Latham Group, Inc. Reports Second Quarter 2025 Financial Results
Latham Group (NASDAQ:SWIM), North America's largest in-ground pool manufacturer, reported strong Q2 2025 financial results. The company achieved net sales of $172.6 million, up 7.8% year-over-year, and net income of $16.0 million ($0.13 per diluted share). Notable highlights include a 400-basis-point gross margin expansion to 37.1% and Adjusted EBITDA of $39.9 million (23.1% margin).
The company's growth was driven by strong performance across its product portfolio, particularly in fiberglass pools and autocovers. Cover sales increased 46%, while liner sales grew 6%. Latham reaffirmed its full-year 2025 guidance, projecting 8% net sales growth and 19% Adjusted EBITDA growth at midpoints, with expected net sales between $535-565 million.
Latham Group (NASDAQ:SWIM), il più grande produttore nordamericano di piscine interrate, ha riportato solidi risultati finanziari del secondo trimestre 2025. L'azienda ha registrato vendite nette per 172,6 milioni di dollari, in crescita del 7,8% rispetto all'anno precedente, e un utile netto di 16,0 milioni di dollari (0,13 dollari per azione diluita). Tra i punti salienti si segnala un margine lordo aumentato di 400 punti base al 37,1% e un EBITDA rettificato di 39,9 milioni di dollari (margine del 23,1%).
La crescita della società è stata trainata da una solida performance del portafoglio prodotti, in particolare per piscine in fibra di vetro e coperture automatiche. Le vendite di coperture sono aumentate del 46%, mentre quelle di rivestimenti del 6%. Latham ha confermato le previsioni per l'intero anno 2025, prevedendo una crescita delle vendite nette dell'8% e una crescita dell'EBITDA rettificato del 19% ai valori medi, con vendite nette attese tra 535 e 565 milioni di dollari.
Latham Group (NASDAQ:SWIM), el mayor fabricante de piscinas enterradas en Norteamérica, reportó sólidos resultados financieros del segundo trimestre de 2025. La compañía alcanzó ventas netas de 172,6 millones de dólares, un aumento del 7,8% interanual, y un ingreso neto de 16,0 millones de dólares (0,13 dólares por acción diluida). Entre los aspectos destacados se incluye una expansión del margen bruto de 400 puntos básicos hasta el 37,1% y un EBITDA ajustado de 39,9 millones de dólares (margen del 23,1%).
El crecimiento de la empresa fue impulsado por un sólido desempeño en su portafolio de productos, especialmente en piscinas de fibra de vidrio y cubiertas automáticas. Las ventas de cubiertas aumentaron un 46%, mientras que las de revestimientos crecieron un 6%. Latham reafirmó su guía para todo el año 2025, proyectando un crecimiento del 8% en ventas netas y un crecimiento del 19% en EBITDA ajustado en los puntos medios, con ventas netas esperadas entre 535 y 565 millones de dólares.
Latham Group (NASDAQ:SWIM), 북미 최대의 지하 수영장 제조업체가 2025년 2분기 재무 실적을 발표했습니다. 회사는 전년 대비 7.8% 증가한 1억 7,260만 달러의 순매출과 1,600만 달러의 순이익 (희석 주당 0.13달러)을 기록했습니다. 주목할 만한 성과로는 400 베이시스 포인트의 총이익률 확대로 37.1%를 기록했으며, 조정 EBITDA는 3,990만 달러 (마진 23.1%)였습니다.
회사의 성장은 특히 유리섬유 수영장과 자동 커버 제품군에서 강력한 실적에 힘입었습니다. 커버 판매는 46% 증가했고, 라이너 판매는 6% 성장했습니다. Latham은 2025년 전체 가이던스를 재확인하며, 중간치를 기준으로 순매출 8% 성장과 조정 EBITDA 19% 성장을 예상하며, 순매출은 5억 3,500만 달러에서 5억 6,500만 달러 사이로 전망했습니다.
Latham Group (NASDAQ:SWIM), le plus grand fabricant de piscines enterrées en Amérique du Nord, a publié de solides résultats financiers pour le deuxième trimestre 2025. La société a réalisé un chiffre d'affaires net de 172,6 millions de dollars, en hausse de 7,8 % par rapport à l'année précédente, ainsi qu'un bénéfice net de 16,0 millions de dollars (0,13 dollar par action diluée). Parmi les points forts, on note une augmentation de 400 points de base de la marge brute à 37,1 % et un EBITDA ajusté de 39,9 millions de dollars (marge de 23,1 %).
