Pool Corporation (Nasdaq: POOL) posts Q2 2026 results and reaffirms 2026 EPS range
Rhea-AI Filing Summary
Pool Corporation reported mixed but generally stable results for the quarter and six months ended June 30, 2026. Second-quarter net sales increased 2% to $1,822,938,000, with gross profit up 1% to $540,762,000 as gross margin slipped 30 basis points to 29.7% due to higher inbound freight and customer mix. Operating expenses rose 4% to $273,083,000, driven by $8.3 million of CEO transition costs; excluding these, operating expenses increased 1% and adjusted operating income grew 1% to $275,941,000. GAAP diluted EPS held at $5.17, while adjusted diluted EPS rose 4% to $5.38.
For the first half of 2026, net sales increased 4% to $2,960,952,000. Net income declined to $241,319,000, but adjusted net income grew 2% to $248,123,000, and adjusted diluted EPS increased to $6.80 from $6.47. Inventory was $1,378,695,000, up 4% year over year, while total debt outstanding rose to about $1.3 billion, largely funding $266.7 million of share repurchases in the past twelve months. Q2 Adjusted EBITDA reached $294,677,000. The company reaffirmed its 2026 diluted EPS guidance range of $10.66 to $10.96, or $10.87 to $11.17 excluding CEO transition costs and including $0.02 of ASU 2016-09 tax benefits.
Positive
- None.
Negative
- None.
Filing Explained
At June 30, 2026, cash was $28,762 thousand and long-term debt was $1.3 billion; first-half cash flow included repurchases and dividends.
This Form 8-K places the second-quarter earnings disclosure in a completed reporting period and confirms the 2026 guidance; the balance-sheet consequence is cash of
Form 8-K reports specified material events within four business days; here, Items 2.02 and 7.01 identify results-of-operations and Regulation FD disclosures.
Cash and equivalents fell from
The first-half cash-flow statement also records
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
ASU 2016-09 financial
CEO transition costs financial
non-GAAP financial measures financial
receivables facility financial
base business financial
Earnings Snapshot
Company expects 2026 diluted EPS of $10.66–$10.96, or $10.87–$11.17 excluding CEO transition costs and including $0.02 of ASU 2016-09 tax benefits.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
The following information is being provided under Form 8-K Item 2.02 and should not be deemed incorporated by reference by any general statement incorporating by reference this Current Report on Form 8-K into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates this information by reference, and none of this information should be deemed “filed” under such acts.
On July 23, 2026, Pool Corporation, a Delaware corporation, issued a press release reporting second quarter results and confirming 2026 earnings guidance, excluding CEO transition costs.
A copy of the release is included herein as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
On July 23, 2026, Pool Corporation issued the press release included herein as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits |
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99.1 |
Press Release issued by Pool Corporation on July 23, 2026, reporting second quarter results and confirming 2026 earnings guidance, excluding CEO transition costs. |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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POOL CORPORATION |
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By: |
/s/ Melanie M. Hart |
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Melanie M. Hart |
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Senior Vice President and Chief Financial Officer |
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Dated: July 23, 2026
Exhibit 99.1
FOR IMMEDIATE RELEASE
POOL CORPORATION REPORTS SECOND QUARTER RESULTS;
CONFIRMS ANNUAL EARNINGS GUIDANCE RANGE, EXCLUDING CEO TRANSITION COSTS
Q2 2026 Highlights:
______________________
COVINGTON, LA. (July 23, 2026) – Pool Corporation (Nasdaq: POOL) today reported results for the second quarter of 2026.
“Our second quarter net sales grew 2% over prior year, reflecting steady maintenance demand from our installed base, continued momentum in building materials in a muted discretionary market, and the disciplined execution of our team across our 455 sales centers worldwide. We managed our inventory well, reflecting seasonal declines, as we moved through the peak season. We are focused on four priorities: sales excellence, pricing and supply chain discipline, operational execution, and disciplined M&A, each intended to serve our customers better and grow the business. Since stepping into this role, my conversations with our team, our customers and our suppliers have reinforced my confidence in the strength of our business and the opportunities ahead,” said John Watwood, president and CEO.
