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Leatt Corp

Leatt Corp Announces Results for First Quarter 2026

Total revenues increase 27%; net income increases 58%; continued revenue growth in all major product categories

CAPE TOWN, South Africa , May 12, 2026 /PRNewswire/ -- Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of head-to-toe protective equipment for Moto, MTB, ADV, and a wide range of extreme and high-velocity sports, today announced financial results for the first quarter ended March 31, 2026. All financial numbers are in U.S. dollars.

First Quarter 2026 and Recent Highlights

  • First quarter 2026 revenues were $19.51 million, up 27%, compared to the 2025 first quarter.
  • First quarter 2026 net income was $1.77 million, up 58%, compared to the 2025 first quarter.
  • Revenue growth in all major product categories.
  • Consumer direct sales increased 49%, compared to the first quarter of 2025.
  • Cash flow generated by operations was $4.55 million.
  • Cash, cash equivalents and restricted cash increased 30%, to $17.19 million.

Leatt Chief Executive Officer Sean Macdonald commented, "The first quarter of 2026 was a great start to the year for our Company. Revenues continue to grow strongly, global demand for our products fueled robust re-ordering patterns, and domestic sales showed very encouraging traction at the dealer and consumer level. We continue to accelerate our investments in developing emerging markets, as well as in developing Leatt as a global consumer brand that compels riders to engage with us.

"Global revenues for the first quarter were $19.51 million, an increase of 27%, compared to the 2025 first quarter. Consumer direct sales increased by 49%, which we believe is a testament to the tremendous momentum of the Leatt brand's attraction at the consumer level. International sales to our distribution partners increased by 24%, and dealer direct sales increased by 30%, as our re-organized and re-energized

MOTO and MTB domestic sales force continues to develop and build a strong, sustainable and committed dealer network and gain substantial traction with our head-to-toe product offerings.

"We grew revenues year-over-year in all of our major product categories: helmet revenues increased by 59%; other products, parts and accessories increased by 9%; neck brace revenues increased by 7%; and body armor revenues increased by 25%.

"Net income for the first quarter of 2026 was $1.77 million, an increase of 58%, over the 2025 first quarter, and income before tax was $2.39 million, an increase of $0.88 million. Gross profit as a percentage of sales remained stable at 44%, as domestic sales continued to grow and we continue to ship our newer products and improve our global logistics efficiencies.

"Cash increased by $3.96 million, to $17.19 million, despite strong investment in our marketing and selling capabilities, and in our product and brand development that will fuel future growth.

"We expect working capital investments to grow in the coming periods as ordering patterns continue to signal growth, and we have sufficient liquidity to fuel this growth."

Financial Summary

Revenues for the three months ended March 31, 2026 were $19.51 million, a 27% increase, compared to revenues of $15.37 million for the first quarter of 2025.  This increase in worldwide revenues is primarily attributable to a $1.99 million increase in helmet sales, a $1.72 million increase in body armor sales, a $0.38 million increase in sales of other products, parts and accessories, and a $0.05 million increase in neck brace sales.

Net income for the three months ended March 31, 2026 was $1.77 million, or $0.28 per basic and $0.27 per diluted share, a 58% increase compared to $1.12 million for the first quarter of 2025.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations.  Cash, cash equivalents and restricted cash increased by $3.96 million or 30%, for the three months ended March 31, 2026, when compared to $13.23 million in cash, cash equivalents and restricted cash on hand at December 31, 2025, and a current ratio of 8.2:1.

Founder and Chairman Dr. Christopher Leatt remarked, "The continued growth in worldwide sales of our exceptional product categories and the popularity of our brand with consumers validates the exceptional ability of our team of developers and engineers to continuously develop an exciting pipeline of innovative products designed for a wide range of consumers."

Business Outlook

Mr. Macdonald added, "Our entire team is very excited about the future of Leatt. While there are still some potentially challenging global geo-political headwinds, domestic sales are gaining promising traction, participation remains strong, and international ordering patterns remain robust, driven by strong demand for our products around the world.