La croissance de l'entreprise a été portée par de solides performances sur l'ensemble de son portefeuille de produits, notamment dans les piscines en fibre de verre et les couvertures automatiques. Les ventes de couvertures ont augmenté de 46 %, tandis que les ventes de liners ont progressé de 6 %. Latham a confirmé ses prévisions pour l'année complète 2025, projetant une croissance de 8 % du chiffre d'affaires net et une croissance de 19 % de l'EBITDA ajusté aux points médians, avec un chiffre d'affaires net attendu entre 535 et 565 millions de dollars.
Latham Group (NASDAQ:SWIM), Nordamerikas größter Hersteller von eingelassenen Schwimmbecken, meldete starke Finanzergebnisse für das zweite Quartal 2025. Das Unternehmen erzielte Nettoverkäufe von 172,6 Millionen US-Dollar, ein Anstieg von 7,8 % im Jahresvergleich, sowie einen Nettoertrag von 16,0 Millionen US-Dollar (0,13 US-Dollar je verwässerter Aktie). Hervorzuheben ist eine Bruttomargensteigerung um 400 Basispunkte auf 37,1 % sowie ein bereinigtes EBITDA von 39,9 Millionen US-Dollar (23,1 % Marge).
Das Wachstum des Unternehmens wurde durch starke Leistungen im Produktportfolio angetrieben, insbesondere bei Fiberglas-Pools und automatischen Abdeckungen. Der Verkauf von Abdeckungen stieg um 46 %, während der Verkauf von Folien um 6 % zunahm. Latham bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet ein Nettoverkaufswachstum von 8 % sowie ein bereinigtes EBITDA-Wachstum von 19 % bei den Mittelwerten, mit erwarteten Nettoverkäufen zwischen 535 und 565 Millionen US-Dollar.
- Net sales increased 7.8% year-over-year to $172.6 million in Q2 2025
- Gross margin expanded 400 basis points to 37.1%
- Cover sales grew 46% driven by organic growth and Coverstar acquisitions
- Net income increased to $16.0 million from $13.3 million year-over-year
- Adjusted EBITDA grew 15.7% to $39.9 million with margin expansion to 23.1%
- Strong cash position with $26.9 million and net debt leverage ratio of 3.0
- SG&A expenses increased 20.1% to $31.9 million
- Capital expenditures increased to $6.8 million from $4.5 million year-over-year
- Net cash used in operating activities was $10.9 million in first half 2025
- Total debt remains significant at $281.5 million
Insights
Latham shows solid Q2 growth with expanding margins despite challenging pool market conditions, demonstrating product diversification success.
Latham Group's Q2 results reveal impressive margin expansion amid challenging market conditions for new pool construction. The 400-basis-point gross margin improvement to
Revenue reached
Profitability metrics show substantial improvement, with net income increasing to
From a balance sheet perspective, Latham maintains reasonable leverage with a net debt ratio of 3.0x. While Q2 showed positive operating cash flow of
The company's strategy of driving fiberglass pool adoption (targeting
- Strong Second Quarter Net Sales Growth Highlights Latham’s Market Leadership Across its Diversified Product Portfolio
- 400-Basis-Point Gross Margin Expansion Reflects Higher Volumes, Lean Manufacturing and Value Engineering Initiatives, and Recent Acquisitions
- Reconfirms Full-Year Guidance of
8% Net Sales Growth and19% Adjusted EBITDA Growth at the Midpoints
Second Quarter 2025 Financial Highlights:
- Net sales of
$172.6 million - Net income of
$16.0 million / net income per diluted share of$0.13 - Adjusted EBITDA of
$39.9 million /23.1% of net sales
Six Months 2025 Financial Highlights:
- Net sales of
$284.1 million - Net income of
$10.0 million / net income per diluted share of$0.08 - Adjusted EBITDA of
$51.0 million /18.0% of net sales
LATHAM, N.Y., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced financial results for the second quarter 2025 ended June 28, 2025.
