traditional trade cycle of three five to four years it gets materially accelerated when they buy that entry level unit and then we get to make money on them multiple times throughout their journey and really start to diversify the places that they go inside of our organization, particularly inside of good Sam So as we look at 2026, we expect to.

Lease payment that are consumers willing to pay with a niche specific segment and that's really been our secret sauce. This year is driving down that monthly payment year over year, therefore, expanding the entire funnel of buyers today and for the future.

See a growth in asps.

For a variety of reasons, we expect to see growth in our new and used combined ASP because.

Okay. Thank you.

Just one more on M&A I know, it's whether it's in a pause right.

On the dealership side, what would it take for you to get more aggressive there Hello, Geoff to say.

Well, let me, let me clarify that.

<unk> never on a pause for M&A, we are more thoughtful and less aggressive at certain times because of the capital that we have today is really being allocated to delevering. Our business, we don't like where our leverage sits wallets materially improved from January one and Tom mentioned that we paid our debt down $75 million.

Matthew Wagner: We have really good insight, Tristan, too, into the monthly payment that a consumer is willing to pay within each specific segment. That has really been our secret sauce this year, is driving down that monthly payment year over year, therefore expanding the entire funnel of buyers today and for the future.

Lease payment that are consumers willing to pay with a niche specific segment and thats really been our secret sauce. This year is driving down that monthly payment year over year, therefore, expanding the entire funnel of buyers today and for the future.

Joe Altobello: Okay, thank you. Just one more on M&A. I know it's a little bit of a pause on the dealership side. What would it take for you to get more aggressive there? What would you have to say?

Okay. Thank you.

Just one more on M&A I know, it's whether it's in a pause right.

But we are looking at deals right now and what we want to make sure that we're doing is we're finding white space. However, when we think about capital allocation allocating money towards good Sam's growth allocating money towards us growth allocating money towards getting more out of our existing stores. It's just a better return on capital, but we are now.

On the dealership side, what would it take for you to get more aggressive there Hello, Geoff to say.

Marcus Lemonis: Let me clarify that. We are never on a pause for M&A. We are more thoughtful and less aggressive at certain times because the capital that we have today is really being allocated to delevering our business. We do not like where our leverage sits while it is materially improved from January 1. Tom mentioned that we paid our debt down $75 million. We are looking at deals right now. What we want to make sure that we are doing is we are finding white space. However, when we think about capital allocation, allocating money towards Good Sam's growth, allocating money towards used growth, allocating money towards getting more out of our existing stores is just a better return on capital. We are never on pause from acquisitions. We are slightly more thoughtful. I would never be surprised if you woke up tomorrow and we had a deal to announce.

Well, let me, let me clarify that.

<unk> never on a pause for M&A, we are more thoughtful and less aggressive at certain times because of the capital that we have today is really being allocated to delevering. Our business, we don't like where our leverage sits wallets materially improved from January one Tom mentioned that we paid our debt down $75 million.

Never on pause from acquisitions are slightly more thoughtful and.

Would never be surprised if you woke up tomorrow, and we had a deal to announce we just don't know.

But we are looking at deals right now and what we want to make sure that we're doing is we're finding white space. However, when we think about capital allocation allocating money towards good Sam's growth allocating money towards used growth allocating money towards getting more out of our existing stores. It's just a better return on capital, but we are now.

Alright I.

Appreciate it.

Our next question comes from Scott <unk> with Roth Capital markets. Please go ahead.

Good morning, and thanks for taking my questions.

Yes, Sir.

Matt you were saying that the rolling stock coming in these days is low double digits higher I guess than last year.

Never on pause from acquisitions are slightly more thoughtful and.

How does the.

Would never be surprised if you woke up tomorrow, and we had a deal to announce we just don't know.

26 model year.

Marcus Lemonis: We just do not know.

Regarding tariffs how would that.

Get impacted for next year, just from affordability standpoint.

Alright, thank you.

Joe Altobello: Yeah, thank you. I appreciate it.

I appreciate it.

Yes, let me clarify one thing in particular I was suggesting our mix of assets on the ground is actually higher compared to what it was in prior quarters, but that's also a byproduct of yes, what's coming in but also how the mix shifts because as we sell down lower priced assets naturally that's going to skew towards the higher average cost, but just as well we see.

Lindsey Christen: Our next question comes from Scott Stember with Roth Capital Markets. Please go ahead.

Our next question comes from Scott <unk> with Roth Capital markets. Please go ahead.

Joe Altobello: Good morning. Thanks for taking my questions.

Good morning, and thanks for taking my questions.

Marcus Lemonis: Yes, sir.

Yes, Sir.

Joe Altobello: Matt, you were saying that the rolling stock coming in these days is low double digits higher, I guess, than last year. How does the 2026 model year, you know, regarding tariffs, how would that get impacted for next year just from an affordability standpoint?

Matt you were saying that the rolling stock coming in these days is low double digits higher I guess than last year.

