Leslie's (LESL) AI Stock Analysis

• Market Cap: $15.42M
• 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): 0.09
• Shares Outstanding: 9,290,311
• 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: 64.40
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: -5.85
• 1Y Price Target: $3.45
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $1.50 ▼(-45.65% Downside)

Leslie's overall stock score is low due to significant financial instability, bearish technical indicators, and concerning valuation metrics. The company's financial performance is weak, with negative equity and high debt levels. Technical analysis indicates a strong downtrend, and the valuation reflects market pessimism. While there are strategic initiatives to improve performance, the immediate outlook remains challenging.

Positive Factors

Gross Margin Improvement

Improved gross margins indicate better cost management and pricing strategies, enhancing long-term profitability potential.

Inventory Optimization

Effective inventory management reduces holding costs and improves cash flow, supporting operational efficiency.

Omnichannel Expansion

Enhancing delivery options strengthens market position and customer satisfaction, driving future revenue growth.

Negative Factors

Customer Loss

Losing customers and traffic can weaken market position and reduce revenue potential, impacting long-term growth.

High Leverage

High leverage increases financial risk and limits flexibility, potentially hindering strategic investments and growth.

Store Closures

Closing stores may reduce market presence and sales, affecting brand strength and customer accessibility.

Leslie's Business Overview & Revenue Model

Company Description

Leslie's, Inc. is a leading retailer in the pool and spa supply industry, primarily operating within the United States. The company specializes in providing a comprehensive range of products and services for residential and commercial swimming pools and spas, including chemicals, equipment, accessories, and repair services. Leslie's has established a strong presence with a network of retail locations, e-commerce platforms, and service operations aimed at enhancing the pool ownership experience for its customers.

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

Leslie's financial performance is weak, with declining revenue, negative profitability, high leverage, and cash flow challenges. The company faces significant financial instability, as evidenced by negative equity and high debt levels.

Income Statement

Leslie's income statement shows a concerning trend with declining revenue and profitability. The company experienced a significant revenue drop of 6.92% in the latest year, and net profit margins have turned negative, indicating losses. Gross profit margins have also decreased over the years, reflecting challenges in maintaining cost efficiency. The negative EBIT and EBITDA margins further highlight operational difficulties. Overall, the income statement reflects a struggling financial performance with declining growth and profitability.

Balance Sheet

The balance sheet of Leslie's reveals significant financial instability. The company has a negative stockholders' equity, indicating liabilities exceed assets, which is a major red flag. The debt-to-equity ratio is negative and worsening, suggesting high leverage and financial risk. Return on equity is also negative, reflecting poor returns for shareholders. The equity ratio is not calculable due to negative equity, further emphasizing financial distress. Overall, the balance sheet indicates high leverage and financial vulnerability.

Cash Flow

Leslie's cash flow statement shows mixed results. Operating cash flow has decreased significantly, and free cash flow is negative, indicating cash outflows exceed inflows. The free cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash. However, the operating cash flow to net income ratio remains positive, albeit low, suggesting some ability to generate cash from operations. Overall, the cash flow statement highlights liquidity challenges and cash management issues.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	1.33B	1.45B	1.56B	1.34B
Gross Profit	439.65M	476.79M	548.22M	673.74M	595.16M
EBITDA	-169.85M	90.19M	136.32M	269.13M	224.09M
Net Income	-236.97M	-23.38M	27.24M	159.03M	126.63M
Balance Sheet
Total Assets	741.48M	1.05B	1.03B	1.11B	1.04B
Cash, Cash Equivalents and Short-Term Investments	64.34M	108.50M	55.42M	112.29M	345.06M
Total Debt	1.01B	1.05B	1.04B	1.03B	1.02B
Total Liabilities	1.15B	1.23B	1.20B	1.31B	1.26B
Stockholders Equity	-407.99M	-177.15M	-161.36M	-197.95M	-217.56M
Cash Flow
Free Cash Flow	-16.67M	60.22M	-32.11M	34.92M	140.63M
Operating Cash Flow	8.82M	107.47M	6.47M	66.64M	169.56M
Investing Cash Flow	-25.35M	-47.16M	-52.54M	-138.98M	-35.35M
Financing Cash Flow	-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: Positive
• RSI: Positive
• 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 2.76 is above the 20-day moving average (MA) of 2.54, below the 50-day MA of 3.11, and below the 200-day MA of 8.69, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 27.00 is Positive, neither overbought nor oversold. The STOCH value of 2.52 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	76 Outperform	$1.65B	22.45	20.38%	―	7.36%	-6.85%
LOW	69 Neutral	$136.31B	20.15	―	1.94%	0.64%	0.58%
HD	66 Neutral	$345.78B	23.68	162.91%	2.67%	7.50%	-0.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NHTC	48 Neutral	$35.46M	-301.96	-0.38%	25.20%	-5.07%	-115.50%
TTSH	43 Neutral	$167.23M	-97.91	-1.37%	―	-3.77%	-146.47%
LESL	38 Underperform	$15.42M	-0.06	―	―	-6.63%	-904.47%

Leslie's Corporate Events

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.

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.

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.