Leslie’s Inc. (NASDAQ:LESL) shares jumped 25.87% in after-hours trading to $1.80 Wednesday after the pool and spa retailer beat second-quarter revenue estimates by 13.97%.
For the period ended Apr. 4, second-quarter revenue totaled $184.74 million, surpassing the analyst estimate of $162.10 million and marking a strong rebound after the Arizona-based company missed revenue expectations in the first quarter of 2026.
Leslie’s gross margin expanded to 28.9% from 24.8% year-over-year. Adjusted EBITDA loss narrowed by $9.2 million, improving from a loss of $36.1 million to a loss of $26.8 million.
CEO Jason McDonell credited the March-launched "Price Drop" initiative, a strategic pricing overhaul that shifted the company from a high-low promotional model to everyday value pricing on key items, with reactivating lapsed customers and driving transaction growth.
EPS of negative $5.36 still missed the estimate of negative $4.55 by 17.8%.
The company reiterated its full-year fiscal 2026 guidance, expecting sales between $1.1 billion and $1.25 billion and Adjusted EBITDA in the range of $55 million to $75 million.
Trading Metrics, Technical Analysis
Leslie’s has a market capitalization of $13.32 million, with a 52-week high of $18.56 and a low of $0.87.
The small-cap stock has a Relative Strength Index (RSI) of 44.85.
Over the past 12 months, LESL has dropped 91.01%.
Currently, the stock is positioned close to its annual low.
Price Action: LESL closed the regular session down 5.30% at $1.43, according to Benzinga Pro data.
Benzinga's Edge Stock Rankings indicate that LESL is experiencing long-term consolidation along with medium and short-term upward movement.
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