Leslie's Inc

Leslie's Inc exhibits a highly leveraged capital structure, with total liabilities of $1.33 billion and total equity of -$230.97 million, resulting in a negative debt-to-equity ratio of -3.79. The company's liquidity position is constrained, with only $8.44 million in cash and equivalents, and a current ratio of 1.73, indicating limited short-term liquidity cushion. The negative net cash position, after subtracting total debt, further highlights the company's financial fragility.

Profitability metrics are severely underperforming relative to industry norms. The company reported a net loss of $34.55 million and an operating loss of $30.53 million, with a return on equity of 14.96% and a negative return on assets of -3.15%. These figures suggest operational inefficiencies and a lack of asset productivity, which are critical concerns for a specialty retailer in a competitive market.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and shifts in consumer demand. The absence of segment-specific financial data limits the ability to assess the performance of individual business lines.

Growth prospects are muted, with the company reporting a net loss in the latest period and negative operating and free cash flows. Analysts have assigned a mean price target of $2.36, significantly below the current market price of $3.50, suggesting a bearish outlook. The company's revenue trajectory is not explicitly provided, but the negative operating cash flow and declining profitability indicate a challenging growth environment.

The risk assessment highlights liquidity as a medium concern, with the company's cash reserves insufficient to cover near-term obligations. The risk of dilution is currently low, but the negative equity position and high leverage increase the potential for future dilutive actions, such as equity offerings or debt conversions. The company's financial structure and performance raise concerns about its ability to sustain operations without external financing.

Recent events, including the latest financial filing, indicate a deteriorating financial position. The company's operating cash flow of -$115.08 million and free cash flow of -$39.98 million suggest a significant cash outflow, which could necessitate additional financing or cost-cutting measures. The absence of recent earnings call transcripts or major announcements limits the visibility into management's strategic response to these challenges.

Leslie's Inc (LESL.O) has entered the scope of this analysis, marking the first available data point for the ticker with no prior basis for delta computation. The most material development is a series of notable additions to the shareholder register, indicating fresh institutional or significant investor interest in the company's equity. The largest single addition was recorded as of December 31, 2025, when investor ID 465 acquired 335,285 shares, representing a portfolio value of approximately $0.55 million. This position, while small in absolute weight (0.0008%), stands out as the most substantial new holding among the recent changes detected. Additional notable additions were reported as of March 31, 2026, involving five other investors. Investor ID 500 added 90,257 shares valued at roughly $0.10 million, followed by investor ID 467 with 44,624 shares ($0.05 million). Smaller positions were established by investor ID 504 (25,419 shares), investor ID 499 (11,386 shares), and investor ID 502 (10,232 shares). A minimal position of 69 shares was also added by investor ID 486. These new holdings contribute to Leslie's Inc's current profile, which includes 11 top holders but currently lacks analyst coverage, officer disclosures, or index membership in this dataset. The influx of new shareholders suggests growing attention to the stock, though the absence of analyst estimates or ESG ratings limits the broader context for these investment decisions.

The company's cash conversion metric of 3.33 exceeds the cohort median of 1.22, indicating superior efficiency in generating cash from operations.

Leslie's debt-to-equity ratio of -3.79 is classified as best-in-class within its peer group of 120 miscellaneous specialty retailers.

Analysts maintain a mean price target of $2.36, suggesting limited downside risk relative to the current market price of $2.39.

The company maintains a current ratio of 1.57, providing a buffer against short-term liquidity obligations despite recent operational challenges.

The company faces high credit risk and negative interest coverage of -2.70, indicating significant difficulty in servicing its debt obligations.

Revenue $147.1M, −16,0% YoY; Operating income −73,2% YoY.

• ▍Revenue $147.1M, −16,0% YoY
• ▍Operating income −73,2% YoY
• ▍Net income −86,2% YoY
• ▍Free cash flow −93,8% YoY
• ▍Net margin -56.4%

Revenue $389.2M, −2,2% YoY; Operating income −668,1% YoY.

• ▍Revenue $389.2M, −2,2% YoY
• ▍Operating income −668,1% YoY
• ▍Net income −1 540,8% YoY
• ▍Free cash flow −1 034,0% YoY
• ▍Net margin -41.8%

Revenue $500.3M, −12,2% YoY; Operating income −30,1% YoY.

• ▍Revenue $500.3M, −12,2% YoY
• ▍Operating income −30,1% YoY
• ▍Net income −64,2% YoY
• ▍Free cash flow −61,7% YoY
• ▍Net margin 4.3%

Revenue $177.1M, −6,1% YoY; Operating income −58,5% YoY.

• ▍Revenue $177.1M, −6,1% YoY
• ▍Operating income −58,5% YoY
• ▍Net income −48,5% YoY
• ▍Free cash flow −24,0% YoY
• ▍Net margin -29.0%

Revenue $175.2M; Operating income -$39.7M.

• ▍Revenue $175.2M
• ▍Operating income -$39.7M
• ▍Net margin -25.4%

Revenue $397.9M; Operating income $26.4M.

• ▍Revenue $397.9M
• ▍Operating income $26.4M
• ▍Net margin -2.5%

Revenue $569.6M; Operating income $97.7M.

• ▍Revenue $569.6M
• ▍Operating income $97.7M
• ▍Net margin 10.6%

Revenue $188.7M; Operating income -$30.5M.

• ▍Revenue $188.7M
• ▍Operating income -$30.5M
• ▍Net margin -18.3%

Revenue $1.24B, −6,6% YoY; Operating income −397,4% YoY.

• ▍Revenue $1.24B, −6,6% YoY
• ▍Operating income −397,4% YoY
• ▍Net income −913,6% YoY
• ▍Free cash flow −509,9% YoY
• ▍Net margin -19.1%

Revenue $1.33B, −8,3% YoY; Operating income −44,1% YoY.

• ▍Revenue $1.33B, −8,3% YoY
• ▍Operating income −44,1% YoY
• ▍Net income −185,8% YoY
• ▍Free cash flow −264,6% YoY
• ▍Net margin -1.8%

Revenue $1.45B, −7,1% YoY; Operating income −57,2% YoY.

• ▍Revenue $1.45B, −7,1% YoY
• ▍Operating income −57,2% YoY
• ▍Net income −82,9% YoY
• ▍Free cash flow −85,6% YoY
• ▍Net margin 1.9%

Revenue $1.56B, +16,3% YoY; Operating income +19,4% YoY.

• ▍Revenue $1.56B, +16,3% YoY
• ▍Operating income +19,4% YoY
• ▍Net income +25,6% YoY
• ▍Free cash flow +25,0% YoY
• ▍Net margin 10.2%