Leslies Inc (LESL) Q1 2025 Earnings Report

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Leslies Inc

LESL

$2.63 -3.31%

Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Home Improvement

Q1 2025

Published: Feb 6, 2025

Earnings Highlights

Revenue of $175.23M up 0.7% year-over-year
EPS of $-0.24 decreased by 14.3% from previous year
Gross margin of 27.2%
Net income of -44.56M
"“three key strategic themes in mind: customer centricity, convenience, and asset utilization.”" - Jason McDonald, CEO

LESL

Company LESL

Period Q1 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

- Leslie's reported Q1 2025 revenue of $175.2 million, up 0.7% year over year, with Pro Pool delivering the strongest growth at 9% YoY while Residential Pool (-1%) and Residential Hot Tub (-5%) declined. Management characterized the quarter as the first step in a broader transformational program designed to position Leslie's for growth in the peak pool season and beyond. Adjusted EBITDA came in at a loss of $29.0 million, at the bottom end of guidance, driven by higher transformational costs and occupancy payroll, offset by inventory optimization efforts.

Key Performance Indicators

Revenue

Increasing

175.23M

QoQ: -55.96% | YoY: 0.73%

Gross Profit

Decreasing

47.72M

27.23% margin

QoQ: -66.68% | YoY: -5.34%

Operating Income

Decreasing

-39.70M

QoQ: -250.26% | YoY: -8.86%

Net Income

Decreasing

-44.56M

QoQ: -349.10% | YoY: -12.67%

EPS

Decreasing

-0.24

QoQ: -346.93% | YoY: -14.29%

Revenue Trend

Margin Analysis

Financial Highlights

- Revenue: $175.23M, YoY +0.7%, QoQ -55.96% (Q4 2024 to Q1 2025 shift)
- Gross Profit: $47.72M; Gross Margin 27.23% (down 180–bp year over year largely from inventory optimization and occupancy deleverage)
- Operating Income: -$39.70M; Operating Margin -22.66%
- Net Income: -$44.56M; Net Margin -25.43%
- Adjusted EBITDA: -$29.00M (bottom of guidance)
- EPS: -$0.24; Diluted EPS: -$0.24; Weighted Avg Shares: 185.0M
- Cash Flow: Operating cash flow -$105.08M; Free cash Flow -$109.76M; Net Change in Cash -$96.89M; Cash at end: $11.62M
- Balance Sheet: Total assets $966.99M; Total liabilities $1,187.03M; Total stockholders’ equity -$220.04M; Total debt $1,053.53M; Net debt $1,041.91M
- Working Capital: Current ratio 1.76; Inventory $271.09M; DIO ~191 days; DSO ~15.3 days; Cash burn driven by working capital build for pool season

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	175.23M	0.73%	-55.96%
Gross Profit	47.72M	-5.34%	-66.68%
Operating Income	-39.70M	-8.86%	-250.26%
Net Income	-44.56M	-12.67%	-349.10%
EPS	-0.24	-14.29%	-346.93%

Key Financial Ratios

Gross Profit Margin

Fair

27.20%

Gross profit margin is moderate, room for improvement in cost management

Operating Profit Margin

Weak

-0.23%

Operating margin is below industry norms, profitability concerns

Net Profit Margin

Weak

-0.25%

Net profit margin is below industry norms, profitability concerns

Return on Assets

Weak

-0.05%

Return on assets suggests inefficient capital allocation

Return on Equity

Strong

20.30%

Return on equity demonstrates excellent capital efficiency and value creation

Current Ratio

Healthy

1.76

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

-4.79

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Negative

-2.31x

Negative earnings make P/E ratio not meaningful

Price to Book

Undervalued

-1.88x

Trading below book value, potential value opportunity or distressed

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	177.13	-0.28	-6.1%	View
Q1 2025	175.23	-0.24	+0.7%	View
Q4 2024	397.86	-0.05	-8.0%	View
Q3 2024	569.64	0.33	-6.8%	View
Q2 2024	188.66	-0.19	-11.4%	View

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Leslies Inc (LESL) Q1 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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