Second quarter ended June 30, 2026 compared to the second quarter ended June 30, 2025
Net sales increased 2% to $1.8 billion in the second quarter of 2026. The increase reflected benefits from inflation, steady maintenance activity and improved sales of building materials amid a muted discretionary spending environment.
Gross profit increased 1% to $540.8 million. Gross margin decreased 30 basis points to 29.7% from 30.0% in the same period of 2025, primarily due to elevated inbound freight costs and changes in customer mix. These headwinds were partially offset by benefits from supply chain initiatives.
Selling and administrative expenses (operating expenses) increased 4% to $273.1 million from $262.5 million in the same period in 2025, primarily driven by $8.3 million of CEO transition costs. CEO transition costs comprise $6.3 million of non-cash share-based compensation expense for awards previously granted but not fully amortized and $2.0 million of cash transition costs. Adjusting for the impact of CEO transition costs, operating expenses increased 1% to $264.8 million.
Operating income decreased 2% to $267.7 million compared to $272.7 million in the same period last year. Adjusted operating income increased 1% to $275.9 million.
Net income decreased 3% to $188.1 million from $194.3 million in the second quarter of 2025. Adjusted net income increased 1% to $195.7 million compared to $194.2 million in the three months ended June 30, 2025.
Earnings per diluted share was $5.17 in both periods. Adjusted earnings per diluted share increased 4% to $5.38 compared to $5.17 in 2025.
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
Net sales increased 4% to $3.0 billion from $2.9 billion in the six months ended June 30, 2025. Gross margin declined 30 basis points to 29.4% from 29.7% in the same period last year.
Operating expenses increased 5% to $520.3 million compared to $497.3 million for the same period in 2025. Adjusted operating expenses increased 3% to $512.1 million.
Operating income was $350.3 million compared to $350.2 million in the same period last year. Adjusted operating income increased 2% to $358.6 million.
Net income decreased 3% to $241.3 million compared to $247.8 million in the six months ended June 30, 2025. We recorded a $0.7 million, or $0.02 per diluted share, tax benefit from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting in 2026 compared to a $3.9 million, or $0.10 per diluted share, tax benefit in the same period of 2025. Adjusted net income increased by 2% to $248.1 million compared to $243.9 million in the six months ended June 30, 2025.
Earnings per diluted share increased 1% to $6.61 compared to $6.57 in the same period of 2025. Adjusted earnings per diluted share increased 5% to $6.80 from $6.47 in the first six months of 2025.
Balance Sheet and Liquidity
Inventory increased 4% to $1.4 billion at June 30, 2026 compared to $1.3 billion at June 30, 2025. The 4% year-over-year increase in inventory is down from the 14% increase reported in the first quarter of 2026, as we sell through our peak-season stocking levels. Our inventory levels reflect the impact of inflation and the addition of new and acquired sales centers over the past twelve months. Total debt outstanding increased $110.8 million to $1.3 billion at June 30, 2026, primarily to fund $266.7 million of open market share repurchases in the past twelve months.
Net cash used in operations was $0.7 million in the first half of 2026 compared to $1.5 million in the first half of 2025.
Outlook
“We remain confident that we will achieve 2026 diluted EPS in the range of $10.66 to $10.96, or $10.87 to $11.17 excluding the impact of CEO transition costs and including the impact of ASU 2016-09 year-to-date tax benefits. Our industry-leading distribution network, deep supplier relationships and digital capabilities continue to differentiate us in the market and position us well for the balance of the year. Our exceptional team is pursuing focused actions to build upon our competitive advantages and strengthen our execution to deliver long-term value for our shareholders,” said Watwood.
The table below further illustrates our current guidance:
(Unaudited) |
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2026 Guidance Range |
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Floor |
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Ceiling |
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Diluted EPS (1) |
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$ |
10.66 |
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$ |
10.96 |
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After-tax CEO transition costs |
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0.21 |
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0.21 |
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Adjusted diluted EPS (1) |
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$ |
10.87 |
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$ |
11.17 |
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2
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures. See the addendum to this release for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.
