Leslie's (LESL) AI Stock Analysis

• Market Cap: $10.25M
• Dividend Yield: N/A
• Average Volume (3M): 138.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -6.63%
• EPS Growth: -904.47%
• Country: US
• Employees: 3,850
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): -5.24
• Shares Outstanding: 9,316,575
• 10 Day Avg. Volume: 148,912
• 30 Day Avg. Volume: 138,096
• 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 Cap: 24.50
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.60
• Enterprise Value/Ebitda: -1.41
• 1Y Price Target: $2.95
• Price Target Upside: 6.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -2.22
• Revenue Forecast (FY): $1.16B

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-63.77% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held down primarily by weak financial performance (sustained losses, compressed margins, and negative equity) and a clearly bearish technical setup (price far below key moving averages with negative momentum). Reaffirmed guidance and specific transformation actions provide some support, but near-term operating pressure and margin headwinds keep the overall outlook constrained.

Positive Factors

Cost-out transformation

Management has a quantified, multi-pronged cost program ($7M–$12M annualized) with benefits beginning in H2 2026. That reduces structural operating leverage, supports adjusted EBITDA and frees cash over time, making margin recovery initiatives more credible and durable.

Inventory & working capital improvement

A 23% YoY inventory reduction materially improves working capital and lowers carrying and obsolescence risk ahead of peak season. Better inventory productivity enhances cash conversion, reduces impairment exposure and supports steadier seasonal fulfillment over multiple quarters.

Loyalty and omnichannel progress

High loyalty engagement (>85% of transactions) provides durable customer data and repeat purchase mechanics. When combined with omnichannel and delivery rollouts, this strengthens retention, improves basket growth and enhances lifetime value versus a purely transactional retail model.

Negative Factors

Weak balance sheet

Negative shareholders' equity across reported periods constrains financial flexibility and elevates solvency risk. Although debt has fallen, the negative equity base limits capacity for investment, increases sensitivity to revenue shocks and complicates refinancing or strategic M&A options.

Deteriorating operating performance

Sustained revenue declines and compressed gross margins indicate weakened demand, pricing power or product mix deterioration. Deep TTM losses reduce retained capital to invest in growth initiatives and make margin recovery harder, threatening the business's ability to generate consistent positive cash flow.

Customer attrition & seasonality

Loss of 160k residential customers and heavy H2 revenue concentration create a fragile revenue base. High churn raises re-acquisition costs, lowers recurring revenue predictability, and makes cash flow lumpy—exposing the company to larger downside in weak spring/summer seasons.

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 balancers, specialty chemicals, and algae control; pool covers, including winter, solar and safety covers, leaf nets, cover reels, and cover alternatives; pool equipment, which comprise pool cleaners, pool pumps, pool filters, pool heating, and lighting; and pools, such as above ground pools, soft side pools, above ground pools liners and equipment, ladders and rails, and diving boards. The company also provides pool maintenance products, including pool closing and opening supplies, filter catridges, chlorine floaters, backwash and vacuum hoses, and cleaning attachments; parts, such as automatic pool cleaner parts, pool filter and pump parts, and pool heater and heat pump parts; and safety, recreational, and fitness-related products. In addition, it provides pool equipment and repair services. The company markets its products through 952 company operated locations in 38 states and e-commerce websites. It serves the residential, professional, and commercial consumers. The company was founded in 1963 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Leslie's generates revenue through multiple key streams: retail sales from its extensive network of stores, online sales through its e-commerce platform, and service revenue from pool maintenance and repair services. The company sells a wide range of pool and spa products, including chemicals, cleaning equipment, and accessories, which are essential for pool upkeep. Additionally, Leslie's offers seasonal products that cater to peak demand periods, such as summer. Strategic partnerships with leading manufacturers in the pool industry also enhance its product offerings and ensure competitive pricing. The company's focus on customer service and loyalty programs further drives repeat business, contributing significantly to its overall earnings.

