Leslie's (LESL) AI Stock Analysis

• Market Cap: $15.98M
• Dividend Yield: N/A
• Average Volume (3M): 138.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• 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: 62.15
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: -5.85
• 1Y Price Target: $3.05
• Price Target Upside: 10.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-45.65% Downside)

The score is held down primarily by weak financial performance (negative profitability, negative equity, and negative free cash flow). Technicals also remain bearish with the stock below major moving averages, though oversold indicators provide only modest support. Valuation is difficult to justify with losses (negative P/E), and the latest earnings call was mixed: credible turnaround actions and FY2026 EBITDA targets, but significant customer/traffic declines and impairment-driven losses.

Positive Factors

Omnichannel Fulfillment Expansion

Scaling same-day delivery via a national Uber partnership strengthens Leslie’s omnichannel capabilities, reducing fulfillment friction and improving conversion for online buyers. Durable faster-fulfillment options support higher average orders, better retention and competitive differentiation versus DIY competitors over the medium term.

Data-Rich Loyalty Program

Capturing transaction-level data on over 85% of purchases gives Leslie’s a durable advantage in customer analytics, targeted marketing and price/product personalization. This improves retention, lifetime value and efficiency of marketing spend, enabling structural margin and revenue improvements as the program scales.

Inventory Optimization & Margin Improvement

Material inventory reduction combined with higher in-stock metrics indicates improved merchandise planning and working-capital efficiency. Sustained inventory discipline lowers carrying costs and markdown risk, supports gross margin stability, and can convert to durable free-cash-flow improvements if continued.

Negative Factors

Balance Sheet Weakness

Negative stockholders’ equity signals the company is financially overlevered and potentially insolvent on a book basis. This constrains access to capital, raises borrowing costs, increases covenant and refinancing risk, and limits ability to invest in turnaround initiatives—material risks over the next several quarters.

Declining Revenue & Negative Profitability

Sustained revenue decline and persistently negative operating margins erode scale benefits and make it harder to absorb fixed costs. This weakens cash generation, limits reinvestment in stores and digital channels, and lengthens the time required to reach the company’s targeted adjusted EBITDA, posing a multi-quarter headwind.

Customer Attrition & Traffic Decline

Large residential customer losses and material traffic decline point to structural demand and pricing-position issues. Losing core customers reduces recurring revenue and lifetime value, undermines the economics of store and service footprints, and makes store rationalization and recovery of sales per store more difficult over the medium term.

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: 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 1.74, above the 50-day MA of 2.42, and below the 200-day MA of 7.50, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 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
ARHS	76 Outperform	$1.56B	20.76	20.38%	―	7.36%	-6.85%
LOW	69 Neutral	$155.39B	22.96	―	1.94%	0.64%	0.58%
HD	66 Neutral	$377.46B	25.85	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	$43.17M	-356.86	-0.38%	25.20%	-5.07%	-115.50%
TTSH	42 Neutral	$169.92M	-97.38	-1.37%	―	-3.77%	-146.47%
LESL	41 Neutral	$15.98M	-0.06	―	―	-6.63%	-904.47%

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.

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.