Good morning, and welcome to Camping World Holdings conference call to discuss financial results for the second quarter ended June 30, 2025. 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. Joining on the call today are: Marcus Lemonis, Chairman and Chief Executive Officer; Matthew Wagner, President; Tom Kirn, Chief Financial Officer; Lindsey Christen, Chief Administrative and Legal Officer; and Brett Andress, Senior Vice President, Investor Relations. I will turn the call over to Ms. Christen to get us started.

Thank you, and good morning, everyone. A press release covering the company's second quarter ended June 30, 2025, financial results was issued yesterday afternoon, and a copy of that press release can be found in the Investor Relations section of the company's website. 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 operations, capital allocation, and future financial results and position. 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 no obligation to update them. 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. 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 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.

Good morning. Thank you, Lindsey. Along with Lindsey, the rest of the team is joining; Matt, Tom, Brett, and myself. We will cover all the operational and financial highlights as we go through the prepared remarks and the Q&A. But before we jump into very particular numbers, we want to give a broad overview of how we're feeling about our business, particularly inside the backdrop of both the RV industry and the general macro environment. When the quarter started, it was obviously a nerve-racking situation for all of us. Liberation Day had started, tariffs had set 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. I'm proud to tell you that our 12,000 team members delivered for the quarter. We set a record by selling more RVs than we ever have in an entire quarter, 45,000 units. We set a record in our finance and insurance department with the 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. Now, we never started this company or built this company under the premise that market share was the most important thing. Our pure execution delivered that market share. We don't wake up every day 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, both from the first purchase of buying a new or used RV all the way through F&I, service, Good Sam, etc. We're starting to really see file size growth. For the quarter, our file size growth was up 80,000 new customers. If you look back over the previous years, you may say that the file size looks down. As we shed ourselves of businesses that are non-core and gotten out of certain things, we have flushed through that on a 48-month trailing basis. As we look at the overall business and the results, while we were happy with beating what analysts call consensus, we were not as happy as one would imagine. Throughout the quarter, we continued to consolidate locations looking to get more proficiency and efficiency out of every single one of our locations. We look at the number of units we sell per location and the SG&A per location. I'm disappointed to tell you that we're down 1,000 people since January. That's never something to be proud of. That's an unfortunate circumstance, but we have made the hard cuts. I'm also happy that with the pressure we’ve seen in the general macro environment, our nimbleness in 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. 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 with various affordability levels and preferences around floor plans, leading them to a transaction that ends up closing. I'm also happy to report that our gross margins broke records. Any idea that we grew our volume on the backs of heavy discounting would be false. Earlier in the year, I think in January or February, we set a short-term goal of reducing our SG&A by 600 to 700 basis points. That goal isn't moving. We made progress in the quarter despite the ASP pressure that the general market gave us. But we're not going to stop selling affordable and inexpensive units. The goal is to build the file, build the transactions, get lifetime value out of people, put them in Good Sam, have them buy warranties, come back for service, buy parts, trade in again, and do it all over again. Looking at the general backdrop of the overall industry, we have to assume that in the short term, the new RV market will stay relatively in the range that it's in today. I think in 2026, we'll get a small bump. Instead of being in the 340 range, we can see an increase of 15,000 to 20,000 units in 2026. The growth, both on the top line and bottom line, will largely come from our recent pivot back into used RVs. Our profitability was driven by our focus on used vehicles. We've delivered massive growth on the used side. We expect double-digit growth moving forward, whether it's going to be 10%, 11%, or 19%, we expect growth to continue. Regarding the SG&A, we believe we have another $10 million to $15 million of fixed cost reduction opportunities through the balance of the year through headcount reduction and/or location consolidation. We want you to focus on productivity, profitability, and revenue per employee rather than the number of locations. We're surprised to see that by consolidating 16 locations over the last 5 to 6 months, our unit count, profitability, and margin per store have risen. We also expect to see a rebound in our average selling price, with margins around $1,000 already. We'll aim for around $40,000 over the next several months. Though we can't predict what's happening with the economy and interest rates, we will make adjustments to reach the level of profitability we believe we should achieve. Regarding capital allocation, we've de-levered significantly this year, and Tom will address that later. We are in heavy discussions about what acquisitions or investments Good Sam could make to start to grow its business. We expect steady revenue growth and new unit growth alongside used unit growth. The clock strikes 12 on December 31, and we won't come out with a new set of ideas then. We will continue to sell RVs, take fixed costs out of the business, grow our Good Sam business, and deliver the EBITDA performance we know we're capable of. The performance for the quarter at $140 million represents the best I've seen in my 20 years given the macro backdrop. We believe the macro environment in 2025 is tougher than in 2024 with significantly more uncertainty around tariffs and interest rates. That's why we enter next year with a very high level of confidence. I'll turn the call over to Matthew.