"There is real excitement about the Leatt brand, both in the U.S. and abroad.  We are accelerating our drive to elevate the brand globally to reach a much wider audience across our core markets, and I look forward to sharing the results of this shift in campaign focus in the coming quarters. 

"With a focus on investing in our innovative product portfolio, a drive to accelerate and amplify our brand to meet a much wider rider audience and a robust balance sheet to fuel growth, we remain confident that we are well positioned for future growth and increased shareholder value."

Conference Call

The Company will host a conference call at 10:00 AM ET on Tuesday, May 12, 2026, to discuss the 2026 first quarter results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-579-2543 (U.S.A) or 1-785-424-1789 (international) to access the call.

Audio Webcast

There will also be a simultaneous live webcast through the Company's website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.

Replay

An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or 1-412-317-6671 (international) and using passcode 11161813.

For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company's website.

About Leatt Corp

Driven by the science of thrill, Leatt Corporation develops head-to-toe personal protective gear for extreme and action sports. This includes the award-winning Leatt-Brace®, a neck brace system considered the gold standard for neck protection when worn in conjunction with a helmet. Leatt products are designed for participants in extreme sports that use motorcycles, bicycles, mountain bikes, all-terrain vehicles, snowmobiles, and other open-air vehicles. For more information, visit www.leatt.com.

Follow Leatt® on Facebook and Instagram.

Forward-looking Statements

This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the Company's ability to maintain sufficient liquidity to continue investing in its product portfolio and elevating the brand to reach a wider audience and fuel growth; the Company's ability to continue developing a pipeline of innovative products that connect with consumers; the general ability of the Company to achieve its commercial objectives,; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.

[FINANCIAL TABLES TO FOLLOW]

LEATT CORPORATION

CONSOLIDATED BALANCE SHEETS





ASSETS






March 31, 2026


December 31, 2025


Unaudited


Audited

Current Assets




  Cash and cash equivalents

$                   17,014,780


$                  12,988,111

  Restricted cash

175,996


244,936

  Accounts receivable, net

6,262,523


7,904,885

  Inventory, net

16,355,242


20,897,693

  Payments in advance

1,243,364


1,197,284

  Income tax receivable

114,302


734,193

  Prepaid expenses and other current assets

4,391,989


3,634,255

    Total current assets

45,558,196


47,601,357





Property and equipment, net

3,295,373


3,660,704

Operating lease right-of-use assets, net

262,967


342,413

Deferred tax asset, net

396,294


396,294





Other Assets




  Deposits

44,910


45,189





Total Assets

$                   49,557,740


$                  52,045,957





LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities




   Accounts payable and accrued expenses

$                     4,651,604


$                    8,595,892

   Refund liability

65,084


65,140

   Notes payable, current

-


1,804

   Operating lease liabilities, current

262,967


309,019

   Other current liabilities

32,813


8,370

   Short term loan, net of finance charges

540,926


800,000

      Total current liabilities

5,553,394


9,780,225





Operating lease liabilities, net of current portion

-


33,394

      Total liabilities

5,553,394


9,813,619





Commitments and contingencies








   Preferred stock, $.001 par value, 1,120,000 shares authorized,




     120,000 shares issued and outstanding as of March 31, 2026

3,000


3,000

     and December 31, 2024




   Common stock, $.001 par value, 28,000,000 shares authorized,




    6,237,561 shares issued and 6,233,773 outstanding as of




    March 31, 2026 and 6,255,989 shares issued and 6,234,689




    outstanding as of December 31, 2025

130,533


130,534

   Accumulated other comprehensive loss

(1,097,672)


(983,640)

   Retained earnings

33,629,797


31,859,103

   Additional paid - in capital

11,373,490


11,478,399

   Treasury stock, at cost, 3,788 and 21,300 shares of common stock,



     as of March 31, 2026 and December 31, 2025, respectively

(34,802)


(255,058)

      Total stockholders' equity

44,004,346


42,232,338





Total Liabilities and Stockholders' Equity

$                   49,557,740


$                  52,045,957






The accompanying notes are an integral part of these consolidated financial statements.

