The revenue inflection and customer growth are encouraging, but the persistent net loss, cash burn, and heavy debt load ($752.9M long-term debt) keep the stock in distressed territory. Monitor Q3 (peak season) for whether the 'Price Drop' initiative can sustain momentum and narrow losses toward the full-year EBITDA guide. The reiterated guidance suggests management sees no need to raise the bar, capping upside.
Price Chart
Executive Summary
Leslie's Q2 2026 revenue grew 4.3% YoY to $184.7M and comparable sales rose 6.6%, marking a sharp reversal from Q1's 16% decline, driven by the 'Price Drop' initiative and 8% customer count growth. However, GAAP EPS of -$5.63 missed the consensus estimate of -$4.41 by 27.7%, and the company reiterated full-year guidance of $1.1B-$1.25B in sales and $55M-$75M in adjusted EBITDA, offering no upward revision despite the quarterly beat. The stock's $14M market cap and deeply negative retained deficit (-$656.6M) underscore the precarious financial position.
Key Financial Metrics
Key Facts
- Q2 2026 sales of $184.7M, up 4.3% YoY from $177.1M; comparable sales up 6.6%
- GAAP diluted loss per share of -$5.63 vs -$5.54 YoY; adjusted diluted loss per share -$5.36 vs -$5.21 YoY
- Gross margin expanded to 28.9% from 24.8% YoY; adjusted EBITDA improved to -$26.8M from -$36.1M
- Full-year fiscal 2026 guidance reiterated: sales $1.1B-$1.25B, adjusted EBITDA $55M-$75M
- Net loss widened to $52.5M from $51.3M YoY; stockholders' deficit deepened to -$541.3M
- Cash and cash equivalents $16.9M, down from $64.3M at fiscal year-end; revolver drawn $99M
- Customer count grew 8% YoY; 80 underperforming stores closed in Q1 2026
Financial Impact
Revenue beat consensus by ~13.7% ($184.7M vs $162.5M est), but EPS missed by -21.5% (-$5.36 vs -$4.41 est). No guidance raise.
Risk Factors
- Deeply negative equity (-$541.3M) and going-concern risk if cash burn continues
- Heavy debt load ($752.9M long-term debt + $99M revolver) vs $16.9M cash
- Seasonal concentration — majority of sales and earnings come in H2; Q3 results critical
- EPS miss of -21.5% vs consensus signals ongoing profitability challenges
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-221746 |
| Document: lesl-20260513.htm | 0001193125-26-221746 |
| Document: 0001193125-26-221746-index-headers.html | 0001193125-26-221746 |
| Document: 0001193125-26-221746-index.html | 0001193125-26-221746 |
| Document: 0001193125-26-221746.txt | 0001193125-26-221746 |
| 8-K Data (Synthetic) | 0001193125-26-221746 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | 8-K | $0.0900 $0.0200 | ▲ +77.78% | ▲ +77.64% | $0.0840 (+6.67%) |
Sep 30, 2026 26d ago | 8-K | $0.1600 $0.0600 | ▲ +62.50% | ▲ +64.41% | $0.0840 (+47.50%) |
Jun 1, 2026 21w ago | 8-K | $3.95 $8.18 | ▲ +107.09% | ▲ +110.05% | $0.0840 (−97.87%) |
May 13, 2026 23w ago | 8-K | $3.50 $3.09 | ▼ −11.71% | ▼ −11.00% | $0.0840 (−97.60%) |
May 13, 2026 23w ago | Press Release | $3.50 $3.09 | ▲ +11.71% | ▲ +11.00% | $0.0840 (+97.60%) |
Apr 30, 2026 25w ago | Press Release | $1.71 | awaiting T+5 | — | $0.0840 (−95.09%) |
US Market Status
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