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Leslie’s, Inc. Announces Preliminary Third Quarter Fiscal 2025 Financial Results

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Leslie's (NASDAQ: LESL), the leading U.S. pool and spa care company, reported challenging preliminary Q3 2025 results, with net sales declining 12% to $500 million. The company expects net income between $20-22 million and Adjusted EBITDA of $79-82 million.

CEO Jason McDonell attributed the performance decline to extremely wet and unseasonably cool temperatures in key markets, which disrupted peak pool season and delayed customer pool openings. The company has withdrawn its fiscal year 2025 guidance and will provide updated expectations on August 6, 2025.

Leslie's ended the quarter with $43 million in cash and has paid off its $20 million revolving credit facility. The company is conducting a strategic review focused on improving sales, profitability, and working capital efficiency across its operations.

Leslie's (NASDAQ: LESL), principale azienda statunitense nella cura di piscine e spa, ha riportato risultati preliminari difficili per il terzo trimestre 2025, con le vendite nette in calo del 12% a 500 milioni di dollari. L'azienda prevede un utile netto tra i 20 e i 22 milioni di dollari e un EBITDA rettificato tra i 79 e gli 82 milioni di dollari.

Il CEO Jason McDonell ha attribuito il calo delle performance a condizioni climatiche estremamente piovose e insolitamente fresche nei mercati chiave, che hanno interrotto la stagione di punta delle piscine e ritardato l'apertura da parte dei clienti. L'azienda ha ritirato le previsioni per l'anno fiscale 2025 e fornirà aggiornamenti il 6 agosto 2025.

Leslie's ha chiuso il trimestre con 43 milioni di dollari in contanti e ha estinto la sua linea di credito revolving da 20 milioni di dollari. L'azienda sta conducendo una revisione strategica mirata a migliorare vendite, redditività ed efficienza del capitale circolante in tutte le sue operazioni.

Leslie's (NASDAQ: LESL), la principal empresa estadounidense de cuidado de piscinas y spas, reportó resultados preliminares desafiantes para el tercer trimestre de 2025, con ventas netas que disminuyeron un 12% hasta 500 millones de dólares. La compañía espera un ingreso neto entre 20 y 22 millones de dólares y un EBITDA ajustado de 79 a 82 millones de dólares.

El CEO Jason McDonell atribuyó la caída en el desempeño a condiciones extremadamente húmedas y temperaturas inusualmente frescas en mercados clave, que interrumpieron la temporada alta de piscinas y retrasaron la apertura de piscinas por parte de los clientes. La compañía ha retirado su guía para el año fiscal 2025 y proporcionará expectativas actualizadas el 6 de agosto de 2025.

Leslie's finalizó el trimestre con 43 millones de dólares en efectivo y ha pagado su línea de crédito revolvente de 20 millones de dólares. La compañía está llevando a cabo una revisión estratégica enfocada en mejorar las ventas, la rentabilidad y la eficiencia del capital de trabajo en todas sus operaciones.

Leslie's (NASDAQ: LESL), 미국� 대표하� 수영� � 스파 관� 회사가 2025� 3분기 예비 실적에서 도전적인 결과� 보고했으�, 순매출이 12% 감소하여 5� 달러� 그쳤습니�. 회사� 순이익을 2,000만~2,200� 달러, 조정 EBITDA� 7,900만~8,200� 달러� 예상하고 있습니다.

CEO 제이� 맥도넬은 실적 부진의 원인으로 주요 시장에서 극심� 폭우와 이례적으� 선선� 기온� 들었으며, 이로 인해 수영� 성수기가 방해받고 고객들의 수영� 개장� 지연되었다� 설명했습니다. 회사� 2025 회계연도 가이던스를 철회했으� 2025� 8� 6일에 업데이트� 전망� 발표� 예정입니�.

Leslie's� 분기 말에 4,300� 달러� 현금� 보유하고 있으� 2,000� 달러� 회전 신용 대출을 상환했습니다. 회사� 매출, 수익� � 운전자본 효율� 향상� 중점� � 전략� 검토를 진행하고 있습니다.