 

LEATT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME






Three Months Ended


March 31


2026


2025


Unaudited


Unaudited





Revenues

$             19,507,486


$            15,367,864





Cost of Revenues

10,933,059


8,646,851





Gross Profit

8,574,427


6,721,013





Product Royalty Income

372,819


85,298





Operating Expenses




   Salaries and wages

2,148,626


1,857,380

   Commissions and consulting expenses

235,793


157,722

   Professional fees

290,492


360,051

   Advertising and marketing

1,061,196


892,057

   Office lease and expenses

240,715


169,176

   Research and development costs

797,348


664,490

   Bad debt recovery

130,082


(63,504)

   General and administrative expenses

1,210,233


1,012,649

   Depreciation

514,616


327,008

       Total operating expenses

6,629,101


5,377,029





Income from Operations

2,318,145


1,429,282





Other Income




   Interest and other income, net

74,496


82,147

      Total other income

74,496


82,147





Income Before Provision for Income Taxes

2,392,641


1,511,429





Provision for Income taxes

621,947


390,305





Net Income Available to Common Shareholders

$                1,770,694


$             1,121,124





Net Income per Common Share




   Basic

$                       0.28


$                     0.18

   Diluted

$                       0.27


$                     0.17





Weighted Average Number of Common Shares Outstanding




   Basic

6,236,178


6,217,550

   Diluted

6,466,734


6,470,546





Comprehensive Income




    Net Income

$                1,770,694


$             1,121,124

    Other comprehensive income, net of $0 and




        $0 deferred income taxes in 2026 and 2025




       Foreign currency translation

(114,032)


66,380





       Total Comprehensive Income

$                1,656,662


$             1,187,504






The accompanying notes are an integral part of these consolidated financial statements.

 

LEATT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025






2026


2025

Cash flows from operating activities




   Net income

$         1,770,694


$          1,121,124

   Adjustments to reconcile net income to net cash provided by




     operating activities:




     Depreciation

514,616


327,008

     Stock-based compensation

184,286


120,837

     Bad debt expense (recovery)

130,082


(63,504)

     Inventory reserve

37,852


46,291

     Gain on sale of property and equipment

(388)


(14,985)

     Increase in refund liability

(56)


-

    (Increase) decrease in:




       Accounts receivable

1,512,281


92,226

       Inventory

4,504,599


1,012,261

       Payments in advance

(46,080)


(221,652)

       Prepaid expenses and other current assets

(757,734)


7,342

       Income tax receivable

619,891


409,187

       Long-term accounts receivable

-


56,391

       Deposits

279


(851)

    Increase (decrease) in:




       Accounts payable and accrued expenses

(3,944,289)


(2,123,551)

       Other current liabilities

24,443


-

          Net cash provided by operating activities

4,550,476


768,124

Cash flows from investing activities




    Capital expenditures

(166,885)


(195,826)

    Proceeds from sale of property and equipment

743


15,250

          Net cash used in investing activities

(166,142)


(180,576)





Cash flows from financing activities




    Repayment of notes payable to bank

(1,804)


(13,003)

    Repayments of short-term loan, net

(259,074)


(288,465)

    Purchase of treasury stock under share repurchase plan

(68,940)


-

          Net cash used in financing activities

(329,818)


(301,468)





Effect of exchange rates on cash, cash equivalents and restricted cash

(96,787)


45,162





Net increase in cash, cash equivalents and restricted cash

3,957,729


331,242





Cash, cash equivalents and restricted cash - beginning of period

13,233,047


12,368,100





Cash, cash equivalents and restricted cash - end of period

$       17,190,776


$        12,699,342

Reconciliation of cash, cash equivalents and restricted cash




  Cash and cash equivalents

17,014,780


12,699,342

  Restricted cash

175,996


-

    Total cash, cash equivalents and restricted cash

$       17,190,776


$        12,699,342

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:



  Cash paid for interest

$             12,180


$              17,170

  Other noncash investing and financing activities




    Cancellation of treasury shares

$            289,196


$                      -


The accompanying notes are an integral part of these consolidated financial statements.

 

Cision View original content:https://www.prnewswire.com/news-releases/leatt-corp-announces-results-for-first-quarter-2026-302769044.html

SOURCE Leatt Corporation