Thanks, Marcus. As Marcus suggested earlier, we cannot be more proud of our team and the outsized results that they delivered in the second quarter. Our same-store unit growth trends continue to show promising signs as we move into the third quarter. In July month-to-date, we're 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, driving these results with fewer but more productive rooftops. On a trailing 12-month basis, our new and used retail same-store growth is 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 a 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. Looking out over the next several quarters, I'm most optimistic about the capabilities and scalability we've built into our used RV supply chain. We approach this segment with a very long-term mindset, having made significant investments into a centralized team with the ability to flex our values and buy in real time. We know that used RV sales will be the key to our continued earnings growth in the years ahead. I'll now turn the call over to Tom.

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 of more than 20%. New and used gross margins 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. Our accessory business showed improved gross profit dollars and margins despite top line pressure from a higher allocation of service hours to used inventory as we deployed our cash toward used RV acquisition throughout the quarter. 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. SG&A as a percentage of gross profit improved by 276 basis points year-over-year as we continued to consolidate underperforming locations and reduce costs. The team achieved these improvements despite pressure from lower ASPs on new vehicles. In summary, we've strengthened our operating model, enhanced financial performance, and created more room to grow. We ended the quarter with about $118 million of cash and 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.

Thanks, Tom. We'll go ahead and jump right into the Q&A.

The first question comes from Joe Altobello with Raymond James.

I want to ask about ASPs. You mentioned that the weakness on the new side is really all mix, but I'm curious about what you're seeing from a promotional standpoint this summer. Are competitors getting more aggressive, particularly as you guys continue to gain pretty significant market share?

We don't see the ASPs as a problem. We see that as an opportunity to grow our file, to build our base, and sell them other things through our ecosystem. In terms of competitors, we've stopped paying attention to how other people are pricing because we are focused on growing our margins, and you saw that margin growth through the quarter, breaking 30%. What I care about is an acute focus on turning that new inventory, finding new customers, and being very profitable on every single one of those transactions. We're happy with how we're navigating the market.

Let's not forget the competitive advantage that we have with our contract manufacturing and our ability to just add additional content features while we've conducted previous checks of competitors. We are clearly coming in under invoice pricing based on OEM brands that are of equivalent products.

We discovered that the growth of our new unit volume isn't singularly attributable to selling cheap units. The growth of our new models is us understanding where the elasticity is by type code. It's not just about selling lower-priced units; it's about knowing how to be disruptive across various price points. We're not focused solely on market share; our transactions need to be profitable.

On used gross profit margin, looks like it's north of 20% again. Is that sustainable? Would you expect to hold 20% in the back half on the used side?

I will stay consistent with our guidance for the year, which is in that 18.5% to 19.5% range for gross margins. We’re testing different pricing strategies and have a goal to get our used turns up to 4x. We are currently around 3.68x and will focus on strategies that allow us to yield better returns in this area.

Furthermore, it's important to note that coming out of season, we typically like to accelerate sales to convert those used assets into cash. Many consumers prefer to avoid storage fees and insurance costs, prompting them to buy new units in March or April of next year. We'll strategize to take advantage of these opportunities over the upcoming months.

As we observe July, our margins look close to 20%, and same-store sales are also nearing 20%. We're seeing momentum continue, and we’re excited about the prospects ahead.

Our next question comes from James Hardiman with Citi.

Can you summarize the various guideposts regarding new and used unit price margin? What's changed, and how is your internal EBITDA model moving?

We have raised our projections for new ASPs. We're keeping our used numbers fairly consistent while believing we can achieve better results. Our gross margin goal is to maintain it above 30%. Progress on SG&A feels achievable for 300 to 400 basis points, depending on movement in ASPs.

What are your early thoughts on fiscal 2026?