Leslie's (NASDAQ : LESL), la principale entreprise américaine spécialisée dans l'entretien des piscines et spas, a annoncé des résultats préliminaires difficiles pour le troisième trimestre 2025, avec des ventes nettes en baisse de 12 % à 500 millions de dollars. La société prévoit un résultat net compris entre 20 et 22 millions de dollars et un EBITDA ajusté entre 79 et 82 millions de dollars.

Le PDG Jason McDonell a attribué cette baisse de performance à des conditions météorologiques exceptionnellement humides et fraîches dans des marchés clés, perturbant la saison haute des piscines et retardant l'ouverture des piscines par les clients. La société a retiré ses prévisions pour l'exercice 2025 et communiquera de nouvelles attentes le 6 août 2025.

Leslie's a terminé le trimestre avec 43 millions de dollars en liquidités et a remboursé sa ligne de crédit renouvelable de 20 millions de dollars. L'entreprise mène une revue stratégique visant à améliorer les ventes, la rentabilité et l'efficacité du fonds de roulement dans l'ensemble de ses activités.

Leslie's (NASDAQ: LESL), führendes US-Unternehmen im Bereich Pool- und Spa-Pflege, meldete herausfordernde vorläufige Ergebnisse für das dritte Quartal 2025 mit einem Rückgang des Nettoumsatzes um 12 % auf 500 Millionen US-Dollar. Das Unternehmen erwartet einen Nettogewinn zwischen 20 und 22 Millionen US-Dollar sowie ein bereinigtes EBITDA von 79 bis 82 Millionen US-Dollar.

CEO Jason McDonell führte den Leistungsrückgang auf extrem feuchte und ungewöhnlich kühle Temperaturen in wichtigen Märkten zurück, die die Hochsaison für Pools störten und die Öffnung der Pools durch Kunden verzögerten. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 zurückgezogen und wird am 6. August 2025 aktualisierte Erwartungen bekanntgeben.

Leslie's schloss das Quartal mit 43 Millionen US-Dollar in bar ab und hat seine revolvierende Kreditlinie über 20 Millionen US-Dollar zurückgezahlt. Das Unternehmen führt eine strategische Überprüfung durch, die darauf abzielt, Umsatz, Rentabilität und Effizienz des Umlaufvermögens in seinen Geschäftsbereichen zu verbessern.

Positive
  • Strong liquidity position with $43 million cash at quarter end
  • Complete payoff of $20 million revolving credit facility post-quarter
  • Strategic transformation initiatives underway to improve operations and profitability
Negative
  • Net sales declined significantly by 12% year-over-year to $500 million
  • Net income dropped to $20-22 million range
  • Withdrawal of fiscal year 2025 guidance indicating business uncertainty
  • Severe weather impact disrupting peak pool season sales
  • Operational challenges requiring external resource engagement

Insights

Leslie's Q3 results show significant 12% sales decline due to weather challenges while management withdraws guidance amid ongoing business transformation.

Leslie's preliminary Q3 results reveal substantial challenges with $500 million in net sales, representing a 12% year-over-year decline. The company's profitability metrics show concerning compression with net income of $20-22 million and Adjusted EBITDA of $79-82 million. Most concerning is management's decision to withdraw its fiscal 2025 guidance, signaling continued uncertainty about near-term performance.

The primary driver behind these disappointing results appears to be weather-related, with unseasonably wet and cool temperatures across key markets disrupting the peak pool season. This resulted in delayed pool openings and reduced customer traffic during what should be the company's strongest quarter. The seasonal nature of Leslie's business makes it particularly vulnerable to such weather disruptions, as Q3 typically generates a substantial portion of annual revenue.

From a liquidity perspective, the $43 million cash position, combined with the full repayment of their $20 million revolving credit facility after quarter-end, indicates adequate short-term financial flexibility despite the headwinds. However, the engagement of external resources to accelerate transformation suggests management recognizes the need for more aggressive action beyond weather-related excuses.

