UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 4, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39667 LESLIE'S, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 20-8397425 (State or other jurisdiction of incorp ...

Leslie’s, Inc. (NASDAQ:LESL) reported mixed fourth-quarter financial results on Tuesday.Leslies (reported quarterly earnings of 9 cents per share compared to the analyst consensus estimate of $1.29 per share. The company reported quarterly sales of $389.206 million which beat the analyst consensus estimate of $370.635 million.Leslies said it sees FY2026 sales of $1.100 million to $1.250 million, versus market estimates of $1.219 billion.“We delivered fourth quarter sales and adjusted EBITDA above the high e ...

Leslie’s, Inc. (NASDAQ:LESL) reported mixed fourth-quarter financial results on Tuesday.Leslies (reported quarterly earnings of 9 cents per share compared to the analyst consensus estimate of $1.29 per share. The company reported quarterly sales of $389.206 million which beat the analyst consensus estimate of $370.635 million.Leslies said it sees FY2026 sales of $1.100 million to $1.250 million, versus market estimates of $1.219 billion.“We delivered fourth quarter sales and adjusted EBITDA above the high e ...

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Leslie's, Inc. (LESL) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -91.96%. A quarter ago, it was expected that this company would post earnings of $4.2 per share when it actually produced earnings of $4, delivering a surprise of -4.76%.Over the last four quarters, the company has n ...

Financial Data and Key Metrics Changes - Net sales for Q4 were $389.2 million, a 2.2% decline from $397.9 million in the same quarter last year [26] - Same-store sales decreased by 6.8% on a 13-week basis compared to the same period in fiscal year 2024 [27] - Adjusted EBITDA for Q4 increased to $45.2 million from $43 million in Q4 2024 [31] - Net loss for Q4 was $162.8 million, or $17.54 per diluted share, compared to a net loss of $9.9 million, or $1.07 per diluted share in the prior year [30] - Full year 2025 sales were approximately $1.24 billion, down from $1.33 billion in 2024 [32] Business Line Data and Key Metrics Changes - Chemicals category sales were down approximately 7.1%, and equipment category sales were down 7.6% on a 13-week comparable basis [27] - The company experienced a net loss of over 160,000 residential customers, with a decline in residential traffic of 8.6% in 2025 [6][10] Market Data and Key Metrics Changes - The company noted a significant price-value challenge leading to market share loss [5] - The competitive pricing environment in Q4 was influenced by excess supply and aggressive pricing from competitors [80] Company Strategy and Development Direction - The company is focusing on cost optimization, cash and capital management, and improving the price-value equation [4][6] - Plans to close 80 to 90 underperforming stores, which will impact annual sales by approximately $25 million to $35 million but improve net EBITDA by $4 million to $10 million [17][34] - The company aims to enhance its customer value proposition through targeted marketing and improved pricing strategies [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and its impact on consumer spending [38] - The company expects to generate the majority of its sales and earnings in the second half of the year due to the seasonal nature of the industry [38] - For fiscal 2026, the company anticipates sales between $1.1 billion and $1.25 billion and adjusted EBITDA of $55 million to $75 million [39] Other Important Information - The company is implementing a comprehensive expense reduction initiative and renegotiating contracts with vendors and suppliers [35] - Inventory levels were reduced by $26 million year-over-year, with a focus on improving in-stock percentages on core SKUs [29][32] Q&A Session Summary Question: Are supplier partners supporting the turnaround efforts? - Management confirmed that vendor partners have been supportive, allowing for better inventory forecasts and improved in-stock positions [49][51] Question: How much of the EBITDA guide is expected to convert into free cash flow? - The midpoint of the EBITDA guide assumes free cash flow positivity for the year [53] Question: Where do you see the most opportunity in pricing? - The focus is on key value items, particularly in the chemicals category, with a strategy to remain competitive against specialty and big box retailers [60][61] Question: What is the impact of store closures on revenue? - The closures are expected to have a $25 million to $35 million impact on revenue, but the majority of the stores being closed were unprofitable [70][72] Question: What is the plan to regain lost customers? - The company plans to target lost customers with customized marketing efforts based on their previous purchasing behavior [74][76] Question: Can you comment on competitive dynamics in Q4? - Management noted aggressive pricing in the marketplace and the need to remain competitive, which has led to sequential improvements in performance [80]

