UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission File Number: 001-39667 LESLIE'S, INC. ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 3, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Delaware 20-8397425 (State or other jurisdiction of incorporation or organization) 2005 East Indian School Road Phoe ...

Leslie's (NasdaqGS:LESL) Q1 2026 Earnings call February 17, 2026 05:00 PM ET Company ParticipantsJason McDonell - CEOJeff White - CFOJonathan Matuszewski - SVPSimeon Gutman - Managing DirectorOperatorGood afternoon, and welcome to the fiscal first quarter 2026 earnings conference call for Leslie's. At this time, all participants are in a listen-only mode. Following the prepared remarks, management will conduct a question-and-answer session. If you require any operator assistance during the conference call, ...

Leslie's (NasdaqGS:LESL) Q1 2026 Earnings call February 17, 2026 05:00 PM ET Company ParticipantsJason McDonell - CEOJeff White - CFOJonathan Matuszewski - SVPSimeon Gutman - Managing DirectorOperatorGood afternoon, and welcome to the fiscal first quarter 2026 earnings conference call for Leslie's. At this time, all participants are in a listen-only mode. Following the prepared remarks, management will conduct a question-and-answer session. If you require any operator assistance during the conference call, ...

Leslie's (NasdaqGS:LESL) Q1 2026 Earnings call February 17, 2026 05:00 PM ET Speaker3Good afternoon, and welcome to the fiscal first quarter 2026 earnings conference call for Leslie's. At this time, all participants are in a listen-only mode. Following the prepared remarks, management will conduct a question-and-answer session. If you require any operator assistance during the conference call, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded and will be ...

Sales and adjusted EBITDA in-line with Company expectations, reiterates full year guide 80 underperforming stores closed during Q1 2026 Improved inventory efficiency with ~23% reduction year-over-year PHOENIX, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Leslie’s, Inc. (NASDAQ: LESL), the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry serving residential customers and pool professionals nationwide, today announced its financial results for the fiscal first quarter 2026. Jason ...

Company Overview - Leslie's, Inc. is the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry, serving both residential customers and pool professionals nationwide [3] - Founded in 1963, the company operates over 1,000 physical locations and a robust digital platform, providing an extensive and largely exclusive assortment of essential pool and spa care products [3] - Leslie's aims to empower consumers with knowledge, products, and solutions necessary for maintaining and enjoying their pools and spas [3] Financial Results Announcement - The company will release its first quarter 2026 financial results after market close on February 17, 2026 [1] - A conference call will be held at 5:00 p.m. Eastern time on the same day to discuss the financial results and progress on strategic transformation initiatives [2] - A live webcast of the conference call will be available online, with a replay accessible for 180 days on the company's Investor Relations website [2]

Core Insights - Leslie's, Inc. has appointed John Hartmann as an independent director to its Board of Directors, effective January 7, 2026 [1] - The Board will expand from eight to nine members with Hartmann's addition, and he will stand for election at the Company's 2026 Annual Meeting of the Shareholders [2] Company Overview - Leslie's is the largest direct-to-customer brand in the U.S. pool and spa care industry, serving both residential customers and pool professionals [5] - The company operates approximately 950 physical locations and a robust digital platform, providing a wide range of essential pool and spa care products [5] Leadership Experience - John Hartmann brings nearly 25 years of retail leadership experience, having successfully executed turnarounds as a C-suite executive in various industries [2][3] - His previous roles include CEO of Ascend Wellness Holdings, COO of Bed Bath & Beyond, and CEO of True Value, among others [3][4] Board Contributions - Hartmann's expertise in leading large-scale transformations and modernization initiatives is expected to be a valuable asset to Leslie's Board and management team [3] - He currently serves on the board of Boyd Group Services and has held positions on several other boards, enhancing his governance experience [4]