We anticipate continued growth in the new and used business during 2026, achieving that with fewer locations and a tighter expense structure. We're not letting outside opinions affect our strategy, and we'll continue to focus on our performance and market share.

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

As you think about embedded pricing expectations in the back half across new and used, will we see similar levels of decline year-over-year?

We were just over $40,000 on a new ASP in 2024, and today we're operating below that. We've seen that number tick up already. Our guidance of 10% to 12% down for new pricing is conservative; it could be as low as 8%. We're seeing normal seasonal improvement in pricing.

The cost of our average new piece of inventory has gone up by over 12%. We've historically taken a bullish position on lower-priced assets entering season, and as a result, we'll see our sales mix modify with the inventory mix.

In terms of green shoots, we're seeing success stemming from our investment in contract manufacturing. We're introducing models that are growing in popularity, and we're seeing demand across various segments, including Class B and C RVs.

Our next question comes from Tristan Thomas-Martin with BMO Capital Markets.

What should we expect regarding mix and pricing in calendar '26?

Our products will be firmly based on customer demand. We'll track interest rates and follow consumer behavior closely. The focus of our entry-level units is to bring people into the RV lifestyle, increasing the lifetime value of those customers.

Our insight into the monthly payment that consumers are willing to pay is critical. This drives our strategy and allows us to expand our buyer funnel now and in the future.

We are always in discussions regarding M&A opportunities. Right now, we are prioritizing allocating cash to de-lever our business. We are looking at potential acquisitions but will be thoughtful in our approach.

Our next question comes from Scott Stember with ROTH Capital Markets.

What is the impact of model year '26 regarding tariffs and affordability?

Model year '26 might see about a 5% increase in pricing, potentially influenced by tariffs. We're prepared to manage our inventory strategies accordingly to meet these affordability demands.

Increases in new pricing benefit us, allowing broader margin expansion as used values will rise concurrently. We're well-positioned for any pricing adjustments manufacturers make.

How do you see F&I growth trends, and how will they help achieve your SG&A goals?

On the F&I side, we anticipate growing our gross dollars generated. While penetration per transaction may not increase, steady products will naturally raise those gross dollars as ASPs rise. This will help us meet our SG&A goals.

Our next question comes from Ryan Brinkman with JPMorgan.

Regarding the trend in new RV pricing, how does it compare against lower prices for the same type of RV versus shifts in customer preferences amid affordability challenges?

The changes in new RV pricing benefit us differently from when prices fell previously. As new prices rise, used values also increase, allowing greater margin in our business.

Our next question comes from Alice Wycklendt with Baird.

Can you detail your approach to retaining customers within the RV lifestyle after introducing them to entry-level units?

Our unique business model includes various customer interactions which provide multiple revenue opportunities. Offering affordable entry-level products encourages consumers to engage with us, increasing their lifetime value as they trade up.

We maintain a strong assurance of our Good Sam member size and the products we sell. We average about 30,000 trades a year from repeat customers, many of whom are coming back to us.

Affordably priced units do not lack features; we leverage our scale and collaboration with manufacturers to deliver value while maintaining a competitive edge.

Is your used inventory at a level you're comfortable with today?

Currently, we might be slightly over-inventoried on the used side but can adjust marketing and acquisition strategies in real-time based on sales performance. We are continuously managing our inventory levels effectively.

Our next question comes from Bret Jordan with Jefferies.

On the parts and service side, will we see a rebound to growth in the second half now that you've lapped the furniture business sale?

Our growth comes from keeping our service bays busy, and while there's a finite capacity, we’re working to manage both customer pay and reconditioning of units. We anticipate growth in the service and parts business over the next 12 to 24 months as we stabilize our used inventory.

What's the competitive market looking like? Are smaller dealers showing signs of distress?

We are aware of competitors struggling and reaching out for acquisitions both to buy or invest. We will always look for opportunities that yield maximum returns for our shareholders. Our focus is also to maximize our existing stores’ performance.

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

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 believe we can generate well over $500 million of adjusted EBITDA. That's driven by accelerating the per-door productivity, delivering better earnings, better leverage, and the confidence to explore new market expansion opportunities. We've set a new internal mandate; we want to accelerate our gross margin by 100 basis points over the next 18 months, regardless of broader industry trends. Thanks for joining the call.