3 unchanged sentences
Condensed Consolidated Statements of Operations
−Removed: Condensed Consolidated Statements of Comprehensive Loss
+Added: Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Stockholders’ Equity
23 unchanged sentences
Accounts payable $ 37,992 $ 19,283
−Removed: Revolving credit facility 31,000 —
Current maturities of long-term debt 3,250 3,250
11 unchanged sentences
Preferred stock, $ 0.0001 par value;
−Removed: 100,000,000 shares authorized as of both March 28, 2026 and December 31, 2025;
−Removed: no shares issued and outstanding as of both March 28, 2026 and December 31, 2025
+Added: 100,000,000 shares authorized as of both June 27, 2026 and December 31, 2025;
+Added: no shares issued and outstanding as of both June 27, 2026 and December 31, 2025
Common stock, $ 0.0001 par value;
−Removed: 900,000,000 shares authorized as of March 28, 2026 and December 31, 2025;
−Removed: 117,407,719 and 116,766,927 shares issued and outstanding, as of March 28, 2026 and December 31, 2025, respectively
+Added: 900,000,000 shares authorized as of June 27, 2026 and December 31, 2025;
+Added: 117,535,232 and 116,766,927 shares issued and outstanding, as of June 27, 2026 and December 31, 2025, respectively
Additional paid-in capital 473,660 473,423
7 unchanged sentences
(in thousands, except share and per share data)
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
Net sales $ 197,474 $ 172,639 $ 314,789 $ 284,059
3 unchanged sentences
Amortization 7,366 7,299 14,535 14,491
−Removed: Loss from operations ( 6,601 ) ( 4,931 )
−Removed: Other expense:
+Added: Income from operations 25,092 24,724 18,491 19,793
+Added: Other expense (income):
Interest expense, net 5,930 7,149 10,686 13,520
2 unchanged sentences
Earnings from equity method investment 1,081 488 1,916 1,441
−Removed: Loss before income taxes ( 11,340 ) ( 10,041 )
−Removed: Income tax benefit ( 2,806 ) ( 4,079 )
−Removed: Net loss $ ( 8,534 ) $ ( 5,962 )
−Removed: Net loss per share attributable to common stockholders:
+Added: Income before income taxes 18,867 21,110 7,527 11,069
+Added: Income tax expense 6,113 5,130 3,307 1,051
+Added: Net income $ 12,754 $ 15,980 $ 4,220 $ 10,018
+Added: Net income per share attributable to common stockholders:
Basic $ 0.11 $ 0.14 $ 0.04 $ 0.09
5 unchanged sentences
Latham Group, Inc.
−Removed: Condensed Consolidated Statements of Comprehensive Loss
+Added: Condensed Consolidated Statements of Comprehensive Income
(in thousands)
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
−Removed: Net loss $ ( 8,534 ) $ ( 5,962 )
−Removed: Other comprehensive income, net of tax:
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
+Added: Net income $ 12,754 $ 15,980 $ 4,220 $ 10,018
+Added: Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments 461 ( 18 ) 1,114 199
−Removed: Total other comprehensive income, net of tax 653 217
−Removed: Comprehensive loss $ ( 7,881 ) $ ( 5,745 )
+Added: Total other comprehensive income (loss), net of tax 461 ( 18 ) 1,114 199
+Added: Comprehensive income $ 13,215 $ 15,962 $ 5,334 $ 10,217
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
14 unchanged sentences
Balances at March 29, 2025 116,362,977 $ 12 $ 466,741 $ ( 80,778 ) $ ( 4,833 ) $ 381,142
+Added: Net income — — — 15,980 — 15,980
+Added: Foreign currency translation adjustments — — — — ( 18 ) ( 18 )
+Added: Issuance of common stock upon release of restricted stock units 182,341 — — — — —
+Added: Common stock withheld for taxes on restricted stock units ( 9,189 ) — ( 57 ) — — ( 57 )
+Added: Stock-based compensation expense — — 1,381 — — 1,381
+Added: Balances at June 28, 2025 116,536,129 $ 12 $ 468,065 $ ( 64,798 ) $ ( 4,851 ) $ 398,428
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
14 unchanged sentences
Balances at March 28, 2026 117,407,719 $ 12 $ 472,145 $ ( 72,226 ) $ ( 3,229 ) $ 396,702
+Added: Net income — — — 12,754 — 12,754
+Added: Foreign currency translation adjustments — — — — 461 461
+Added: Issuance of common stock upon release of restricted stock units 178,907 — — — — —
+Added: Common stock withheld for taxes on restricted stock units ( 51,394 ) — ( 94 ) — — ( 94 )