Leslie's Financial Statement Overview

Summary

Operating performance has deteriorated with multi-year revenue declines and deep TTM losses alongside gross margin compression. The balance sheet is a major risk due to persistently negative equity despite recent debt reduction, while cash flow is only modestly positive and has weakened versus last year.

Income Statement

Operating performance has deteriorated meaningfully. Revenue has been shrinking for multiple years (TTM (Trailing-Twelve-Months) down ~2.3%), while profitability has swung from solid results in 2021–2022 to deep losses in 2025 and TTM (Trailing-Twelve-Months). Gross margin has also compressed versus 2021–2022 levels, and TTM (Trailing-Twelve-Months) shows negative operating and net margins, indicating weak cost absorption and/or heavy expenses. The main positive is that gross profit remains sizable, suggesting the core product economics are not broken—but the current earnings profile is very challenged.

Balance Sheet

Balance sheet quality is weak due to persistently negative stockholders’ equity across all periods provided, which raises financial risk and limits flexibility. While total debt has come down sharply in TTM (Trailing-Twelve-Months) versus 2024–2025, leverage remains a concern given the negative equity base. Total assets have also trended down from 2024 levels, and with recent losses, the company has less cushion to absorb volatility. Debt reduction is a clear positive, but the capital structure remains strained.

Cash Flow

Cash generation is mixed. TTM (Trailing-Twelve-Months) operating cash flow is positive and free cash flow is modestly positive, which is a near-term support despite large reported net losses. However, free cash flow has fallen sharply versus the prior year, and the company’s cash flow relative to its earnings profile is volatile (strong in 2021/2024, weak in 2023/2025). Overall, the business can generate cash at times, but consistency and durability have weakened recently.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2.76 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.51, and below the 200-day MA of 5.93, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 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
LOW	68 Neutral	$148.41B	22.33	―	1.94%	0.64%	0.58%
HD	65 Neutral	$379.01B	26.75	145.54%	2.67%	7.50%	-0.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARHS	55 Neutral	$1.16B	17.34	20.38%	―	7.36%	-6.85%
NHTC	51 Neutral	$27.45M	-41.72	-0.38%	25.20%	-5.07%	-115.50%
LESL	42 Neutral	$10.25M	-0.04	―	―	-6.63%	-904.47%
TTSH	40 Underperform	$149.80M	-32.24	-1.37%	―	-3.77%	-146.47%

Leslie's Corporate Events

Leslie’s Appoints John Hartmann to Board of Directors

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 for election at the 2026 annual shareholders’ meeting. Hartmann brings nearly 25 years of turnaround and transformation experience across major retail and home improvement businesses, including prior roles as CEO of Ascend Wellness Holdings and True Value, COO of Bed Bath & Beyond and head of its buybuy Baby division, and leadership positions at Home Depot, HD Supply and New Zealand home improvement chain Mitre 10, as well as extensive public and private board experience. Leslie’s board leadership framed the appointment as a way to bolster the company’s ongoing strategic transformation and modernization efforts, suggesting his turnaround expertise and governance background are expected to support long-term growth and value creation for shareholders and other stakeholders.

The most recent analyst rating on (LESL) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.

Leslie’s Announces Store Closures to Boost Profitability

On November 25, 2025, Leslie’s approved a plan to streamline operations by closing 80-90 underperforming U.S. stores, aiming to improve long-term profitability. The closures are expected to be completed by the end of the first fiscal quarter of 2026, with anticipated pre-tax charges of $12.0 million to $17.0 million. The company reported its fiscal 2025 results, noting a decrease in sales and a significant net loss compared to the previous year. Despite these challenges, Leslie’s achieved a gross profit increase in the fourth quarter and exceeded its sales and adjusted EBITDA guidance. The strategic transformation plan focuses on optimizing costs, reducing inventory, and enhancing stakeholder confidence.

The most recent analyst rating on (LESL) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Leslie’s stock, see the LESL Stock Forecast page.