AI Takeaway
Pool Corporation delivered solid Q1 2026 revenue growth of 6.2% to $1.14B, but net income was essentially flat at $53.2M as rising long-term debt and higher SG&A costs offset top-line gains.
Revenue
$1.14B
++6.20% YoY
EPS (Basic)
$1.46
++2.82% YoY
Gross Margin
29.0%
-0.17% YoY
Operating Income
$82.61M
++6.54% YoY
Filed · Source: SEC EDGAR 10-Q filing
Net sales increased 6.2% year-over-year to $1.14B in Q1 2026 (vs. $1.07B in Q1 2025), reflecting continued demand in the pool products distribution market despite seasonal headwinds typical of the first quarter.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin declined modestly by approximately 17 basis points to 28.99% from 29.15% in the prior year period, as cost of revenue grew 6.5%—slightly faster than revenue growth of 6.2%—indicating mild cost pressure on product procurement or mix shift.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
SG&A expenses rose 5.3% to $247.3M, slightly below the 6.2% revenue growth rate, which helped operating income grow 6.5% to $82.6M and kept operating margin essentially stable at 7.26% vs. 7.24% in Q1 2025.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
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Upgrade to unlockLong-term debt increased 27.5% YoY to $1.23B, pushing the debt-to-equity ratio to 2.53x. This elevated leverage increases interest expense burden and reduces financial flexibility, particularly if interest rates remain elevated or business conditions soften.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $1.43 versus the $1.38 analyst consensus — a +3.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.14B | $1.07B | +6.20% |
Cost of Revenue | $808.14M | $759.16M | +6.45% |
Gross Profit | $329.87M | $312.37M | +5.60% |
Operating Income | $82.61M | $77.54M | +6.54% |
Net Income | $53.23M | $53.55M | -0.59% |
EPS (Basic) | $1.46 | $1.42 | +2.82% |
EPS (Diluted) | $1.45 | $1.42 | +2.11% |
SG&A Expense | $247.26M | $234.83M | +5.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4B | $3.71B | +7.73% |
Current Assets | $2.34B | $2.08B | +12.83% |
Total Liabilities | $2.87B | $2.47B | +15.86% |
Current Liabilities | $1.25B | $1.16B | +8.17% |
Stockholders' Equity | $1.13B | $1.24B | -8.51% |
Long-Term Debt | $1.23B | $968.03M | +27.46% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $25.74M | $27.22M | -5.45% |
Investing Cash Flow | $-7.76M | $-13.56M | +42.76% |
Financing Cash Flow | $-58.49M | $-20.61M | -183.79% |
Dividends Paid | $45.76M | $45.23M | +1.17% |
Share Buybacks | $64.43M | $56.32M | +14.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 29.0% | 29.2% | -0.17% |
Operating Margin | 7.3% | 7.2% | +0.02% |
Net Margin | 4.7% | — | — |
ROE | 4.7% | — | — |
ROA | 1.3% | — | — |
Current Ratio | $1.872 | — | — |
Debt to Equity | $2.529 | — | — |
Pool Corp reported Q1 2026 revenue of $1.14B, up 6.2% year-over-year, with operating income growing 6.5% to $82.6M. However, net income was essentially flat at $53.2M (-0.6% YoY), likely due to higher interest expenses from increased debt, while basic EPS rose 2.8% to $1.46 aided by share buybacks.
The key takeaways are: revenue growth of 6.2% to $1.14B shows healthy demand, operating margins held steady at ~7.26%, but long-term debt surged 27.5% to $1.23B as the company funded $110M in shareholder returns (buybacks + dividends) in a single quarter. Net income stagnation despite top-line growth signals rising interest costs are becoming a headwind.
Pool Corp paid $45.8M in dividends in Q1 2026, a modest 1.2% increase compared to $45.2M in Q1 2025. Additionally, the company repurchased $64.4M in shares, up 14.4% YoY, demonstrating a continued commitment to returning capital to shareholders.
Pool Corp's short-term liquidity looks adequate with a current ratio of 1.87x, but leverage has increased significantly with a debt-to-equity ratio of 2.53x after long-term debt rose 27.5% to $1.23B. Stockholders' equity declined 8.5% to $1.13B, and the combination of elevated debt and modest Q1 cash generation ($25.7M operating cash flow) warrants monitoring.
Pool Corp's revenue grew 6.2% to $1.14B and operating income grew 6.5% to $82.6M, yet net income fell slightly by 0.6% to $53.2M. The divergence between operating and net income growth strongly suggests that higher interest expenses—stemming from a 27.5% increase in long-term debt to $1.23B—are absorbing the operating gains before they reach the bottom line.