+Added: Stock-based compensation expense — — 1,609 — — 1,609
+Added: Balances at June 27, 2026 117,535,232 $ 12 $ 473,660 $ ( 59,472 ) $ ( 2,768 ) $ 411,432
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2 unchanged sentences
(in thousands)
−Removed: Fiscal Quarter Ended
−Removed: 2026 March 29,
+Added: Two Fiscal Quarters Ended
+Added: 2026 June 28,
Cash flows from operating activities:
−Removed: Net loss $ ( 8,534 ) $ ( 5,962 )
−Removed: Adjustments to reconcile net loss to net cash used in operating activities:
+Added: Net income $ 4,220 $ 10,018
+Added: Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 26,739 25,097
16 unchanged sentences
Other long-term liabilities ( 54 ) ( 240 )
−Removed: Net cash used in operating activities ( 47,720 ) ( 46,882 )
+Added: Net cash provided by (used in) operating activities 5,783 ( 10,905 )
Cash flows from investing activities:
3 unchanged sentences
Cash flows from financing activities:
+Added: Payments on long-term debt borrowings ( 813 ) ( 813 )
Proceeds from borrowings on revolving credit facility 35,000 25,000
+Added: Payments on revolving credit facilities ( 35,000 ) ( 25,000 )
Repayments of finance lease obligations ( 441 ) ( 404 )
Common stock withheld for taxes on restricted stock units ( 2,476 ) ( 2,363 )
−Removed: Net cash provided by financing activities 28,402 22,493
+Added: Net cash used in financing activities ( 3,730 ) ( 3,580 )
Effect of exchange rate changes on cash 687 308
23 unchanged sentences
The unaudited condensed consolidated balance sheet at December 31, 2025 was derived from audited financial statements but does not include all disclosures required by GAAP.
−Removed: The accompanying unaudited condensed consolidated financial statements as of March 28, 2026 and for the fiscal quarters ended March 28, 2026 and March 29, 2025, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements.
+Added: The accompanying unaudited condensed consolidated financial statements as of June 27, 2026 and for the fiscal quarters and two fiscal quarters ended June 27, 2026 and June 28, 2025, respectively, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements.
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
1 unchanged sentence
In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of these condensed consolidated financial statements, have been included.
−Removed: The Company’s results of operations for the fiscal quarter ended March 28, 2026 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending December 31, 2026 or other interim periods thereof.
+Added: The Company’s results of operations for the fiscal quarter and two fiscal quarters ended June 27, 2026 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending December 31, 2026 or other interim periods thereof.
Use of Estimates
16 unchanged sentences
The Company is currently evaluating ASU 2024-03 and its potential impact on the condensed consolidated financial statements.
−Removed: In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326):
−Removed: Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which offers a practical expedient for public companies valuing their current expected credit losses.
−Removed: ASU 2025-05 is effective for public business entities for fiscal years beginning after December 15, 2025 and interim reporting periods within those annual reporting periods.
−Removed: The amendments should be applied prospectively.
−Removed: The Company has evaluated ASU 2025-05 and determined to not adopt the practical expedient.
−Removed: In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) (“ASU 2025-11”), which improves the navigability of the required interim disclosures and clarifying when that guidance is applicable.
+Added: In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) (“ASU 2025-11”), which improves the navigability of the required interim disclosures and clarifies when that guidance is applicable.
ASU 2025-11 is effective for public business entities for interim reporting periods within annual fiscal years beginning after December 15, 2027.
