Latham Group (NASDAQ:SWIM) Announces Earnings Results, Misses Estimates By $0.02 EPS

Latham Group (NASDAQ:SWIM) issued its quarterly earnings results on Tuesday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02), FiscalAI reports. The business had revenue of $117.32 million during the quarter, compared to analyst estimates of $118.39 million. Latham Group had a net margin of 2.04% and a return on equity of 2.79%.

Here are the key takeaways from Latham Group’s conference call:

• Management reaffirmed 2026 guidance with revenue growth of ~9% and adjusted EBITDA growth of ~13% at midpoint, and Q1 showed a 220 bps gross margin expansion to 32% and a 9% increase in adjusted EBITDA.
• The company is accelerating its Sunbelt strategy after seeing double-digit fiberglass pool sales in Florida, adding a commercial organization, neighborhood segmentation, more field sales and targeted marketing to capture share even if U.S. pool starts remain flat.
• The Feb. 26 Freedom Pools acquisition is integrating as expected, is immediately accretive, expands Latham’s presence in Australia/New Zealand (including Perth) and is expected to drive long-term revenue synergies.
• SG&A rose 20% to $37M (driven by strategic investments and acquisition/integration costs), Q1 net loss widened to $9M, and the company expects roughly $9M of Coverstar Central earn-out expense in 2026; leverage and elevated CapEx ($42–48M guidance) increase near-term financial pressure.
• Latham faces input-cost and freight risks from higher oil prices and Middle East tensions but has introduced a temporary fuel surcharge (about 60 basis points headwind this year) and cites supply diversification plus lean/value-engineering programs as mitigants, leaving overall commodity impact uncertain.

Latham Group Price Performance

SWIM traded down $0.01 during midday trading on Wednesday, reaching $5.86. 777,363 shares of the company’s stock were exchanged, compared to its average volume of 875,151. The firm has a market capitalization of $684.79 million, a price-to-earnings ratio of 65.06, a price-to-earnings-growth ratio of 2.48 and a beta of 1.72. The company has a quick ratio of 1.82, a current ratio of 2.77 and a debt-to-equity ratio of 0.68. Latham Group has a one year low of $5.04 and a one year high of $8.97. The business has a 50-day simple moving average of $5.98 and a two-hundred day simple moving average of $6.48.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SWIM. The Goldman Sachs Group reaffirmed a “sell” rating on shares of Latham Group in a report on Wednesday. Barclays lowered their price objective on shares of Latham Group from $8.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Wednesday, April 8th. Wall Street Zen downgraded shares of Latham Group from a “buy” rating to a “hold” rating in a research note on Sunday, April 12th. William Blair restated an “outperform” rating on shares of Latham Group in a research note on Wednesday, March 4th. Finally, Zacks Research downgraded shares of Latham Group from a “strong-buy” rating to a “hold” rating in a report on Friday, April 3rd. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Latham Group currently has a consensus rating of “Reduce” and a consensus price target of $6.75.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jane Street Group LLC lifted its stake in Latham Group by 27.1% during the first quarter. Jane Street Group LLC now owns 24,894 shares of the company’s stock worth $160,000 after purchasing an additional 5,315 shares during the period. Aquatic Capital Management LLC bought a new position in Latham Group during the 3rd quarter valued at about $154,000. Man Group plc bought a new position in Latham Group during the 4th quarter valued at about $118,000. nVerses Capital LLC bought a new position in Latham Group during the 4th quarter valued at about $97,000. Finally, Olympiad Research LP bought a new position in Latham Group during the 4th quarter valued at about $82,000. Institutional investors own 83.95% of the company’s stock.

About Latham Group

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.