SWIM Narrows Losses 76% Amid Fiberglass Surge and Acquisition Boost

Latham Group (SWIM) reported fiscal 2025 Q4 earnings on March 4, 2026, with results exceeding revenue expectations and a significant reduction in per-share losses. The company’s 14.5% year-over-year revenue growth to $99.95 million outperformed the Zacks Consensus Estimate by 5.21%, while its net loss narrowed by 76.0% to $-7.01 million. Guidance for 2026 reflects cautious optimism, with $580M–$610M in net sales and $105M–$120M in adjusted EBITDA, driven by strategic acquisitions and market expansion.

Revenue

The total revenue of Latham Group increased by 14.5% to $99.95 million in 2025 Q4, up from $87.27 million in 2024 Q4. This growth was primarily driven by strong performance in fiberglass pool sales, which accounted for 76.5% of revenue amid a declining U.S. market. The company’s ability to outpace industry trends underscores its competitive positioning in the segment.

Earnings/Net Income

Latham Group narrowed losses to $0.06 per share in 2025 Q4 from a loss of $0.25 per share in 2024 Q4 (76.2% improvement). Meanwhile, the company successfully narrowed its net loss to $-7.01 million in 2025 Q4, reducing losses by 76.0% compared to the $-29.17 million net loss reported in 2024 Q4. The significant reduction in per-share losses signals improved operational efficiency and cost management.

Price Action

The stock price of Latham Group has tumbled 9.32% during the latest trading day, has climbed 6.04% during the most recent full trading week, and has jumped 14.47% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Latham Group (SWIM) shares after its revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant loss. Over the past three years, this strategy yielded an 82.25% loss, underperforming the benchmark by 139.34%. The strategy's Sharpe ratio was -0.66, indicating substantial risk, while the maximum drawdown reached 93.64%, highlighting the strategy's vulnerability during market downturns.

CEO Commentary

Sean Gadd, CEO, highlighted Latham’s Q4 2025 performance with 15% revenue growth driven by 76.5% fiberglass pool sales, outpacing a declining U.S. market. He emphasized strategic priorities: expanding fiberglass adoption via targeted marketing in Sand States (e.g., Florida’s double-digit growth), leveraging AI tools for product efficiency, and acquiring Freedom Pools to boost market share in Australia/New Zealand. Gadd expressed optimism about fiberglass’s long-term potential, noting its 24% U.S. market share and competitive advantages over concrete pools. He underscored 2026 plans to accelerate Sand State growth through dealer partnerships and brand awareness campaigns, while maintaining disciplined cost management and accretive acquisitions.

Guidance

Latham guided 2026 net sales of $580M–$610M (9% growth at midpoint) and adjusted EBITDA of $105M–$120M (12.7% growth at midpoint), driven by mid-single-digit organic growth, Freedom Pools’ $20M incremental sales, and expanded Sand State penetration. CapEx is projected at $42M–$48M, including facility purchases in Florida, Texas, and California. The company expects continued margin expansion via lean manufacturing and value engineering, with EBITDA margins targeting ~35%, and emphasized prioritizing fiberglass and autocover growth amid flat U.S. pool start expectations.

Additional News

Latham Group’s acquisition of Freedom Pools for $17 million, aimed at expanding its presence in Australia and New Zealand, has driven a 22% surge in after-hours trading. The deal is expected to add $20 million in annualized net sales and $4 million in adjusted EBITDA. Separately, the company’s Q4 GAAP EPS of -$0.06 beat estimates by $0.05, with revenue of $100 million surpassing expectations by $4.14 million. CEO Sean Gadd reaffirmed focus on fiberglass innovation and Sand State market penetration, aligning with the company’s 2026 guidance.