And in terms of model year 'twenty six on the most pure level looking at a basket of goods a balanced 5% increase on the most pure level and there is going to be like various levels between threet upwards of 10%, depending upon the category, but by and large I think to your 0.5% and then also of course theres going to be chatter here over the ensuing months of different <unk>.

How does the.

26 model year.

Regarding tariffs how would that.

Get impacted for next year, just from affordability standpoint.

Matthew Wagner: Let me clarify one thing in particular. I was suggesting our mix of assets on the ground is actually higher compared to what it was in prior quarters. But that is also a byproduct of, yes, what is coming in, but also how the mix shifts because as we sell down lower priced assets, naturally that is going to skew towards a higher average cost. But just as well, we have seen in terms of model year 26 on the most pure level, looking at a basket of goods, about a 5% increase on the most pure level. And there is going to be various levels between 3% upwards of 10% depending upon the category. But by and large, I think you can put 5%. Then also, of course, there is going to be chatter here over the ensuing months of different tariffs taking effect.

Yes, let me clarify one thing in particular I was suggesting our mix of assets on the ground is actually higher compared to what it was in prior quarters, but thats also a byproduct of yes, what's coming in but also how the mix shifts because as we sell down lower priced assets naturally that's going to skew towards the higher average cost, but just as well we see.

Harris, taking effect and therefore manufacturers might be pressed into raising prices slightly more within that September October timeframe or perhaps they trying to pump it into next year. So we feel like we've been trying to take advantage of every opportunity we have and we've into and out of one to procure these assets to ensure that we're just prepared to meet these monthly paying.

And in terms of model year 'twenty six on the most pure level looking at a basket of goods and <unk>, 5% increase on the most pure level and there is going to be like various levels between threet upwards of 10%, depending upon the category, but by and large I think to your 0.5% and then also of course theres going to be chatter here over the ensuing months of different.

Payment demands of consumers any increase in new pricing results in us being the big winter.

Because of our ability to have the contract manufacturing relationships, we're always able to be better than everybody else and with every new unit increase in price the value of our used inventory actually goes up at the same time, so that could be some margin expansion for us as well so we're not dissuading any manufacturer.

Tariffs taking effect.

Matthew Wagner: And therefore, manufacturers might be pressed into raising prices slightly more within that September-October timeframe, or perhaps they try to punt it into next year. We feel like we have been trying to take advantage of every opportunity we have and weave into and out of when to procure these assets to ensure that we are just prepared to meet these monthly payment demands of consumers.

Therefore manufacturers might be pressed into raising prices slightly more within that September October timeframe, or perhaps they trying to pump it into next year. So we feel like we've been trying to take advantage of every opportunity we have and we are into and out of one to procure these assets to ensure that we're just prepared to meet these monthly payments payment demands of consumers.

To avoid raising prices, if thats what needs to happen as long as content and quality don't get compromise, we're fine with that.

Marcus Lemonis: Any increase in new pricing results in us being the big winner because of our ability to have the contract manufacturing relationships. We are always able to be better than everybody else. With every new unit increase in price, the value of our used inventory actually goes up at the same time. So that could be some margin expansion for us as well. We are not dissuading any manufacturer to avoid raising prices if that is what needs to happen. As long as content and quality do not get compromised, we are fine with that.

Any increase in new pricing results in us being the big winner.

Got it and then last question on F&I tremendous growth the last few quarters.

Is there any reason to believe that we shouldn't be seeing this low double digit growth as long as the units are growing the way that they are and also.

Yes.

12 months out.

Talk about how this will help you.

Attain your goals of 600 to 700 basis points of SG&A leverage.

To avoid raising prices, if thats what needs to happen as long as content and quality don't get compromise, we're fine with that.

On the F&I side, we see opportunity to grow the gross dollars that we're generating we don't think that the percentage of penetration that we have per transaction will grow but as that penetration remains constant as it has for several years in terms of our ability to sell to different products and services.

Joe Altobello: Got it. Last question on F&I, tremendous growth the last few quarters. Is there any reason to believe that we shouldn't be seeing this low double-digit growth as long as the units are growing the way that they are? Also, going 12 months out, talk about how this will help you attain your goals of 600 to 700 bps of SG&A leverage.

Got it and then last question on F&I tremendous growth the last few quarters.

Is there any reason to believe that we shouldn't be seeing this low double digit growth as long as the units are growing the way that they are and also.

The gross dollars will naturally go up as the Asp's go up with it and I think that's a bit of a hidden secret in this whole process is that as the asps start to go up again, which we're seeing already in July not only due to the gross profit per units go up but the F&I dollars per unit go up with it when those two things happen.

Yes.

12 months out.

Talk about how this will help you opinion.

Attain your goals of 600 to 700 basis points of SG&A leverage.

