Lazydays (LAZY) Q1 2025 earnings summary

Executive summary

• Completed sale of five dealerships to Camping World, reducing debt by approximately $145 million and streamlining operations, with proceeds of $113.9M used to repay floor plan and mortgage debt.

• Entered agreements to divest three additional stores to General RV Center, further optimizing the dealership footprint.

• Q1 2025 revenue was $165.8M, down 38.6% year-over-year, with net loss at $9.5M, improved from $22.0M loss in Q1 2024.

• Gross profit increased to $43.8M, with gross margin rising to 26.4% from 14.0% year-over-year, driven by higher average selling prices and LIFO adjustments.

• Substantial doubt exists about the ability to continue as a going concern due to limited liquidity, loss of revolving credit access, and ongoing net losses.

Financial highlights

• Net sales for the quarter were $165.8M, down 39% year-over-year due to divestitures and inventory reduction.

• Gross profit was $43.8M, up $6M from the prior year, with a gross margin of 26.4% (excluding LIFO: 23.5%), a 10%+ increase year-over-year.

• SG&A expenses decreased to $39M from $49M year-over-year, reflecting cost reductions from store sales.

• Adjusted EBITDA loss was $4M, a significant improvement from an $18.2M loss in the prior year.

• Net cash provided by operating activities was $26M, but adjusted net cash used in operating activities was $(54.2)M after floor plan repayments.

Outlook and guidance

• Expect continued SG&A expense reductions and capital expenditures for 2025 to be less than $2M.

• Ongoing asset sales and cost management are expected to support liquidity, but ability to meet obligations depends on generating positive cash flows and/or securing outside capital.

• Remain committed to evaluating additional opportunities to refine the footprint and reinforce financial position.

• Focused on strengthening the balance sheet and supporting long-term growth and stability.

• Industry forecast for 2025 RV wholesale shipments is 333,500–366,800 units, with long-term demand expected to exceed pre-pandemic levels.