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Leslie's
(NASDAQ:LESL)
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Rating:43Neutral
Price Target:
$1.50
▲(42.86% Upside)
Action:Reiterated
Date:08/05/26
LESL scores low primarily due to weak financial performance (large losses, negative equity, and limited FCF cushion) and very bearish technical trends (well below major moving averages with negative MACD). The earnings call provides some offset via reiterated FY2026 guidance and measurable margin/cost initiatives, but high leverage and continued unprofitability keep the overall risk profile elevated; valuation support is limited given negative earnings.
Positive Factors
Recurring Consumables Revenue
Leslie’s core consumables (chemicals, maintenance items) produce frequent, repeat purchases that underpin predictable revenue and gross margin through seasonality. This recurring demand supports stable cash conversion and customer lifetime value over multiple seasons, aiding medium-term recovery and planning.
Negative Factors
Persistent Unprofitability
Large recurring GAAP losses and very negative margins indicate structural profitability issues beyond seasonal swings. Even with margin recovery, sustained negative net income undermines equity rebuilding, makes internal funding of initiatives difficult, and raises execution risk over the 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Revenue
Leslie’s core consumables (chemicals, maintenance items) produce frequent, repeat purchases that underpin predictable revenue and gross margin through seasonality. This recurring demand supports stable cash conversion and customer lifetime value over multiple seasons, aiding medium-term recovery and planning.
Read all positive factors
Leslie's (LESL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.90M
Dividend YieldN/A
Average Volume (3M)138.10K
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth-7.46%
EPS Growth-511.09%
CountryUS
Employees3,790
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-29.75
Shares Outstanding9,359,448
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.25Price Target Upside209.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-3.04
Revenue Forecast (FY)$1.18B
Leslie's Business Overview & Revenue Model
Company Description
Leslie's, Inc. operates as a leading direct-to-consumer brand specializing in comprehensive pool and spa care throughout the United States. The company actively markets and sells a vast array of supplies, equipment, and related services to ensure ...
How the Company Makes Money
Leslie's generates revenue primarily through the sale of pool and spa products across its retail store base and e-commerce channels. The largest and most recurring revenue driver is consumables—especially pool chemicals (e.g., chlorine and related...
Leslie's Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call emphasized solid operational and commercial progress: revenue and comparable sales growth, strong customer reactivation, meaningful gross margin expansion, inventory reductions, and a $9.2M improvement in adjusted EBITDA. Management outlined concrete cost-savings levers (store optimization, SKU rationalization, expense reductions) and reiterated full-year guidance while rolling out the Price Drop initiative and convenience capabilities (BOPIS, Uber). However, significant headwinds remain—GAAP and adjusted net losses are still material, adjusted EBITDA remains negative, store closures create a near-term sales drag, there is an upcoming one-time margin impact from inventory optimization, and leverage is high at $753M. On balance, the progress and momentum in customer metrics, margin expansion, and operational initiatives outweigh the outstanding challenges, but the company is not yet profitable and execution risk into the peak season and back half of the year is meaningful.Positive Updates
Revenue Growth
Net sales increased 4.3% year-over-year to $184.7 million in Q2 (from $177.1 million), driven by strong retail performance, especially residential and PRO in March and the Western U.S.
Negative Updates
Net Loss and Adjusted Net Loss Remain Material
GAAP net loss widened to $52.5 million in Q2 from $51.3 million a year ago. Adjusted net loss increased to $50.0 million from $48.3 million, indicating continued unprofitable quarters despite improvements in EBITDA.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Net sales increased 4.3% year-over-year to $184.7 million in Q2 (from $177.1 million), driven by strong retail performance, especially residential and PRO in March and the Western U.S.
