Leslie's (LESL)
NASDAQ:LESL
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Leslie's
(NASDAQ:LESL)
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Rating:44Neutral
Price Target:
$1.00
▼(-63.77% Downside)
Action:ReiteratedDate:03/27/26
The score is held down primarily by deteriorated financial performance (losses, margin pressure, and negative equity) and a weak long-term price trend. Reaffirmed guidance and quantified cost-saving initiatives from the latest earnings call provide some support, but near-term operating results and expected margin headwinds keep the outlook challenged.
Positive Factors
Recurring Consumables Demand
Leslie’s core product mix is dominated by consumable chemicals and maintenance products that drive repeat purchases across seasons. Durable recurring demand for consumables supports a steadier revenue base and repeat transactions, underpinning longer‑term cash generation and customer lifetime value.
Negative Factors
Weak Balance Sheet
Negative shareholders’ equity signals structural capital depletion and elevates solvency risk. Even with recent debt reduction, a negative equity base limits flexibility for investment or downturns, increases creditor sensitivity and constrains the company's ability to absorb shocks over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Demand
Leslie’s core product mix is dominated by consumable chemicals and maintenance products that drive repeat purchases across seasons. Durable recurring demand for consumables supports a steadier revenue base and repeat transactions, underpinning longer‑term cash generation and customer lifetime value.
Read all positive factors
Leslie's (LESL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.50M
Dividend YieldN/A
Average Volume (3M)138.10K
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-6.63%
EPS Growth-904.47%
CountryUS
Employees3,850
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)-5.24
Shares Outstanding9,316,575
10 Day Avg. Volume148,912
30 Day Avg. Volume138,096
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.11
Price to Sales (P/S)0.04
P/FCF Ratio-2.74
Enterprise Value/Market Cap26.35
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit0.60
Enterprise Value/Ebitda-1.41
Forecast
1Y Price Target
$1.00Price Target Upside-63.77% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)-2.26
Revenue Forecast (FY)$1.16B
Leslie's Business Overview & Revenue Model
Company Description
Leslie's, Inc. operates as a direct-to-consumer pool and spa care brand in the United States. The company markets and sells pool and spa supplies and related products and services. It offers pool chemicals consisting of chlorine, sanitizers, water...
How the Company Makes Money
Leslie’s generates revenue primarily by selling pool and spa products through its owned retail stores and online platform. The largest recurring component of its sales is consumable pool and spa chemicals (such as water treatment and maintenance p...
Leslie's Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Negative
The call presented a mixed but cautionary picture: management demonstrated clear, concrete progress on a multi-pronged transformation (rapid store closures, SKU rationalization, DC optimization, expense reductions, national pricing campaign, loyalty activation and delivery rollouts) and reaffirmed full-year guidance and planned EBITDA improvements. However, Q1 financials were materially weak—net sales down 16%, comps down 15.5%, gross margin compressed sharply (27.2% to 18.4%), a larger net loss ($83M) and worsening adjusted EBITDA—driven by seasonality, prior-year one-offs, customer churn and noncash impairment charges. Management expects near-term margin pressure from pricing and inventory actions but projects multi-sourced cost savings to partially offset and deliver modest net EBITDA benefit in fiscal 2026. Overall, the operational progress is notable, but near-term financial performance remains challenged.Positive Updates
Reaffirmed Full-Year Guidance
Company reaffirmed fiscal 2026 guidance: net sales $1.1B to $1.25B and adjusted EBITDA $55M to $75M.
Negative Updates
Significant Top-Line Decline in Q1
Q1 net sales $147.1M vs $175.2M prior year, a 16% YoY decline. Comparable sales decreased 15.5% YoY; roughly 850 basis points of the comp decline attributed to one-time headwinds (hurricane benefit ~$4M, 53rd week shift ≈$10M, closed stores ≈$1M).
Read all updates
Q1-2026 Updates
Positive
Negative
Reaffirmed Full-Year Guidance
Company reaffirmed fiscal 2026 guidance: net sales $1.1B to $1.25B and adjusted EBITDA $55M to $75M.
