FT Markets Data
Leatt Corp

Leatt Corp Announces Results for the Second Quarter 2025

Global revenues increase 61%; Net income increases 208%

CAPE TOWN, South Africa , Aug. 7, 2025 /PRNewswire/ -- Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of head-to-toe protective equipment for MOTO, MTB, and a wide range of extreme and high-velocity sports, today announced financial results for the second quarter ending June 30, 2025. All financial numbers are in U.S. dollars.

Second Quarter 2025 and Recent Highlights

  • Revenues were $16.18 million, up 61% compared to the second quarter of 2024.

  • Gross profit was $6.89 million, up 76% compared to the second quarter of 2024.

  • Income from operations was $1.40 million, up 224% compared to the second quarter of 2024.

  • Cash and cash equivalents increased 27% to $15.73 million.

  • Cash flows provided by operations for the first six months was $4.11 million.

  • Net income was $1.14 million, up 208% compared to the second quarter of 2024.

  • 5.0 Gravity Helmet wins gold award at Eurobike 2025.

  • 6.0 HydraDri® Jacket wins award for performance clothing at Eurobike 2025.

Chief Executive Officer Sean Macdonald commented, "The second quarter of 2025 was a fantastic quarter for Leatt, with strong revenue growth and profitability. Total global revenues for the second quarter increased by $6.10 million to $16.18 million, a 61% increase over the second quarter of 2024. This was our fourth consecutive quarter of growth and third consecutive quarter of double-digit growth after the post-Covid inventory surplus overhang and resulting industry-wide revenue contraction.

"In the second quarter of 2025, we achieved global double-digit revenue growth in all of our major product categories as we continue to invest in a pipeline of cutting-edge products and innovations to reach a wider rider community. Body armor revenues that include upper body armor, limb protection and footwear increased by 48%, helmet revenues increased by 117%, other product, parts, and accessory sales that include apparel, goggles, and components increased by 65%, and neck brace sales increased by 19%, compared to the second quarter of 2024.

"Gross profit as a percentage of sales continued to improve, increasing from 39% in the second quarter of 2024 to 43% this quarter, as domestic trading conditions continue to improve despite some tariff uncertainty.

"Consumer direct sales, a channel that remains an encouraging growth engine for us, increased by 35%, compared to the second quarter of 2024. Dealer direct MOTO and MTB sales in the U.S. were another highlight, returning to growth with global dealer sales increasing by 45% in the second quarter. Although U.S. MOTO and MTB brick and mortar dealers continue to manage some areas of elevated inventory levels and industry turmoil that is stabilizing, participation and demand for our products remain strong.

"Our liquidity continues to improve. We do expect working capital investments to increase in the coming periods as ordering patterns at the consumer, dealer, and distributor levels continue to show growth patterns, but we are confident that we have sufficient liquidity to fuel this growth.

"For the first six months of 2025, our revenues increased by $10.85 million or 52% to $31.54 million, and net income increased by $4.13 million or 221%, to $2.26 million. Cash increased by $3.36 million, to $15.73 million for the first six months of the year, with cashflows provided by operations of $4.11 million. 

"We remain passionate about our future, with a strong portfolio of innovative products in the global market and in the pipeline, and a multi-channel sales organization that is growing and developing."

Financial Summary

Total revenues for the second quarter of 2025 were $16.18 million, up 61%, compared to $10.08 million for the second quarter of 2024.

This increase in worldwide revenues is attributable to a $2.70 million increase in body armor sales, a $1.68 million increase in helmet sales, a $1.60 million increase in other products, part and accessory sales and a $0.11 million increase in neck brace sales.

Gross profit for the second quarter was $6.89 million, up 76%, compared to $3.92 million for the second quarter of 2024.

Net income for the second quarter of 2025 was $1.14 million, or $0.18 per basic and $0.18 per diluted share, up 208%, as compared to a net loss of ($1.06) million, or ($0.17) per basic and ($0.16) per diluted share, for the second quarter of 2024.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2025, the Company had cash and cash equivalents of $15.73 million and a current ratio of 7.4:1.