Commenting on the results, Scott Rajeski, President and CEO, said, “Our second quarter performance demonstrated the continued execution of our strategy to drive awareness and adoption of fiberglass pools and autocovers, expand our presence in the Sand State markets, and improve margins through lean manufacturing and value engineering initiatives and accretive acquisitions.
“We achieved strong second quarter net sales growth despite challenging market conditions, highlighting the diversity of our portfolio and Latham’s leading position in each of our product lines. In fiberglass pools, we strengthened our leadership through targeted marketing programs, which drove substantial year-over-year growth in both leads for our dealers and in consumer sessions on our website. Consumer recognition of the advantages of fiberglass pools, such as cost-efficiency, fast and easy installation, low maintenance requirements, and eco-friendliness continues to build, and our fiberglass pool sales are on track to represent approximately
“Latham autocovers continue to gain traction as consumers increasingly value their unparalleled safety benefits and the significant cost savings they offer through reduced water evaporation, energy use, and chemical consumption, which enables autocovers to effectively pay for themselves within four to five years. Compatible with all types of in-ground pools, autocovers were a significant contributor to our second quarter results. Organic growth in autocovers, together with the acquisition of the Coverstar businesses, drove a
“Gross margin expanded by 400 basis points to
Second Quarter 2025 Results
Net sales for the second quarter of 2025 were
| Second Quarter & Six Month 2025 Net Sales by Product Line (in thousands) | |||||||||||||||
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
| In-ground Swimming Pools | $ | 78,601 | $ | 80,958 | $ | 136,335 | $ | 140,791 | |||||||
| Covers | 37,245 | 25,503 | 68,855 | 52,371 | |||||||||||
| Liners | 56,793 | 53,661 | 78,869 | 77,589 | |||||||||||
| $ | 172,639 | $ | 160,122 | $ | 284,059 | $ | 270,751 | ||||||||
Gross profit for the second quarter of 2025 was
Selling, general, and administrative expenses were
Net income was
Adjusted EBITDA for the second quarter of 2025 was
Six Months 2025 Results
Net sales were
Gross profit was
Selling, general, and administrative expenses increased to
Net income was
Adjusted EBITDA was
Balance Sheet, Cash Flow, and Liquidity
Latham ended the second quarter of 2025 with cash of
Total debt was
Capital expenditures totaled
Summary and Outlook
“Our second quarter performance underscores Latham’s continued ability to outperform the market for new U.S. pool starts, which is supported by our diversified product portfolio and strategic growth initiatives. We continue to project approximately 60,000 new U.S. pool starts in 2025, in line with our original estimates. Even within this challenging market environment, our current order rates support our ability to reaffirm our full-year 2025 guidance, which is outlined in the table below. Our expectations for
“Latham continues to benefit from key competitive advantages, as we offer the highest-quality products in the industry, have the industry’s largest manufacturing footprint, and are leveraging a network of highly skilled and committed dealers and contractors. Amid difficult industry conditions in 2025, we are executing well, staying focused, and positioned to deliver strong year-over-year growth,” Mr. Rajeski concluded.
| FY 2025 Guidance Ranges | ||
| Low | High | |
| Net Sales | ||
| Adjusted EBITDA1 | ||
| Capital Expenditures | ||
1) A reconciliation of Latham’s projected Adjusted EBITDA to net income (loss) for 2025 is not available without unreasonable effort due to uncertainty related to our future income tax (benefit) expense.
Conference Call Details
Latham will hold a conference call to discuss its second quarter 2025 financial results today, August 5, 2025, at 4:30 PM Eastern Time.
Participants are encouraged to pre-register for the conference call by visiting https://dpregister.com/sreg/10200524/ff5d39fb98. Callers who pre-register will be sent a confirmation e-mail including a conference passcode and unique PIN to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. To ensure you are connected for the full call, please register at least 10 minutes before the start of the call.
A live audio webcast of the conference call, along with related presentation materials, will be available online at https://ir.lathampool.com/ under “Events & Presentations”.
Those without internet access or unable to pre-register may dial in by calling:
PARTICIPANT DIAL IN (TOLL FREE): 1-833-953-2435
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-317-5764
An archived webcast will be available approximately two hours after the conclusion of the call, through August 5, 2026, on the Company’s investor relations website under “Events & Presentations.” A transcript of the event will also be available on the Company’s investor relations website approximately three business days after the call.
