Latham Group, Inc. (SWIM) Form 10-Q — Aug 5, 2026

$SWIMForm 10-QFiled Aug 5, 2026, 7:30 AM ET0001628280-26-052925Original filing

Latham Group's fiscal Q2 2026 net sales rose 14.4%, or $24.8 million, to $197.5 million, with in-ground pool sales up 22.5% (13.6% organically) and Adjusted EBITDA up 11.9% to $44.6 million at a 22.6% margin. GAAP profitability moved the other way: Q2 net income fell 20.2% to $12.8 million and first-half net income dropped 57.9% to $4.2 million, hit by a $5.0 million unfavorable foreign currency swing, a higher effective tax rate (32.4% versus 24.3%), and $2.8 million of fiberglass ramp-up costs that compressed gross margin to 35.5% from 37.1%.

Key figures

Eps: $0.11 diluted (Q2); $0.04 diluted (two fiscal quarters)
Revenue: $197.5 million (fiscal Q2 2026); $314.8 million (two fiscal quarters)
Net Income: $12.8 million (Q2, down 20.2% YoY); $4.2 million (two fiscal quarters, down 57.9% YoY)
Total Debt: $279.8 million net of discount and issuance costs ($284.0 million Term Loan principal)
Revenue Yoy: +14.4% for Q2; +10.8% for the two fiscal quarters
Total Assets: $860.4 million
Cash Position: $43.5 million as of June 27, 2026 (vs $71.0 million at December 31, 2025)
Shares Outstanding: 117,646,086 as of July 31, 2026
Gross margin q2: 35.5% vs 37.1% prior year (down 160 bps)
Trade receivables: $95.2 million vs $39.9 million at December 31, 2025
Adjusted ebitda h1: $56.8 million, 18.0% margin (flat YoY)
Adjusted ebitda q2: $44.6 million (+11.9% YoY), 22.6% margin vs 23.1%
H1 net income margin: 1.3% vs 3.5% prior year
Q2 net income margin: 6.5% vs 9.3% prior year
Effective tax rate h1: 43.9% vs 9.5% prior year
Effective tax rate q2: 32.4% vs 24.3% prior year
Revolver availability: $75.0 million undrawn
Operating cash flow h1: $5.8 million provided vs $10.9 million used in prior-year period
Effective interest rate: 8.94% at June 27, 2026
Fiberglass plant purchase: $17.6 million for four previously leased facilities (Feb 6, 2026)
Freedom pools purchase price: $15.4 million (including $1.6 million holdback)
Freedom pools annualized sales: ~$20.0 million
Freedom pools annualized adjusted ebitda: ~$4.0 million

Price after filing

1 day: +28.0%7 days: +38.8%30 days: +22.5%

Close on the filing date to close N calendar days later (from $5.64). Historical, not a forecast.

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