About Pool Corporation
POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyard products. As of June 30, 2026, POOLCORP operated 455 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000 wholesale customers. For more information, please visit www.poolcorp.com.
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Forward-Looking Statements
This news release includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “should,” “will,” “may,” “outlook,” and other words and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2025 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP’s subsequent filings with the SEC.
Kristin S. Byars
Director, Investor Relations and Finance
985.801.5153
kristin.byars@poolcorp.com
4
POOL CORPORATION
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net sales |
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$ |
1,822,938 |
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$ |
1,784,530 |
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$ |
2,960,952 |
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$ |
2,856,056 |
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Cost of sales |
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1,282,176 |
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1,249,369 |
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2,090,319 |
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2,008,526 |
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Gross profit |
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540,762 |
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535,161 |
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870,633 |
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847,530 |
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Percent |
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29.7 |
% |
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30.0 |
% |
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29.4 |
% |
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29.7 |
% |
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Selling and administrative expenses |
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273,083 |
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262,491 |
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520,343 |
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497,323 |
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Operating income |
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267,679 |
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272,670 |
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350,290 |
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350,207 |
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Percent |
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14.7 |
% |
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15.3 |
% |
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11.8 |
% |
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12.3 |
% |
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Interest and other non-operating expenses, net |
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14,273 |
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12,219 |
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26,639 |
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23,381 |
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Income before income taxes and equity in earnings (loss) |
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253,406 |
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260,451 |
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323,651 |
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326,826 |
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Provision for income taxes |
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65,345 |
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66,180 |
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82,325 |
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79,064 |
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Equity in earnings (loss) of unconsolidated investments, net |
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28 |
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(13 |
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(7 |
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41 |
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Net income |
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$ |
188,089 |
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$ |
194,258 |
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$ |
241,319 |
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$ |
247,803 |
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Earnings per share attributable to common stockholders: (1) |
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Basic |
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$ |
5.18 |
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$ |
5.19 |
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$ |
6.62 |
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$ |
6.60 |
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Diluted |
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$ |
5.17 |
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$ |
5.17 |
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$ |
6.61 |
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$ |
6.57 |
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Weighted average common shares outstanding: |
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Basic |
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36,085 |
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37,271 |
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36,223 |
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37,365 |
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Diluted |
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36,132 |
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37,407 |
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36,280 |
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37,520 |
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Cash dividends declared per common share |
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$ |
1.30 |
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$ |
1.25 |
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$ |
2.55 |
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$ |
2.45 |
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5
POOL CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
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June 30, |
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June 30, |
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Change |
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2026 |
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2025 |
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$ |
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% |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
28,762 |
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$ |
83,669 |
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$ |
(54,907 |
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(66 |
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% |
Receivables, net (1) |
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190,947 |
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172,028 |
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18,919 |
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11 |
