Camping World Holdings, Inc.

Good morning and welcome to the Camping World Holdings conference call to discuss financial results for the fourth quarter and year ended December 31st, 2025. At this time, all participants are in 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 this call in whole or in part is not permitted without the written authorization from the company. Joining on the call today are Matthew Wagner, Chief Executive Officer and President, Tom Kern, Chief Financial Officer, Lindsay Christian, Chief Administrative and Legal Officer, and Brett Andrus, Senior Vice President, Investor Relations. I will now turn the call over to Ms. Christian to get us started.

Thank you, and good morning, everyone. A press release covering the company's fourth quarter and year-ended December 31, 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. 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 macroeconomic industry and customer trends, business plans and goals, future reductions in SG&A, future growth of operations, future deleveraging activities, inventory management objectives, investments in customer experience, future capital allocation, and future financial performance. 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 also 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 their 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 fourth quarter and full year results are made against the 2024 fourth quarter and full year results, unless otherwise noted. I'll now turn the call over to Matt.

Thank you, Lindsay. Good morning, and thank you for joining our full year 2025 earnings calls. I am proud to report that our team made significant progress in 2025. We achieved full-year adjusted EBITDA growth of over 35%, our same-store unit sales improved over 14%, Good Sam generated record revenue, and the parts, service, and other category experienced a strong improvement in gross margins. This performance demonstrates the strength of our model and the hard work of our team. In the fourth quarter, we saw encouraging signs of momentum, with same-store sales volume for new and used vehicles increasing by 4%, and our combined market share holding firm at 13%. Our 2025 results provide a solid foundation, and we have only just begun to realize our full potential. Since assuming this position, I've spent considerable time with our teams, our customers, and many of you in the investor community, My message has been simple. We are focused on disciplined execution to drive greater profitability. To that point, the first half of January started strong with short-term trends indicating positive new and used same-store sales. Towards the end of January, weather across the country forced the temporary closure of over 60 of our locations for at least one day. This widespread weather disruption which persisted through the first week of February, resulted in a year-to-date estimated miss of about 1,500 new and used unit sales, or about $13.5 million of gross profit. This weather interruption, in combination with broader industry performance, forced us to reassess our sales expectations and broader industry retail and wholesale shipment expectations. Our execution amid these short-term challenges gives us confidence in our three strategic priorities. Grow new and used RV sales, create greater SG&A cost efficiency, and accelerate Good Sam's growth. Let's start with RV sales. Our strategy to grow new and used RV sales this year is multifaceted, including the expansion of exclusive RV brands, improved efficiency of used RV procurement, partnerships with organizations like Costco, and the acceleration of inventory turnover rates. Looking beyond the immediate term, we see some significant positive industry catalysts on the horizon. We believe the 4.1 million customers who purchased new and used RVs during the 2020 to 2022 peak are approaching a manageable equity position in their vehicle. We anticipate this will create a substantial wave of trade-in demand over the next several years. We are taking decisive action in 2026 to cleanse and optimize our inventory portfolio to prepare us for this trade-in opportunity. By improving our inventory turnover rate, we will increase working capital efficiency with fresher inventory. To put it even more simply, we will do more with less and position ourselves to generate higher revenue and greater earnings power with less inventory. This will require a strict and at times aggressive approach to move through certain aged and non-core RV assets. While this strategy is essential to reset our foundation and enhance future cash flows, we expect it will create a near-term negative impact on our gross profit per unit for both new and used vehicles. This proactive strategy is a key driver behind our outlook for the year. During our Q3 call, we set a minimum expectation of $310 million in adjusted earnings for 2026. Given our decision to accelerate the cleansing of our inventory, we believe this strategy could negatively impact EBITDA by about $35 million in 2026, particularly in the front half of the year. This leads me to our second priority, optimizing SG&A. In the last couple of months, we've completed about $25 million of annualized expense reductions. A large portion of these savings are expected to offset some of the gross margin impact from the acceleration of our inventory turnover. We will continue to pursue systems and processes to further centralize our business and remove costs to ensure we hit our targets. Now, let me turn to our final priority, accelerating the growth of Good Sam. For nearly 60 years, Good Sam has been the bedrock of the RV community, dedicated to protecting, enabling, and empowering the adventures of every RV enthusiast. For our company, Good Sam is the cornerstone of our future growth, driving high margins and best-in-class customer service. We are confident in our ability to execute upon all of these management objectives in 2026. Last evening, we established an adjusted EBITDA range of $275 million to $325 million for the full year 2026. This range encompasses the high and low end of expected industry retail sales, plus It includes the expected impact of inventory corrections and cost savings to prepare this business for the next trading cycle. Lastly, as a board, we changed our capital allocation strategy to prioritize the long-term health of the balance sheet. As such, we've elected to pause the dividend and retain operating free cash flow to reduce the net debt leverage and keep growth capital within the business. With that, I'll turn the call over to Tom to discuss the financial results in more detail. Thanks, Matt.