Leatt Corporation Announces Results for the Third Quarter 2026

Third-quarter net margin reached 10.8%, compared with 3.8% a year earlier, as revenue grew faster than operating costs.

Rhea-AI Summary

Leatt (LEAT) reported third-quarter 2026 revenue of $20.46 million, its highest quarterly revenue in four years, with higher net income. Revenue rose 43% year over year; net income increased 309% to $2.20 million, with diluted earnings per share of $0.34 versus $0.08. Gross profit rose 48% to $9.32 million, partly reflecting recouped U.S. import tariffs. Distributor, dealer-direct and consumer-direct sales all increased, while neck brace sales declined.

Nine-month revenue rose 23% to $56.36 million, and net income increased 74% to $4.88 million. Operating cash flow reached $4.59 million versus $1.45 million. Cash, equivalents and restricted cash totaled $15.50 million at September 30, up $2.27 million since year-end, while inventory fell $1.60 million. Leatt launched GRiTT, its first consumable product line. The company expects sales momentum to continue and plans further investment in its global team and product pipeline.

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Positive

• Moderate pointQ3 revenue increased 43% to $20.46 million year over year, the highest quarterly revenue in four years.
• Moderate pointQ3 net income increased 309% to $2.20 million; basic EPS reached $0.35 versus $0.09, diluted $0.34 versus $0.08.
• Moderate pointQ3 gross profit rose 48% to $9.32 million, partly reflecting recouped U.S. import tariffs.
• Moderate pointQ3 operating income reached $2,943,855, compared with $630,180 a year earlier.
• Moderate pointNine-month operating cash flow reached $4.59 million, compared with $1.45 million in 2025.

18 minor points

• Minor pointQ3 net margin improved to 10.8% from 3.8% a year earlier.
• Minor pointQ3 distributor sales increased 52%, dealer-direct revenue 24% and consumer-direct sales 25%, year over year.
• Minor pointQ3 U.S. revenue increased 24% to $5.33 million; international revenue increased 50% to $15.12 million.
• Minor pointQ3 body armor sales increased $2.93 million compared with the prior-year quarter.
• Minor pointQ3 helmet sales increased $2.25 million compared with the prior-year quarter.
• Minor pointQ3 other products, parts and accessories sales increased $1.04 million year over year.
• Minor pointNine-month revenue increased 23% to $56.36 million, compared with $45.89 million in 2025.
• Minor pointNine-month net income rose 74% to $4.88 million; diluted EPS reached $0.76 versus $0.43, basic $0.78 versus $0.45.
• Minor pointNine-month gross profit increased 27%; gross margin improved to 45% from 43% a year earlier.
• Minor pointNine-month operating income reached $6,414,531, compared with $3,459,380 in 2025.
• Minor pointNine-month consumer-direct sales increased 48% to $5.24 million compared with the same period in 2025.
• Minor pointNine-month helmet sales increased 48% and footwear revenue increased 67% year over year.
• Minor pointCash, equivalents and restricted cash increased $2.27 million since year-end to $15.50 million at September 30.
• Minor pointInventory decreased $1.60 million since year-end despite nine-month revenue growth of 23%.
• Minor pointShort-term loan repayments totaled $793,892 during the first nine months of 2026.
• Minor pointCommon stock repurchases totaled $181,555 during the first nine months of 2026.
• Minor pointGRiTT launched as Leatt's first consumable product line; the company said initial shipments exceeded expectations.
• Minor point. Forward-looking: it has not happened yet and may not happen.Leatt plans further investment in its global sales, marketing and brand management team and product pipeline.

Negative

• Moderate pointQ3 operating expenses increased to $6,582,589 from $5,737,248; nine-month expenses rose to $19,629,516 from $16,651,858.
• Moderate pointAccounts receivable increased to $13,627,880 at September 30, 2026, from $7,904,885 at year-end 2025.
• Minor pointQ3 neck brace sales decreased $0.11 million against a prior-year quarter when neck brace volumes grew 39%.
• Minor pointAccounts payable and accrued expenses increased to $11,414,570 at September 30 from $8,595,892 at year-end.
• Minor pointNine-month capital expenditures increased to $1,243,151 from $771,864 in 2025.

2 minor points

• Minor pointInterest and other income, net, declined to $83,907 for Q3 and $234,671 for nine months, versus $100,756 and $300,640.
• Minor pointForeign currency translation losses were $132,572 for Q3 and $86,485 for nine months, versus prior-year gains.

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Global revenues increase 43% to $20.46 million, highest quarterly revenues in four years; Net income increases 309% to $2.20 million

CAPE TOWN, South Africa, Nov. 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 third quarter ended September 30, 2026. All financial numbers are in U.S. dollars.