Read all positive updates
Company Guidance
Management reaffirmed FY‑2026 guidance of net sales $1.1 billion to $1.25 billion and adjusted EBITDA $55 million to $75 million for the 52‑week year, with CapEx expected at $20M–$25M and positive free cash flow targeted; they expect pricing changes to reduce annual product gross margins by ~100–150 bps while inventory optimization may cause a one‑time ~100–200 bps hit (largely in Q3–Q4), and highlighted several initiatives to offset that impact — elimination of >2,000 SKUs to generate $4M–$5M of incremental EBITDA, closure of 80 stores that will cost an estimated $25M–$35M of annual sales but yield $4M–$10M of annualized net EBITDA (fully completed by end of Q2 2026), DC rationalization (Denver already saved ≈$500k/year and the Illinois DC is expected to save $0.5M–$1M/year), and broader expense reductions expected to deliver $7M–$12M of annualized savings (benefits starting in H2), with the company estimating the combined initiatives will yield a net EBITDA benefit of roughly $5M–$10M in FY‑2026; management reiterated the seasonal bias toward the back half of the year and noted quarter‑end liquidity of ≈$128M availability, $25M drawn on the credit line and $752M of long‑term debt.Leslie's Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
34
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.24B | 1.33B | 1.45B | 1.56B | 1.34B |
| Gross Profit | 419.00M | 439.65M | 476.79M | 548.22M | 673.74M | 595.16M |
| EBITDA | -177.78M | -136.39M | 90.19M | 136.32M | 269.13M | 224.09M |
| Net Income | -275.38M | -236.97M | -23.38M | 27.24M | 159.03M | 126.63M |
Balance Sheet | ||||||
| Total Assets | 649.44M | 741.48M | 1.05B | 1.03B | 1.11B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 3.62M | 64.34M | 108.50M | 55.42M | 112.29M | 345.06M |
| Total Debt | 244.48M | 1.01B | 1.05B | 1.04B | 1.03B | 1.02B |
| Total Liabilities | 1.14B | 1.15B | 1.23B | 1.20B | 1.31B | 1.26B |
| Stockholders Equity | -489.85M | -407.99M | -177.15M | -161.36M | -197.95M | -217.56M |
Cash Flow | ||||||
| Free Cash Flow | 7.63M | -16.67M | 60.22M | -32.11M | 34.92M | 140.63M |
| Operating Cash Flow | 32.77M | 8.82M | 107.47M | 6.47M | 66.64M | 169.56M |
| Investing Cash Flow | -25.03M | -25.35M | -47.16M | -52.54M | -138.98M | -35.35M |
| Financing Cash Flow | -15.73M | -27.64M | -7.22M | -10.80M | -158.87M | 53.78M |
Leslie's Technical Analysis
Negative
2.76
Price Trends
1.21
Negative
1.85
Negative
4.42
Negative
Market Momentum
-0.04
Negative
45.39
Neutral
50.92
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 2.76 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.21, and below the 200-day MA of 4.42, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LESL.
Leslie's Risk Analysis
Leslie's disclosed 46 risk factors in its most recent earnings report. Leslie's reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leslie's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $320.37B | 26.52 | 130.02% | 2.67% | 7.50% | -0.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $128.99B | 22.44 | -59.21% | 1.94% | 0.64% | 0.58% | |
55 Neutral | $917.30M | 23.45 | 20.38% | ― | 7.36% | -6.85% | |
51 Neutral | $23.85M | -15.12 | -3.23% | 25.20% | -5.07% | -115.50% | |
44 Neutral | $9.50M | -0.05 | ― | ― | -6.63% | -904.47% | |
40 Underperform | $125.04M | -34.23 | -3.93% | ― | -3.77% | -146.47% |
* Consumer Cyclical Sector Average
LESL
Leslie's
1.02
-13.69
-93.07%
HD
Home Depot
321.65
-35.80
-10.02%
LOW
Lowe's
230.31
1.69
0.74%
TTSH
Tile Shop
3.14
-3.34
-51.54%
NHTC
Natural Health Trends
2.78
-1.53
-35.44%
ARHS
Arhaus
6.50
-1.79
-21.60%
Leslie's Corporate Events
Executive/Board ChangesShareholder Meetings
Leslie’s shareholders affirm board, pay, and incentive plan
Positive
Mar 27, 2026
At its March 24, 2026 annual shareholder meeting, Leslie’s, Inc. investors elected three Class II directors and one Class III director to one-year terms expiring at the 2027 meeting, and ratified Grant Thornton LLP as the independent auditor...
Business Operations and StrategyExecutive/Board Changes
Leslie’s Appoints John Hartmann to Board of Directors
Positive
Jan 8, 2026
On January 6, 2026, Leslie’s, Inc. expanded its board of directors from eight to nine members and appointed veteran retail executive John Hartmann as an independent Class III director, effective January 7, 2026, with plans for him to stand f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.