Camping World Holdings (C83) Q3 2026 Earnings Report

The call was mixed. Camping World reported meaningful progress in cost reduction, liquidity, inventory quality, CRM productivity, Good Sam margins, and capital discipline, with management expecting positive free cash flow in 2027. However, these improvements were offset by lower new vehicle margins, declining unit volumes, promotional competition, weaker industry registrations, an unfavorable F&I reserve adjustment, and full-year 2026 adjusted EBITDA expected below prior guidance. The positive operational initiatives and balance-sheet progress were substantial, but current operating trends and earnings visibility remained pressured.

Management expects full-year 2026 adjusted EBITDA to be below the low end of its previous guidance range, fourth-quarter SG&A to improve by more than $50 million year-over-year, and fourth-quarter total new and used unit volume to decline at a similar pace to the third quarter, later described as down mid-teens, with margins slightly better compared to 3Q. For 2027, it expects an incremental $75 million of savings, gross margins to normalize slightly over the course of the year, and roughly $60 million-$70 million of additional earnings benefit, while general inflation is expected to be in the 2%-3% range, gross capital expenditures below $80 million, and positive free cash flow. Industry-wide new retail is expected to be roughly flat to down mid-single digits and used retail roughly flat if current conditions hold, while new margins are expected to improve 50 to maybe 100 basis points from Q3 into Q4 and another 100-150 basis point improvement compared to where the company will end this year, with used margins improving by probably another 100 basis points, give or take.