Camping World Holdings, Inc.

Good morning and welcome to Camping World Holdings conference call to discuss financial results for the second quarter ended June 30, 2026. At this time, all participants are in a listen-only mode. Later, we will conduct a question-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 written authorization from the company. Joining on the call today are Matthew Wagner, Chief Executive Officer and 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. Ma'am, please go ahead.

Thank you, and good morning, everyone. A press release covering the company's second quarter and the June 30, 2026 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 our business plans and goals, macroeconomic and industry trends, customer trends, inventory strategy, Future Growth of Our Operations, Capital Allocation, Future Financial Results and Positions, Future SG&A Savings, and Operating Efficiencies. Actual results may differ materially from those indicated by these statements as a result of various importance factors, including those discussed in the risk factors section in our Form 10-K, on our Form 10-Q, and other reports on file with the FCC. 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 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 2026 second quarter results are made against the 2025 second quarter results unless otherwise noted. I'll now turn the call over to Matt.

Thank you, Lindsey. Good morning, everyone, and thank you for joining our second quarter 2026 earnings call. Let me start with what this team delivered. In the weakest new RV retail environment in over 15 years, We executed on the priorities we set for this year, growing new and used unit share, accelerating good SAM, and driving SG&A efficiency. We gained new unit share through May on top of last year's record, grew same-store used units over 5%, improved F&I productivity, expanded good SAM services and plans margins, generated significant operating cash flow, materially reduced inventory and floor plan borrowings, and reduced our SG&A by over $26 million. Those are the building blocks of a stronger company, and I am proud of the way our team is executing. I'll be equally direct about the results. This was not the quarter we expected back in April. The new RV sales market weakened during the peak selling season, and we made the decision to move through aged and prior multi-year inventories Thank you for joining us. and used sales create opportunities across F&I, Good Sam and Service. Our same store used vehicle unit sales grew over 5% in the quarter, representing share gains through the May stat survey's reporting information. For the full year, we continue to expect the used RV market to track within the 715,000 to 750,000 unit range. On the new side, According to preliminary SSI data, new vehicle retail registrations declined 16% through May, and it is our expectation that these trend lines persisted into June and July, with July potentially seeing more acute pressure. We recognize a correlation in the second quarter between geopolitical tensions in the Middle East and new unit sales. We believe as the conflict resolves, this will result in the stabilization of new sales trends. But I do not want these headlines surrounding the new industry to obscure the work our team accomplished. We gained new unit market share through May, noteworthy because May of last year marked the highest unit share in our company's history, and we exceeded a 29% share of all new RVs sold in the U.S. We did this while growing our new vehicle average sales price by 13% in the quarter, driven by targeted share gains in the fifth-wheel and motorized segments. Given what we are seeing in the market, we now expect the industry to track in the 290,000 to 310,000 unit range for the full year as geopolitical tensions, gas prices, affordability, consumer confidence, and higher rates remain real constraints on new demand. This compares to our previous range of 325,000 to 350,000 units. We believe our current inventory levels are appropriate for the current pace of demand, but we expect competitor dealers to remain focused on cleansing aged inventory for the next several months. We believe we are now in our best current model year new inventory position since 2020. Our prior model year exposure of new RVs is nearing 1%, down from over 6% a year ago. and our cohort of new vehicles aged over 365 days has been cut by over 60% compared to the same time last year. At quarter end, the total number of new vehicles on our lot is down roughly 17% year over year, while dollars are down about 5%, reflecting the richer mix of inventory we are carrying as the industry continues to struggle with the travel trailer demand. Turning to our used inventory, the story is very similar. Compared to where we ended 2025, used inventory units are down 18%, but the more substantial progress has been made on aging. In July, the average age of our used inventory is down over 30% compared to the end of the first quarter, and the percent of used inventory that has aged over 180 days, which is the core internal KPI for us, is down almost 50%. We head into the back half of this year with a leaner, fresher, used book. Total RV and outdoor retail inventory dollars were down nearly 10% year over year, and floor plan notes were down approximately $280 million from year end. We are starting to see this progress on inventory optimization pay off. July to date margins have improved sequentially from the second quarter, despite the softer industry demand we are seeing. As it relates to our SG&A, we have identified initiatives that we expect will deliver approximately $100 million of incremental annualized savings. This is a broad operating efficiency program built around 20 specific initiatives. We are retiring legacy software, replacing third-party systems with purpose-built technology, renegotiating agreements, and simplifying back-office processes. Last quarter, we had spoken about the in-house CRM we developed for the Good Sam extended service business. Over the last four months, we developed and deployed another larger in-house enterprise-grade RV sales CRM. We currently have it in production in five locations, and the early results indicate improvements in sales volume, closing ratios, employee experience, and customer satisfaction. Once we fully roll out this product, we anticipate eliminating in excess of $20 million of annualized costs. Our objective in all these initiatives is to create a simpler, faster, and more scalable operating model with better tools for our team and a more consistent experience for our customers. When we last spoke in April, We had early indications that new RV industry sales had the potential to track towards the low end of the 325,000 unit range. At the time, we were seeing improvement in total new and used RV sales through April, and we had sufficient visibility on near-term cost actions to reiterate our guidance range. However, the new RV market weakened during May and June, and industry volume trends have remained soft July month to date, as the re-escalation of the conflict overseas began to weigh on demand. We are resetting our adjusted EBITDA outlook to $230 million to $270 million, reflective of the trends we see today in what has proven to be an exceptionally volatile market. We are focusing on the variables we have more control over, leaner inventory, structural cost actions, used growth, and stronger good SAM and service executions. We are not waiting on affordability or consumer confidence to stabilize. We are focusing on building a better business with better operating leverage at the end of the cycle. Now, we will turn the call over to Tom.