Leslie's shares jump 12.34% after hours on improved gross margin and revenue beat in Q4 2025 earnings.

Leslie's (LESL) surged 12.34% in after-hours trading following mixed analyst activity and earnings updates. Despite Morgan Stanley downgrading the stock to Underweight with a $1.50 price target, citing weak visibility and financial strain, the company reported fourth-quarter adjusted EBITDA of $45.2 million—exceeding Telsey Advisory Group’s $39 million forecast. Improved gross margins (38.6%) and revenue beating estimates ($389.2 million vs. $373 million) highlighted operational progress. However, S&P downgraded its credit rating to 'CCC' due to execution risks and cash flow deficits. The rally likely reflects optimism over earnings resilience and Wolfe Research’s raised $4.00 price target, contrasting with bearish analyst skepticism.