Revenue and gross margin have recovered from a 24.6% low in 2024Q4 to 36.7% in 2026Q3, yet net income of $12.1M equals only about 51% of operating income of $23.6M, which warrants further investigation into below-the-line items.
Latham Group, Inc. (SWIM) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 596.91M | 545.91M | 508.52M | 566.49M | 695.74M | 630.46M | 403.39M | 317.98M |
| Revenue Growth % | 11.94% | 7.35% | -10.23% | -18.58% | 10.35% | 56.29% | 26.86% | - |
| Cost of Goods Sold | 394.92M | 363.82M | 354.78M | 413.55M | 479.27M | 426.29M | 260.62M | 219.82M |
| COGS % of Revenue | - | 66.65% | 69.77% | 73% | 68.89% | 67.62% | 64.61% | 69.13% |
| Gross Profit | 202M | 182.09M | 153.74M | 152.94M | 216.47M | 204.16M | 142.77M | 98.16M |
| Gross Margin % | 33.84% | 33.35% | 30.23% | 27% | 31.11% | 32.38% | 35.39% | 30.87% |
| Gross Profit Growth % | - | 18.44% | 0.52% | -29.35% | 6.03% | 43% | 45.46% | - |
| Operating Expenses | 170.62M | 151.51M | 135.47M | 136.81M | 186.46M | 240.34M | 102.87M | 73.03M |
| OpEx % of Revenue | - | 27.75% | 26.64% | 24.15% | 26.8% | 38.12% | 25.5% | 22.97% |
| Selling, General & Admin | 141.49M | 122.56M | 108.36M | 110.3M | 146.84M | 217.78M | 85.53M | 57.39M |
| SG&A % of Revenue | - | 22.45% | 21.31% | 19.47% | 21.11% | 34.54% | 21.2% | 18.05% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 28.94M | 27.1M | 26.52M | 39.62M | 22.57M | 17.35M | 15.64M |
| Operating Income | 31.38M | 30.58M | 18.28M | 16.13M | 30.01M | -36.18M | 39.9M | 25.13M |
| Operating Margin % | 5.26% | 5.6% | 3.59% | 2.85% | 4.31% | -5.74% | 9.89% | 7.9% |
| Operating Income Growth % | - | 67.31% | 13.32% | -46.25% | 182.95% | -190.68% | 58.8% | - |
| EBITDA | 84.95M | 81.93M | 62.72M | 56.88M | 68.19M | -3.95M | 65.26M | 46.78M |
| EBITDA Margin % | 14.23% | 15.01% | 12.33% | 10.04% | 9.8% | -0.63% | 16.18% | 14.71% |
| EBITDA Growth % | 8.34% | 30.63% | 10.27% | -16.58% | 1826.64% | -106.05% | 39.5% | - |
| D&A (Non-Cash Add-back) | 53.57M | 51.35M | 44.45M | 40.75M | 38.17M | 32.23M | 25.36M | 21.66M |
| EBIT | 31.71M | 39.29M | 16.1M | 20.86M | 41.45M | -29.1M | 41.01M | 25.43M |
| Net Interest Income | -22.33M | -25.8M | -24.84M | -30.92M | -15.75M | -24.43M | -18.25M | -22.64M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 22.33M | 25.8M | 24.84M | 30.92M | 15.75M | 24.43M | 18.25M | 22.64M |
| Other Income/Expense | -21.99M | -17.09M | -27.02M | -26.19M | -16.29M | -17.35M | -17.14M | -22.34M |
| Pretax Income | 9.38M | 13.49M | -8.74M | -10.06M | 13.72M | -53.53M | 22.76M | 2.79M |
| Pretax Margin % | 1.57% | 2.47% | -1.72% | -1.78% | 1.97% | -8.49% | 5.64% | 0.88% |
| Income Tax | 120K | 2.36M | 9.12M | -7.67M | 19.41M | 8.82M | 6.78M | -4.67M |
| Effective Tax Rate % | 1.28% | 17.53% | -104.35% | 76.26% | 141.5% | -16.47% | 29.77% | -167.66% |
| Net Income | 9.27M | 11.12M | -17.86M | -2.39M | -5.69M | -62.35M | 15.98M | 7.46M |
| Net Margin % | 1.55% | 2.04% | -3.51% | -0.42% | -0.82% | -9.89% | 3.96% | 2.35% |
| Net Income Growth % | 183.96% | 162.28% | -647.91% | 58.06% | 90.87% | -490.09% | 114.34% | - |
| Net Income (Continuing) | 9.27M | 11.12M | -17.86M | -2.39M | -5.69M | -62.35M | 15.98M | 7.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.08 | 0.09 | -0.15 | -0.02 | -0.05 | -0.56 | 0.13 | 0.06 |
| EPS Growth % | 176.69% | 161.87% | -607.55% | 57.85% | 91.02% | -530.77% | 110.02% | - |
| EPS (Basic) | - | 0.10 | -0.15 | -0.02 | -0.05 | -0.56 | 0.13 | 0.06 |
| Diluted Shares Outstanding | 119.8M | 119.82M | 115.44M | 112.9M | 113.25M | 110.64M | 120.43M | 120.43M |
| Basic Shares Outstanding | 117.69M | 116.42M | 115.44M | 112.9M | 113.25M | 110.64M | 120.43M | 120.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 2.68% |
Quick answers to the most common questions about buying SWIM stock.
