Leslie's (LESL) AI Stock Analysis

• Market Cap: $27.87M
• Dividend Yield: N/A
• Average Volume (3M): 138.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -6.63%
• EPS Growth: -904.47%
• Country: US
• Employees: 3,850
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.09
• Shares Outstanding: 9,289,790
• 10 Day Avg. Volume: 148,912
• 30 Day Avg. Volume: 138,096
• PEG Ratio: 0.13
• Price to Book (P/B): -3.29
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 9.69
• Enterprise Value/Market Cap: 38.59
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 161.51
• 1Y Price Target: $4.15
• Price Target Upside: 57.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $3.50 ▲(33.08% Upside)

Leslie's faces substantial financial challenges, with declining revenues, high leverage, and negative equity. Technical indicators suggest bearish momentum, and the valuation is unattractive due to ongoing losses. While strategic initiatives were noted in the earnings call, they are insufficient to offset the broader negative outlook.

Positive Factors

Enhanced Loyalty Program

The enhanced Pool Perks loyalty program aims to increase customer retention and attract new pool owners, potentially boosting long-term sales.

Inventory Management

Effective inventory management with a 9.6% reduction year-over-year enhances operational efficiency and reduces costs, supporting long-term profitability.

New CFO Appointment

Appointing Jeff White as CFO may bring fresh strategic insights and financial management, potentially improving financial stability and performance.

Negative Factors

Revenue Decline

A 12% decline in quarterly sales due to weather and competition indicates challenges in maintaining market share and revenue growth.

High Leverage

High leverage with negative equity poses significant financial risks, limiting the company's ability to invest in growth and weather downturns.

Cash Flow Challenges

Significant decline in free cash flow growth raises liquidity concerns, affecting the company's ability to fund operations and strategic initiatives.

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 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 and profitability. The balance sheet reveals high leverage and negative equity, while cash flow challenges are evident with negative free cash flow growth and weak cash generation. These factors indicate substantial financial instability.

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 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.33B	1.45B	1.56B	1.34B	1.11B
Gross Profit	432.77M	476.79M	548.22M	673.74M	595.16M	460.71M
EBITDA	6.66M	90.19M	136.32M	269.13M	224.09M	176.81M
Net Income	-84.08M	-23.38M	27.24M	159.03M	126.63M	58.56M
Balance Sheet
Total Assets	989.49M	1.05B	1.03B	1.11B	1.04B	746.44M
Cash, Cash Equivalents and Short-Term Investments	42.68M	108.50M	55.42M	112.29M	345.06M	157.07M
Total Debt	1.03B	1.05B	1.04B	1.03B	1.02B	1.37B
Total Liabilities	1.24B	1.23B	1.20B	1.31B	1.26B	1.57B
Stockholders Equity	-246.17M	-177.15M	-161.36M	-197.95M	-217.56M	-827.00M
Cash Flow
Free Cash Flow	-24.33M	60.22M	-32.11M	34.92M	140.63M	82.78M
Operating Cash Flow	7.66M	107.47M	6.47M	66.64M	169.56M	103.41M
Investing Cash Flow	-31.86M	-47.16M	-52.54M	-138.98M	-35.35M	-26.81M
Financing Cash Flow	-7.55M	-7.22M	-10.80M	-158.87M	53.78M	-10.43M

Leslie's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2.63 is below the 20-day moving average (MA) of 2.99, below the 50-day MA of 3.81, and below the 200-day MA of 9.87, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 37.12 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, 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
ARHS	71 Outperform	$1.49B	20.24	20.38%	―	7.36%	-6.85%
HD	66 Neutral	$349.59B	24.40	162.91%	2.59%	7.50%	-0.38%
LOW	63 Neutral	$139.38B	20.60	―	1.89%	0.64%	0.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TTSH	50 Neutral	$285.73M	―	-1.37%	―	-3.77%	-146.47%
NHTC	48 Neutral	$50.43M	144.55	-0.38%	28.88%	-5.07%	-115.50%
LESL	39 Underperform	$27.87M	―	―	―	-6.63%	-904.47%

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.