About Latham Group, Inc.
Latham Group, Inc., headquartered in Latham, NY, is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Latham has a coast-to-coast operations platform consisting of approximately 1,850 employees across around 30 locations.
Non-GAAP Financial Measures
We track our non-GAAP financial measures to monitor and manage our underlying financial performance. This news release includes the presentation of Adjusted EBITDA, Adjusted EBITDA margin, net debt and net debt leverage ratio, on a historical and pro forma basis, which are non-GAAP financial measures that exclude the impact of certain costs, losses, and gains that are required to be included under GAAP. Our pro forma presentation gives effect to the Coverstar Central acquisition as if it occurred as of January 1, 2024. Although we believe these measures are useful to investors and analysts for the same reasons it is useful to management, as discussed below, these measures are neither a substitute for, nor superior to, U.S. GAAP financial measures or disclosures. Other companies may calculate similarly-titled non-GAAP measures differently, limiting their usefulness as comparative measures. In addition, our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by any such adjustments. We have reconciled our historic non-GAAP financial measures to the applicable most comparable GAAP measures in this news release.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA margin are key metrics used by management and our board of directors to assess our financial performance. Adjusted EBITDA and Adjusted EBITDA margin are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures. We use Adjusted EBITDA and Adjusted EBITDA margin to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to utilize as a significant performance metric in our incentive compensation plans, and to compare our performance against that of other companies using similar measures. We have presented Adjusted EBITDA and Adjusted EBITDA margin solely as supplemental disclosures because we believe they allow for a more complete analysis of results of operations and assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance, such as (i) depreciation and amortization, (ii) interest expense, net, (iii) income tax (benefit) expense (iv), (gain) loss on sale and disposal of property and equipment, (v) restructuring charges, (vi) stock-based compensation expense, (vii) unrealized (gains) losses on foreign currency transactions, (viii) strategic initiative costs, (ix) acquisition and integration related costs and (x) other.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures and should not be considered as alternatives to net income (loss) as a measure of financial performance or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA and Adjusted EBITDA margin, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this news release. There can be no assurance that we will not modify the presentation of Adjusted EBITDA and Adjusted EBITDA margin in the future, and any such modification may be material. In addition, other companies, including companies in our industry, may not calculate Adjusted EBITDA and Adjusted EBITDA margin at all or may calculate Adjusted EBITDA and Adjusted EBITDA margin differently and accordingly, are not necessarily comparable to similarly entitled measures of other companies, which reduces the usefulness of Adjusted EBITDA and Adjusted EBITDA margin as tools for comparison.
Adjusted EBITDA and Adjusted EBITDA margin have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA and Adjusted EBITDA margin:
- do not reflect every expenditure, future requirements for capital expenditures or contractual commitments;
- do not reflect changes in our working capital needs;
- do not reflect the interest expense, net, or the amounts necessary to service interest or principal payments, on our outstanding debt;
- do not reflect income tax (benefit) expense, and because the payment of taxes is part of our operations, tax expense is a necessary element of our costs and ability to operate;
- do not reflect non-cash stock-based compensation, which will remain a key element of our overall compensation package; and
- do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations.
Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA and Adjusted EBITDA margin, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any costs of such replacements.
Net Debt and Net Debt Leverage Ratio
Net Debt and Net Debt Leverage Ratio are non-GAAP financial measures used in monitoring and evaluating our overall liquidity, financial flexibility, and leverage. Other companies may calculate similarly titled non-GAAP measures differently, limiting their usefulness as comparative measures. We define Net Debt as total debt less cash and cash equivalents. We define the Net Debt Leverage Ratio as Net Debt divided by last twelve months (“LTM”) of Adjusted EBITDA. We believe this measure is an important indicator of our ability to service our long-term debt obligations. There are material limitations to using Net Debt Leverage Ratio as we may not always be able to use cash to repay debt on a dollar-for-dollar basis.