Marcus Lemonis: On the F&I side, we see opportunity to grow the gross dollars that we are generating. We do not think that the percentage of penetration that we have per transaction will grow. But if that penetration remains constant, as it has for several years in terms of our ability to sell the different products and services, the gross dollars will naturally go up as the ASPs go up with it. I think that is a bit of a hidden secret in this whole process is that as the ASPs start to go up again, which we are seeing already in July, not only do the gross profit per units go up, but the F&I dollars per unit go up with it. When those two things happen, our cost structure does not change other than the small amounts of commission that we pay out.

Our cost structure does not change other than the small amounts of commission that we pay out and so what's really created the separation between or the delay in us achieving the 6% to 700 points is very simple that once that asps start to go up in the Gpus clubs a couple of hundred Bucks in the F&I goes up a couple of hundred.

And we continue to take costs out.

Which I want to be clear, we are going to continue to take costs out those two things when they need in the middle get us to 6% to 700, I think quicker than anybody would expect.

Our cost structure does not change other than the small amounts of commission that we pay out and so what's really created the separation between or the delay in us achieving the 6% to 700 points is very simple that once the ASP start to go up in the Gpus go up just a couple of hundred Bucks in the F&I goes up a couple of hundred.

Got you very helpful. Thank you.

Marcus Lemonis: What has really created the separation or the delay in us achieving the 600 to 700 points is very simple that once the ASPs start to go up and the GPUs go up just a couple hundred bucks and the F&I goes up a couple hundred bucks and we continue to take costs out, which I want to be clear, we are going to continue to take costs out. Those two things, when they meet in the middle, get us to 600 to 700, I think quicker than anybody would expect.

Our next question comes from Ryan Brinkman with Jpmorgan. Please go ahead.

Hi, Thanks for taking my question.

Relative to the trend in new RV pricing, how much of that do you think as a result of lower prices for the same type of RV versus how much is driven by that downshift in mixed you alluded to that's driven by customer preferences in light of affordability challenges et cetera, and then.

And we continue to take costs out.

Which I want to be clear, we are going to continue to take costs out those two things when they need in the middle get us to 6% to 700, I think quicker than anybody would expect.

I heard you say that aggressive discounting wasn't behind your market share gain and new ideas during the quarter. So how much of a contributing factor was maybe your differentiated assortment of more affordable arby's, how much longer will that be a differentiating factor and then just relatedly I was you.

Joe Altobello: Gotcha. Very helpful. Thank you.

Got you very helpful. Thank you.

Yeah.

Lindsey Christen: Our next question comes from Ryan Brinkman with J.P. Morgan. Please go ahead.

Our next question comes from Ryan Brinkman with Jpmorgan. Please go ahead.

Joe Altobello: Hi, thanks for taking my question. Relative to the trend in new RV pricing, how much of that trend do you think is a result of lower prices for the same type of RV versus how much is driven by that downshift in mix you alluded to that is driven by customer preferences in light of affordability challenges, et cetera? Then, I heard you say that aggressive discounting was not behind your market share gain in new RVs during the quarter. So how much of a contributing factor was maybe your differentiated assortment of more affordable RVs? How much longer will that be a differentiating factor?

Alright, Thanks for taking my question.

Relative to the trend in new RV pricing, how much <unk> do you think as a result of.

Used RV margin remained strong but are there any implications for used RV prices to keep in mind or do you need to somehow positioning yourself differently on the used side like you had before when there were significant changes taking place in the new RV marketplace with regard to either price or mix.

Lower prices for the same type of RV versus how much is driven by that downshift in mixed you alluded to that's driven by customer preferences in light of affordability challenges et cetera, and then.

I heard you say that aggressive discounting wasn't behind your market share gain in <unk> during the quarter. So how much of a contributing factor was maybe your differentiated assortment of more affordable arby's, how much longer will that be a differentiating factor and then just relatedly I realize youre used RV margin remained strong but are there any implications.

The benefit that we have thank you Ryan for your question the benefit that we have on new RV pricing going up is very different than our used strategy. Then when used that when new RV pricing went down in the 'twenty three 'twenty four model year changeover, because ultimately the values of used got dislocated the wrong.

Joe Altobello: Just relatedly, I realize your used RV margin remains strong, but are there any implications for used RV prices to keep in mind, or do you need to somehow position yourself differently on the used side like you have before when there were significant changes taking place in the new RV marketplace with regard to either price or mix?

For used RV pricing to keep in mind or do you need to.

Wei and this particular instance, as we sit here and buy today and we're buying behind book value. In many cases every time that new price goes up that gives us margin expansion that actually increases what the value of used units are in the marketplace. When you think about our market share growth and I commented.

Somehow position yourself differently, you sounded like you had before when there were significant.

Changes taking place in the <unk>.

New RV marketplace with regard to either price or mix.