Leslie's (NasdaqGS:LESL) Q4 2025 Earnings Call December 02, 2025 05:00 PM ET Company ParticipantsJonathan Matuszewski - Senior VPJason McDonell - CEOJeff White - CFONitza McKee - Senior AssociateConference Call ParticipantsDavid Bellinger - Senior Equity AnalystJustin Kleber - Senior Equity Research AnalystLauren Englund - Research AnalystOperatorGood afternoon, and welcome to the Fiscal Fourth Quarter and Full Year 2025 Earnings Conference call for Leslie's. At this time, all participants are in a listen-o ...

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $389.2 million, a 2.2% decline from $397.9 million in Q4 2024, with the 53rd week contributing an estimated $18.3 million in net sales [26][27] - Same-store sales decreased by 6.8% in Q4 2025 compared to the same period in 2024, with chemicals down approximately 7.1% and equipment down 7.6% [27] - Adjusted EBITDA for Q4 increased to $45.2 million from $43 million in Q4 2024, while the net loss for Q4 was $162.8 million compared to a net loss of $9.9 million in the prior year [30][31] Business Line Data and Key Metrics Changes - The company experienced a net loss of over 160,000 residential customers in 2025, with a decline in residential traffic of 8.6% [6][30] - The company is focusing on improving the price-value equation on key items to regain lost customers and improve traffic performance [6][11] Market Data and Key Metrics Changes - The competitive landscape saw aggressive pricing strategies from competitors, impacting the company's pricing and sales performance [58] - The company is adjusting its pricing strategy to ensure competitiveness, particularly in the chemicals category, which is a key focus area [50][51] Company Strategy and Development Direction - The company is undergoing a transformation to achieve sustainable, profitable growth, focusing on cost optimization, cash management, and capital structure [4][24] - Key initiatives include closing 80-90 underperforming stores, optimizing inventory, and enhancing customer value propositions through targeted marketing [7][18][34] - The company aims to become America's one-stop shop for pool care by integrating services and improving customer relationships [12][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and its impact on consumer spending, emphasizing the need for strategic pricing and operational efficiency [39][41] - The outlook for fiscal 2026 includes expected sales of $1.1 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, with a focus on long-term value creation [40][41] Other Important Information - The company is committed to transparent communication and has engaged advisors to identify opportunities for enhancing profitability and optimizing operations [41][42] - A significant impairment charge of $184 million was recorded in Q4, primarily related to goodwill and store closures [29][30] Q&A Session Summary Question: Are supplier partners supporting the turnaround efforts? - Management confirmed strong support from vendor partners, which has been crucial for maintaining inventory levels and improving in-stock positions [46][47] Question: What is the expected free cash flow conversion for this year? - The midpoint of the EBITDA guidance assumes free cash flow positivity for the year, although specific guidance was not provided [48] Question: Where do you see the most opportunity in pricing? - The focus is on optimizing prices for key value items, particularly in the chemicals category, to remain competitive against other retailers [49][50] Question: What is the impact of store closures on revenue? - The closure of 80-90 underperforming stores is expected to impact annual sales by approximately $25-$35 million, but will improve net EBITDA by $4-$10 million [34][55] Question: How will the company regain lost customers? - The company plans to target lost customers with personalized marketing efforts, leveraging data from the Pool Perks Loyalty Program to efficiently allocate marketing spend [56] Question: What are the competitive dynamics observed in Q4? - Management noted high competitive pricing in the marketplace, which led to aggressive pricing strategies to maintain competitiveness [58] Question: What are the biggest learnings from the strategic pillar framework? - The strategic framework has unified the team around a common vision, with a focus on improving price value to regain market share [60][61]