Forward-Looking Statements
Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release other than statements of historical fact may constitute forward-looking statements, including statements regarding our future operating results and financial position, our business strategy and plans, business and market trends, our objectives for future operations, macroeconomic and geopolitical conditions, changes in U.S. trade priorities, policies, regulations and tariffs, the implementation of our cost reduction plans and expected benefits, and the sufficiency of our cash balances, working capital and cash generated from operating, investing, and financing activities for our future liquidity and capital resource needs. These statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including: unfavorable economic conditions and related impact on consumer spending and demand for our products; inflationary impacts, including on consumer demand for our products; our ability to globally source raw materials and components for manufacturing our products; the impact of trade policies on our global supply chain, the import or export of goods and their related costs, as well as on consumer confidence; declining home ownership affecting demand for our products; competitive risks; natural disasters, including resulting from climate change, geopolitical events, war, terrorism, public health issues or other catastrophic events; disturbances and breaches to our technological infrastructure, and our reliance on information technology systems; adverse weather conditions impacting our sales, which can lead to significant variability of sales in reporting periods; the consequences of industry consolidation on our customer base and pricing; interruption of our production capability at our manufacturing facilities from accident, fire, calamity and other causes; product quality issues, warranty claims or safety concerns such as those due to the failure of builders to follow our product installation instructions and specifications; our ability to keep pace with technological developments and standards, such as generative artificial intelligence; delays in, or systems disruptions issues caused by the implementation of our ERP system; our ability to attract, develop and retain highly qualified personnel; our ability to collect accounts receivables from our customers; compliance with government regulations; our ability and the cost to obtain transportation services; the protection of our intellectual property and defense of third-party infringement claims; international business risks; realizing anticipated benefits from acquisitions; possible asset impairments; and our ability to secure financing and our substantial indebtedness; and other factors set forth under “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and subsequent reports we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time that may impair our business, financial condition, results of operations and cash flows.
Although we believe that the expectations reflected in the forward-looking statements are reasonable and our expectations based on third-party information and projections are from sources that management believes to be reputable, we cannot guarantee future results, levels of activities, performance or achievements. These forward-looking statements reflect our views with respect to future events as of the date hereof or the date specified herein, and we have based these forward-looking statements on our current expectations and projections about future events and trends. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof. We anticipate that subsequent events and developments will cause our views to change. Our forward-looking statements further do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake.
Contact:
Lynn Morgen
Casey Kotary
ADVISIRY Partners
lathamir@advisiry.com
212-750-5800
| Latham Group, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) | |||||||||||||||
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
| Net sales | $ | 172,639 | $ | 160,122 | $ | 284,059 | $ | 270,751 | |||||||
| Cost of sales | 108,676 | 107,100 | 187,215 | 187,140 | |||||||||||
| Gross profit | 63,963 | 53,022 | 96,844 | 83,611 | |||||||||||
| Selling, general, and administrative expense | 31,940 | 26,588 | 62,560 | 52,838 | |||||||||||
| Amortization | 7,299 | 6,428 | 14,491 | 12,840 | |||||||||||