20 unchanged sentences
market approach, income approach or cost approach.
−Removed: There were no transfers between fair value measurement levels during the fiscal quarters ended March 28, 2026 or March 29, 2025.
+Added: There were no transfers between fair value measurement levels during the fiscal quarters ended June 27, 2026 or June 28, 2025.
Assets and liabilities measured at fair value on a nonrecurring basis
7 unchanged sentences
The following table sets forth the carrying amount and fair value of the term loans (in thousands):
−Removed: March 28, 2026 December 31, 2025
+Added: June 27, 2026 December 31, 2025
Value Estimated
5 unchanged sentences
The fair value is estimated by comparing (i) the present value of all future monthly fixed rate payments versus (ii) the variable payments based on the forward SOFR curve.
−Removed: As of March 28, 2026 and December 31, 2025, the Company’s interest rate swap was a liability of $ 0.3 million and $ 1.1 million, respectively, which were recorded within other long-term liabilities on the condensed consolidated balance sheets.
+Added: As of June 27, 2026 and December 31, 2025, the Company’s interest rate swap was a liability of $ 0.1 million and $ 1.1 million, respectively, which were recorded within other long-term liabilities on the condensed consolidated balance sheets.
See Note 7 for further detail.
GOODWILL AND INTANGIBLE ASSETS, NET
−Removed: The carrying amount of goodwill as of March 28, 2026 and as of December 31, 2025 was $ 161.1 million and $ 155.2 million, respectively.
−Removed: The change in the carrying value during the fiscal quarter ended March 28, 2026 was primarily driven by the acquisition of Freedom Pools made in the first fiscal quarter of 2026.
+Added: The carrying amount of goodwill as of June 27, 2026 and as of December 31, 2025 was $ 161.5 million and $ 155.2 million, respectively.
+Added: The change in the carrying value during the two fiscal quarters ended June 27, 2026 was primarily driven by the acquisition of Freedom Pools made in the first fiscal quarter of 2026.
Intangible Assets
−Removed: Intangible assets, net as of March 28, 2026 consisted of the following (in thousands):
−Removed: March 28, 2026
+Added: Intangible assets, net as of June 27, 2026 consisted of the following (in thousands):
+Added: June 27, 2026
Amount Foreign
8 unchanged sentences
$ 435,934 $ 56 $ 177,765 $ 258,225
−Removed: The Company recognized $ 7.2 million of amortization expense related to intangible assets during each of the fiscal quarters ended March 28, 2026 and March 29, 2025.
−Removed: The changes in the carrying values of dealer relationships, trade names and trademarks and backlog are driven by the acquisition of Freedom Pools made in the fiscal quarter ended March 28, 2026.
+Added: The Company recognized $ 7.4 million and $ 14.5 million of amortization expense related to intangible assets during the fiscal quarter and two fiscal quarters ended June 27, 2026.
+Added: The Company recognized $ 7.3 million and $ 14.5 million of amortization expense related to intangible assets during the fiscal quarter and two fiscal quarters ended June 28, 2025.
+Added: The changes in the carrying values of dealer relationships, trade names and trademarks and backlog are driven by the acquisition of Freedom Pools made in the two fiscal quarters ended June 27, 2026.
Intangible assets, net as of December 31, 2025 consisted of the following (in thousands):
16 unchanged sentences
Inventories, net consisted of the following (in thousands):
−Removed: March 28, 2026 December 31, 2025
+Added: June 27, 2026 December 31, 2025
Raw materials $ 55,087 $ 50,973
2 unchanged sentences
The components of the Company’s outstanding long-term debt obligations consisted of the following (in thousands):
−Removed: March 28, 2026 December 31, 2025
+Added: June 27, 2026 December 31, 2025
Term Loan $ 284,000 $ 284,813
2 unchanged sentences
Total debt 279,813 279,841
−Removed: Current portion of Revolving Credit Facility ( 31,000 ) —
Current portion of long-term debt ( 3,250 ) ( 3,250 )
7 unchanged sentences
Dollars, Canadian Dollars, Euros and Australian Dollars.
