📊 LESL Key Takeaways
Is Leslie's, Inc. (LESL) a Good Investment?
Leslie's faces severe financial distress with negative stockholders' equity of -$541.3M, indicating balance sheet insolvency. The company is burning cash at an unsustainable rate (-$146.1M FCF annually) while unable to service $855.6M in debt from operations (interest coverage: -3.8x), creating acute solvency risk.
Leslie's fundamentals have deteriorated sharply, with shrinking revenue, deeply negative margins (-46.7% operating, -56.4% net), and negative operating cash flow driving substantial free cash burn. Liquidity is tight (quick ratio 0.30, $3.6M cash) and leverage is heavy (~$782M debt) with negative equity and negative interest coverage, indicating elevated solvency and refinancing risk. Until gross margin stabilizes and operating cash flow turns sustainably positive, financial health remains fragile.
Leslie's, Inc. Key Strengths (LESL)
- Gross margin of 24.2% demonstrates reasonable product pricing power in retail
- Current ratio of 1.45x provides minimal short-term liquidity buffer
- Established brand presence in swimming pool and spa retail market
- Current ratio of 1.42x provides some near-term working capital cushion
- Low capital intensity (capex ~$4.3M) enables potential FCF recovery if margins improve
- Meaningful revenue base despite recent decline
LESL Stock Risks: Leslie's, Inc. Investment Risks
- Negative stockholders' equity of -$541.3M indicates technical insolvency on balance sheet
- Negative free cash flow of -$146.1M annually with only $16.9M cash creates critical solvency risk
- Operating losses of -$106.4M with -32.1% operating margin indicate unprofitable core business
- High debt burden of $855.6M cannot be serviced given negative operating cash flow and interest coverage
- Revenue declining 6.6% YoY signals deteriorating market position or demand
- Very low quick ratio of 0.33x indicates severe illiquidity when excluding inventory
- Liquidity stress: minimal cash and weak 0.30 quick ratio
- Solvency/refinancing risk from high debt, negative equity, and negative interest coverage
- Profitability pressure from declining revenue and low 18.4% gross margin
Key Metrics to Watch
- Operating cash flow - must show improvement or restructuring imminent
- Revenue stabilization - any further decline exacerbates solvency crisis
- Cash balance trajectory - current burn rate unsustainable
- Debt restructuring announcements or covenant breach status
- Operating cash flow
- Gross margin
Leslie's, Inc. (LESL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Leslie's, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LESL Profit Margin, ROE & Profitability Analysis
LESL vs Consumer Sector: How Leslie's, Inc. Compares
How Leslie's, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Leslie's, Inc. Stock Overvalued? LESL Valuation Analysis 2026
Based on fundamental analysis, Leslie's, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Leslie's, Inc. Balance Sheet: LESL Debt, Cash & Liquidity
LESL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Leslie's, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $2.95 reflects profitable operations.
LESL Revenue Growth, EPS Growth & YoY Performance
LESL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $177.1M | -$51.3M | $-5.54 |
| Q1 2026 | $147.1M | -$44.6M | $-4.82 |
| Q3 2025 | $500.3M | -$13.5M | $-0.07 |
| Q2 2025 | $177.1M | -$34.6M | $-0.19 |
| Q1 2025 | $174.0M | -$39.6M | $-0.21 |
| Q3 2024 | $569.6M | $10.8M | $0.06 |
| Q2 2024 | $188.7M | -$31.5M | $-0.17 |
| Q1 2024 | $174.0M | -$30.3M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Leslie's, Inc. Dividends, Buybacks & Capital Allocation
LESL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Leslie's, Inc. (CIK: 0001821806)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LESL
What is the AI rating for LESL?
Leslie's, Inc. (LESL) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LESL's key strengths?
Claude: Gross margin of 24.2% demonstrates reasonable product pricing power in retail. Current ratio of 1.45x provides minimal short-term liquidity buffer. ChatGPT: Current ratio of 1.42x provides some near-term working capital cushion. Low capital intensity (capex ~$4.3M) enables potential FCF recovery if margins improve.
What are the risks of investing in LESL?
Claude: Negative stockholders' equity of -$541.3M indicates technical insolvency on balance sheet. Negative free cash flow of -$146.1M annually with only $16.9M cash creates critical solvency risk. ChatGPT: Liquidity stress: minimal cash and weak 0.30 quick ratio. Solvency/refinancing risk from high debt, negative equity, and negative interest coverage.
What is LESL's revenue and growth?
Leslie's, Inc. reported revenue of $331.9M.
Does LESL pay dividends?
Leslie's, Inc. pays dividends, with $1.2M distributed to shareholders in the trailing twelve months.
Where can I find LESL SEC filings?
Official SEC filings for Leslie's, Inc. (CIK: 0001821806) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LESL's EPS?
Leslie's, Inc. has a diluted EPS of $-14.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LESL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Leslie's, Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LESL stock overvalued or undervalued?
Valuation metrics for LESL: ROE of N/A (sector avg: 18%), net margin of -40.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is LESL's AI grade for 2026?
Our dual AI analysis gives Leslie's, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LESL's free cash flow?
Leslie's, Inc.'s operating cash flow is $-136.6M, with capital expenditures of $9.5M. FCF margin is -44.0%.
How does LESL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -40.8% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.45 (avg: 1.5).