Marcus Lemonis: The benefit that we have, thank you, Ryan, for your question. The benefit that we have on new RV pricing going up is very different in our used strategy than when new RV pricing went down in the 2023, 2024 model year changeover because ultimately the values of used got dislocated the wrong way. In this particular instance, as we sit here and buy today and we are buying behind book value in many cases, every time that new price goes up, that gives us margin expansion. That actually increases what the value of used units are in the marketplace. When you think about our market share growth, and I commented and will comment again about the fact that we do not need to be promotional in nature to drive our market share or to drive our volume gains.

And we'll comment again about the fact that we don't need to be promotional in nature to drive our market share or to drive our volume gains. It is really our R. Idiosyncratic way of thinking about when to put inventory on the ground what to put on the ground and how to price it and it varies by market.

It varies by type code, what we've learned and how to do what we've learned how to do very well is understand where the white spaces from a pricing standpoint across all of the tight codes top to bottom not just in the entry level travel trailer and as we get deeper into 'twenty, five and get ready for 26 I think.

And we'll comment again about the fact that we don't need to be promotional in nature to drive our market share or to drive our volume gains. It is really are idiosyncratic way of thinking about when to put inventory on the ground what to put on the ground and how to price it and it varies by market.

Marcus Lemonis: It is really our idiosyncratic way of thinking about when to put inventory on the ground, what to put on the ground, and how to price it. It varies by market, and it varies by type code. What we have learned how to do very well is understand where the white space is from a pricing standpoint across all the type codes top to bottom, not just in the entry-level travel trailer. As we get deeper into 2025 and get ready for 2026, I think you will see us start to gain more momentum in other type codes that we have historically not had as much of explosive growth like we did on the bottom side.

Youll see us start to gain more momentum in other tight codes that we have historically not had as much of explosive growth like we did on the bottom side.

Very helpful. Thank you.

Our next question comes from Alice with Glenn with Baird. Please go ahead.

Yes, good morning, gentlemen, Mark I, just wanted to follow up on your comments on the trading side.

Your contract manufacturing strategy, and obviously driving new entrants into the market without affordable price point.

You'll see us start to gain more momentum in other type codes that we have historically not had as much of explosive growth like we did on the bottom side.

Let me provide more detail on your approach to follow up on retention of those customers to keep them in the RV lifestyle, maybe more specifically in your ecosystem and maybe at that foster trading rate that you mentioned.

Joe Altobello: Very helpful. Thank you.

Very helpful. Thank you.

The one thing that is unique about our business is the multiple touch points that a customer has.

Lindsey Christen: Our next question comes from Alice Ficklund with Baird. Please go ahead.

Our next question comes from Alice quick Glenn with Baird. Please go ahead.

Just slightly right after that RV purchase transaction and whether that's the interaction with good Sam in the F&I and the good Sam F&I office or the type of interaction they have as a walk through in our retail business or the follow up with the service Department. We just have so many different touch points and ways to engage with customers.

Joe Altobello: Good morning, gentlemen. Marcus, I just wanted to follow up on your comments on the trade-in cycle. Your contract manufacturing strategy is obviously drawing new entrants into the market with that affordable price point. Maybe provide a bit more detail on your approach to follow-up and retention of those customers to keep them in the RV lifestyle, you know, more specifically in your ecosystem and maybe at that faster trade-in rate that you mentioned.

Yes, good morning, gentlemen, Mark I, just wanted to follow up on your comments on the trade ins.

And your contract manufacturing strategy, and obviously driving new entrants into the market with that affordable price point.

Let me provide more detail on your approach to follow up and retention of those customers to keep them in the RV lifestyle, maybe more specifically in your ecosystem and maybe at that foster trading rate that you mentioned.

That it gives us different revenue and upsell opportunities I think what's unique for US is that the opening price point units have given us the ability to bring people into the lifestyle get them into an affordable payment get them to try new products and services inside the business and as they step up their units.

Marcus Lemonis: The one thing that is unique about our business is the multiple touch points that a customer has slightly right after that RV purchase transaction. Whether that is the interaction with Good Sam and the F&I and the Good Sam F&I office, or the type of interaction they have as a walkthrough in our retail business, or the follow-up with the service department, we just have so many different touch points and ways to engage with customers that it gives us different revenue and upsell opportunities. I think what is unique for us is that the opening price point units have given us the ability to bring people into the lifestyle, get them into an affordable payment, get them to try new products and services inside the business. As they step up their units, they are also stepping up the types of products they have.

The one thing that is unique about our business is the multiple touch points that a customer has.

We're also stepping up the types of products. They have let me give you. An example, the price of a warranty on a $14000 single axis travel trailer is significantly lower than the price of a warranty on a 25 foot.

Is that it gives us different revenue and upsell opportunities I think what's unique for US is that the opening price point units have given us the ability to bring people into the lifestyle get them into an affordable payment get them to try new products and services inside the business and as they step up their units.

Fiberglass travel trailer and so as we bring people in and we take them through the cycle all the way up to may be the largest unit all of our own not only does the revenue per customer start to increase but the gross profit that they contribute to their lifetime value also increases this idea of contract manufacturing that we started many.

