Analysis for POOL

📈 Growth & Financial Trajectory

Over the latest 7 quarters, POOL CORP's revenue rose from about $0.99B in 2024 Q3 to about $1.82B in 2026 Q2, nearly doubling. Net income grew from roughly $37M to $188M, signaling strong earnings expansion as the business scales. Gross margins have trended in the high-20s to low-30s and operating margins improved toward the mid-teens in the latest period, reflecting better operating leverage.

The trajectory shows resilience and margin progression, with the most recent quarter delivering meaningful top-line growth and improving profitability versus earlier periods.

💰 Margins & Cash Flow

Gross margin around 29-34% across quarters, with Q2 2026 near 30%; operating margin improved to about 14-15% in Q2 2026 from lower levels earlier, indicating operating leverage. Cash flow was mixed: operating cash flow in Q2 2026 was -$26.5M versus +$25.7M in Q1 2026; investing outflows about -$28.3M; financing inflows +$20.7M; resulting in a net cash flow of -$35.7M for the quarter, signaling near-term cash-flow volatility despite solid earnings.

🛡️ Balance Sheet & Liquidity

Total assets around $3.76B (Q2 2026), with equity about $1.26B and long-term debt of roughly $1.33B. Current assets of about $2.09B vs current liabilities of about $0.78B, yielding a robust current ratio (~2.7x). Leverage remains manageable with debt roughly in line with equity, supporting liquidity.

⚠️ Key Drivers & Risks

• Drivers: Pool equipment demand and expansion into distribution channels; favorable weather/housing activity
• Risks: Cyclical consumer spending and cost volatility that could pressure margins; net debt level and quarterly cash-flow variability