Financial Performance - The company experienced a decline in sales and profitability starting from the fiscal year ending September 30, 2023, through the fiscal year ending October 4, 2025[133]. - For the year ended October 4, 2025, Leslie's, Inc. reported a net loss of $236.97 million, compared to a net income of $27.24 million for the year ended September 30, 2023[346]. - Sales for the year ended October 4, 2025, were $1.24 billion, down from $1.33 billion in the prior year, representing a decline of about 6.6%[340]. - The company recorded an impairment loss of $180.7 million in the fourth quarter, significantly impacting the operating income, which resulted in an operating loss of $169.9 million for the year[340]. - The stockholders' deficit increased to $408 million as of October 4, 2025, compared to $177.1 million the previous year, reflecting a worsening financial position[337]. - Net cash provided by operating activities decreased significantly to $8.82 million from $107.47 million in the previous year[346]. - The company incurred impairments totaling $183.83 million during the fiscal year, indicating potential asset value concerns[346]. Market and Economic Risks - The company faces significant risks related to achieving comparable sales growth, which could materially impact profitability and performance[94]. - Macroeconomic and geopolitical developments, including public health crises and supply chain disruptions, may adversely affect financial and operating performance[79]. - Economic conditions, including consumer discretionary spending, unemployment rates, and access to credit, directly affect demand for pool and spa products[110]. - The company faces risks from potential tightening of credit markets, which could limit consumer financing for pool and spa projects, negatively affecting sales[111]. - Recent changes in U.S. trade policies, including tariff exchanges with China, have disrupted supply chains and increased costs, potentially affecting customer spending patterns[145]. - Disruptions from natural disasters, geopolitical events, and economic crises could negatively impact demand for products and disrupt supply chains[104]. Competition and Market Position - The company operates in a highly competitive and fragmented aftermarket pool and spa care industry, facing significant competition from online platforms, mass merchants, and independent retailers[105]. - Competition from mass-market retailers like Walmart and Costco, as well as online retailers like Amazon, poses a significant threat to the company's market share[108]. - The company must manage competitive pressures and pricing strategies to maintain operating margins amid economic uncertainties[94]. Operational Challenges - Inventory management is critical; misalignment with consumer demand could lead to excess inventory or lost sales, adversely affecting financial performance[98]. - The company faces risks related to the cost of raw materials, particularly granular chlorine compounds, which could increase the cost of goods sold and negatively impact financial results[146]. - The company may incur significant costs associated with the closure of underperforming locations, including impairment charges and inventory write-offs[135]. - The company may face challenges in effectively managing product inventory, which could harm profitability and long-term growth prospects[150]. - The company relies on a network of suppliers for product inventory, and disruptions in supply could adversely affect profitability and operating results[144]. Human Resources and Compliance - The company is significantly dependent on attracting and retaining qualified personnel to maintain operations and customer service quality[101]. - Legal proceedings may pose material risks, with potential liabilities that could impact financial results[103]. - The company faces risks related to compliance with various governmental regulations, which could increase operating costs and divert management's attention[157]. - The company may incur significant legal fees and expenses due to product liability claims, which could adversely affect its financial condition[155]. Financial Management and Debt - The company has total borrowings of $756.7 million under its Credit Facilities as of December 5, 2025[168]. - The company's credit rating has been downgraded, impacting its ability to access capital markets and increasing borrowing costs[169]. - The company’s ability to generate sufficient cash flow to service its debt obligations is uncertain, which may require refinancing or asset sales[171]. - The company has pledged substantially all of its assets as collateral to secure its Credit Facilities, which could limit operational flexibility[175]. Seasonal and Environmental Factors - Seasonal fluctuations significantly impact sales, with a greater percentage of revenues generated during the warm months of April through September[114]. - The company is susceptible to adverse weather conditions, which can reduce chemical consumption and consumer purchases during peak sales seasons[117]. - The demand for pool chemicals may decline if consumer attitudes shift towards environmental or safety concerns, impacting sales[113]. - Changes in consumer preferences, particularly a shift from DIY to DIFM (Do It For Me) services, could impact demand for pool and spa care products[132]. Internal Controls and Governance - The company has identified material weaknesses in its internal control over financial reporting, which could affect the accuracy and timeliness of financial results[199]. - Remediation of identified material weaknesses is ongoing, but completion does not guarantee continued effectiveness of controls[203]. - The company may incur increased costs due to compliance with public company responsibilities and corporate governance practices[196]. - The company has faced potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement, but has regained compliance[197][198]. Asset Management - As of October 4, 2025, Leslie's, Inc. reported total assets of $741.5 million, a decrease from $1.05 billion as of September 28, 2024, reflecting a decline of approximately 29.4%[337]. - The company recorded a goodwill impairment of $180.7 million during fiscal 2025, with no impairments in fiscal 2024 and 2023[382]. - The company has 9,290,311 shares of common stock outstanding, all eligible for resale, which could impact stock price if significant stockholders sell[185]. - The company executed a reverse stock split at a ratio of 1-for-20, effective September 29, 2025, to adjust its share structure[350].

Core Viewpoint - Leslie's, Inc. reported mixed financial results for the fourth quarter, with earnings significantly below analyst expectations but sales exceeding estimates [1][2]. Financial Performance - The company reported quarterly earnings of $0.09 per share, compared to the analyst consensus estimate of $1.29 per share [1]. - Quarterly sales reached $389.206 million, surpassing the analyst consensus estimate of $370.635 million [1]. Future Outlook - Leslie's projects FY2026 sales between $1.100 billion and $1.250 billion, which is below market estimates of $1.219 billion [1]. Operational Changes - The CEO announced the closure of 80-90 underperforming stores and one distribution center to improve operations and financial recovery [2]. - The company aims to reduce inventory by 10% year over year and achieve direct cost reductions of $7 million to $12 million, which will be reinvested into customer value [2]. Stock Performance - Following the earnings announcement, Leslie's shares fell by 14.3%, trading at $3.07 [2]. Analyst Ratings - Baird analyst Peter Benedict maintained a Neutral rating on Leslie's and lowered the price target from $6.50 to $3 [5]. - Mizuho analyst David Bellinger also maintained a Neutral rating, cutting the price target from $5 to $4 [5].

Core Insights - Leslie's, Inc. reported mixed fourth-quarter financial results, with earnings of $0.09 per share, significantly below the analyst consensus estimate of $1.29 per share, while quarterly sales of $389.206 million exceeded the consensus estimate of $370.635 million [1] - The company anticipates FY2026 sales between $1.100 billion and $1.250 billion, which is lower than market estimates of $1.219 billion [1] Financial Performance - Fourth-quarter sales and adjusted EBITDA were above the high end of previously established guidance [2] - The company plans to close 80-90 underperforming stores and one distribution center to improve operations and financial recovery [2] - Leslie's aims to reduce inventory by 10% year over year and achieve direct cost reductions of $7 million to $12 million, which will be reinvested into customer price value [2] Market Reaction - Following the earnings announcement, Leslie's shares fell by 14.3%, trading at $3.07 [2] - Analysts have adjusted their price targets for Leslie's stock, with Baird lowering it from $6.5 to $3 and Mizuho from $5 to $4, both maintaining a Neutral rating [5]