Read all positive updates
Company Guidance
Leslie’s reiterated fiscal 2026 guidance calling for net sales of $1.1 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, with CapEx of $20 million to $25 million and positive free cash flow expected for the year; management said its pricing strategy should boost annual gross margins by ~100–150 basis points while inventory optimization will cause a one‑time ~100–200 bps reduction to annualized gross margin in Q3–Q4. They quantified discrete initiatives: completed store optimization (80 closures) with an expected annual net sales impact of ~$25–35 million but an annualized net EBITDA benefit of $4–10 million, SKU rationalization (removing ~2,000 long‑tail SKUs) to deliver ~$4–5 million of annualized EBITDA, and expense reductions of ~$7–12 million annually (benefits starting H2 2026); combined initiatives are expected to drive a $5–10 million improvement to EBITDA in fiscal 2026 after reinvestment in the Price Drop program. Management pointed to Q2 results underpinning the outlook—Q2 net sales $184.7 million (+4.3% YoY), comparable sales +6.6%, gross margin 28.9% (vs. 24.8% a year ago), adjusted EBITDA improvement to –$26.8 million (from –$36.1 million), inventory down ~22% to $262.4 million—and highlighted liquidity of ~$97.1 million available (including $99 million drawn on the credit line and $753 million of long‑term debt).Leslie's Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
33
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22B | 1.24B | 1.33B | 1.45B | 1.56B | 1.34B |
| Gross Profit | 428.40M | 439.65M | 476.79M | 548.22M | 673.74M | 595.16M |
| EBITDA | -155.85M | -136.39M | 90.19M | 136.32M | 269.13M | 224.09M |
| Net Income | -276.55M | -236.97M | -23.38M | 27.24M | 159.03M | 126.63M |
Balance Sheet | ||||||
| Total Assets | 715.46M | 741.48M | 1.05B | 1.03B | 1.11B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 16.92M | 64.34M | 108.50M | 55.42M | 112.29M | 345.06M |
| Total Debt | 1.09B | 1.01B | 1.05B | 1.04B | 1.03B | 1.02B |
| Total Liabilities | 1.26B | 1.15B | 1.23B | 1.20B | 1.31B | 1.26B |
| Stockholders Equity | -541.33M | -407.99M | -177.15M | -161.36M | -197.95M | -217.56M |
Cash Flow | ||||||
| Free Cash Flow | 2.77M | -16.67M | 60.22M | -32.11M | 34.92M | 140.63M |
| Operating Cash Flow | 26.58M | 8.82M | 107.47M | 6.47M | 66.64M | 169.56M |
| Investing Cash Flow | -23.73M | -25.35M | -47.16M | -52.54M | -138.98M | -35.35M |
| Financing Cash Flow | -3.18M | -27.64M | -7.22M | -10.80M | -158.87M | 53.78M |
Leslie's Technical Analysis
Negative
1.05
Price Trends
5.20
Negative
3.46
Negative
2.80
Negative
Market Momentum
-1.27
Negative
33.05
Neutral
79.80
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 1.05 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 5.20, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of -1.27 indicates Negative momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $331.00B | 23.51 | 113.30% | 2.78% | 2.23% | -4.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.05B | 15.91 | 16.39% | ― | 7.36% | 10.24% | |
56 Neutral | $116.52B | 17.56 | -64.84% | 2.34% | 6.24% | -2.12% | |
44 Neutral | $14.67M | -11.51 | -4.88% | 31.58% | -14.38% | -615.84% | |
43 Neutral | $8.90M | -0.03 | 65.64% | ― | -7.46% | -511.09% | |
43 Neutral | $117.08M | -29.08 | -3.93% | ― | -2.91% | -23633.33% |
* Consumer Cyclical Sector Average
LESL
Leslie's
1.52
-4.46
-74.59%
HD
Home Depot
349.52
-26.65
-7.08%
LOW
Lowe's
218.40
-15.36
-6.57%
TTSH
Tile Shop
2.86
-3.19
-52.77%
NHTC
Natural Health Trends
1.69
-2.50
-59.65%
ARHS
Arhaus
9.68
-1.75
-15.28%
Leslie's Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Leslie’s Regains Nasdaq Compliance, Listing Issue Resolved
Positive
Jun 1, 2026
On February 11, 2026, Leslie’s Inc. disclosed that it had fallen out of compliance with Nasdaq Listing Rule 5450(b)(3)(C) after its market value of publicly held shares remained below the required $15 million threshold for 30 consecutive bus...
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.