−Removed: The Revolving Credit Facility matures on February 23, 2027, which is within one year after the date after these financial statements are issued.
+Added: The Revolving Credit Facility matures on February 23, 2027, which is within one year after the date these financial statements are issued.
The Company is currently in discussions to extend the Revolving Credit Facility before it matures.
7 unchanged sentences
The debt issuance costs were recorded within other assets on the condensed consolidated balance sheet and are being amortized over the life of the Revolving Credit Facility.
−Removed: As of March 28, 2026, there was $ 31.0 million in outstanding borrowings on the Revolving Credit Facility and $ 44.0 million was available for future borrowing.
+Added: During the two fiscal quarters ended June 27, 2026, the Company repaid $ 35.0 million of outstanding borrowings on the Revolving Credit Facility.
+Added: As of June 27, 2026, there were no outstanding borrowings on the Revolving Credit Facility and $ 75.0 million was available for future borrowing.
Pursuant to the Credit Agreement, Latham Pool Products borrowed $ 325.0 million in term loans.
2 unchanged sentences
Loans under the Term Loan are subject to scheduled quarterly amortization payments of $ 812,500 , equal to 0.25 % of the initial principal amount of the Term Loan.
−Removed: The Term Loan contains customary mandatory prepayment provisions, including requirements to make mandatory prepayments with 50 % of any excess cash flow and with 100 % of the net cash proceeds from the incurrence of indebtedness not otherwise permitted to be incurred by the covenants, asset sales, and casualty and condemnation events, in each case, subject to customary exceptions.
−Removed: Outstanding borrowings as of March 28, 2026 were $ 280.2 million, net of unamortized discount and debt issuance costs of $ 4.6 million.
−Removed: As of March 28, 2026, the unamortized debt issuance costs and discount on the Term Loan were $ 2.5 million and $ 2.1 million, respectively.
−Removed: The effective interest rate was 8.84 % at March 28, 2026, including the impact of the Company’s interest rate swap.
+Added: The Term Loan contains customary mandatory prepayment provisions, including requirements to make
+Added: mandatory prepayments with 50 % of any excess cash flow and with 100 % of the net cash proceeds from the incurrence of indebtedness not otherwise permitted to be incurred by the covenants, asset sales, and casualty and condemnation events, in each case, subject to customary exceptions.
+Added: Outstanding borrowings as of June 27, 2026 were $ 279.8 million, net of unamortized discount and debt issuance costs of $ 4.2 million.
+Added: As of June 27, 2026, the unamortized debt issuance costs and discount on the Term Loan were $ 2.3 million and $ 1.9 million, respectively.
+Added: The effective interest rate was 8.94 % at June 27, 2026, including the impact of the Company’s interest rate swap.
Interest Rate Risk
16 unchanged sentences
The Credit Agreement also restricts payments and other distributions unless certain conditions are met, which could restrict the Company’s ability to pay dividends.
−Removed: The ownership chain
−Removed: between Latham Pool Products and the Company consists of a series of holding companies with no material assets, liabilities, or standalone operations other than indirect equity interests in Latham Pool Products.
+Added: The ownership chain between Latham Pool Products and the Company consists of a series of holding companies with no material assets, liabilities, or standalone operations other than indirect equity interests in Latham Pool Products.