Management's mention of a detailed consumer study identifying "additional opportunities" without specific details creates ambiguity about their strategic direction. The upcoming earnings call on August 6th will be critical for understanding whether their transformation plan can effectively address both the immediate challenges and longer-term competitive positioning in the pool care industry.

PHOENIX, July 28, 2025 (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 select preliminary estimated financial results for the third quarter of fiscal 2025.The preliminary third quarter estimated results are unaudited and subject to quarter-end adjustments and finalization by the company.

Preliminary Fiscal Third Quarter Ended June 28, 2025 Results

  • Net sales of approximately $500 million, a decline of approximately 12% versus the prior year quarter
  • Net income of approximately $20 to $22 million; Adjusted net income of approximately $35 to $38 million
  • Adjusted EBITDA1 of approximately $79 to $82 million
  • Diluted earnings per share of $0.11 to $0.12; Adjusted diluted earnings per share1 of $0.19 to $0.21

In addition, based on market conditions and year-to-date performance, the company is withdrawing its previously provided fiscal year 2025 guidance with plans to provide an update for the balance of year expectations when it reports its fiscal third quarter 2025 results on August 6, 2025.

“While we continue to make progress against the key pillars of our transformation initiatives, our business has faced significant challenges in our third quarter. The extremely wet and unseasonably cooler temperatures across our top geographies disrupted peak pool season,� said Jason McDonell, Leslie’schief executive officer. “The unfavorable weather trends impacted traffic as many customers delayed pool openings. In addition, through detailed consumer work over the past few months, we believe that we have identified additional opportunities that we look forward to discussing on our upcoming conference call.

Mr. McDonell continued, “In the quarter, we continued the strategic and operational review of our business to drive improved sales and profitability. This review is focused on assessing the performance across our business in stores, online and distribution centers, our direct and indirect cost structure as well as other initiatives we believe will deliver improvements in working capital and profitability. We recognize the urgency with which we must take action and with the support of external resources we have engaged, we are working to accelerate Leslie’s return to long-term profitable growth. We remain confident in our ability to execute our transformation and have ample liquidity to enable it, including cash at the end of the quarter of approximately $43 million. In addition, we had $20 million outstanding on our revolving credit facility which we paid off subsequent to quarter end.�

1 See section “GAAP to Non-GAAP Reconciliation�.

Conference Call Details

The company will host a conference call at 5:00 p.m. Eastern time on August 6, 2025 to discuss the financial results for the fiscal third quarter 2025 as well as progress against the company’s strategic transformation initiatives. A live audio webcast of the conference call will be available online at https://ir.lesliespool.com/.

A replay of the conference call will be available within approximately three hours of the conclusion of the call and will be available on the company’s Investor Relations website for 180 days.

About Leslie’s

Founded in 1963, Leslie’s is 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. The company serves the aftermarket needs of residential and professional consumers with an extensive and largely exclusive assortment of essential pool and spa care products. The company operates an integrated ecosystem of over 1,000 physical locations and a robust digital platform, enabling consumers to engage with Leslie’s whenever, wherever, and however they prefer to shop. Its dedicated team of associates, pool and spa care experts, and experienced service technicians are passionate about empowering Leslie’s consumers with the knowledge, products, and solutions necessary to confidently maintain and enjoy their pools and spas.

Select Preliminary Financial Results

The select preliminary estimated financial information described above constitutes forward-looking statements. The estimates of results are based solely on information available to us as of the date of this release and are inherently uncertain. Accordingly, you should not place undue reliance on these preliminary estimated unaudited financial results. See “Forward-Looking Statements� below.

This preliminary financial information has been prepared by and is the responsibility of management. Our independent registered public accounting firm, Ernst & Young LLP, has not audited, reviewed or performed any procedures with respect to the preliminary financial information provided today.

Use of Non-GAAP Financial Measures and Other Operating Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP�), we use certain non-GAAP financial measures and other operating measures, including Adjusted EBITDA, Adjusted net income (loss), and Adjusted diluted earnings per share, to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. These non-GAAP financial measures and other operating measures should not be considered in isolation or as substitutes for our results as reported under GAAP. In addition, these non-GAAP financial measures and other operating measures are not calculated in the same manner by all companies, and accordingly, are not necessarily comparable to similarly titled measures of other companies and may not be appropriate measures for performance relative to other companies.

