Leatt Corp Announces Results for the Third Quarter 2025

Rhea-AI Summary

Leatt (OTCQB: LEAT) reported third-quarter 2025 results for the period ended September 30, 2025. Q3 revenues were $14.34M, up 18% year-over-year; Q3 net income was $539,256, up 366%, or $0.09 basic per share. First nine months revenues were $45.89M, up 40%, and net income was $2.80M, up 259%. Direct-to-consumer Q3 sales rose 61%. Cash and equivalents were $12.39M at September 30, 2025, with a 5:1 current ratio. Gross profit margin improved from 43% to 44% year-over-year. Management highlighted expansion into ADV and a strengthened sales and marketing team.

Positive

• Revenue +18% in Q3 2025 to $14.34M
• Year-to-date revenue +40% to $45.89M
• Net income +366% in Q3 2025 to $539,256
• Direct-to-consumer sales +61% in Q3 2025
• Cash balance of $12.39M at Sept 30, 2025
• Current ratio of 5:1 at Sept 30, 2025

Negative

• Gross margin improvement only +1 percentage point to 44%
• Tariff uncertainty noted as a supply-chain headwind

Revenues increase 18%; Net income increases 366%

CAPE TOWN, South Africa, Nov. 6, 2025 /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 third quarter ending September 30, 2025. All financial numbers are in U.S. dollars.

Third Quarter and First Nine Months 2025 Highlights

• Global revenues for the third quarter were $14.34 million, up 18%, compared to the third quarter of 2024.
  
  
• Net Income for the third quarter was $539,256, up 366%, compared to the third quarter of 2024.
  
  
• Direct-to-consumer sales for the third quarter increased 61%, compared to the third quarter of 2024.
  
  
• Global revenues for the first nine months were $45.89 million, up 40%, compared to the same period of 2024.
  
  
• Net income for the first nine months was $2.80 million, up 259%, compared to the same period of 2024.
  
  
• Cash flow generated from operations for the first nine months was $1.45 million.
  
  
• Cash, cash equivalents and restricted cash at September 30, 2025 was $12.39 million.
  
  
• Industry veteran, Nick Larsen, new Head of Brand, Marketing and Creative.

CEO Sean Macdonald commented, "The third quarter of 2025 was a solid quarter for Leatt on a global basis, as we achieved double-digit profitability and double-digit revenue growth for the fourth consecutive quarter. It was also the fifth consecutive quarter of year-over-year growth following the post-Covid revenue contraction and industry wide stock overhang.

"Revenues for the third quarter were $14.34 million, an 18% increase over last year's third quarter, and net income was $539,256 million, a 366% increase. International distributor sales increased by 17%, as both demand for our products and market conditions improved.  All of our product categories and our core head-to-toe markets— MOTO, MTB and ADV—grew by double digits on a year to date basis compared to last year.  With our recent expansion into the ADV market with a range of products designed for off-road adventure riding, we believe that the ADV market represents an exceptional growth opportunity for us.

"Gross profit as percentage of sales continued to improve, from 43% to 44%, compared to the 2024 third quarter, as domestic trading conditions continue to improve, despite some tariff uncertainty. Our U.S. MOTO and MTB sales teams are gaining momentum at the dealer level, and our supply chain team is managing shipping and logistics costs efficiently.

"For the first nine months of 2025, our revenues increased by $13.06 million, or 40%, to $45.89 million, and net income increased by $4.56 million, or 259%, to $2.80 million. Cash flows generated from operations was $1.45 million, as our liquidity continues to improve.  All our product category revenues have grown by double digits on a year-to-date basis: body armor by 30%, helmets by 60%, other product, parts and accessories including apparel, goggles and components by 49%, and neck braces by 18%.

"While we monitor the international trade situation, we are continuing to invest in  Leatt as a global, consumer-facing brand and to build a strong,  diversified, multi-channel sales organization to reach more riders world-wide."

Financial Summary
Total revenues for the third quarter of 2025 were $14.34 million, up 18%, compared to $12.14 million for the third quarter of 2024.

This increase in worldwide revenues is primarily attributable to a $0.36 million increase in body armor sales, a $0.32 million increase in helmet sales, a $1.41 million increase in other products, parts and accessory sales, and a $0.11 million increase in neck brace sales.

Income from operations for the third quarter of 2025 was $630,180, up 2333%, compared to $25,898 for the third quarter of 2024.

Net income for the third quarter of 2025 was $539,256, or $0.09 per basic and $0.08 per diluted share, up 366%, as compared to net income of $115,837, or $0.02 per basic and $0.02 per diluted share, for the third quarter of 2024.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At September 30, 2025, the Company had cash, cash equivalents and restricted cash of $12.39 million and a current ratio of 5:1.