Third Quarter 2026 and Recent Highlights

• Q3 2026 revenues increased 43% to $20.46 million, compared to $14.34 million in Q3 2025, the Company's highest quarterly revenues in four years.
• Sales to global distributors increased 52%, dealer direct revenues increased 24% and consumer direct sales increased 25%.
• Q3 2026 net income increased 309% to $2.20 million, or $0.35 per basic and $0.34 per diluted share, compared to $0.54 million, or $0.09 per basic and $0.08 per diluted share, in Q3 2025.
• For the nine months ended September 30, 2026, revenues increased 23% to $56.36 million, compared to $45.89 million for the same period in 2025.
• For the nine months ended September 30, 2026, net income increased 74% to $4.88 million, or $0.78 per basic and $0.76 per diluted share, compared to $2.80 million, or $0.45 per basic and $0.43 per diluted share, for the same period in 2025.
• Cash flows provided by operating activities were $4.59 million for the first nine months of 2026, compared to $1.45 million for the first nine months of 2025.
• Launched GRiTT by Leatt^™, the Company's first consumable product line, with initial shipments exceeding expectations.
• Launched two MTB shoes with unique SuperTack^™ technology designed to maximize grip.

Chief Executive Officer Sean Macdonald commented, "The third quarter of 2026 was a strong quarter by nearly every measure. Total global revenues of $20.46 million were our highest in four years, up 43% over the third quarter of 2025. Sales to global distributors increased by 52%, dealer direct revenues increased by 24% and consumer direct sales increased by 25%. U.S. revenues increased by 24% to $5.33 million. International revenues increased by 50% to $15.12 million.

"Net income for the third quarter increased by 309% to $2.20 million as compared to the third quarter of 2025. Gross profit increased by 48% to $9.32 million, in part due to the recoupment of global trade tariffs levied on the importation of goods into the U.S.

"Our growth was broad-based across product categories. Body armor sales increased by $2.93 million, helmet sales increased by $2.25 million, and other products, parts and accessories sales increased by $1.04 million as compared to the third quarter of 2025. Only sales of our flagship neck brace declined slightly, by $0.11 million, against a strong prior-year quarter in which neck brace volumes grew 39%.

"In terms of marketing and product launches, the third quarter of 2026 was one of our busiest ever. We launched global campaigns across all three of our riding categories—MOTO, MTB and ADV—designed to support the sell-through we are seeing at dealers and distributors. We also launched our first consumable product line, GRiTT by Leatt^™, a range of premium bike care products. This momentum continues into the fourth quarter of 2026. This week we launched two new MTB flat-pedal riding shoes featuring our unique SuperTack^™ technology, designed to maximize grip and enhance the riding experience.

"For the nine months ended September 30, 2026, revenues increased 23% to $56.36 million, and net income increased 74% to $4.88 million. Consumer direct sales continued to be a highlight, increasing by 48% to $5.24 million. Gross profit increased by 27% and gross profit as a percentage of sales improved to 45% from 43% as compared to the same period in 2025."

Founder and Chairman Dr. Christopher Leatt remarked: "Our latest product releases are the result of years of work by our design and engineering team, and they show the depth of the pipeline that we have been building across riding categories. In MOTO, our model year 2027 5.5 Racewear range introduced innovations such as HeatGrip^™, a durable inner-knee material that replaces leather. In MTB, our SuperTack^™ technology, featured in two new flat-pedal shoes, was refined through seven rubber compounds and five outsole designs before testing by more than 100 riders. And with GRiTT by Leatt^™, we have entered the bike care market with our first consumable product line. Innovation that improves the riding experience has been at the heart of Leatt since day one."

Summary of Third Quarter 2026 Revenues

Revenues for the third quarter ended September 30, 2026 were $20.46 million, a 43% increase, compared to $14.34 million for the third quarter ended September 30, 2025. This increase in worldwide revenues was attributable to a $2.93 million increase in body armor sales, a $2.25 million increase in helmet sales and a $1.04 million increase in other products, parts and accessories sales, partially offset by a $0.11 million decrease in neck brace sales.

Revenues generated from sales to our customers in the U.S. increased by 24%, from $4.29 million to $5.33 million for the quarter ended September 30, 2026.

Revenues associated with international customers were $15.12 million and $10.06 million, or 74% and 70% of revenues for the quarters ended September 30, 2026 and 2025, respectively.

Balance Sheet and Cash

Cash, cash equivalents and restricted cash increased by $2.27 million since year-end to $15.50 million at September 30, 2026. Cash flows provided by operations were $4.59 million for the first nine months of 2026, more than three times the $1.45 million for the same period in 2025.

Despite 23% revenue growth, inventory decreased by $1.60 million since year-end, reflecting strong sell-through and disciplined working capital management. The current ratio at September 30, 2026 was 4.7:1. The Company continued to return capital to shareholders through its share repurchase program, repurchasing $181,555 of common stock during the first nine months of 2026.

Business Outlook

Macdonald added: "We are on track for a solid year in 2026. While there is still the potential for geopolitical headwinds, we are optimistic that the traction we have gained will continue. Participation remains strong, and demand for our expanding line of innovative products continues to grow, fueling robust international re-ordering patterns and momentum in domestic sales at the dealer and consumer levels.

