Leslie’s first quarter results were met positively by the market, reflecting management’s early success in executing its transformation plan. The company attributed revenue growth to initiatives such as customer reactivation, a new pricing strategy, and improved in-store experiences. CEO Jason McDonell highlighted the “broad-based customer growth” and noted that the launch of the Price Drop initiative, particularly in Sunbelt markets, led to a double-digit increase in store transactions and improved conversion rates.
Is now the time to buy LESL? Find out in our full research report (it’s free for active Edge members).
Leslie's (LESL) Q1 CY2026 Highlights:
- Revenue: $184.7 million vs analyst estimates of $162.8 million (4.3% year-on-year growth, 13.5% beat)
- Adjusted EPS: -$5.36 vs analyst expectations of -$4.41 (21.5% miss)
- Adjusted EBITDA: -$26.82 million (-14.5% margin, 25.6% year-on-year growth)
- The company reconfirmed its revenue guidance for the full year of $1.18 billion at the midpoint
- EBITDA guidance for the full year is $65 million at the midpoint, above analyst estimates of $60.03 million
- Operating Margin: -20.4%, up from -27.3% in the same quarter last year
- Locations: 944 at quarter end, down from 1,020 in the same quarter last year
- Same-Store Sales rose 6.6% year on year (-6.7% in the same quarter last year)
- Market Capitalization: $24.41 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Leslie's’s Q1 Earnings Call
- Jonathan Matuszewski (Jefferies) asked about the sustainability of gross margin improvements and the impact of occupancy and distribution cost savings. CFO Jeffrey White explained that occupancy cost reductions are likely to persist, while some inventory reserve benefits were onetime in nature, but product margin improvements should continue.
- David Bellinger (Mizuho Securities) inquired about plans to expand the Price Drop investment and the impact on equipment categories. White said further price investments would depend on market conditions and explained that equipment pricing is constrained by vendor minimum advertised price (MAP) policies, limiting flexibility in that segment.
Catalysts in Upcoming Quarters
In tracking Leslie’s progress, the StockStory team will monitor (1) the pace of customer growth—especially among reactivated and PRO segments, (2) the ongoing impact of the Price Drop initiative on both traffic and margins as the pool season peaks, and (3) execution of cost optimization efforts, including expense reductions and SKU rationalization. The effectiveness of omnichannel investments and network streamlining will also be key indicators of sustainable improvement.
Leslie's currently trades at $2.63, up from $1.43 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
