Liquidity is increasingly constrained as cash reserves dwindled to $16.9 million in 2026Q2 from $108.5 million in 2024Q4, reflecting an erratic free cash flow trajectory that hit a $109.8 million deficit in 2025Q1.
Leslie's, Inc. (LESL) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Oct'25 | Sep'24 | Sep'23 | Oct'22 | Oct'21 | Oct'20 | Sep'19 | Sep'18 |
|---|
| Cash from Operations | 10.62M | 8.82M | 107.47M | 6.47M | 66.64M | 169.56M | 103.41M | 57.82M | 43.28M |
| Operating CF Margin % | - | 0.71% | 8.08% | 0.45% | 4.27% | 12.63% | 9.3% | 6.23% | 4.85% |
| Operating CF Growth % | -1.19% | -91.79% | 1560.99% | -90.29% | -60.7% | 63.97% | 78.84% | 33.6% | - |
| Net Income | -250.49M | -236.97M | -23.38M | 27.24M | 159.03M | 126.63M | 58.56M | 702K | 17.13M |
| Depreciation & Amortization | 31.35M | 33.47M | 33.08M | 34.14M | 30.77M | 26.55M | 28.93M | 30.42M | 31.61M |
| Stock-Based Compensation | 3.94M | 6.2M | 8.59M | 11.7M | 11.35M | 24.22M | 1.78M | 2.13M | 1.78M |
| Deferred Taxes | -1.25M | 4.46M | 3.43M | -6.33M | 2.47M | 2.85M | -7.82M | -754K | 1.41M |
| Other Non-Cash Items | 197.44M | 184.81M | 4.12M | 8.69M | 3.63M | 12.15M | 4.85M | 5.45M | 4.82M |
| Working Capital Changes | 29.63M | 16.85M | 81.63M | -68.98M | -140.6M | -22.84M | 17.11M | 19.86M | -13.46M |
| Change in Receivables | 4.32M | 23.65M | -18.68M | 16.1M | -7.62M | -12.89M | -31.02M | -5.63M | -4.3M |
| Change in Inventory | 34.4M | 26.3M | 85.88M | 54.33M | -143.15M | -47.79M | 1.76M | -3.8M | -4.92M |
| Change in Payables | 19.44M | -15.73M | 1.89M | -120.05M | 23.84M | 36.04M | 39.34M | 23.83M | 2.04M |
| Cash from Investing | -16.82M | -25.35M | -47.16M | -52.54M | -138.98M | -35.35M | -26.81M | -37M | -40.22M |
| Capital Expenditures | -16.97M | -25.49M | -47.24M | -38.58M | -31.73M | -28.93M | -20.63M | -27.44M | -28.79M |
| CapEx % of Revenue | 1.44% | 2.05% | 3.55% | 2.66% | 2.03% | 2.15% | 1.85% | 2.96% | 3.23% |
| Acquisitions | 26K | 0 | 81K | -15.55M | -107.66M | -8.87M | -6.19M | -9.62M | -11.76M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 125K | 141K | 81K | 1.59M | 408K | 2.44M | 7K | 64K | 325K |
| Cash from Financing | 9.42M | -27.64M | -7.22M | -10.8M | -158.87M | 53.78M | -10.43M | -7.5M | -24.39M |
| Debt Issued (Net) | 9.5M | -27.56M | -6.22M | -8.1M | -8.1M | -395.23M | -10.43M | -6.25M | -23.66M |
| Equity Issued (Net) | 0 | 0 | -998K | -2.36M | -152.15M | 458.59M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.24M | 0 |
| Share Repurchases | 0 | 0 | -998K | -2.36M | -152.15M | 0 | 0 | 0 | 0 |
| Other Financing | -75K | -76K | 0 | -347K | 1.38M | -9.58M | 0 | 0 | -724K |
| Net Change in Cash | 3.23M | -44.16M | 53.09M | -56.87M | -231.21M | 187.99M | 66.17M | 13.33M | -21.32M |
| Free Cash Flow | -6.34M | -16.67M | 60.22M | -32.11M | 34.92M | 140.63M | 82.78M | 30.38M | 14.49M |
| FCF Margin % | -0.54% | -1.34% | 4.53% | -2.21% | 2.24% | 10.47% | 7.44% | 3.27% | 1.62% |
| FCF Growth % | 73.92% | -127.68% | 287.57% | -191.95% | -75.17% | 69.88% | 172.51% | 109.58% | - |
| FCF per Share | -0.68 | -1.79 | 6.52 | -3.48 | 3.75 | 14.80 | 8.87 | 3.26 | 1.55 |
| FCF Conversion (FCF/Net Income) | 0.03x | -0.04x | -4.60x | 0.24x | 0.42x | 1.34x | 1.77x | 82.37x | 2.53x |
| Interest Paid | 59.84M | 65.42M | 63.24M | 63.06M | 32.62M | 36.41M | 88.68M | 90.48M | 90.06M |
| Taxes Paid | 336K | 3.39M | 10.93M | 22.56M | 41.15M | 28.56M | 15.3M | 12.94M | 7.33M |