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Receivables pledged under receivables facility |
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446,914 |
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404,776 |
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42,138 |
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10 |
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Product inventories, net (2) |
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1,378,695 |
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1,330,221 |
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48,474 |
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4 |
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Prepaid expenses and other current assets |
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48,801 |
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42,281 |
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6,520 |
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15 |
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Total current assets |
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2,094,119 |
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2,032,975 |
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61,144 |
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3 |
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Property and equipment, net |
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276,897 |
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258,188 |
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18,709 |
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7 |
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Goodwill |
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706,721 |
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700,476 |
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6,245 |
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1 |
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Other intangible assets, net |
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279,890 |
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286,810 |
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(6,920 |
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(2 |
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Equity interest investments |
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1,567 |
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1,494 |
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73 |
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5 |
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Operating lease assets |
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345,894 |
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315,434 |
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30,460 |
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10 |
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Other assets |
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55,386 |
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76,579 |
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(21,193 |
) |
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(28 |
) |
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Total assets |
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$ |
3,760,474 |
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$ |
3,671,956 |
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$ |
88,518 |
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2 |
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% |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
474,481 |
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$ |
529,316 |
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$ |
(54,835 |
) |
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(10 |
) |
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Accrued expenses and other current liabilities |
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185,505 |
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160,833 |
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24,672 |
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15 |
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Short-term borrowings and current portion of long-term debt |
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13,443 |
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17,386 |
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(3,943 |
) |
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(23 |
) |
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Current operating lease liabilities |
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110,596 |
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100,439 |
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10,157 |
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10 |
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Total current liabilities |
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784,025 |
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807,974 |
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(23,949 |
) |
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(3 |
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Deferred income taxes |
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94,644 |
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79,138 |
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15,506 |
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20 |
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Long-term debt, net |
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1,327,273 |
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1,212,533 |
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114,740 |
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9 |
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Other long-term liabilities |
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50,680 |
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50,177 |
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503 |
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1 |
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Non-current operating lease liabilities |
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243,854 |
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223,016 |
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20,838 |
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9 |
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Total liabilities |
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2,500,476 |
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2,372,838 |
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127,638 |
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5 |
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Total stockholders’ equity |
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1,259,998 |
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1,299,118 |
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(39,120 |
) |
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(3 |
) |
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Total liabilities and stockholders’ equity |
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$ |
3,760,474 |
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$ |
3,671,956 |
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$ |
88,518 |
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2 |
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% |
6
POOL CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