Adjusted EBITDA

Adjusted EBITDA is defined as earnings before interest (including amortization of debt issuance costs), taxes, depreciation and amortization, equity-based compensation expense, executive transition costs, severance, strategic project costs, merger and acquisition costs, and other non-recurring, non-cash or discrete items. Adjusted EBITDA is a key measure used by management and our board of directors to assess our financial performance. Adjusted EBITDA is also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures. We use Adjusted EBITDA to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other companies using similar measures.

Adjusted EBITDA is not a recognized measure of financial performance under GAAP but is used by some investors to determine a company’s ability to service or incur indebtedness. Adjusted EBITDA is not calculated in the same manner by all companies, and accordingly, is not necessarily comparable to similarly titled measures of other companies and may not be an appropriate measure for performance relative to other companies. Adjusted EBITDA should not be construed as an indicator of a company’s operating performance in isolation from, or as a substitute for, net income (loss), cash flows from operations or cash flow data, all of which are prepared in accordance with GAAP. We have presented Adjusted EBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations. Adjusted EBITDA is not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of operating performance as determined in accordance with GAAP. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) per Share

Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are additional key measures used by management and our board of directors to assess our financial performance. Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures.

Adjusted net income (loss) is defined as net income (loss) adjusted to exclude equity-based compensation expense, executive transition costs, severance, strategic project costs, merger and acquisition costs, change in valuation allowance for deferred taxes, and other non-recurring, non-cash, or discrete items. Adjusted diluted earnings per share is defined as Adjusted net income (loss) divided by the diluted weighted average number of common shares outstanding.

Forward-Looking Statements

This press release contains forward-looking statements about us, our industry and select preliminary third quarter financial results that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding our preliminary third quarter 2025 results, future results of operations or financial condition, business strategy, value proposition, legal proceedings, competitive advantages, market size, growth opportunities, industry expectations, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,� “believe,� “contemplate,� “continue,� “could,� “estimate,� “expect,� “intend,� “may,� “plan,� “potential,� “predict,� “project,� “should,� “target,� “will,� or “would,� or the negative of these words or other similar terms or expressions. Our actual results or outcomes could differ materially from those indicated in these forward-looking statements for a variety of reasons, including, among others:

  • our ability to execute on our growth strategies;
  • supply disruptions or increased costs, including as a result of trade policies;
  • our ability to maintain favorable relationships with suppliers and manufacturers;
  • competition from mass merchants and specialty retailers;
  • impacts on our business from the sensitivity of our business to weather conditions, changes in the economy (including high interest rates, recession fears, inflationary pressures and changes in trade policies, including tariffs or other trade restrictions or the threat of such actions), geopolitical events or conflicts, and the housing market;
  • disruptions in the operations of our distribution centers;
  • our ability to implement technology initiatives that deliver the anticipated benefits, without disrupting our operations;
  • our ability to execute on our management transition plans and to attract and retain senior management and other qualified personnel;
  • regulatory changes and developments affecting our current and future products including evolving legal standards, regulations and stakeholder expectations concerning environmental, social and governance (“ESG�) matters;
  • our ability to obtain additional capital to finance operations;
  • commodity price inflation and deflation;
  • impacts on our business from epidemics, pandemics, or natural disasters;
  • impacts on our business from cyber incidents and other security threats or disruptions;
  • our ability to regain and maintain compliance with Nasdaq listing standards;
  • our ability to timely implement the proposed reverse stock split and the anticipated effects of the proposed reverse stock split on the price of shares of our common stock;
  • our ability to remediate material weaknesses or other deficiencies in our internal control over financial reporting or to maintain effective disclosure controls and procedures and internal control over financial reporting; and
  • other risks and uncertainties, including those listed in the section titled “Risk Factors� in our filings with the United States Securities and Exchange Commission (“SEC�).

