SCHEDULE: Ariel Investments Discloses 31.7% Stake in Leslie's Post-Split

Ariel Investments, LLC reported a 31.7% beneficial ownership in Leslie's Inc. common stock following a reverse stock split effective September 29, 2025.

Summary

• Ariel Investments, LLC beneficially owns 2,943,963 shares of Leslie's Inc. Common Stock.
• This ownership represents 31.7% of the class of securities.
• The filing is an Amendment No. 7 to reflect the effects of a reverse stock split of Leslie's Inc. Common Stock.
• The reverse split was effective on Monday, September 29, 2025.
• The reverse split resulted in a change to the CUSIP number for the securities and the total shares beneficially owned by Ariel Investments.
• Ariel Investments, LLC has sole voting power over 2,863,578 shares and sole dispositive power over 2,943,963 shares.
• Ariel Fund, a series of Ariel Investment Trust, owns 2,240,815 shares, representing an economic interest in more than 5% of the subject securities.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to the reverse stock split, which typically signals underlying issues for the company. While Ariel Investments' continued significant stake provides some stability, the corporate action itself is a strong negative indicator.

Positives

• Ariel Investments, LLC, a significant institutional investor, maintains a substantial 31.7% stake in Leslie's Inc., indicating continued conviction in the company's long-term prospects despite recent corporate actions.

Negatives

• The disclosure of a reverse stock split, effective September 29, 2025, often signals underlying issues such as a low stock price, potential delisting concerns, or a need to improve market perception, which is generally viewed negatively by investors.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from Leslie's Inc. or Ariel Investments, LLC regarding future performance or strategic direction, beyond the certification that shares were acquired in the ordinary course of business.

Industry Context

This filing primarily concerns an institutional investor's stake adjustment following a corporate action (reverse stock split) and does not offer direct insights into broader industry trends or competitive landscape for Leslie's Inc.

Related Party Transactions

• Ariel Fund, a series of Ariel Investment Trust (an open-end management investment company managed by Ariel Investments, LLC), owns 2,240,815 shares of Leslie's Inc., representing an economic interest in more than 5% of the subject securities.

Stakeholder Impact

• Shareholders: The reverse stock split impacts the number of shares held and the per-share price, potentially affecting liquidity and market perception. The significant institutional ownership by Ariel Investments may provide some confidence.

Key Dates

Recommendation

A reverse stock split is a significant red flag, often indicating a company's stock price has fallen to levels that risk delisting or signal severe underlying business challenges. While Ariel Investments, LLC maintains a substantial stake, the reverse split itself suggests fundamental issues that warrant caution. A seasoned investor would likely view this as a signal to exit or avoid the stock until clear evidence of a turnaround is presented, as the corporate action points to distress rather than strength.

Keywords

Leslie's Inc, Ariel Investments, Schedule 13G, Beneficial Ownership, Reverse Stock Split, Common Stock, Institutional Investor, Equity Stake