PRODUCT WARRANTIES
The warranty reserve activity consisted of the following (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025
Balance at the beginning of the fiscal year $ 3,349 $ 2,647
11 unchanged sentences
A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
−Removed: The components of lease expense for the fiscal quarters ended March 28, 2026 and March 29, 2025 were as follows (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: The components of lease expense for the fiscal quarter and two fiscal quarters ended June 27, 2026 and June 28, 2025 were as follows (in thousands):
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
Operating lease expense $ 2,450 $ 2,164 $ 4,737 $ 4,326
4 unchanged sentences
Total lease expense $ 3,022 $ 2,706 $ 5,889 $ 5,442
−Removed: Operating and finance lease right-of-use assets and lease-related liabilities as of March 28, 2026 and December 31, 2025 were as follows (in thousands):
−Removed: March 28, 2026 December 31, 2025 Classification
+Added: Operating and finance lease right-of-use assets and lease-related liabilities as of June 27, 2026 and December 31, 2025 were as follows (in thousands):
+Added: June 27, 2026 December 31, 2025 Classification
Lease right-of-use assets:
8 unchanged sentences
Total lease liabilities $ 34,069 $ 34,534
−Removed: The table below presents supplemental information related to leases as of March 28, 2026 and December 31, 2025:
−Removed: March 28, 2026 December 31, 2025
+Added: The table below presents supplemental information related to leases as of June 27, 2026 and December 31, 2025:
+Added: June 27, 2026 December 31, 2025
Weighted-average remaining lease term (years):
5 unchanged sentences
The table below presents supplemental information related to the cash flows for operating leases recorded on the condensed consolidated statements of cash flows (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 3,751 $ 3,666
−Removed: The following table summarizes fiscal year maturities of operating lease liabilities as of March 28, 2026 (in thousands):
+Added: The following table summarizes fiscal year maturities of operating lease liabilities as of June 27, 2026 (in thousands):
Operating Leases Finance Leases Total
9 unchanged sentences
The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
In-ground Swimming Pools $ 96,314 $ 78,601 $ 156,045 $ 136,335
2 unchanged sentences
$ 197,474 $ 172,639 $ 314,789 $ 284,059
−Removed: The effective income tax rate for the fiscal quarter ended March 28, 2026 was 24.8 %, compared to 40.6 % for the fiscal quarter ended March 29, 2025.
+Added: The effective income tax rate for the fiscal quarter and two fiscal quarters ended June 27, 2026 was 32.4 % and 43.9 %, respectively, compared to 24.3 % and 9.5 %, respectively, for the fiscal quarter and two fiscal quarters ended June 28, 2025.
The differences between the U.S.
−Removed: federal statutory income tax rate and the Company's effective income tax rates for the fiscal quarter ended March 28, 2026 and the fiscal quarter ended March 29, 2025 were primarily attributable to the discrete impact of stock-based compensation expense for which there is no associated tax benefit and the effects of branch accounting for Latham Canada.
+Added: federal statutory income tax rate and the Company's effective income tax rates for the fiscal quarter ended June 27, 2026 and the fiscal quarter ended June 28, 2025 were primarily attributable to the discrete impact of stock-based compensation expense for which there is no associated tax benefit, the effects of branch accounting for Latham Canada and the jurisdictional mix of income.
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S.
−Removed: The OBBBA maintained the 21% corporate tax rate and makes permanent many of the beneficial expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic research and development expenditures, more favorable interest deductions and 100% bonus depreciation with effective dates during the year ended December 31, 2025.
−Removed: Revisions to the international tax framework are effective in the year ending December 31, 2026.
+Added: The OBBBA maintained the 21% corporate tax rate and makes permanent many of the beneficial expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017, including the immediate expensing of domestic research and development expenditures, more favorable interest deductibility and 100 percent bonus depreciation with effective dates in 2025.
+Added: Revisions to the international tax framework are effective in 2026.
The OBBBA did not have a material impact on the Company's effective tax rate.
1 unchanged sentence
On April 12, 2021, the Company’s stockholders approved the Latham Group, Inc.
−Removed: 2021 Omnibus Equity Incentive Plan (the “2021 Omnibus Equity Plan”), which became effective on April 22, 2021, and was further amended on May 2, 2023 to, among other things, increase the maximum aggregate number of shares reserved for issuance under the 2021 Omnibus Equity Plan to 21,170,212 shares.
+Added: 2021 Omnibus Equity Incentive Plan (the “2021 Omnibus Equity Plan”), which became effective on April 22, 2021, and was further amended on May 2, 2023 and April 30, 2026.
+Added: Such amendments, among other things, collectively increased the maximum aggregate number of shares reserved for issuance under the 2021 Omnibus Equity Plan to 24,570,212 shares.