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Six Months Ended |
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June 30, |
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2026 |
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2025 |
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Change |
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Operating activities |
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Net income |
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$ |
241,319 |
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$ |
247,803 |
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$ |
(6,484 |
) |
Adjustments to reconcile net income to net cash used in operating activities: |
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Depreciation |
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22,654 |
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19,804 |
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2,850 |
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Amortization |
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4,543 |
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4,312 |
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231 |
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Share-based compensation |
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17,475 |
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12,950 |
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4,525 |
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Equity in loss (earnings) of unconsolidated investments, net |
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7 |
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(41 |
) |
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48 |
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Other |
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732 |
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(942 |
) |
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1,674 |
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Changes in operating assets and liabilities, net of effects of acquisitions: |
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Receivables |
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(292,227 |
) |
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(254,322 |
) |
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(37,905 |
) |
Product inventories |
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72,454 |
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(29,375 |
) |
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101,829 |
|
Prepaid expenses and other assets |
|
|
25,560 |
|
|
|
53,440 |
|
|
|
(27,880 |
) |
Accounts payable |
|
|
(170,516 |
) |
|
|
315 |
|
|
|
(170,831 |
) |
Accrued expenses and other liabilities |
|
|
77,251 |
|
|
|
(55,488 |
) |
|
|
132,739 |
|
Net cash used in operating activities |
|
|
(748 |
) |
|
|
(1,544 |
) |
|
|
796 |
|
|
|
|
|
|
|
|
|
|
|
|||
Investing activities |
|
|
|
|
|
|
|
|
|
|||
Purchases of property and equipment, net of sale proceeds |
|
|
(36,569 |
) |
|
|
(27,390 |
) |
|
|
(9,179 |
) |
Other investments, net |
|
|
554 |
|
|
|
(1,073 |
) |
|
|
1,627 |
|
Net cash used in investing activities |
|
|
(36,015 |
) |
|
|
(28,463 |
) |
|
|
(7,552 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Financing activities |
|
|
|
|
|
|
|
|
|
|||
Proceeds from revolving line of credit |
|
|
1,023,500 |
|
|
|
1,117,100 |
|
|
|
(93,600 |
) |
Payments on revolving line of credit |
|
|
(1,024,200 |
) |
|
|
(956,900 |
) |
|
|
(67,300 |
) |
Payments on term loan under credit facility |
|
|
— |
|
|
|
(12,500 |
) |
|
|
12,500 |
|
Proceeds from asset-backed financing |
|
|
308,900 |
|
|
|
323,200 |
|
|
|
(14,300 |
) |
Payments on asset-backed financing |
|
|
(167,900 |
) |
|
|
(177,200 |
) |
|
|
9,300 |
|
Payments on term facility |
|
|
— |
|
|
|
(19,937 |
) |
|
|
19,937 |
|
Proceeds from short-term borrowings and current portion of long-term debt |
|
|
6,577 |
|
|
|
17,112 |
|
|
|
(10,535 |
) |
Payments on short-term borrowings and current portion of long-term debt |
|
|
(6,163 |
) |
|
|
(11,699 |
) |
|
|
5,536 |
|
Payments of excise tax on repurchases of common stock |
|
|
(2,974 |
) |
|
|
— |
|
|
|
(2,974 |
) |
Proceeds from stock issued under share-based compensation plans |
|
|
3,874 |
|
|
|
6,780 |
|
|
|
(2,906 |
) |
Payments of cash dividends |
|
|
(93,004 |
) |
|
|
(92,163 |
) |
|
|
(841 |
) |
Repurchases of common stock |
|
|
(86,428 |
) |
|
|
(160,648 |
) |
|
|
74,220 |
|
Net cash (used in) provided by financing activities |
|
|
(37,818 |
) |
|
|
33,145 |
|
|
|
(70,963 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(1,620 |
) |
|
|
2,669 |
|
|
|
(4,289 |
) |
Change in cash and cash equivalents |
|
|
(76,201 |
) |
|
|
5,807 |
|
|
|
(82,008 |
) |
Cash and cash equivalents at beginning of period |
|
|
104,963 |
|
|
|
77,862 |
|
|
|
27,101 |
|
Cash and cash equivalents at end of period |
|
$ |
28,762 |
|
|
$ |
83,669 |
|
|
$ |
(54,907 |
) |
7
ADDENDUM
Base Business
When calculating our base business results, we exclude for a period of 15 months sales centers that are acquired, opened in new markets or closed. We also exclude consolidated sales centers when we do not expect to maintain the majority of the existing business and existing sales centers that are consolidated with acquired sales centers.
We generally allocate corporate overhead expenses to excluded sales centers on the basis of their net sales as a percentage of total net sales. After 15 months, we include acquired, consolidated and new market sales centers in the base business calculation including the comparative prior year period.
We have not provided separate base business income statement data within this press release as our base business results for the three and six months ended June 30, 2026 closely approximated our consolidated results. Excluded sales centers contributed less than 1% to the change in our reported net sales.
The table below summarizes the changes in our sales centers during the first half of 2026.
December 31, 2025 |
456 |
Acquired locations |
- |
New location |
1 |
Consolidated locations |
(2) |
June 30, 2026 |
455 |
8
Reconciliation of Non-GAAP Financial Measures
The non-GAAP measures described below should be considered in the context of all of our other disclosures in this press release.
Adjusted EBITDA
We define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses, provision for income taxes, depreciation, amortization, share-based compensation, goodwill and other impairments, equity in earnings or loss of unconsolidated investments, and other items that management believes are not indicative of ongoing operating performance. Other companies may calculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.
Adjusted EBITDA is not a measure of performance as determined by generally accepted accounting principles (GAAP). We believe Adjusted EBITDA should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, net cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.
From time to time, we use Adjusted EBITDA as a supplemental disclosure because management uses it to monitor our performance, and we believe that it is widely used by our investors, industry analysts and others as a useful supplemental performance measure. We believe that Adjusted EBITDA, when viewed with our GAAP results and the accompanying reconciliations, provides an additional measure that enables management and investors to monitor factors and trends affecting our ability to service debt, pay taxes and fund capital expenditures.
The table below presents a reconciliation of net income to Adjusted EBITDA.
