VANCOUVER, British Columbia, Aug. 19, 2025 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. (CSE: LEEF, OTC: LEEEF) ("LEEF" or the "Company"), a premier California and New York cannabis operator, today announced its financial and operating results for the second quarter ended June 30, 2025. All figures are reported in U.S. dollars unless otherwise indicated.
Q2 2025 Financial Highlights:
- Revenue: $8.7 million, up 10% from $7.9 million in Q2 2024, driven by a 19% year-over-year increase in unit sales.
- Gross Margin: 24%, compared to 34% in Q2 2024, reflecting higher input costs for clean extraction material. Margins are expected to improve as the Company begins processing material from Salisbury Canyon Ranch in 3Q 2025.
- Net Loss: $2.9 million, or ($0.02) per share, a 45% improvement from a $5.5 million loss in Q2 2024.
- Adjusted EBITDA: ($1.2) million, compared to $0.3 million in Q2 2024, impacted by lower gross margins and increased operating expenses related to planting Salisbury Canyon Ranch and ramping operations in New York.
- Bitcoin: LEEF holds 4.4 Bitcoin with an average cost basis of $104,591 per coin. The Company is evaluating opportunities to meaningfully increase its Bitcoin holdings.
Operational Highlights:
- Planted Salisbury Canyon Ranch: In April, LEEF planted Salisbury Canyon Ranch, one of the largest cannabis farms in the world. Since the quarter end, the Company successfully harvested the material and replanted a second crop for fall harvest. The summer harvest exceeded expectations and is expected to drive meaningful margin improvements beginning in Q3 2025.
- New York License Acquisition: On June 9, 2025, LEEF closed the acquisition of a New York cannabis license. The Company is expected to begin producing a full range of concentrates in Q3 2025. New York is expected to increase revenue and margins.
- Leadership Addition: In June 2025, Josh Keats joined as Chief Operating Officer, bringing over 20 years of cannabis industry expertise, including serving as Founder and CEO of Henry's Original. His leadership will drive operational excellence as LEEF scales its cultivation and enters new markets.
Management Commentary:
"This quarter marked a pivotal transition for LEEF as we completed our first planting at Salisbury Canyon Ranch and secured our New York license," said Micah Anderson, CEO of LEEF Brands, Inc. "The Salisbury Canyon Ranch harvest and the New York license are expected to strengthen our margins starting in Q3 2025 by reducing reliance on external biomass and opening new revenue streams."
Kevin Wilson, CFO, added, "The first harvest off the Salisbury Canyon Ranch positions us for significant margin improvement in the second half of 2025, as we leverage our vertically integrated supply chain and expand into high-growth markets. Despite pricing pressures in California, our focus on operational efficiency and strategic growth sets a strong foundation for long-term value creation."
About LEEF Brands, Inc.
LEEF Brands, Inc. is a leading California and New York-based extraction and manufacturing cannabis company. With a comprehensive supply chain, innovative manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest cannabis brands in the United States. For more information, visit www.LeefBrands.com.
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements regarding the anticipated use of net proceeds from the Offering and the Company's future financial condition, operations, and objectives.
Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements.
There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including, but not limited to the risks that the Company does not use the net proceeds from the Offering as anticipated, as well as the risks disclosed in the Company's public filings on the Company's issuer profile on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca.
LEEF Brands, Inc.
Per: Jesse Redmond, Head of Investor Relations and Business Development
Phone: +1 (707) 703-4111
Email: ir@leefca.com
