LESL earnings analysis
What we found in LESL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.96
- Gross margin
- 36.5%
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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