Leslie's, Inc. reported fiscal Q2 2025 results that reflected a softer top line largely due to atypically colder weather and weaker foot traffic, with revenue of $177.1 million, down 6% year over year. Pro Pool sales declined only 2% YoY, while Residential pool and DIY categories softened more meaningfully (down 9% YoY). Management emphasized early signs of transformation benefits, notably a 174 basis point improvement in overall conversion versus the prior year and a >450 basis point lift in conversion after a water test, aided by AccuBlue. The company disclosed aggressive inventory discipline, ending the quarter with $335.1 million in inventory, down roughly 12% YoY, and achieved over 99% in-stock levels for never-out SKUs, underscoring the first steps toward better cash flow and debt reduction. Adjusted EBITDA came in at a loss of $36.0 million, within guide, as the business is still early in its peak season. Management outlined a three-pillar strategy—customer centricity, convenience, and asset utilization—plus a fourth pillar of cost optimization, with notable initiatives including 26 local fulfillment centers (LFCs) now operational, a ProShare and expanded Pro contracts, enhanced DIY omnichannel features (website/app enhancements, scheduling, voice search), and new transform initiatives like building the Leslie's brand, the enhanced Pool Perks loyalty program (with tiers), AccuBlue Home rollout in about 100 stores, and a strategic Uber same-day delivery partnership. Management reaffirmed their full-year guidance ranges, signaled a focus on debt reduction and working capital optimization, and announced capex reduction to $30–$35 million for the year. Near-term risks include weather volatility, incremental tariff exposure, and ongoing gross margin pressure from DC/occupancy costs and mix, though rebates are expected to act as a tailwind in Q4. Overall, the investment thesis hinges on the cadence of in-stock improvements, Pro channel monetization, loyalty-driven DIY spend, and the efficiency gains from the cost-optimization program to restore EBITDA and de-lever the balance sheet over time.