Founder and Chairman Dr. Christopher Leatt remarked, "Our engineering and design team, as well as our entire Leatt family, are encouraged and energized by the growth of our major product categories and we are continuing to invest in a pipeline of cutting-edge products and categories for a much wider rider community."

Business Outlook
Mr. Macdonald added, "We remain very enthusiastic about our future. Although there are still some challenging geo-political conditions globally and economic risks in the U.S. that may impact inflation and potentially demand to some extent, inventory continues to be digested, our domestic sales are gaining traction, participation remains strong, and international ordering patterns continue to improve and deliver strong growth in revenues.

"We're also pleased to have added some new team members to support our efforts to build and refine  our sales and marketing efforts, including our new head of brand, marketing and creative, Nick Larsen, who has a proven track record of building and driving iconic global brands. Continuing to build out a great team is a cornerstone of our future growth plans.

"We are confident that consumer direct sales will continue to be a highlight in terms of growth, as brand momentum continues and consumer demand remains strong. For the third quarter of 2025, consumer direct sales increased by 61%, and on a year-to-date basis, consumer direct sales increased by 37% over the same period of 2024.  Our digital team continues to focus on building innovative digital platforms and consumer engagement strategies.

"The consistent growth in all our product categories is being driven by strong demand for Leatt products around the world. We expect this trend to continue. With a strong portfolio of innovative products in the market and in our development pipeline, a return to profitability and a robust balance sheet to fuel brand and revenue growth, we remain confident that we are well-positioned for future growth and shareholder value."

Conference Call

The Company will host a conference call at 10:00 am ET on Thursday, November 6, 2025, to discuss the third quarter 2025 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) and using passcode 11160350.

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 continued impact of the ADV range of products and direct-to-consumer sales on the Company's results of operations; the Company's ability to continue developing a pipeline of innovative products and to realize double-digit growth ; the general ability of the Company to achieve its commercial objectives, including development and growth of a global, multi-channel sales organization; 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.

 

LEATT CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
	September 30, 2025		December 31, 2024
	Unaudited		Audited
Current Assets
Cash and cash equivalents	$                  12,278,149		$                 12,368,100
Restricted cash	113,314		-
Accounts receivable, net	10,792,480		6,409,610
Inventory, net	17,283,352		17,988,737
Payments in advance	1,001,643		870,920
Income tax receivable	495,168		526,498
Prepaid expenses and other current assets	3,947,703		3,003,173
Total current assets	45,911,809		41,167,038
Property and equipment, net	3,865,405		4,000,225
Operating lease right-of-use assets, net	417,867		552,970
Accounts receivable, net	-		56,391
Deferred tax asset, net	675,000		675,000
Other Assets
Deposits	44,641		37,322
Total Assets	$                  50,914,722		$                46,488,946
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses	$                    7,917,293		$                   6,906,939
Notes payable, current	7,147		28,722
Operating lease liabilities, current	307,818		251,946
Income tax payable	958,993		-
Short term loan, net of finance charges	5,736		733,794
Total current liabilities	9,196,987		7,921,401
Notes payable, net of current portion	-		1,804
Operating lease liabilities, net of current portion	110,049		301,024
Total liabilities	9,307,036		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
as of September 30, 2025 and December 31, 2025,
respectively
Common stock, $.001 par value, 28,000,000 shares
authorized, 6,206,892 and 6,217,550 shares issued
and outstanding as of September 30, 2025 and
6,217,550 shares issued and outstanding as of
December 31, 2024, respectively	130,544		130,555
Additional paid - in capital	11,354,866		10,988,316
Treasury stock, at cost, 10,658 and 0 shares of
common stock, as of September 30, 2025 and
December 31, 2024, respectively	(136,686)		-
Accumulated other comprehensive loss	(1,138,333)		(1,452,335)
Retained earnings	31,394,295		28,595,181
Total stockholders' equity	41,607,686		38,264,717
Total Liabilities and Stockholders' Equity	$                 50,914,722		$                  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				Nine Months Ended
		September 30				September 30
		2025		2024		2025		2024
		Unaudited		Unaudited		Unaudited		Unaudited
Revenues		$ 14,343,992		$ 12,138,123		$ 45,888,195		$ 32,831,288
Cost of Revenues		8,027,864		6,968,051		25,961,861		19,731,470
Gross Profit		6,316,128		5,170,072		19,926,334		13,099,818
Product Royalty Income		51,300		123,706		184,904		255,789
Operating Expenses
Salaries and wages		1,890,062		1,676,828		5,593,679		4,853,471
Commissions and consulting expenses		205,300		138,124		550,456		427,941
Professional fees		143,857		108,627		659,253		528,215
Advertising and marketing		1,157,331		1,304,215		3,201,595		3,379,914
Office lease and expenses		244,197		141,420		589,493		456,164
Research and development costs		688,223		620,019		1,969,508		1,804,590
Bad debt expense (recovery)		35,284		(30,788)		(59,375)		(20,510)
General and administrative expenses		1,029,429		993,031		3,144,070		2,913,079
Depreciation		343,565		316,404		1,003,179		907,788
Total operating expenses		5,737,248		5,267,880		16,651,858		15,250,652
Income (Loss) from Operations		630,180		25,898		3,459,380		(1,895,045)
Other Income
Interest and other income, net		100,756		105,430		300,640		178,963
Total other Income		100,756		105,430		300,640		178,963
Income (Loss) Before Income Taxes		730,936		131,328		3,760,020		(1,716,082)
Income Taxes		191,680		15,491		960,906		42,123
Net Income (Loss) Available to Common Shareholders		$      539,256		$      115,837		$   2,799,114		$  (1,758,205)
Net Income (Loss) per Common Share
Basic		$            0.09		$            0.02		$            0.45		$           (0.28)
Diluted		$            0.08		$            0.02		$            0.43		$           (0.27)
Weighted Average Number of Common Shares Outstanding
Basic		6,212,483		6,215,440		6,216,379		6,215,440
Diluted		6,483,852		6,485,890		6,487,748		6,485,890
Comprehensive Income (Loss)
Net Income (Loss) Available to Common Shareholders		$      539,256		$      115,837		$   2,799,114		$  (1,758,205)
Other comprehensive income (loss), net of $0 deferred income
taxes in 2025 and 2024
Foreign currency translation		111,526		274,270		314,002		297,282
Total Comprehensive Income (Loss)		$      650,782		$      390,107		$   3,113,116		$  (1,460,923)