Quick answers to the most common questions about buying LESL stock.
Leslie's, Inc. (LESL) generated $8.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Leslie's, Inc. (LESL) reported negative free cash flow of $16.7M in 2025, indicating capital requirements exceeded cash from operations.
Leslie's, Inc. (LESL) spent $25.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Seasonal Cash Flow Deficits
Metrics are mathematically derived from official filings.
Earnings Quality and Cash Divergence
According to quarterly financial data, Leslie's exhibits a persistent disconnect between net income and operating cash flow, with OCF/NI ratios frequently exceeding 1.0 during loss-making quarters, suggesting that non-cash charges and working capital swings are masking the true extent of the company's operational cash burn.
The recurring pattern of negative net income paired with negative operating cash flow in off-peak quarters indicates that the business struggles to cover its fixed operating costs without seasonal volume. Investors should monitor whether the reported cash flow volatility is purely a function of inventory seasonality or if it reflects a structural inability to generate cash during the critical spring and summer months.
FCF Volatility and Margin Erosion
Based on reported figures, Leslie's free cash flow trajectory remains highly erratic, swinging from a peak of $165.2 million in 2024Q3 to a deficit of $109.8 million in 2025Q1, highlighting the extreme sensitivity of the company's cash generation to seasonal demand cycles and fixed cost absorption.
The inability to maintain positive free cash flow outside of the peak season suggests that the company's current cost structure is ill-suited for a lower-growth environment. This trajectory implies that the business may remain reliant on external financing or cash reserves to bridge the gap during the winter months, which warrants further investigation into liquidity management.
Working Capital as Cash Drain
As reported in recent filings, working capital changes have frequently acted as a significant drag on cash flow, with a $59.3 million outflow in 2025Q1 alone, suggesting that the company's inventory procurement cycle is not effectively aligned with the timing of consumer demand.
The substantial cash outflows related to working capital during the first quarter of each year indicate that Leslie's is building inventory well ahead of the peak season, which ties up critical liquidity. If sales fail to materialize as expected, this inventory build-up risks becoming a permanent cash trap, potentially forcing the company to discount goods and further compress margins.
Capital Intensity and Asset Replacement
Based on the provided data, Leslie's maintains a relatively low capital intensity, with CapEx/Revenue ratios generally ranging between 1.6% and 7.0%, suggesting that the company is prioritizing the preservation of cash over aggressive expansion of its physical store footprint in the current environment.
While the modest capital expenditure levels may appear prudent, they may also indicate a deferral of necessary investments in store refreshes or digital infrastructure. Analysts should consider whether this level of spending is sufficient to maintain the competitive relevance of the AccuBlue diagnostic ecosystem against increasingly capable big-box and e-commerce competitors.