There are also stepping up the types of products. They have let me give you. An example, the price of a warranty on a $14000 single axis travel trailer is significantly lower than the price of a warranty on a 25 foot.

Marcus Lemonis: Let me give you an example. The price of a warranty on a $14,000 single axle travel trailer is significantly lower than the price of a warranty on a 25-foot, fiberglass travel trailer. As we bring people in and we take them through the cycle all the way up to maybe the largest unit they will ever own, not only does the revenue per customer start to increase, but the gross profit that they contribute to their lifetime value also increases. This idea of contract manufacturing that we started many, many years ago was really built on a couple of premises. One, there is no block from us entering a market. We did not want any resistance or any block of any kind. We can go into any market tomorrow.

Many years ago was really built on a couple of premises. One there is no block from us entering a market we didn't want any resistance or any block of any kind. We can go into any market tomorrow to we wanted to be able to control features and benefits that were unique to us based on the research that we do the feedback that we get.

Fiberglass travel trailer and so as we bring people in and we take them through the cycle all the way up to maybe the largest unit all of our own not only does the revenue per customer start to increase but the gross profit that they contribute to their lifetime value also increases this idea of contract manufacturing that we started many.

Three we want to increase the trade cycle and the trade rate that we have because we need that supply chain on the used side and maybe most importantly last our ability to have margin protection around those private label units. When you start to sell other OEM products, which we do and we're the best at it and <unk>.

<unk>. We also are competing with other people who may not have the type of infrastructure to deliver the customer experience that we do that can be operating on a grab a lot not carrying about the return customer not carrying about service not even having service and we're competing with them. So we have to be careful in that environment. The reason, we have to stick with <unk>.

Marcus Lemonis: Two, we wanted to be able to control features and benefits that were unique to us based on the research that we do, the feedback that we get. Three, we want to increase the trade cycle and the trade rate that we have because we need that supply chain on the used side. Maybe most importantly, last, our ability to have margin protection around those private label units. When you start to sell other OEM products, which we do, and we are the best at it in all cases, we also are competing with other people who may not have the type of infrastructure to deliver the customer experience that we do. They could be operating on a gravel lot, not caring about the return customer, not caring about service, not even having service, and we are competing with them. So we have to be careful in that environment.

Selling OEM units, because we need the credibility we need the web traffic, we need to lease but the contract manufacturing units have a very very unique value proposition and our company trade cycle is one of them, but all the other things really are the architecture around all of it so Alex we don't disclose how many customers are repeat buyers.

Mrs. We also are competing with other people who may not have the type of infrastructure to deliver the customer experience that we do and it can be operating on a graph a lot not caring about the returned customer not carrying about service not even having service and we're competing with them. So we have to be careful in that environment. The reason, we have to stick with <unk>.

The R&D cycle. However, we do disclose good Sam members size all the different good Sam products that we sell and our retention of those customers through good Sam and we can also share with you that we average about 30000 trades a year of customers coming back many of those we sold we don't go through this.

Marcus Lemonis: The reason we have to stick with selling OEM units is because we need the credibility, we need the web traffic, we need the leads. The contract manufacturing units have a very, very unique value proposition in our company. Trade cycle is one of them, but all the other things really are the architecture around all of it.

OEM units is because we need the credibility we need the web traffic, we need the leads but the contract manufacturing units have a very very unique value proposition and our company trade cycle is one of them, but all the other things really are the architecture around all of it so Alex we don't disclose how many customers are repeat buyers with.

Closed the specifics, but we feel very confident by means of a <unk> 13, or 17 be 17 or sales that we've enjoyed over the last few years. We're seeing that is the most common repeat buyers coming back into our system, where those are amongst the most traded and models and have been for the last three years running now. So this is really us playing a long term fee.

Matthew Wagner: We don't disclose how many customers are repeat buyers within the RV cycle. However, we do disclose Good Sam member size, all the different Good Sam products that we sell, and our retention of those customers through Good Sam. We could also share with you that we average about 30,000 trades a year of customers coming back. Many of those we sold, we don't go through and disclose the specifics, but we feel very confident by means of the 13B, 13R, 17B, 17R sales that we've enjoyed over the last few years. We're seeing that as the most common repeat buyer coming back into our system, where those are amongst the most traded-in models and have been for the last three years running now.

The R&D cycle. However, we do disclose good Sam members size.

Good Sam products that we sell and our retention of those customers through good Sam and we can also share with you that we average about 30000 trades a year of customers coming back many of those we sold we don't go through and disclose the specifics, but we feel very confident by means of the <unk> <unk>.

<unk> game of selling more inexpensively priced assets to satisfy consumers knowing that they're going to come back here in the next two to three years, Alex I know you know this but just in case other people do not when we say inexpensive unit. It doesn't mean the content to move out features that means we are using our scale and using our size and using the time in which.