Additionally, factors that could cause actual results to differ from the preliminary estimated results include the discovery of new information that affects accounting estimates, management judgement or impacts valuation methodologies underlying these estimated results and the completion of our financial and other closing procedures as well as the preparation of our unaudited consolidated financial statements.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in Part I, Item 1A, “Risk Factors� in our Annual Report on Form 10-K for the year ended September 28, 2024, in Part II, Item 1A, “Risk Factors� of our Quarterly Report on Form 10-Q for the quarter ended June 28, 2025 and in our other filings with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, outcomes, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe� and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release, and, while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this press release are based on events or circumstances as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information, changed expectations, the occurrence of unanticipated events or otherwise, except as required by law. We may not actually achieve the plans, intentions, outcomes, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.

Contact

Elisabeth Eisleben
Senior Vice President, Investor & Public Relations
Leslie’s, Inc.


GAAP to Non-GAAP Reconciliation of Preliminary Results
(Amounts in thousands except per share amounts)
(unaudited)
LowHigh
Net income$20,000$22,000
Interest expense15,60015,800
Income tax expense30,55030,850
Depreciation and amortization expense(1)8,5008,600
Equity-based compensation expense(2)1,5001,600
Strategic project costs(3)1,0001,100
Executive transition costs and other(4)1,9002,100
Adjusted EBITDA$79,050$82,050
LowHigh
Net income$20,000$22,000
Equity-based compensation expense(2)1,5001,600
Strategic project costs(3)1,0001,100
Executive transition costs and other(4)1,9002,100
Change in valuation allowance(5)16,00016,800
Tax effects of these adjustments(6)(5,100)(5,400)
Adjusted net income$35,300$38,200
Diluted earnings per share$0.11$0.12
Adjusted diluted earnings per share$0.19$0.21
Weighted average shares outstanding
Diluted185,490185,490


(1)Includes depreciation related to our distribution centers and store locations, which is reported in cost of merchandise and services sold and SG&A in our condensed consolidated statements of operations.
(2)Represents charges related to equity-based compensation and our related payroll tax expense, which are reported in SG&A in our condensed consolidated statements of operations.
(3)Represents non-recurring costs, such as third-party consulting costs related to first-generation technology initiatives, replacements of systems that are no longer supported by our vendors, investment in and development of new products outside of the course of continuing operations, or other discrete strategic projects that are infrequent or unusual in nature and potentially distortive to continuing operations. These items are reported in SG&A in our condensed consolidated statements of operations.
(4)Includes certain senior executive transition costs and severance associated with completed corporate restructuring activities across the organization, losses on asset dispositions, merger and acquisition costs, and other non-recurring, non-cash, or discrete items as determined by management. Amounts are reported in SG&A in our condensed consolidated statements of operations.
(5)Represents non-cash change in valuation allowance for deferred tax assets. This item is reported in income tax benefit in our condensed consolidated statements of operations.
(6)Represents the tax effect of the total adjustments based on our combined U.S. federal and state statutory tax rates. Amounts are reported in income tax benefit in our condensed consolidated statements of operations.

FAQ

What were Leslie's (LESL) preliminary Q3 2025 financial results?

Leslie's reported preliminary Q3 2025 net sales of $500 million (down 12% year-over-year), net income of $20-22 million, and Adjusted EBITDA of $79-82 million.

Why did Leslie's withdraw its fiscal 2025 guidance?

Leslie's withdrew guidance due to challenging market conditions and year-to-date performance, with plans to provide updated expectations during the Q3 earnings call on August 6, 2025.

What caused Leslie's poor performance in Q3 2025?

The poor performance was primarily due to extremely wet and unseasonably cooler temperatures across top geographies, which disrupted peak pool season and delayed customer pool openings.

What is Leslie's current financial position?

Leslie's ended Q3 2025 with $43 million in cash and has fully paid off its $20 million revolving credit facility after the quarter end.

What steps is Leslie's taking to improve business performance?

Leslie's is conducting a strategic and operational review focused on improving store performance, online operations, distribution centers, cost structure, and working capital efficiency.
Leslie'S, Inc.

NASDAQ:LESL

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Specialty Retail
Retail-retail Stores, Nec
United States
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