The 2021 Omnibus Equity Plan provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock units and other stock-based and cash-based awards.
The following table summarizes the Company’s stock-based compensation expense (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
Selling, general, and administrative $ 1,609 $ 1,381 $ 2,713 $ 3,352
−Removed: As of March 28, 2026, total unrecognized stock-based compensation expense related to all unvested stock-based awards was $ 14.1 million, which is expected to be recognized over a weighted-average period of 1.8 years.
+Added: As of June 27, 2026, total unrecognized stock-based compensation expense related to all unvested stock-based awards was $ 11.9 million, which is expected to be recognized over a weighted-average period of 1.6 years.
Restricted Stock Units
−Removed: The following table represents the Company’s restricted stock units activity during the fiscal quarter ended March 28, 2026:
+Added: The following table represents the Company’s restricted stock units activity during the two fiscal quarters ended June 27, 2026:
Shares Weighted-
5 unchanged sentences
Forfeited ( 491,540 ) 4.41
−Removed: Outstanding at March 28, 2026 2,788,288 $ 4.74
+Added: Outstanding at June 27, 2026 2,571,022 $ 4.77
Stock Options
−Removed: The following table represents the Company’s stock options activity during the fiscal quarter ended March 28, 2026:
+Added: The following table represents the Company’s stock options activity during the two fiscal quarters ended June 27, 2026:
Shares Weighted-
7 unchanged sentences
Forfeited — —
−Removed: Outstanding at March 28, 2026 1,150,712 $ 14.84 4.34 $ 9
−Removed: Vested and expected to vest at March 28, 2026 1,150,712 $ 14.84 4.34 $ 9
−Removed: Options exercisable at March 28, 2026 1,091,290 $ 15.28 4.24 $ 7
+Added: Expired ( 23,649 ) 17.23
+Added: Outstanding at June 27, 2026 1,127,063 $ 14.78 3.76 $ 81
+Added: Vested and expected to vest at June 27, 2026 1,127,063 $ 14.78 3.76 $ 81
+Added: Options exercisable at June 27, 2026 1,073,609 $ 15.22 3.64 $ 61
The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock.
Stock Appreciation Rights
−Removed: The following table represents the Company’s stock appreciation rights activity during the fiscal quarter ended March 28, 2026:
+Added: The following table represents the Company’s stock appreciation rights activity during the two fiscal quarters ended June 27, 2026:
Shares Weighted-
8 unchanged sentences
Forfeited — —
−Removed: Outstanding at March 28, 2026 1,422,094 $ 5.24 7.89 $ 1,115
−Removed: Vested and expected to vest at March 28, 2026 1,422,094 $ 5.24 7.89 $ 1,115
−Removed: Stock appreciation rights exercisable at March 28, 2026 359,679 $ 3.16 4.46 $ 768
+Added: Outstanding at June 27, 2026 1,383,565 $ 5.30 7.84 $ 1,569
+Added: Vested and expected to vest at June 27, 2026 1,383,565 $ 5.30 7.84 $ 1,569
+Added: Stock appreciation rights exercisable at June 27, 2026 321,150 $ 3.15 4.68 $ 1,048
The aggregate intrinsic value of stock appreciation rights is calculated as the difference between the strike price of the stock appreciation rights and the fair value of the Company’s common stock for those stock appreciation rights that had strike prices lower than the fair value of the Company’s common stock.
6 unchanged sentences
The first and second tranches of PSUs under the 2025 PSU program were granted in March 2025 and 2026, respectively.
−Removed: During the quarter ended March 28, 2026, an additional round of PSU grants were approved.
+Added: During the two fiscal quarters ended June 27, 2026, additional PSU grants were approved for the 2026 PSU program.
The 2026 PSU program includes three equal tranches of grants.
7 unchanged sentences
Compensation expense related to unvested PSUs is recognized ratably over the performance period.