Our sales that we've enjoyed over the last few years, we're seeing that is the most common repeat buyers coming back into our system, where those are amongst the most traded and models and have been for the last three years running now. So this is really us playing a long term futures game of selling more inexpensively priced assets to satisfy consumers knowing that there.

We order, our inventory and take our inventory and collaborating with our liberties and collaborating with the Patrick's and working with the manufacturers together to make sure that the value proposition in the front forward foot that we're putting is really great. If you just try to sell on price in the content things every other dealers tried that you have to bring value to the table.

Matthew Wagner: This is really us playing a long-term futures game of selling more inexpensively priced assets to satisfy consumers, knowing that they're going to come back here in the next two to three years.

They're going to come back here in the next two to three years, Alex I know you know this but just in case other people do not when we say inexpensive unit. It doesn't mean the content to move out features that means we're using our scale and using our size and using the time in which we order our inventory and take our inventory and collaborating with our limits and collaborating with the <unk>.

Marcus Lemonis: Alice, I know you know this, but just in case other people do not, when we say inexpensive unit, it does not mean decontent without features. It means we are using our scale and using our size and using the time in which we order our inventory and take our inventory and collaborating with the Lippert's and collaborating with the Patrick's and working with the manufacturers together to make sure that the value proposition and the front forward foot that we are putting is really great. If you just try to sell on price and decontent things, every other dealer has tried that. You have to bring value to the table and have a good price. I think that is maybe misunderstood in our model.

Have a good price and I think that is may be misunderstood in our model.

Okay.

Great. That's very helpful. And then just on the used side I mean, I think your used inventory per location was up over 60% you talked about record purchasing in the quarter is that inventory at a level youre comfortable with today or do you have more to go there and maybe just in general talk about the supply dynamics on the used market.

Citrix and working with the manufacturers together to make sure that the value proposition in the front forward foot that we're putting is really great. If you just try to sell on price in the content things every other dealers tried that you have to bring value to the table and have a good price and I think that is may be misunderstood in our model.

So what Matt and I have done for probably a decade together as we find new watermarks, we push we see how far the business can go and then we adjust I would say today that if both of US were being totally honest, we're probably slightly over inventory on the used side. The good news is we're still selling out.

Okay.

Joe Altobello: Great. That's very helpful. Then just on the used side, I mean, I think your used inventory prolongation was up over 60%. You talked about record purchasing in the quarter. Is that inventory at a level you are comfortable with today, or do you have more to go there? Maybe just in general, talk about the supply dynamics on the used market.

Great. That's very helpful. Then just on the used side I mean, I think your inventory per location was up over 60% you talked about record purchasing in the quarter is that inventory at a level youre comfortable with today or do you have more to go there and maybe just in general talk about the supply dynamics on the used market.

20% up clip and we can toggle the purchases up or down in an instance, so for example in the month of August for example, if we wanted to just reduce our used inventory nothing cataclysmic has to happen. We just pulled back a little bit on the marketing spend unused acquisitions sell that inventory down.

Marcus Lemonis: What Matt and I have done for probably a decade together is we find new watermarks. We push, we see how far the business can go, and then we adjust. I would say today that if both of us were being totally honest, we're probably slightly over-inventoried on the used side. The good news is we're still selling at a 20% up clip, and we can toggle the purchases up or down in an instance. For example, in the month of August, if we wanted to just reduce our used inventory, nothing cataclysmic has to happen. We just pull back a little bit on the marketing, spend on used acquisitions, sell that inventory down, see if we've hit that turn level that we want to be at, and then adjust the toggle from there. It is very much of a real-time thing.

<unk> hit that turn level that we want to be at and then adjust the toggle from there. It is very much of a real time thing.

Great. That's it for me thank you.

20% uplift and we can toggle the purchases up or down in an instance, so for example in the month of August for example, if we wanted to just reduce our used inventory nothing cataclysmic has to happen. We just pulled back a little bit on the marketing spend on user acquisition sell that inventory down.

Again, if you have a question. Please press Star then one our next question comes from Bret Jordan with Jefferies. Please go ahead.

Hey, Good morning, guys. This is Patrick Buckley on for Brent Thanks for taking my questions.

Doing.

On the parts and service side now that you've lapped the sale of the furniture business should we expect to see a rebound the growth in the second half and I guess more long term, but what is the primary driver of that business is it new sales and refurbishing or isn't keeping units and the ecosystem for repairs and maintenance.

See if we've hit that turn level that we want to be at and then adjust the toggle from there. It is very much of a realtime thing.

Joe Altobello: Great. That's it from me. Thank you.

Great. That's it for me thank you.

And I guess, how does the margin profile is comparable between those two.

Lindsey Christen: Again, if you have a question, please press star then one. Our next question comes from Brett Jordan with Jefferies. Please go ahead.

Again, if you have a question. Please press Star then one.

Well our growth is to keep our base in our service technicians busy and there is a finite amount of hours in a week and a finite number of technicians that we have a finite number of base and so we look at really maximizing the yield out of that particular facility. The challenge that we have is that we want to take care of every customer that walks in the door whether.

