Revenue growth remains highly cyclical, with quarterly performance fluctuating between a 19.7% contraction in 2024Q1 and a peak gross margin of 37.1% in 2025Q2.
| Sales/Revenue | 551.81M | 545.91M | 508.52M | 566.49M | 695.74M | 630.46M | 403.39M | 317.98M |
| Revenue Growth % | 8.34% | 7.35% | -10.23% | -18.58% | 10.35% | 56.29% | 26.86% | - |
| Cost of Goods Sold | 394.39M | 392.77M | 354.78M | 413.55M | 479.27M | 426.29M | 260.62M | 219.82M |
| COGS % of Revenue | - | 71.95% | 69.77% | 73% | 68.89% | 67.62% | 64.61% | 69.13% |
| Gross Profit | 157.42M | 153.14M | 153.74M | 152.94M | 216.47M | 204.16M | 142.77M | 98.16M |
| Gross Margin % | 28.53% | 28.05% | 30.23% | 27% | 31.11% | 32.38% | 35.39% | 30.87% |
| Gross Profit Growth % | - | -0.39% | 0.52% | -29.35% | 6.03% | 43% | 45.46% | - |
| Operating Expenses | 120.03M | 121.26M | 135.47M | 136.81M | 186.46M | 240.34M | 102.87M | 73.03M |
| OpEx % of Revenue | - | 22.21% | 26.64% | 24.15% | 26.8% | 38.12% | 25.5% | 22.97% |
| Selling, General & Admin | 128.53M | 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 | 1000K | -1.31M | 27.1M | 26.52M | 39.62M | 22.57M | 17.35M | 15.64M |
| Operating Income | 30.22M | 31.89M | 18.28M | 16.13M | 30.01M | -36.18M | 39.9M | 25.13M |
| Operating Margin % | 5.48% | 5.84% | 3.59% | 2.85% | 4.31% | -5.74% | 9.89% | 7.9% |
| Operating Income Growth % | - | 74.47% | 13.32% | -46.25% | 182.95% | -190.68% | 58.8% | - |
| EBITDA | 69.17M | 83.24M | 62.72M | 56.88M | 68.19M | -3.95M | 65.26M | 46.78M |
| EBITDA Margin % | 12.54% | 15.25% | 12.33% | 10.04% | 9.8% | -0.63% | 16.18% | 14.71% |
| EBITDA Growth % | 11.76% | 32.71% | 10.27% | -16.58% | 1826.64% | -106.05% | 39.5% | - |
| D&A (Non-Cash Add-back) | 38.95M | 51.35M | 44.45M | 40.75M | 38.17M | 32.23M | 25.36M | 21.66M |
| EBIT | 40.05M | 31.89M | 16.1M | 20.86M | 41.45M | -29.1M | 41.01M | 25.43M |
| Net Interest Income | -19.43M | -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 | 24.19M | 25.8M | 24.84M | 30.92M | 15.75M | 24.43M | 18.25M | 22.64M |
| Other Income/Expense | -18.03M | -18.4M | -27.02M | -26.19M | -16.29M | -17.35M | -17.14M | -22.34M |
| Pretax Income | 12.19M | 13.49M | -8.74M | -10.06M | 13.72M | -53.53M | 22.76M | 2.79M |
| Pretax Margin % | 2.21% | 2.47% | -1.72% | -1.78% | 1.97% | -8.49% | 5.64% | 0.88% |
| Income Tax | 3.64M | 2.36M | 9.12M | -7.67M | 19.41M | 8.82M | 6.78M | -4.67M |
| Effective Tax Rate % | 29.84% | 17.53% | -104.35% | 76.26% | 141.5% | -16.47% | 29.77% | -167.66% |
| Net Income | 8.55M | 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 % | 153.59% | 162.28% | -647.91% | 58.06% | 90.87% | -490.09% | 114.34% | - |
| Net Income (Continuing) | 8.55M | 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) | 0.07 | 0.09 | -0.15 | -0.02 | -0.05 | -0.56 | 0.13 | 0.06 |
| EPS Growth % | 149.71% | 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 | 116.89M | 119.82M | 115.44M | 112.9M | 113.25M | 110.64M | 120.43M | 120.43M |
| Basic Shares Outstanding | 116.89M | 116.42M | 115.44M | 112.9M | 113.25M | 110.64M | 120.43M | 120.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 2.68% |
High cyclical demand sensitivity
According to the reported quarterly figures, Latham Group's revenue growth has exhibited significant seasonal fluctuations, with a 7.6% year-over-year increase in 2025Q3, contrasting sharply with the 19.7% contraction observed in 2024Q1, highlighting the company's heavy reliance on peak-season demand cycles in the North American market.
The revenue trajectory appears highly sensitive to the timing of dealer sell-in programs, which complicates the assessment of underlying organic demand. Investors should monitor whether the recent return to positive growth in 2025 reflects a sustainable recovery in new pool installations or merely a normalization of dealer inventory levels following previous periods of destocking.
As reported in financial statements, Latham Group's gross margin reached a peak of 37.1% in 2025Q2 before retreating, illustrating the company's vulnerability to petrochemical input costs and the logistical challenges inherent in transporting large-scale fiberglass pool shells across a fragmented North American distribution network.
The wide variance in gross margins, ranging from a negative 1.0% in 2025Q4 to over 37% in mid-2025, suggests that the company lacks the pricing power to fully insulate its profitability from commodity price spikes. This volatility implies that operational efficiency gains are frequently offset by external cost pressures, necessitating a more consistent margin profile to justify a premium valuation.
Based on the provided income statement data, Latham Group's operating income remains highly inconsistent, swinging from a $24.7 million profit in 2025Q2 to a $13.0 million loss in 2024Q4, indicating that the company's fixed-cost structure prevents meaningful operating leverage during periods of lower seasonal volume.
The inability to maintain positive operating margins during off-peak quarters suggests that SG&A expenses are relatively rigid, creating a high break-even threshold for the business. This operational profile warrants further investigation into whether management can optimize its distribution footprint to better align fixed costs with the inherent seasonality of the pool industry.
Analysis of the reported figures reveals that stock-based compensation remains a persistent non-cash expense, with $3.9 million recorded in 2025Q4 alone, which significantly impacts the quality of net income and obscures the true cash-generating capability of the core manufacturing operations during periods of seasonal weakness.
The recurring nature of these equity-based charges suggests that reported EPS may consistently understate the economic cost of talent retention. Investors should be cautious of the discrepancy between GAAP net income and operational cash flow, as non-operating items and compensation adjustments appear to play a material role in the company's bottom-line performance.
While the company emphasizes its fiberglass conversion moat, the income statement data suggests that Latham Group remains fundamentally exposed to housing market cycles, as evidenced by the sharp revenue declines during periods of high interest rates and reduced consumer discretionary spending on high-ticket backyard renovations.
Short-sellers may focus on the company's reliance on new pool installations, which are highly sensitive to HELOC availability and home equity trends. The argument that replacement liners provide a stable revenue floor appears to be tested by the company's recent earnings volatility, suggesting that the 'recurring' portion of the business may not yet be large enough to offset cyclical downturns.
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 $31.9M, resulting in an operating profit margin of 5.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Latham Group, Inc. (SWIM) generated $153.1M in gross profit for the year, representing a gross profit margin of 28.1%. This demonstrates the company's core pricing power and production efficiency.