Camplify Holdings (ASX: CHL) Delivers $10.6 Million Earnings Turnaround as Higher Margins Signal Growth Potential

Camplify Holdings Limited (ASX: CHL) has achieved a significant financial turnaround, transforming a $10.4 million adjusted EBITDA loss into positive earnings as its shift towards higher-margin services begins delivering results.

At its 11 November 2026 annual general meeting, the recreational vehicle rental platform highlighted improving profitability, stronger recurring membership revenue and a leaner operating structure.

Although transaction volumes remain below previous levels, Camplify's improving financial performance suggests the company is building a more sustainable foundation for future growth.

Key Numbers Behind Camplify's Recovery

• $39.2 million: FY26 revenue, down 6.8% year-on-year.
• $0.3 million: FY26 adjusted EBITDA, compared with a $10.4 million loss in FY25.
• $3.5 million: Second-half FY26 adjusted EBITDA, alongside $2.1 million in statutory net profit.
• $1.44 million: Positive operating cash flow during Q1 FY27.
• $11.3 million: Cash at 30 September 2026, with no debt reported.

A Stronger Business Emerges From Restructuring

Camplify operates recreational vehicle rental marketplaces across Australia, New Zealand and Europe through its Camplify and PaulCamper platforms.

The company's FY26 performance reflects the benefits of a substantial operational restructuring designed to reduce costs while increasing revenue from higher-margin services.

Adjusted EBITDA improved by approximately $10.6 million, supported by disciplined expenditure management and improved operating efficiency.

Employee expenses declined $3.7 million to $12.4 million, while marketing expenditure fell $3.2 million to $4.2 million.

The strongest result emerged in the second half, when Camplify generated $3.5 million in adjusted EBITDA and $2.1 million in statutory net profit.

Although the full financial year recorded an $811,000 statutory loss, the second-half performance provides encouraging evidence that the company's revised business model is gaining traction.

Higher-Margin Revenue Creates New Opportunities

One of Camplify's most promising developments is its growing exposure to recurring membership and vehicle protection income.

Premium membership fees increased 38% during FY26, while excess reduction and insurance-related income contributed approximately $15.6 million.

Together, these services are helping Camplify diversify beyond traditional booking commissions.

Its MyWay Mutual vehicle protection model has also demonstrated encouraging early performance.

During its first operating year, MyWay processed 2,447 claims, recording a 99% approval rate and a 68% claims loss ratio.

The model provides Camplify with an opportunity to strengthen customer relationships while improving the economics of its broader marketplace.

Importantly, the company reported $1.44 million in positive operating cash flow during the September 2026 quarter.

While quarterly cash generation can fluctuate seasonally, this represents meaningful progress towards a more financially sustainable business.

What Camplify Is Doing Now

Camplify continues expanding its commercial partnerships to support marketplace activity and increase membership adoption.

Its partnership with JB Group is progressing towards a broader dealer-network rollout, offering complimentary Club Camplify memberships with new recreational vehicles across participating brands.

The company has also secured a partnership with NSW National Parks and Wildlife Service covering rental opportunities at 16 national park campgrounds.

Meanwhile, technology integration and automation initiatives are designed to improve operating efficiency across its international businesses.

These initiatives could help Camplify expand its customer base while maintaining tighter control over expenditure.

Insight: Could Camplify's Leaner Model Unlock Sustainable Profitability?

We think Camplify's earnings turnaround marks an encouraging shift in its commercial outlook. The combination of recurring membership revenue, improving protection margins and reduced operating costs provides a stronger foundation for sustainable profitability. Although September-quarter gross transaction value declined 27%, positive operating cash flow and second-half profitability demonstrate progress beyond revenue growth alone. The company's $11.3 million cash position also supports operational flexibility, despite the going-concern uncertainty identified in its FY26 accounts. Stabilising bookings while maintaining improved margins would further strengthen the case for sustained earnings growth.

What Happens Next?

Camplify's immediate opportunity lies in the Australian and New Zealand summer travel season, traditionally an important period for recreational vehicle bookings.

Forward bookings reached $21.1 million at the September quarter-end, increasing 26% from June, although remaining 17% below the previous corresponding period.

A recovery in transaction volumes could provide additional earnings leverage now that Camplify operates with a substantially lower cost base.

The next quarterly update will be important in assessing whether stronger bookings, recurring membership income and disciplined expenditure can deliver continued positive cash generation.

For shareholders, Camplify's transformation presents an increasingly interesting financial story. The business has demonstrated its ability to improve profitability despite challenging marketplace conditions.

The next milestone is converting those operational improvements into consistent annual profits and sustainable cash flow, potentially establishing a more resilient platform for long-term growth.