Leslie's (LESL) Q4 2025 Earnings
How Did LESL Stock React to Q4 2025 Earnings?
Did LESL Beat Earnings? Q4 2025 Results
No. Leslie's reported Q4 2025 earnings of $0.09 a share on Dec 2, 2025, missing the $1.31 consensus estimate by 93.1%. Revenue was $389.2M against a $371.7M estimate.
Leslie's delivered a stronger-than-expected finish to fiscal 2025, with Q4 adjusted diluted EPS of $0.09 clearing the $0.07 consensus estimate by 37.83% and revenue of $389.21 million topping forecasts by 4.77%, even as total sales slipped 2.2% year over year amid a 6.5% comparable sales decline. The headline beat was undercut by a $183.83 million impairment charge, dominated by a $180.70 million goodwill write-down reflecting sustained operating pressure and a stock that has shed roughly 94% of its value year-to-date, pushing the GAAP net loss to $162.81 million for the quarter. On the brighter side, gross margin expanded to 38.6% from 36.0% a year ago, and adjusted EBITDA improved to $45.16 million, supporting CEO Jason McDonell's case that structural changes are beginning to take hold. The company's plan to close 80 to 90 underperforming stores anchors fiscal 2026 guidance for sales of $1.10 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, with management counting on the store rationalization to deliver immediate earnings improvement in the year ahead.
- Gross margin improvement to 38.6% from 36.0% in the prior year quarter
- Inventory reduction of approximately 11.2% year over year
- Comparable sales declined 6.5% in Q4 and 8.1% for the full year
- SG&A expenses essentially flat year over year in Q4
“We delivered fourth quarter sales and adjusted EBITDA above the high end of our previously established guidance range and are today announcing the closure of 80-90 underperforming stores and one distribution center as we work with speed and urgency to improve Leslie's operations and establish a clear path to financial recovery.”
Leslie's CEO, on the earnings call
What Was Leslie's's Outlook in Q4 2025?
For fiscal year 2026 (52-week period), Leslie's guided sales of $1,100 million to $1,250 million, adjusted EBITDA of $55 million to $75 million, and capital expenditures of $20 million to $25 million. The guidance includes the revenue impact of 80-90 planned store closures and one distribution center closure, as well as the addback of expected closure costs. The company expects direct cost reductions of $7-$12 million to be reinvested into customer price value proposition. Management anticipates the majority of sales and earnings will be generated in the second half of fiscal 2026 due to the seasonal nature of the pool and spa industry.
LESL YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $389.2M | $397.8M | −2.2% |
| Gross Profit | $150.1M | $143.2M | +4.8% |
Figures from SEC filings and company reports. Not investment advice.