Our next question comes from Bret Jordan with Jefferies. Please go ahead.

Patrick Buckley: Hey, good morning, guys. This is Patrick Buckley on for Brett. Thanks for taking our questions.

Good morning, guys. This is Patrick Buckley on for Brent Thanks for taking my questions.

Joe Altobello: How you doing?

By doing.

Patrick Buckley: Parts & Accessories and RV Maintenance & Repair side, now that you have left the sale of the furniture business, should we expect to see a rebound of growth in the second half? I guess more long term, what is the primary driver of that business? Is it used RV Sales and refurbishing, or is it keeping units in the ecosystem for RV Maintenance & Repair? I guess how do the margin profiles compare between those two?

On the parts and service side now that you've lapped the sale of the furniture business should we expect to see a rebound to growth in the second half and I guess more long term, but what is the primary driver of that business isn't new sales and refurbishing or isn't keeping units and the ecosystem for repairs and maintenance.

They are coming for warranty or whether they are coming for external customer pay but as we've grown our used inventory. We also have to be sure that we're reconditioning our units because the assets that we're selling needs to be properly valued and we need to maximize our margin any shortcut and reconditioning. The unit leads to aging and it leads to <unk>.

I guess, how does the margin profile compare between those two.

Marcus Lemonis: Our growth is to keep our bays and our service technicians busy. There is a finite amount of hours in a week, a finite number of technicians that we have, and a finite number of bays. We look at really maximizing the yield out of that particular facility. The challenge that we have is that we want to take care of every customer that walks in the door, whether they are coming for warranty or whether they are coming for external customer pay. As we have grown our used inventory, we also have to be sure that we are reconditioning our units because the assets that we are selling need to be properly valued and we need to maximize our margin. Any shortcut in reconditioning the unit leads to aging and leads to poor margin performance.

Well our growth is to keep our base in our service technicians busy and there is a finite amount of hours in a week and a finite number of technicians that we have in a finite number of base and so we look at really maximizing the yield out of that particular facility. The challenge that we have is that we wanted to take care of every customer that walks in the door whether.

<unk> performance at the end of the day as we get through the back half I would expect that our customer pay business as a percentage of our total will start to inch up again, because we've reached a level with our use that we're relatively happy with but I see growth happening over the next 12 to 24 months and our service and parts business, whether it's going to come from Intel.

We'll work our external work I'd like to tell you that we're relatively agnostic, we want to take care of every customer, but a customer includes the used unit that needs to be reconditioned, that's sitting in the bay that pays the same price as a customer walking through the door and in some cases has less discount associated with it. So we're looking for margin.

Marcus Lemonis: At the end of the day, as we get through the back half, I would expect that our customer pay business as a percentage of our total will start to inch up again because we have reached a level with our use that we are relatively happy with. I see growth happening over the next 12 to 24 months in our service and parts business. Whether it is going to come from internal work or external work, I would like to tell you that we are relatively agnostic. We want to take care of every customer, but a customer includes the used unit that needs to be reconditioned and that is sitting in the bay that pays the same price as a customer walking through the door and in some cases has less discount associated with it.

Yields out of those phase and looking to make sure that we're capturing all of that revenue.

Got it that's helpful. And then could you talk a bit more about what youre seeing in the competitive market and broader dear dealer health any signs of distress in some of the smaller players or does it feel like the broader dealer network is also starting to see the benefits of our unit recovery.

We will work our external work I'd like to tell you that we're relatively agnostic, we want to take care of every customer, but a customer includes the use unit that needs to be reconditioned, that's sitting in the bay that pays the same price as a customer walking through the door and in some cases has less discount associated with it. So we're looking for margin.

Look we're not we're not spending a lot of time, calling what the competition is doing but we know that there are a number of competitors out there that are really struggling they've reached out to us asking us to either buy their business or invest in their business as we sit here today.

Marcus Lemonis: We are looking for margin yield out of those bays and looking to make sure that we are capturing all of that revenue.

Yields out of those bays and looking to make sure that we're capturing all of that revenue.

We are capitalists and our job is to give our shareholders. A maximum return on every dollar that they put into this business and so if we believe that there is an opportunity to make an acquisition, we're going to wait until the very last minute to ensure that the yield is there as an example, many people know that we purchased five lazy days locations I think.

Patrick Buckley: Got it. That is helpful. Could you talk a bit more about what you are seeing in the competitive market and broader dealer health? Any signs of distress from some of the smaller players, or does it feel like the broader dealer network is also starting to see the benefits of a unit recovery?

Got it that's helpful. And then could you talk a bit more about what youre seeing in the competitive market and then broader dear dealer health any signs of distress in some of the smaller players or does it feel like the broader dealer network is also starting to see the benefits of a unit recovery.