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

 

LEATT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
	2025		2024
Cash flows from operating activities
Net income (loss)	$          2,799,114		$        (1,758,205)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation	1,003,179		907,788
Stock-based compensation	366,539		3,752
Bad debts reserve	(69,424)		(31,247)
Inventory reserve	93,856		128,096
Deferred asset allowance	-		(6,400)
Gain on sale of property and equipment	(18,916)		-
(Increase) decrease in:
Accounts receivable	(4,313,446)		(861,413)
Deferred asset	-		16,001
Inventory	611,529		4,491,631
Payments in advance	(130,723)		(312,949)
Prepaid expenses and other current assets	(944,530)		(548,279)
Income tax receivable	31,330		99,193
Long-term accounts receivable	56,391		163,470
Deposits	(7,319)		(1,750)
Increase (decrease) in:
Accounts payable and accrued expenses	1,010,354		686,712
Income tax payable	958,993		-
Net cash provided by operating activities	1,446,927		2,976,400
Cash flows from investing activities
Capital expenditures	(771,864)		(861,567)
Proceeds from sale of property and equipment	19,916		-
Net cash used in investing activities	(751,948)		(861,567)
Cash flows from financing activities
Repayment of notes payable to bank	(23,379)		(84,285)
Repayment of short-term loan, net	(728,058)		(1,129,966)
Purchase of treasury stock under share repurchase plan	(136,686)		-
Net cash used in financing activities	(888,123)		(1,214,251)
Effect of exchange rates on cash, cash equivalents and restricted cash	216,507		222,003
Net increase in cash, cash equivalents and restricted cash	23,363		1,122,585
Cash, cash equivalents and restricted cash - beginning of period	12,368,100		11,347,420
Cash, cash equivalents and restricted cash - end of period	$        12,391,463		$        12,470,005
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$        12,278,149		$        12,470,005
Restricted cash	113,314		-
Total cash, cash equivalents and restricted cash	$        12,391,463		$        12,470,005
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$               39,160		$               69,515
Cash paid for income taxes	$                      -		$               55,906
Other noncash investing and financing activities
Common stock issued for services	$             366,539		$                 3,752

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

 

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SOURCE Leatt Corporation

FAQ

What were Leatt (LEAT) Q3 2025 revenues and net income?

Leatt reported Q3 2025 revenues $14.34M and net income $539,256.

How did Leatt's direct-to-consumer sales perform in Q3 2025?

Direct-to-consumer sales increased by 61% in Q3 2025 year-over-year.

What is Leatt's cash position and liquidity at September 30, 2025?

Cash, cash equivalents and restricted cash were $12.39M with a 5:1 current ratio.

How did Leatt perform year-to-date through Sept 30, 2025?

First nine months 2025 revenue was $45.89M (up 40%) and net income $2.80M (up 259%).

Did Leatt report margin improvements in Q3 2025?

Yes; gross profit margin rose from 43% to 44% year-over-year in Q3 2025.

What corporate developments did Leatt announce on Nov 6, 2025?

Leatt added Nick Larsen as Head of Brand, Marketing and Creative and highlighted ADV market expansion.