(Unaudited) |
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
(In thousands) |
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net income |
|
$ |
188,089 |
|
|
$ |
194,258 |
|
|
$ |
241,319 |
|
|
$ |
247,803 |
|
Adjustments to increase (decrease) net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other non-operating expenses (1) |
|
|
13,931 |
|
|
|
12,803 |
|
|
|
26,430 |
|
|
|
24,009 |
|
Provision for income taxes |
|
|
65,345 |
|
|
|
66,180 |
|
|
|
82,325 |
|
|
|
79,064 |
|
Share-based compensation (2) |
|
|
12,003 |
|
|
|
6,895 |
|
|
|
17,475 |
|
|
|
12,950 |
|
Equity in (earnings) loss of unconsolidated investments, net |
|
|
(28 |
) |
|
|
13 |
|
|
|
7 |
|
|
|
(41 |
) |
Depreciation |
|
|
11,385 |
|
|
|
9,964 |
|
|
|
22,654 |
|
|
|
19,804 |
|
Amortization (3) |
|
|
1,990 |
|
|
|
1,963 |
|
|
|
3,993 |
|
|
|
3,925 |
|
CEO cash transition costs (2) |
|
|
1,962 |
|
|
|
— |
|
|
|
1,962 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
294,677 |
|
|
$ |
292,076 |
|
|
$ |
396,165 |
|
|
$ |
387,514 |
|
9
Adjusted Income Statement Information
We have included adjusted operating expenses, adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures, in this press release as supplemental disclosures because we believe these measures are useful to management, investors and others in assessing our period-over-period operating performance. We believe these measures should be considered in addition to, not as a substitute for, operating expenses, operating income, net income and diluted EPS presented in accordance with GAAP and in the context of our other disclosures in this press release. Other companies may calculate these non-GAAP financial measures differently than we do, which may limit their usefulness as comparative measures.
The table below presents a reconciliation of operating expenses to adjusted operating expenses.
(Unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
||
(In thousands) |
|
June 30, |
|
June 30, |
|
||
|
|
2026 |
|
2026 |
|
||
Operating expenses |
|
$ |
273,083 |
|
$ |
520,343 |
|
CEO transition costs |
|
|
(8,262 |
) |
|
(8,262 |
) |
Adjusted operating expenses |
|
$ |
264,821 |
|
$ |
512,081 |
|
The table below presents a reconciliation of operating income to adjusted operating income.
(Unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
||
(In thousands) |
|
June 30, |
|
June 30, |
|
||
|
|
2026 |
|
2026 |
|
||
Operating income |
|
$ |
267,679 |
|
$ |
350,290 |
|
CEO transition costs |
|
|
8,262 |
|
|
8,262 |
|
Adjusted operating income |
|
$ |
275,941 |
|
$ |
358,552 |
|
The table below presents a reconciliation of net income to adjusted net income.
(Unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
(In thousands) |
|
June 30, |
|
June 30, |
|
||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
Net income |
|
$ |
188,089 |
|
$ |
194,258 |
|
$ |
241,319 |
|
$ |
247,803 |
|
CEO transition costs |
|
|
8,262 |
|
|
— |
|
|
8,262 |
|
|
— |
|
Tax impact |
|
|
(738 |
) |
|
— |
|
|
(738 |
) |
|
— |
|
ASU 2016-09 tax deficiency (benefit) |
|
|
60 |
|
|
(39 |
) |
|
(720 |
) |
|
(3,884 |
) |
Adjusted net income |
|
$ |
195,673 |
|
$ |
194,219 |
|
$ |
248,123 |
|
$ |
243,919 |
|
The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.
(Unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
June 30, |
|
June 30, |
|
||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
Diluted EPS |
|
$ |
5.17 |
|
$ |
5.17 |
|
$ |
6.61 |
|
$ |
6.57 |
|
After-tax CEO transition costs |
|
|
0.21 |
|
|
— |
|
|
0.21 |
|
|
— |
|
ASU 2016-09 tax benefit |
|
|
— |
|
|
— |
|
|
(0.02 |
) |
|
(0.10 |
) |
Adjusted diluted EPS |
|
$ |
5.38 |
|
$ |
5.17 |
|
$ |
6.80 |
|
$ |
6.47 |
|
10