10-Q · May 13, 2026
Leslie’s, Inc. reported Q2 2026 results with revenues of $184.7 million, reflecting a 4.3% increase year-over-year. Despite revenue growth, the company reported a significant EPS miss at -$5.36 versus expectations of…
Earnings analysis · 10-Q
LESL earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Leslie’s reported revenue of $458.5 million and adjusted diluted EPS of $3.96, missing consensus estimates of $503.2 million and $4.94, respectively. Gross margin declined year over year to 36.5% from 39.6%, although it…
Read full summary
Leslie’s reported revenue of $458.5 million and adjusted diluted EPS of $3.96, missing consensus estimates of $503.2 million and $4.94, respectively. Gross margin declined year over year to 36.5% from 39.6%, although it improved from 28.9% sequentially; management withdrew its fiscal 2026 outlook. The filing highlights substantial doubt about going-concern status, $786.7 million of borrowings, a CCC credit rating, and the need to address the Term Loan before its March 9, 2028 maturity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.96
- Gross margin
- 36.5%
What stood out
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Revenue missed estimates and prior-year sales
Revenue was $458.5 million, down from $500 million in the prior-year quarter and $185 million in the immediately preceding quarter. Sales were $44.7 million below the $503.2 million consensus estimate.
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Margins improved sequentially but lagged prior year
Gross margin was 36.5%, down from 39.6% in the prior-year quarter but up from 28.9% in the immediately preceding quarter. Adjusted diluted EPS was $3.96 versus $2.40 in the prior-year quarter and $(5.63) in the prior quarter.
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Adjusted EPS missed consensus
Adjusted diluted EPS of $3.96 was $0.98 below the $4.94 consensus estimate, representing a 19.8% negative surprise.
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Cost actions and lender engagement continue
As of July 4, 2026, total borrowings under the Term Loan and Revolving Credit Facility were $786.7 million. Management is pursuing cost optimization and engaging lenders on strategic alternatives.
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Nasdaq compliance was temporarily restored
Nasdaq notified the company on May 29, 2026 that it had regained compliance with the $15.0 million minimum market value of publicly held shares requirement after meeting it from May 14 through May 28, 2026.
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Internal-control remediation is underway
Management expects its remediation activities for the identified internal-control weaknesses to be completed during fiscal year 2026, including enhanced inventory controls and impairment-review controls.
What to watch
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Going-concern uncertainty and refinancing needs
The filing states that conditions and events raise substantial doubt about Leslie’s ability to continue as a going concern. The Term Loan matures on March 9, 2028, and management expects to refinance, restructure, extend or otherwise address the indebtedness before maturity.
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High leverage and CCC credit rating
Total borrowings were $786.7 million as of July 4, 2026, while the company’s credit rating was downgraded to CCC from CCC+. Variable-rate debt, refinancing constraints and potential additional financing needs could further pressure liquidity.
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Nasdaq delisting risk remains
The company regained compliance with Nasdaq’s $15.0 million MVPHS requirement on May 29, 2026, but warns that failure to maintain continued-listing standards could result in delisting and reduced financing access.
Management's outlook
Management withdrew its prior fiscal 2026 outlook, which had called for revenue of $1.1 billion-$1.25 billion, and provided no updated quantitative guidance.
Earlier filings 4
10-Q · February 18, 2026
Leslie’s reported Q1 sales of $147.128M (down from $175.228M) with gross margin compressing to 18.4% and an operating loss of $68.748M, driving a diluted loss per share of $8.92. The company recorded $18.494M of…
10-K · December 18, 2025
Leslie’s positions itself as the market leader in the U.S. pool & spa aftermarket with “over 1,000 retail locations,” a customer file of “over 12 million consumers,” and proprietary product strength ("more than 55% of…
10-Q · August 7, 2025
Leslie’s reported third-quarter sales of $500,347,000 with gross profit of $197,890,000 and operating income of $68,318,000, yielding diluted EPS of $0.12 for the quarter. Revenue is down versus the prior-year quarter…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.