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. |
SOURCE Leatt Corporation