For fiscal year 2025, Latham Group, Inc. (SWIM) reported total revenue of $545.9M. This represents a 71.7% increase compared to $318.0M in 2019.
Latham Group, Inc. (SWIM) is profitable, generating $11.1M in net income for the fiscal year ending 2025 with a net profit margin of 2.0%.
Latham Group, Inc. (SWIM) reported an operating income of $30.6M, resulting in an operating profit margin of 5.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Latham Group, Inc. (SWIM) generated $182.1M in gross profit for the year, representing a gross profit margin of 33.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Seasonal Revenue Volatility Persistence
Metrics are mathematically derived from official filings.
Recovery Masks Uneven Quarterly Growth
Based on reported figures, Latham's revenue reached $182.2M in 2026Q3, up 12.5% year over year, after a sharp contraction through 2024Q4 at $87.3M, suggesting a rebound that is still uneven across quarters.
Year-over-year growth has alternated between single-digit and double-digit readings, with 2026Q2 at 14.4% followed by a 2026Q1 gain of only 5.3%, which points to demand that remains sensitive to seasonal and channel timing. The sequence from 2024Q4 through 2026Q3 indicates recovery rather than a durable acceleration, and investors should monitor whether the 2026Q3 pace holds through the next seasonal peak. Without disclosed volume and pricing splits in the supplied data, the relative contribution of price versus unit demand cannot be assessed.
Gross Margin Rebuilding Toward Prior Peaks
As reported in the income statement, gross margin expanded from 28.0% in 2025Q4 to 36.7% in 2026Q3, approaching the 37.1% reached in 2025Q2 and suggesting improving unit economics.
The recovery in gross margin across the last four quarters implies better absorption of fixed manufacturing costs or more favorable product mix, though the supplied data does not isolate which driver dominates. Relative to the peer set, Latham's 36.7% gross margin sits below Trex (39.2%) and Hayward (45.6%), suggesting a meaningful but not dominant pricing position. Investors should watch whether margins hold above 35% through a non-peak quarter.
Operating Leverage Emerging Only Above Scale
Based on Latham's reported figures, operating income turned from a $10.7M loss in 2025Q4 to $23.6M in 2026Q3 while SG&A held near $35.9M, indicating meaningful but scale-dependent operating leverage.
Operating margin improved from -10.7% to 13.0% over four quarters, a swing that exceeds the gross profit gain alone and therefore reflects partial SG&A discipline. The fact that SG&A has remained in a narrow $26.6M to $37.6M band across the period suggests the overhead base is largely fixed, meaning profitability is highly sensitive to revenue levels. This framing warrants caution, as a revenue decline could compress margins quickly.
Net Income Lags Operating Improvement
According to reported financial statements, 2026Q3 net income of $12.1M equals roughly 51% of operating income of $23.6M, a gap that warrants further investigation into below-the-line items and taxes.
The conversion from operating income to net income is incomplete in several periods, including 2026Q1 where a $6.6M operating loss became an $8.5M net loss, indicating non-operating or tax effects that are not itemized in the supplied data. Stock-based compensation has ranged from $1.0M to $3.9M per quarter and is modest relative to revenue, which limits its role as a distortion. EPS growth figures are volatile, including a reported 76.0% jump in 2025Q4 against a loss, so percentage EPS growth should not be relied upon in isolation.
Margin Recovery Could Prove Cyclical
Latham's gross margin rebound from 24.6% to 36.7% over recent quarters may reflect temporary pricing or cost tailwinds, and the data does not establish that the improvement is structural.
The 2024Q4 low at 24.6% gross margin and the subsequent recovery coincide with a volatile revenue base, which suggests the earlier compression may have been cyclical rather than structural in origin. Net margin has swung from -33.4% to 8.9% operating margin within two years, a range that implies high sensitivity to demand conditions. Investors should consider whether the current 6.6% net margin represents a sustainable level or a point in the cycle.