Leslie's (LESL) AI Stock Analysis

• Market Cap: $36.66M
• Dividend Yield: N/A
• Average Volume (3M): 188.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -8.36%
• EPS Growth: -2950.63%
• Country: US
• Employees: 3,850
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 4.00
• Shares Outstanding: 9,280,415
• 10 Day Avg. Volume: 162,071
• 30 Day Avg. Volume: 188,415
• PEG Ratio: 0.12
• Price to Book (P/B): -2.98
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 8.77
• Enterprise Value/Market Cap: 29.34
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 161.51
• 1Y Price Target: $7.20
• Price Target Upside: 78.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 39 Underperform
• Price Target: $3.50 ▼(-13.15% Downside)

Leslie's stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative margins, and high leverage. Technical analysis further supports a bearish outlook with negative momentum indicators. Valuation metrics are unfavorable due to ongoing losses. While the earnings call provided some strategic insights, the overall sentiment remains negative due to significant sales and traffic declines.

Positive Factors

Pro Partner Contracts Increase

An increase in Pro partner contracts suggests stronger relationships with professional clients, potentially leading to stable long-term revenue streams and enhanced market presence.

Improved Inventory Management

Effective inventory management can reduce costs and improve cash flow, ensuring product availability and customer satisfaction, which are crucial for sustaining business operations.

AccuBlue Technology Boosts Conversion Rates

The AccuBlue technology enhances customer engagement and conversion rates, indicating potential for increased sales and customer loyalty, strengthening the company's competitive edge.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which can impact long-term profitability and business sustainability.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

Net Loss Expectations

Expecting a net loss highlights ongoing operational challenges and financial strain, which may hinder the company's ability to invest in growth and improve shareholder value.

Leslie's Business Overview & Revenue Model

Company Description

Leslie's, Inc. (NASDAQ: LESL) is a leading retailer of swimming pool supplies and related products in the United States. Founded in 1963, the company operates a vast network of retail stores and an e-commerce platform, specializing in a wide range of products including pool chemicals, equipment, maintenance supplies, and outdoor living products. Leslie's serves both residential and commercial customers, providing essential services such as pool maintenance and repair, making it a key player in the leisure and recreation sector.

How the Company Makes Money

Leslie's generates revenue primarily through the sale of pool and spa products in its retail locations and online. The company offers a diverse range of products, including chemicals, cleaners, filters, pumps, and various accessories, which contribute significantly to its sales. In addition to product sales, Leslie's also earns money through service offerings, including pool maintenance and repair services for residential and commercial clients, which provide a recurring revenue stream. The company leverages its extensive store network and online presence to capture a wide customer base, and strategic partnerships with manufacturers and suppliers enhance its product offerings and pricing strategies. Seasonal demand fluctuations, particularly in warmer months, also play a crucial role in revenue generation, as more consumers invest in pool maintenance and upgrading their outdoor spaces.

Leslie's Financial Statement Overview

Summary

Leslie's financial performance is under significant pressure, with declining revenues, negative profit margins, high leverage, and negative equity. Cash flow challenges further exacerbate financial instability, with negative free cash flow growth and weak cash generation.

Income Statement

Leslie's has experienced a decline in revenue over the TTM, with a negative revenue growth rate of -5.25%. The gross profit margin has decreased to 34.61% from previous years, indicating pressure on profitability. The net profit margin is negative at -6.72%, reflecting a challenging period for the company. EBIT and EBITDA margins have also significantly decreased, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio of -4.20, indicating high leverage and negative equity, which poses financial stability risks. Return on equity is positive at 36.84%, but this is due to negative equity, which distorts the metric. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -171.99%, raising concerns about liquidity. The operating cash flow to net income ratio is low at 0.03, indicating weak cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018
Income Statement
Total Revenue	1.25B	1.33B	1.45B	928.20M	892.60M
Gross Profit	432.77M	476.79M	548.22M	379.74M	357.14M
EBITDA	6.66M	90.19M	136.32M	144.56M	145.32M
Net Income	-84.08M	-23.38M	27.24M	702.00K	17.13M
Balance Sheet
Total Assets	989.49M	1.05B	1.03B	479.72M	453.16M
Cash, Cash Equivalents and Short-Term Investments	42.68M	108.50M	55.42M	90.90M	77.57M
Total Debt	1.03B	1.05B	1.04B	1.19B	1.20B
Total Liabilities	1.24B	1.23B	1.20B	1.37B	1.34B
Stockholders Equity	-246.17M	-177.15M	-161.36M	-887.36M	-888.95M
Cash Flow
Free Cash Flow	-24.33M	60.22M	-32.11M	30.38M	14.49M
Operating Cash Flow	7.66M	107.47M	6.47M	57.82M	43.28M
Investing Cash Flow	-31.86M	-47.16M	-52.54M	-37.00M	-40.22M
Financing Cash Flow	-7.55M	-7.22M	-10.80M	-7.50M	-24.39M

Leslie's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LESL, the sentiment is Negative. The current price of 4.03 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 5.79, and below the 200-day MA of 15.33, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LESL.