Founder and Research and Development lead, Dr. Christopher Leatt, remarked, "We were honored in June at Eurobike, the world's leading trade fair for cycling and ecomobility, with awards for our ability to consistently develop technical innovations and functional rider protection pieces. Our 5.0 Gravity Helmet won the Gold Award for Technical Highlights, and our 6.0 HydraDri® Jacket won for Performance Clothing."

Business Outlook

Mr. Macdonald added: "Our entire team is energized by the increasingly strong demand for Leatt products around the world, our consistent revenue growth, and the progress that we are making in working our way out of the industry-wide post-COVID contraction.

"The strong revenue growth is being fueled by international sell-through and re-stocking dynamics and domestic sales outreach programs that are gaining momentum, as we continue to invest in our team selling capabilities and brand. We expect this trend to continue as re-ordering patterns continue to improve and filter through to our revenues.

"Although there are still some challenging geo-political and economic headwinds globally, particularly in the U.S., where tariffs could impact inflation, uncertainty, and demand, inventory continues to be digested, our domestic sales outreach and capabilities are gaining traction, and participation remains strong. We continue to manage our costs of sales actively and are working closely with suppliers and customers to mitigate tariff risks and costs as possible.

"We believe strongly that our strategy of investing in talent, innovative product development, and in the development of Leatt as a global consumer-facing brand that appeals to a wide community of riders around the world, will continue to fuel growth moving forward.

"We remain confident that we are well-positioned for future growth and sustained shareholder value."

Conference Call

The Company will host a conference call at 10:00 am ET on Thursday, August 7, 2025, to discuss the 2025 second quarter results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-445-7795 (U.S.A) or 1-785-424-1699 (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). The replay passcode is 11159724.

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 various sports, with a focus on mountain biking and extreme motorsports. 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, Twitter, 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 significance of the Eurobike awards on the Company's results of operations; the Company's ability to continue the trend of increased sales of body armor, neck braces, helmets, and other product parts and accessories; the general ability of the Company to achieve its commercial objectives, including continued development of a pipeline of innovative products and global industry talent to fuel future growth; 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






June 30, 2025


December 31, 2024


Unaudited


Audited

Current Assets




  Cash and cash equivalents

$        15,726,188


$            12,368,100

  Accounts receivable, net

8,263,662


6,409,610

  Inventory, net

12,896,024


17,988,737

  Payments in advance

1,077,477


870,920

  Income tax receivable

495,168


526,498

  Prepaid expenses and other current assets

3,419,859


3,003,173

    Total current assets

41,878,378


41,167,038





Property and equipment, net

3,751,778


4,000,225

Operating lease right-of-use assets, net

454,217


552,970

Accounts receivable, net

-


56,391

Deferred tax asset, net

675,000


675,000





Other Assets




  Deposits

44,226


37,322





Total Assets

$        46,803,599


$            46,488,946





LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities




   Accounts payable and accrued expenses

$          4,408,857


$              6,906,939

   Notes payable, current

12,386


28,722

   Operating lease liabilities, current

300,309


251,946

   Income tax payable

772,741


-

   Short term loan, net of finance charges

185,330


733,794

      Total current liabilities

5,679,623


7,921,401





Notes payable, net of current portion

-


1,804

Operating lease liabilities, net of current portion

153,908


301,024

      Total liabilities

5,833,531


8,224,229





Commitments and contingencies







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

     authorized, 120,000 shares issued and outstanding

3,000


3,000

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

     authorized, 6,217,550 and 6,217,550 shares issued

      and outstanding

130,555


130,555

   Additional paid - in capital

11,231,333


10,988,316

   Accumulated other comprehensive loss

(1,249,859)


(1,452,335)

   Retained earnings

30,855,039


28,595,181

      Total stockholders' equity

40,970,068


38,264,717





Total Liabilities and Stockholders' Equity

$        46,803,599


$            46,488,946


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

 

LEATT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)







Three Months Ended


Six Months Ended


June 30


June 30


2025


2024


2025


2024


Unaudited


Unaudited


Unaudited


Unaudited









Revenues

$           16,176,339


$      10,078,695


$     31,544,203


$     20,693,165









Cost of Revenues

9,287,146


6,157,282


17,933,997


12,763,419









Gross Profit

6,889,193


3,921,413


13,610,206


7,929,746









Product Royalty Income

48,306


92,780


133,604


132,083









Operating Expenses








   Salaries and wages

1,846,237


1,608,372


3,703,617


3,176,643

   Commissions and consulting expenses

187,434


165,601


345,156


289,817

   Professional fees

155,345


120,617


515,396


419,588

   Advertising and marketing

1,152,207


1,183,282


2,044,264


2,075,699

   Office lease and expenses

176,120


163,190


345,296


314,744

   Research and development costs

616,795


628,793


1,281,285


1,184,571

   Bad debt expense (recovery)