−Removed: The following table represents the Company’s PSU activity during the fiscal quarter ended March 28, 2026:
+Added: The following table represents the Company’s PSU activity during the two fiscal quarters ended June 27, 2026:
Shares Weighted-
3 unchanged sentences
Forfeited ( 136,870 ) 7.05
−Removed: Outstanding at March 28, 2026 ⁽²⁾ 1,156,432 $ 5.35
+Added: Outstanding at June 27, 2026 ⁽²⁾ 1,118,959 $ 5.31
(1) Represents the adjustment to previously granted PSUs based on the Company’s performance expectations as of the end of each respective fiscal year.
−Removed: (2) An additional 409,883 PSUs could potentially be included if the maximum performance level of 200 % is earned for all PSUs granted on or after January 1, 2025 and outstanding as of March 28, 2026.
−Removed: NET LOSS PER SHARE
−Removed: Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
−Removed: Net loss attributable to common stockholders $ ( 8,534 ) $ ( 5,962 )
+Added: (2) An additional 354,312 PSUs could potentially be included if the maximum performance level of 200 % is earned for all PSUs granted on or after January 1, 2025 and outstanding as of June 27, 2026.
+Added: NET INCOME PER SHARE
+Added: Basic and diluted net income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
+Added: Net income attributable to common stockholders $ 12,754 $ 15,980 $ 4,220 $ 10,018
Weighted-average common shares outstanding
1 unchanged sentence
Diluted 119,541,000 119,389,997 119,732,620 119,624,905
−Removed: Net loss per share attributable to common stockholders:
+Added: Net income per share attributable to common stockholders:
Basic $ 0.11 $ 0.14 $ 0.04 $ 0.09
Diluted $ 0.11 $ 0.13 $ 0.04 $ 0.08
−Removed: As of March 28, 2026 and December 31, 2025, 117,407,719 and 116,766,927 shares of common stock were issued and outstanding, respectively.
−Removed: The following table includes the number of shares that may be dilutive common shares in the future that were not included in the computation of diluted net loss per share because the effect was anti-dilutive:
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: As of June 27, 2026 and December 31, 2025, 117,535,232 and 116,766,927 shares of common stock were issued and outstanding, respectively.
+Added: The following table includes the number of shares that may be dilutive common shares in the future that were not included in the computation of diluted net income per share because the effect was anti-dilutive:
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
Restricted stock awards — — — —
9 unchanged sentences
Operations of the Company’s single segment consisted of the following (in thousands):
−Removed: Fiscal Quarter Ended
−Removed: March 28, 2026 March 29, 2025
+Added: Fiscal Quarter Ended Two Fiscal Quarters Ended
+Added: June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025
Net sales $ 197,474 $ 172,639 $ 314,789 $ 284,059
5 unchanged sentences
Amortization (3)
+Added: 7,585 7,509 14,970 14,911
Stock-based compensation expense 1,609 1,381 2,713 3,352
Strategic initiative costs (4)
+Added: 509 918 959 1,562
Acquisition and integration related costs (5)
+Added: 2,798 16 5,925 283
Restructuring charges (6)
2 unchanged sentences
Earnings from equity method investment ( 1,081 ) ( 488 ) ( 1,916 ) ( 1,441 )
−Removed: Income tax benefit ( 2,806 ) ( 4,079 )
−Removed: Net loss $ ( 8,534 ) $ ( 5,962 )
+Added: Income tax expense 6,113 5,130 3,307 1,051
+Added: Net income $ 12,754 $ 15,980 $ 4,220 $ 10,018
(1) Other cost of sales includes total cost of sales (as presented in the condensed consolidated statements of operations) excluding depreciation, stock-based compensation, restructuring charges, and strategic initiative costs.
2 unchanged sentences
(4) Represents fees paid to external consultants and other expenses for our strategic initiatives.
−Removed: (5) Represents acquisition and integration costs as well as other costs related to potential transactions.
+Added: (5) Represents acquisition and integration costs, including the earn-out related to the Coverstar Central acquisition, as well as other costs related to potential transactions.
(6) Represents costs that include severance and other expenses for our executive management changes.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.