The most significant risks facing Camping World stem from its elevated balance‑sheet leverage and the growing burden of aged inventory. These two pressures compound one another, creating a structural vulnerability that threatens margins, liquidity, and long‑term competitiveness.
High Leverage Exposure:
Camping World closed 2025 with $1.472 billion in outstanding long‑term debt and a net debt leverage ratio of 5.7x (RV Business, 2026b). Although this reflects improvement from the 8.1x ratio reported in 2024, leverage remains elevated at a time when the broader RV industry is undergoing a correction. Wholesale shipments have fallen 24% from post‑pandemic highs, signaling a prolonged normalization period and reducing the revenue base needed to service debt efficiently (Moreau, 2026; Motley Fool Transcribing, 2026).
Aged Inventory Challenges:
Management has described its current inventory profile as an “ice cube,” emphasizing that profitability erodes each day units remain unsold (Motley Fool Transcribing, 2026). Approximately 18% of new inventory consists of Model Year 2025 units, which face accelerated depreciation as 2027 models enter the market in mid‑2026. This aging mix increases the likelihood of margin compression, discounting, and floor‑plan interest expense.
Competitive Pressure Intensifying:
Despite holding a record 13% combined market share, Camping World faces growing competition from rapidly scaling regional players such as Bish’s RV. These “mid‑tier giants” are expanding through acquisitions and differentiating themselves with transparent, no‑haggle pricing and the removal of hidden fees an approach that resonates strongly with younger buyers (RV Business, 2026b; RV Dealers Boise, 2026; Titan.AI, 2025).
Consequences of Inaction
Failure to address the current $35 million EBITDA headwind associated with inventory cleansing would have severe long‑term consequences (Motley Fool Transcribing, 2026). Entering the 2026–2030 trade‑in cycle with a lot full of depreciated, non‑core units would leave Camping World unable to offer the “manageable equity positions” required for the 4.1 million pandemic‑era buyers expected to upgrade their RVs (Motley Fool Transcribing, 2026). This would significantly weaken the company’s competitive position during a critical replacement cycle.
Additionally, persistent consumer concerns regarding hidden fees and questionable sales practices already visible on platforms such as Reddit pose reputational risks. With Millennials projected to represent 40% of the RV market by 2026, transparency and trust will be decisive factors in dealership selection (Moreau, 2026; Reddit, n.d.; RV Dealers Boise, 2026; Titan.AI, 2025). Competitors like Bish’s RV and Fun Town RV, which emphasize straightforward pricing and customer‑centric policies, are well positioned to capture this demographic shift.
References
Moreau, I. (2026, February 13). 90+ RV sales statistics | Fact-checked 2026. Gitnux. https://gitnux.org/rv-sales-statistics/
Motley Fool Transcribing. (2026, February 26). Camping World (CWH) Q4 2025 earnings transcript. The Motley Fool. https://www.fool.com/earnings/call-transcripts/2026/02/25/camping-world-cwh-q4-2025-earnings-call-transcript/
Reddit. (n.d.). Camping World has been busted. r/RVLiving. https://www.reddit.com/r/RVLiving/comments/1t0cv8s/i_was_scammed_by_camping_world_can_i_backout/
RV Business. (2026b, February 25). Camping World reports $6.4 billion in revenue for 2025. https://rvbusiness.com/camping-world-reports-6-4-billion-in-revenue-for-2025/
RV Dealers Boise. (2026, February). The ultimate Meridian RV showdown: Your complete guide to shopping at Bish's RV vs. Camping World. https://rvdealersboise.com/bishs-rv-vs-camping-world/
Titan.AI. (2025, July 2). Top-selling RV dealerships in the U.S. (2025): Leaders of the market. Rapidious. https://www.rapidious.com/blogs/top-selling-rv-dealerships-u-s-2025
AI Disclosure:
AI tools were used to assist with drafting, organizing, and refining portions of this assignment. All analysis, interpretations, and final decisions were reviewed, verified, and approved by the author to ensure accuracy and alignment with course requirements.
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