Financial Performance - Fourth quarter sales were $389.2 million, a decrease of 2.2% compared to $397.9 million in the prior year period[3]. - Adjusted EBITDA increased to $45.2 million compared to $43.0 million in the prior year period[3]. - The net loss for the fourth quarter was $(162.8) million compared to $(9.9) million in the prior year period[3]. - Full year fiscal 2025 sales were $1,242.0 million, a decrease of 6.6% compared to $1,330.1 million in the prior year[9]. - Gross profit for the fourth quarter was $150.1 million, an increase of 4.8% compared to $143.2 million in the prior year[3]. - Basic and diluted earnings per share for the three months ended October 4, 2025, were both $(17.54), compared to $(1.07) for the same period in 2024[23]. - Adjusted net income for the year ended October 4, 2025, was $(43,664), compared to $(1,084) for the year ended September 28, 2024[25]. Impairments and Valuation - The company recorded an impairment of $183.8 million, including $180.7 million for goodwill[3][9]. - The company incurred impairments of $183,826 for the three months ended October 4, 2025, with no impairments reported for the same period in 2024[23]. - The company reported a non-cash change in valuation allowance for deferred taxes, impacting income tax benefit (expense) in the condensed consolidated statements of operations[35]. - The tax effect of total adjustments was based on the combined U.S. federal and state statutory tax rates, reflected in income tax benefit (expense) in the condensed consolidated statements of operations[35]. Store Closures and Operational Changes - The company plans to close 80 to 90 underperforming stores and one distribution center, which is expected to yield immediate EBITDA improvement for FY26[1][2]. - Inventory efficiency improved with a year-over-year reduction of approximately 10%[1][2]. Future Projections - Fiscal 2026 sales guidance is projected between $1,100 million and $1,250 million, with adjusted EBITDA expected between $55 million and $75 million[6]. Cash and Assets - Cash and cash equivalents totaled $64.3 million as of October 4, 2025, a decrease of $44.2 million compared to $108.5 million as of September 28, 2024[9]. - Total current assets decreased to $328,789 as of October 4, 2025, from $422,434 as of September 28, 2024[28]. - Total liabilities decreased to $1,149,467 as of October 4, 2025, from $1,227,474 as of September 28, 2024[28]. - The company had cash and cash equivalents of $64,340 as of October 4, 2025, down from $108,505 as of September 28, 2024[28]. Sales Data - Total sales for the three months ended October 4, 2025, were $389,206, a decrease of 2% from $397,859 for the same period in 2024[23]. - Gross profit for the three months ended October 4, 2025, was $150,094, an increase of 5.1% compared to $143,214 for the same period in 2024[23]. - Adjusted EBITDA for the three months ended October 4, 2025, was $45,163, an increase from $42,972 for the same period in 2024[25].

Core Insights - Leslie's, Inc. reported fourth quarter sales and adjusted EBITDA that exceeded the high end of its guidance range, indicating a positive operational performance despite challenges [1][2] - The company plans to close 80 to 90 underperforming stores and one distribution center, which is expected to yield immediate EBITDA improvement for fiscal year 2026 [1][2] - Leslie's aims to improve its cost structure by reducing inventory by approximately 10% year-over-year and achieving direct cost reductions of $7 million to $12 million, which will be reinvested into enhancing customer value [2] Financial Performance - For the fiscal fourth quarter ended October 4, 2025, sales were $389.2 million, a decrease of 2.2% from $397.9 million in the prior year period, with comparable sales down 6.5% [5] - Gross profit increased to $150.1 million, up 4.8% from $143.2 million in the prior year, resulting in a gross margin improvement to 38.6% from 36.0% [5] - The company reported a net loss of $162.8 million compared to a net loss of $9.9 million in the prior year, with adjusted net income at $0.8 million, down from $4.4 million [5] Strategic Initiatives - The strategic transformation plan focuses on strengthening the balance sheet, optimizing cost structures, and rebuilding stakeholder confidence [2] - The company anticipates generating the majority of its sales and earnings during the second half of fiscal year 2026, driven by the seasonal nature of the pool and spa care industry [7] - Full year fiscal 2026 expectations include sales guidance of $1.1 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million [8] Balance Sheet and Liquidity - As of October 4, 2025, available liquidity was approximately $168 million, with no borrowings under the asset-based lending facility [1] - Cash and cash equivalents decreased to $64.3 million from $108.5 million as of September 28, 2024, while inventories decreased by 11.2% to $208.0 million [13][30] - The company recorded impairments totaling $183.8 million, primarily related to goodwill and asset write-offs for underperforming stores [5][30]