(31,155)


314


(94,659)


10,278

   General and administrative expenses

1,101,992


977,160


2,114,641


1,920,048

   Depreciation

332,606


297,250


659,614


591,384

       Total operating expenses

5,537,581


5,144,579


10,914,610


9,982,772









Income (Loss) from Operations

1,399,918


(1,130,386)


2,829,200


(1,920,943)









Other Income








   Interest and other income, net

117,737


98,016


199,884


73,533

      Total other Income

117,737


98,016


199,884


73,533









Income (Loss) Before Income Taxes

1,517,655


(1,032,370)


3,029,084


(1,847,410)









Income Taxes

378,921


24,993


769,226


26,632









Net Income (Loss) Available to Common Shareholders

$             1,138,734


$      (1,057,363)


$       2,259,858


$     (1,874,042)









Net Income (Loss) per Common Share







   Basic

$                      0.18


$               (0.17)


$                0.36


$              (0.30)

   Diluted

$                      0.18


$               (0.16)


$                0.35


$              (0.29)









Weighted Average Number of Common Shares Outstanding



   Basic

6,217,550


6,215,440


6,217,550


6,215,440

   Diluted

6,475,942


6,490,828


6,475,942


6,490,828









Comprehensive Income (Loss)







    Net Income (Loss)

$             1,138,734


$      (1,057,363)


$       2,259,858


$     (1,874,042)

    Other comprehensive income (loss) , net of $0 deferred income

        taxes in 2025 and 2024







       Foreign currency translation

136,096


160,564


202,476


23,012









       Total Comprehensive Income (Loss)

$             1,274,830


$         (896,799)


$       2,462,334


$     (1,851,030)


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

 

LEATT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS  ENDED JUNE 30, 2025 AND 2024






2025


2024





Cash flows from operating activities



   Net income (loss)

$             2,259,858


$           (1,874,042)

   Adjustments to reconcile net income (loss) to net cash provided by

     operating activities:




     Depreciation

659,614


591,384

     Stock-based compensation

243,017


3,752

     Bad debts reserve

(100,091)


1,559

     Inventory reserve

40,203


(28,390)

     Gain on sale of property and equipment

(18,943)


-

    (Increase) decrease in:




       Accounts receivable

(1,753,961)


1,235,162

       Inventory

5,052,510


5,681,721

       Payments in advance

(206,557)


(503,679)

       Prepaid expenses and other current assets

(416,686)


(294,959)

       Income tax receivable

31,330


101,993

       Long-term accounts receivable

56,391


65,564

       Deposits

(6,904)


(1,317)

    Increase (decrease) in:




       Accounts payable and accrued expenses

(2,498,082)


(1,984,795)

       Income tax payable

772,741


-

          Net cash provided by operating activities

4,114,440


2,993,953





Cash flows from investing activities



    Capital expenditures

(349,011)


(239,094)

    Proceeds from sale of property and equipment

19,250


-

          Net cash used in investing activities

(329,761)


(239,094)





Cash flows from financing activities



    Repayment of notes payable to bank

(18,140)


(55,890)

    Repayment of short-term loan, net

(548,464)


(735,363)

          Net cash used in financing activities

(566,604)


(791,253)





Effect of exchange rates on cash and cash equivalents

140,013


18,922





Net increase in cash and cash equivalents

3,358,088


1,982,528





Cash and cash  equivalents - beginning of period

12,368,100


11,347,420





Cash and cash equivalents - end of period

$           15,726,188


$           13,329,948





SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  Cash paid for interest

$                  30,206


$                  42,210

  Cash paid for income taxes

$                         -


$                  26,633





  Other noncash investing and financing activities

    Common stock issued for services

$                243,017


$                    3,752


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-the-second-quarter-2025-302524103.html

SOURCE Leatt Corporation