| Income from operations | 24,724 | 20,006 | 19,793 | 17,933 | |||||||||||
| Other expense: | |||||||||||||||
| Interest expense, net | 7,149 | 6,013 | 13,520 | 10,995 | |||||||||||
| Other (income) expense, net | (3,047 | ) | 804 | (3,355 | ) | 2,390 | |||||||||
| Total other expense, net | 4,102 | 6,817 | 10,165 | 13,385 | |||||||||||
| Earnings from equity method investment | 488 | 532 | 1,441 | 1,841 | |||||||||||
| Income before income taxes | 21,110 | 13,721 | 11,069 | 6,389 | |||||||||||
| Income tax expense | 5,130 | 442 | 1,051 | 974 | |||||||||||
| Net income | $ | 15,980 | $ | 13,279 | $ | 10,018 | $ | 5,415 | |||||||
| Net income per share attributable to common stockholders: | |||||||||||||||
| Basic | $ | 0.14 | $ | 0.12 | $ | 0.09 | $ | 0.05 | |||||||
| Diluted | $ | 0.13 | $ | 0.11 | $ | 0.08 | $ | 0.05 | |||||||
| Weighted-average common shares outstanding – basic and diluted | |||||||||||||||
| Basic | 116,466,736 | 115,469,246 | 116,181,404 | 115,254,088 | |||||||||||
| Diluted | 119,389,997 | 117,023,112 | 119,624,905 | 116,472,164 | |||||||||||
| Latham Group, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) | |||||||
| June 28, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 26,943 | $ | 56,398 | |||
| Trade receivables, net | 88,549 | 32,299 | |||||
| Inventories, net | 78,653 | 77,101 | |||||
| Income tax receivable | 8,888 | 3,964 | |||||
| Prepaid expenses and other current assets | 11,335 | 8,536 | |||||
| Total current assets | 214,368 | 178,298 | |||||
| Property and equipment, net | 114,415 | 112,848 | |||||
| Equity method investment | 26,332 | 24,891 | |||||
| Deferred tax assets | 729 | 729 | |||||
| Operating lease right-of-use assets | 25,699 | 28,259 | |||||
| Goodwill | 154,995 | 152,625 | |||||
| Intangible assets, net | 282,305 | 292,913 | |||||
| Other assets | 3,299 | 3,644 | |||||
| Total assets | $ | 822,142 | $ | 794,207 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 26,168 | $ | 13,141 | |||
| Current maturities of long-term debt | 3,250 | 3,250 | |||||
| Current operating lease liabilities | 6,930 | 7,176 | |||||
| Accrued expenses and other current liabilities | 53,520 | 47,410 | |||||
| Total current liabilities | 89,868 | 70,977 | |||||
| Long-term debt, net of discount, debt issuance costs, and current portion | 278,243 | 278,271 | |||||
| Deferred income tax liabilities, net | 32,347 | 32,347 | |||||
| Non-current operating lease liabilities | 19,643 | 22,138 | |||||
| Other long-term liabilities | 3,613 | 3,252 | |||||
| Total liabilities | $ | 423,714 | $ | 406,985 | |||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 12 | 12 | |||||
| Additional paid-in capital | 468,065 | 467,076 | |||||
| Accumulated deficit | (64,798 | ) | (74,816 | ) | |||
| Accumulated other comprehensive loss | (4,851 | ) | (5,050 | ) | |||
| Total stockholders’ equity | 398,428 | 387,222 | |||||
| Total liabilities and stockholders’ equity | $ | 822,142 | $ | 794,207 | |||
| Latham Group, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Two Fiscal Quarters Ended | |||||||
| June 28, | June 29, | ||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 10,018 | $ | 5,415 | |||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
| Depreciation and amortization | 25,097 | 20,967 | |||||
| Unrealized foreign currency (gain) loss | (4,059 | ) | 2,398 | ||||
| Amortization of deferred financing costs and debt discount | 860 | 860 | |||||
| Non-cash lease expense | 3,569 | 3,550 | |||||
| Change in fair value of interest rate swap | 601 | (2,101 | ) | ||||
| Stock-based compensation expense | 3,352 | 3,343 | |||||
| Bad debt expense | 1,372 | 1,277 | |||||
| Other non-cash, net | 674 | (667 | ) | ||||
| Earnings from equity method investment | (1,441 | ) | (1,841 | ) | |||
| Distributions received from equity method investment | — | 2,860 | |||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables | (57,447 | ) | (36,831 | ) | |||
| Inventories | (900 | ) | 13,139 | ||||
| Prepaid expenses and other current assets | (2,706 | ) | (2,309 | ) | |||
| Income tax receivable | (4,924 | ) | (665 | ) | |||
| Other assets | (151 | ) | 323 | ||||
| Accounts payable | 13,069 | 9,817 | |||||
| Accrued expenses and other current liabilities | 2,351 | (1,181 | ) | ||||
| Other long-term liabilities | (240 | ) | (443 | ) | |||