Marcus Lemonis: Look, we are not spending a lot of time polling what the competition is doing, but we know that there are a number of competitors out there that are really struggling. They have reached out to us, asking us to either buy their business or invest in their business. As we sit here today, we are capitalists, and our job is to give our shareholders a maximum return on every dollar that they put into this business. If we believe that there is an opportunity to make an acquisition, we are going to wait until the very last minute to ensure that the yield is there. As an example, many people know that we purchased five Lazydays locations, I think, a little less than eight or nine months ago.

Look we're not we're not spending a lot of time pulling what the competition is doing but we know that there are a number of competitors out there that are really struggling they've reached out to us asking us to either buy their business or invest in their business as we sit here today.

Cash a little less than eight or nine months ago.

The trailing 12 of those five locations and this is just to give you. An example of why we make acquisitions trailing 12 of those five locations was significantly negative EBITDA significantly in less than one year, we've gone in and changed the entire process change the branding change the training module.

<unk> the mix and those locations year to date are close to $4 million in EBITDA contribution a massive swing. So we make these acquisitions. We also wanted to make sure that they don't create cannibalization in a market for us.

Cash a little less than eight or nine months ago.

Marcus Lemonis: The trailing 12 of those five locations, and this is just to give you an example of why we make acquisitions, the trailing 12 of those five locations was significantly negative EBITDA, significantly. In less than one year, we have gone in and changed the entire process, changed the branding, changed the training module, changed the mix, and those locations year to date are close to $4 million in EBITDA contribution, a massive swing. When we make these acquisitions, we also want to make sure that they do not create cannibalization in a market for us. They do not change our general thesis behind how we think about inventory. We are not going to go out and buy somebody that sells $300,000 motorhomes. That is not our model. They possess the right process around finance, service, and parts.

<unk> changed our general thesis behind how we think about inventory. So we're not going to go out and buy somebody that sells $300000 motor homes, that's not our model and that they possess the right process around finance service and parts. There are plenty of those opportunities out there and we will always explore every opportunity that's out there, but we all.

Also one more out of our existing base.

That was our number one goal in 2025 that we committed to some of our largest shareholders. We will give you that type of performance on a per rooftop basis that you expect us to have I know we've had in the past and then we can make acquisitions, but not at the expense of hurting the existing performance of our existing stores.

Don't change our general thesis behind how we think about inventory. So we're not going to go out and buy somebody that sells $300000 motor homes, that's not our model and that they possess the right process around finance service and parts. There are plenty of those opportunities out there and we will always explore every opportunity that's out there, but we all.

Great that's all for us thanks, guys.

Marcus Lemonis: There are plenty of those opportunities out there, and we will always exploit every opportunity that is out there. We also want more out of our existing base. That was our number one goal in 2025 that we committed to some of our large shareholders. We will give you the type of performance on a per rooftop basis that you expect us to have and that we have had in the past. Then we can make acquisitions, but not at the expense of hurting the existing performance of our existing stores.

Thank you.

This concludes our question and answer session I would now like to turn the conference back over to Marcus for any closing remarks.

Also want more out of our existing base.

Thank you heading into the second half of the year, we are more confident than ever in our mid cycle earnings power.

On today's store count, we really believe we can generate well over $500 million of adjusted EBITDA, that's being driven by accelerating the per door productivity delivering better earnings better leverage and the confidence to explore new market expansion opportunities and to capitalize on that ambition, we have set a new internal mandate.

Patrick Buckley: Great. That's all for us. Thanks, guys.

Great that's all for us thanks, guys.

Marcus Lemonis: Thank you.

Thank you.

Lindsey Christen: This concludes our question and answer session. I would now like to turn the conference back over to Marcus Lemonis for any closing remarks.

This concludes our question and answer session I would now like to turn the conference back over to Martin for any closing remarks.

We want to accelerate our gross margin by 100 basis points over the next 18 months, regardless of the broader industry trends.

Marcus Lemonis: Thank you. Heading into the second half of the year, we are more confident than ever in our mid-cycle earnings power. On today's store count, we really believe we can generate well over $500 million of adjusted EBITDA. That is being driven by accelerating the per door productivity, delivering better earnings, better leverage, and the confidence to explore new market expansion opportunities. To capitalize on that ambition, we have set a new internal mandate. We want to accelerate our gross margin by 100 basis points over the next 18 months, regardless of the broader industry trends. Thanks so much for joining our call.

Thank you heading into the second half of the year, we are more confident than ever in our mid cycle earnings power.

Thanks, so much for joining our call.

On today's store count, we really believe we can generate well over $500 million of adjusted EBITDA that is being driven by accelerating the per door productivity delivering better earnings better leverage and the confidence to explore new market expansion opportunities and to capitalize on that ambition, we have set a new internal mandate.

Yeah.

We want to accelerate our gross margin by 100 basis points over the next 18 months, regardless of the broader industry trends.

Thanks, so much for joining our call.

Yeah.

Lindsey Christen: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Q2 2025 Camping World Holdings Inc Earnings Call

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