Leslie's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HD	75 Outperform	$387.18B	26.16	193.95%	2.38%	8.52%	-0.97%
ARHS	69 Neutral	$1.49B	20.69	20.48%	―	4.76%	-19.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOW	60 Neutral	$136.58B	20.04	―	1.93%	-0.49%	0.83%
NHTC	51 Neutral	$51.23M	143.57	1.05%	18.39%	-2.07%	-61.05%
TTSH	49 Neutral	$281.10M	―	-0.02%	―	-5.41%	-100.49%
LESL	39 Underperform	$36.66M	―	―	―	-8.36%	-2950.63%

Leslie's Corporate Events

Leslie’s Regains Nasdaq Compliance After Bid Price Recovery

Leslie’s, Inc. has successfully regained compliance with Nasdaq’s minimum bid price requirement, as notified by the Listing Qualifications Department. The company had previously faced potential delisting due to its stock price falling below $1.00 per share for 30 consecutive days, but managed to meet the requirement by maintaining a minimum closing bid price of at least $1.00 per share for ten consecutive business days from September 29, 2025, to October 13, 2025.

The most recent analyst rating on (LESL) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Implements 1-for-20 Reverse Stock Split

On September 26, 2025, Leslie’s, Inc. implemented a reverse stock split at a 1-for-20 ratio, reducing the total number of issued and outstanding shares to approximately 9,289,790 and the authorized shares to 50,000,000. The company’s common stock will trade on a split-adjusted basis on Nasdaq starting September 29, 2025, under the ticker symbol ‘LESL’, with a new CUSIP number. No fractional shares were issued, and adjustments were made to the company’s 2020 Omnibus Incentive Plan to reflect the reverse stock split.

The most recent analyst rating on (LESL) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Announces Reverse Stock Split Effective September 26

Leslie’s, Inc. announced a reverse stock split of its common stock at a 1-for-20 ratio, with a corresponding decrease in authorized shares. Initially expected to take effect after trading on September 25, 2025, the effective time has been adjusted to after trading on September 26, 2025. Trading on a split-adjusted basis will begin on September 29, 2025, on the Nasdaq Global Select Market.

The most recent analyst rating on (LESL) stock is a Hold with a $0.35 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Appoints Jeff White as New CFO

Leslie’s, Inc. announced the appointment of Jeff White as the new Chief Financial Officer and Treasurer, effective October 5, 2025. White, who brings extensive experience from his previous role at Sportsman’s Warehouse Holdings, will replace Tony Iskander, who will serve as an advisor during the transition period. This strategic move aims to strengthen Leslie’s financial leadership and ensure a smooth transition in its executive team.

The most recent analyst rating on (LESL) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Announces Reverse Stock Split Approval

On September 10, 2025, Leslie’s Inc. held a special meeting where shareholders approved amendments to the company’s incorporation certificate to execute a reverse stock split and reduce authorized shares. The board finalized a 1-for-20 reverse stock split effective September 25, 2025, reducing outstanding shares to 9,289,790 and authorized shares to 50,000,000. The stock will trade on a split-adjusted basis on Nasdaq starting September 26, 2025.

The most recent analyst rating on (LESL) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Announces Interim CFO Tony Iskander’s Departure

Leslie’s, Inc. announced that Tony Iskander will step down from his role as Interim Chief Financial Officer and Treasurer, effective October 4, 2025, or earlier if a successor is appointed. His departure is for personal reasons and not due to any disagreements with the company, and he may continue as an advisor.

The most recent analyst rating on (LESL) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s, Inc. Faces Challenges Amidst Sales Decline

Leslie’s, Inc. Faces Challenges Amidst Sales Decline and Competitive Pressures

Leslie’s, Inc. Reports Challenging Q3 2025 Results

Leslie’s, Inc. is the largest direct-to-customer brand in the U.S. pool and spa care industry, offering a wide range of essential products for residential customers and pool professionals across the nation. The company operates over 1,000 physical locations and a comprehensive digital platform, providing a seamless shopping experience for its consumers.