| Net cash (used in) provided by operating activities | (10,905 | ) | 17,911 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (10,344 | ) | (9,833 | ) | |||
| Acquisition of business, net of cash acquired | (4,934 | ) | — | ||||
| Net cash used in investing activities | (15,278 | ) | (9,833 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments on long-term debt borrowings | (813 | ) | (19,625 | ) | |||
| Proceeds from borrowings on revolving credit facility | 25,000 | — | |||||
| Payments on revolving credit facilities | (25,000 | ) | — | ||||
| Repayments of finance lease obligations | (404 | ) | (380 | ) | |||
| Common stock withheld for taxes on restricted stock units | (2,363 | ) | — | ||||
| Net cash used in financing activities | (3,580 | ) | (20,005 | ) | |||
| Effect of exchange rate changes on cash | 308 | (68 | ) | ||||
| Net decrease in cash | (29,455 | ) | (11,995 | ) | |||
| Cash at beginning of period | 56,398 | 102,763 | |||||
| Cash at end of period | $ | 26,943 | $ | 90,768 | |||
| Supplemental cash flow information: | |||||||
| Cash paid for interest | $ | 14,683 | $ | 16,131 | |||
| Income taxes paid, net | 379 | 2,581 | |||||
| Supplemental disclosure of non-cash investing and financing activities: | |||||||
| Purchases of property and equipment included in accounts payable and accrued expenses | $ | 400 | $ | 28 | |||
| Right-of-use operating and finance lease assets obtained in exchange for lease liabilities | 1,272 | 198 | |||||
| Latham Group, Inc. Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation (Non-GAAP Reconciliation) (in thousands) | |||||||||||||||
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
| June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net income | $ | 15,980 | $ | 13,279 | $ | 10,018 | $ | 5,415 | |||||||
| Depreciation and amortization | 12,697 | 10,593 | 25,097 | 20,967 | |||||||||||
| Interest expense, net | 7,149 | 6,013 | 13,520 | 10,995 | |||||||||||
| Income tax expense | 5,130 | 442 | 1,051 | 974 | |||||||||||
| Loss on sale and disposal of property and equipment | 115 | 65 | 46 | 77 | |||||||||||
| Restructuring charges(a) | 145 | 47 | 160 | 365 | |||||||||||
| Stock-based compensation expense(b) | 1,381 | 2,100 | 3,352 | 3,343 | |||||||||||
| Unrealized (gains) losses on foreign currency transactions(c) | (3,643 | ) | 806 | (4,059 | ) | 2,390 | |||||||||
| Strategic initiative costs(d) | 918 | 851 | 1,562 | 1,974 | |||||||||||
| Acquisition and integration related costs(e) | 16 | 375 | 283 | 375 | |||||||||||
| Other(f) | (1 | ) | (93 | ) | (3 | ) | (105 | ) | |||||||
| Adjusted EBITDA | $ | 39,887 | $ | 34,478 | $ | 51,027 | $ | 46,770 | |||||||
| Net sales | $ | 172,639 | $ | 160,122 | $ | 284,059 | $ | 270,751 | |||||||
| Net income margin | 9.3 | % | 8.3 | % | 3.5 | % | 2.0 | % | |||||||
| Adjusted EBITDA margin | 23.1 | % | 21.5 | % | 18.0 | % | 17.3 | % | |||||||
(a) Represents costs that includes severance and other expenses for our executive management changes.
(b) Represents non-cash stock-based compensation expense.
(c) Represents unrealized foreign currency transaction (gains) losses associated with our international subsidiaries.
(d) Represents fees paid to external consultants and other expenses for our strategic initiatives.
(e) Represents acquisition and integration costs, as well as other costs related to potential transactions.
(f) Other costs consist of other discrete items as determined by management, primarily including: (i) fees paid to external advisors for various matters and (ii) other items.
| Latham Group, Inc. Net Debt Leverage Ratio (Non-GAAP Reconciliation) (in thousands) | |||
| June 28, 2025 | |||
| Total Debt | $ | 281,493 | |
| Less: | |||
| Cash | (26,943 | ) | |
| Net Debt | 254,550 | ||
| LTM Adjusted EBITDA(1) | 84,476 | ||
| Net Debt Leverage Ratio | 3.0 | ||
| LTM Pro Forma Adjusted EBITDA(2) | 86,204 | ||
| Pro Forma Net Debt Leverage Ratio | 3.0 | ||
(1) LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve-month period.
(2) LTM Pro Forma Adjusted EBITDA includes pre-acquisition portion of Adjusted EBITDA for the trailing twelve months that is not included in historical results.
FAQ
What were Latham Group's (SWIM) key financial results for Q2 2025?
How much did Latham's (SWIM) gross margin improve in Q2 2025?
What is Latham Group's (SWIM) full-year 2025 guidance?
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What is Latham Group's (SWIM) current debt and cash position?
