Start here if you're new
what it is
Leslie's sells pool chemicals, equipment, and maintenance services to homeowners and pool pros across the U.S.
how it gets paid
Last year S made $1.2B in revenue. Pool chemicals was the main engine at $0.52B, or 43% of sales.
why growth slowed
Revenue fell 6.6% last year. 18.4% gross margin mattered most because it fell 8.8 points from 27.2%.
what just happened
Leslie's posted $147.1M of sales, while gross margin slid to 18.4%.
At a glance
C balance sheet — red flag territory — real financial stress
15/100 earnings predictability — expect surprises
2.0% return on capital — nothing to write home about
-$2.60 fy2024 eps est
$1B fy2024 rev est
xvary composite: 25/100 — weak
What they do
Leslie's sells pool chemicals, equipment, and maintenance services to homeowners and pool pros across the U.S.
You get 1,000-plus stores and a network larger than the company’s 20 biggest competitors combined. That makes your pool problems an immediate sale, not a delayed one. The company also sells exclusive products and certified repair services, which keeps customers inside the lane.
How they make money
$1.2B
annual revenue · their business grew -6.6% last year
Pool chemicals
$0.52B
4.0%
Equipment and parts
$0.31B
9.0%
Accessories and recreation
$0.18B
8.0%
Maintenance and repair services
$0.11B
+2.0%
Seasonal and other
$0.08B
10.0%
The products that matter
core retail sales
Pool Chemicals & Supplies
Q1 sales $147.1M · down 16.0%
This is the center of gravity. Q1 sales fell to $147.1M, which tells you the core customer was not in a buying mood.
core demand
equipment and cleaners
Pool Equipment
comp sales -15.5%
Comparable sales fell 15.5%. When consumers delay bigger pool purchases, this category feels it fast.
discretionary spend
customer retention data
Pool Perks Loyalty Program
85% of transaction data
The program captures 85% of transaction data. That gives management a pricing and promotion tool, but only if customers keep showing up.
pricing tool
Key numbers
$11M
market cap
The market is pricing the whole equity at $11M while debt sits at $937M. your upside starts after lenders get paid.
$937M
long-term debt
Debt at $937M is 99% of capital. that leaves very little room for another bad season.
18.4%
gross margin
Gross margin tells you what is left after product costs. 18.4% is thin when sales are falling.
13.7%
operating margin
Operating margin is the profit left after running the business. Negative 13.7% means the store chain is still burning cash at the operating line.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $937M (99% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for LESL right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Leslie's posted $147.1M of sales, while gross margin slid to 18.4%.
Revenue fell 16.0% vs. prior year. Gross profit was $27.1M, down 43.3%, and EPS came in at -$8.92.
$147.1M
revenue
-$8.92
eps
18.4%
gross margin
the number that mattered
18.4% gross margin mattered most because it fell 8.8 points from 27.2%, which crushed profit even faster than sales.
source: company earnings report, 2026
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What could go wrong
The biggest risk is the margin reset failing before the balance sheet runs out of patience.
high
Gross margin stays broken
Gross margin fell to 18.4% from 27.2% a year ago. That is a 8.8-point drop in the part of the income statement that should protect the rest of the model.
The page data implies roughly $13M less operating income in the quarter.
high
Debt load leaves little room for another miss
Long-term debt is $937M and debt is 99% of capital. The market cap is only about $11M. That contrast tells you who has the negotiating power here.
If operating performance slips again, equity holders are last in line.
med
Pricing transformation does not stop traffic losses
Comparable sales fell 15.5%, and management is changing pricing while cutting 2,000-plus SKUs. That is a lot of moving parts for a business already under pressure.
A failed reset puts the $1.1B–$1.25B sales outlook at risk.
med
Pandemic-era chlorine demand remains a legal overhang
A 2023 lawsuit alleges Leslie's misled investors about sales tied to chlorine shortages during the pandemic. That does not change this quarter's pool traffic, but it does keep pressure on credibility.
The existing page data flags $180M–$300M of revenue exposure tied to the allegation set.
A $1B revenue retailer with $937M of long-term debt does not get many retries. If margin recovery slips again, the balance sheet becomes the story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
gross margin back above 20%
18.4% is the current problem. If this number does not recover above 20%, the turnaround pitch stays theoretical.
calendar
Q2 FY2026 earnings report
Expected around May 14, 2026. You want to see whether the pricing reset shows up in comps and margin at the same time.
trend
comparable sales stop falling at a double-digit rate
Comparable sales were down 15.5%. Less bad still counts here. A smaller decline would show the customer is stabilizing.
risk
guidance holds at $1.1B–$1.25B
Management kept that range after a weak quarter. If it slips, the market will read that as proof the reset is behind schedule.
Analyst rankings
earnings predictability
15 / 100
in human-speak, analysts do not trust this business to deliver clean, steady quarters.
risk rank
5
Safer than only 5% of stocks. This sits near the risk-heavy end of the market.
balance sheet grade
C
That is a warning, not a detail. The balance sheet is weak enough to shape how every quarter gets judged.
source: institutional data
Institutional activity
institutional ownership data for LESL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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