Latham Group's Q3 Sales Rise 7.6% to $162m as Fund Cuts Stake
Latham Group posted Q3 net sales of $162m, up 7.6%, and EBITDA of $38.3m, raising full-year guidance to $540–550m sales and $92–98m EBITDA despite Optimist Fund trimming its stake from 6% to 3% after CEO Scott Rajeski’s unexpected retirement. Estimates project 2025 revenue of $543.16m and $0.05 earnings per share.
1. Q3 Performance and Guidance
Latham Group reported net sales of $162 million in Q3 2025, a 7.6% year-over-year increase, and EBITDA of $38.3 million. The company raised its full-year sales guidance to $540–550 million and EBITDA outlook to $92–98 million, signaling confidence in its growth trajectory.
2. CEO Transition and Fund Stake Cut
CEO Scott Rajeski unexpectedly announced his retirement, prompting the Optimist Fund to reduce its position from 6% to 3% of its portfolio. The fund cited the need to assess the incoming leadership’s credibility before rebuilding conviction in the company’s management team.
3. Analyst Estimates and Earnings Trends
Consensus estimates project 2025 revenue of $543.16 million and earnings of $0.05 per share, with Q4 revenue expected at $96.79 million and a loss of $0.10 per share. Analysts maintain an average one-year price target of $7.75 per share, implying a 15.3% upside.
4. Ownership and Stock Performance
Shares have gained 5.84% over the past month and 21.78% in the last 52 weeks, reflecting positive market sentiment. Latham’s market capitalization stands at $782.76 million, and 27 hedge fund portfolios held the stock at the end of Q4 2025, up from 20 the prior quarter.