📊 LESL Key Takeaways
Is Leslie's, Inc. (LESL) a Good Investment?
Leslie's is in severe financial distress with negative stockholders equity of -$489.9M, indicating technical insolvency. The company is burning cash operationally (-$81.1M FCF), generating massive operating losses (-$46.7% margin), and has minimal liquidity ($3.6M cash) against $781.6M in long-term debt. Deteriorating fundamentals and inability to service debt obligations present acute bankruptcy 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.
Why Buy Leslie's, Inc. Stock? LESL Key Strengths
- Still generating gross profit of $27.1M, indicating retail operations have some underlying viability
- Current ratio of 1.42x provides minimal short-term liquidity buffer
- Operates in essential consumer goods category (pool and spa supplies)
- 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 -$489.9M indicates technical insolvency with liabilities exceeding assets
- Negative free cash flow of -$85.5M with minimal cash reserves creates critical liquidity crisis
- Interest coverage ratio of -5.1x demonstrates inability to service $781.6M debt burden from operations
- Operating margin of -46.7% shows fundamental business model is not viable at current scale
- Revenue declining 6.6% YoY while losses accelerate indicates deteriorating competitive position
- Quick ratio of 0.30x reflects severe illiquidity and asset quality concerns
- 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 trend and path to positive cash generation
- Gross margin sustainability and ability to maintain retail operations
- Debt refinancing success and covenant compliance 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $610.9M | $10.8M | $0.06 |
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 Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LESL's key strengths?
Claude: Still generating gross profit of $27.1M, indicating retail operations have some underlying viability. Current ratio of 1.42x 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 -$489.9M indicates technical insolvency with liabilities exceeding assets. Negative free cash flow of -$85.5M with minimal cash reserves creates critical liquidity crisis. 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 $147.1M.
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 $-8.92.
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 rating reflects both perspectives for balanced insights.
Is LESL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Leslie's, Inc. has a STRONG SELL rating with 94% confidence. Review the strengths and risks sections above before making a decision. 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 -56.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy LESL stock in 2026?
Our dual AI analysis gives Leslie's, Inc. a combined STRONG SELL rating 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 $-81.1M, with capital expenditures of $4.3M. FCF margin is -58.1%.
How does LESL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -56.4% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.42 (avg: 1.5).