Latham | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 161.9 M

Revenue: As of FY2025 Q3, the actual value is USD 161.9 M, missing the estimate of USD 165.35 M.

EPS: As of FY2025 Q3, the actual value is USD 0.07, missing the estimate of USD 0.0995.

EBIT: As of FY2025 Q3, the actual value is USD 21.65 M.

Segment Revenue

• Net Sales: $161.9 million for the fiscal quarter ended September 27, 2025, compared to $150.5 million for the fiscal quarter ended September 28, 2024, representing a 7.6% increase.

Operational Metrics

• Net Income: $8.1 million for the fiscal quarter ended September 27, 2025, compared to $5.9 million for the fiscal quarter ended September 28, 2024, representing a 37.7% increase.
• Gross Margin: Increased to 35.4% for the fiscal quarter ended September 27, 2025, from 32.4% for the fiscal quarter ended September 28, 2024.
• Operating Income: $21.5 million for the fiscal quarter ended September 27, 2025, compared to $13.4 million for the fiscal quarter ended September 28, 2024.
• Adjusted EBITDA: $38.3 million for the fiscal quarter ended September 27, 2025, compared to $29.8 million for the fiscal quarter ended September 28, 2024, with an Adjusted EBITDA margin increase from 19.8% to 23.7%.

Cash Flow

• Net Cash Provided by Operating Activities: $40.1 million for the three fiscal quarters ended September 27, 2025.
• Net Cash Used in Investing Activities: $21.1 million for the three fiscal quarters ended September 27, 2025.
• Net Cash Used in Financing Activities: $4.9 million for the three fiscal quarters ended September 27, 2025.

Unique Metrics

• Increase in Adjusted EBITDA: $12.8 million to $89.4 million for the three fiscal quarters ended September 27, 2025, compared to $76.6 million for the three fiscal quarters ended September 28, 2024.

Future Outlook and Strategy

• Core Business Focus: The company continues to focus on driving adoption and awareness of fiberglass pools and automatic safety covers, with ongoing investments in product innovation, facility upgrades, and technology systems. The company has also implemented targeted price increases on certain products to mitigate the impact of tariffs.
• Non-Core Business: Strategic acquisitions, such as the acquisition of Coverstar Central and two smaller autocover dealers, are part of the growth strategy to increase market share and vertical integration.