"Our 2026 results clearly show the progress that we are making. In the third quarter, revenues grew 43% while operating costs grew only 15%, lifting our net margin to 10.8% from 3.8% a year ago. For the nine months ended September 30, 2026, helmet sales are up 48% and footwear revenues are up 67%.

"We believe that this momentum will be sustained as we continue to invest in building Leatt as a global consumer brand that riders are compelled to engage with. We are actively building out our global team of sales, marketing and brand management professionals and continuing to build a pipeline of innovative products. 

"The Leatt team just returned from our global distributor conference in Barcelona energized and enthusiastic. Our distributors, customers and business partners joined us and are excited by the momentum we are building in expanding our product pipeline, amplifying our brand and reaching a much wider riding audience."

Conference Call

The Company will host a conference call at 10:00 am ET on Thursday, November 12, 2026, to discuss the 2026 third quarter results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-420-1459 (U.S.A) or 1-203-518-9861 (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 11163009.

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 Corporation

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

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, and actual results could differ materially. There are a number of factors that could cause actual events and our financial results to differ materially from those indicated by such forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the factors described in the section captioned "Risk Factors" in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on March 24, 2026, and periodic reports filed with the SEC on or after the date thereof. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "would" and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These forward-looking statements include, among other things, statements relating to:

• our expectations regarding growth in the motor sports and bicycle market;
• our expectation regarding increasing demand for protective equipment used in the motor sports and bicycle market;
• our belief that we will be able to effectively compete with our competitors and increase our market share;
• our expectations with respect to increased revenue growth and our ability to achieve profitability resulting from increases in our production volumes; and
• our future business development, results of operations and financial condition.

Also, forward-looking statements represent our estimates and assumptions only as of the date of this press release. You should read this press release completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future. Accordingly, readers are cautioned not to put undue reliance on these forward-looking statements.

[FINANCIAL TABLES TO FOLLOW]

LEATT CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
		September 30, 2026		December 31, 2025
		Unaudited		Audited
Current Assets
Cash and cash equivalents		$          15,434,899		$         12,988,111
Restricted cash		63,375		244,936
Accounts receivable, net		13,627,880		7,904,885
Inventory, net		19,297,738		20,897,693
Payments in advance		876,748		1,197,284
Income tax receivable		433,821		734,193
Prepaid expenses and other current assets		4,852,799		3,634,255
Total current assets		54,587,260		47,601,357
Property and equipment, net		3,836,490		3,660,704
Operating lease right-of-use assets, net		108,456		342,413
Deferred tax asset, net		396,294		396,294
Other Assets
Deposits		45,548		45,189
Total Assets		$         58,974,048		$     52,045,957
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses		$            11,414,570		$        8,595,892
Refund liability		65,164		65,140
Notes payable, current		-		1,804
Operating lease liabilities, current		108,456		309,019
Other current liabilities		54,659		8,370
Short term loan, net of finance charges		6,108		800,000
Total current liabilities		11,648,957		9,780,225
Operating lease liabilities, net of current portion		-		33,394
Total liabilities		11,648,957		9,813,619
Commitments and contingencies
Preferred stock, $.001 par value, 1,120,000 shares authorized,
120,000 shares issued and outstanding as of September 30, 2026		3,000		3,000
and December 31, 2025
Common stock, $.001 par value, 28,000,000 shares authorized,
6,219,239 shares issued and 6,217,417 outstanding as of
September  30, 2026 and 6,255,989 shares issued and 6,234,689
outstanding as of December 31, 2025		130,517		130,534
Accumulated other comprehensive loss		(1,070,125)		(983,640)
Retained earnings		36,742,688		31,859,103
Additional paid - in capital		11,540,169		11,478,399
Treasury stock, at cost, 1,822 and 21,300 shares of common stock,
as of September 30, 2026 and December 31, 2025, respectively		(21,158)		(255,058)
Total stockholders' equity		47,325,091		42,232,338
Total Liabilities and Stockholders' Equity		$         58,974,048		$     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				Nine Months Ended
		September 30				September 30
		2026		2025		2026		2025
		Unaudited		Unaudited		Unaudited		Unaudited
Revenues		$ 20,458,825		$ 14,343,992		$ 56,357,255		$ 45,888,195
Cost of Revenues		11,136,778		8,027,864		31,025,539		25,961,861
Gross Profit		9,322,047		6,316,128		25,331,716		19,926,334
Product Royalty Income		204,397		51,300		712,331		184,904
Operating Expenses
Salaries and wages		2,146,365		1,890,062		6,471,245		5,593,679
Commissions and consulting expenses		208,700		205,300		664,154		550,456
Professional fees		217,579		143,857		720,074		659,253
Advertising and marketing		1,452,666		1,157,331		3,942,695		3,201,595
Office lease and expenses		258,550		244,197		698,318		589,493
Research and development costs		742,050		688,223		2,204,237		1,969,508
Bad debt expense (recovery)		39,301		35,284		88,840		(59,375)
General and administrative expenses		1,227,059		1,029,429		3,750,774		3,144,070
Depreciation		290,319		343,565		1,089,179		1,003,179
Total operating expenses		6,582,589		5,737,248		19,629,516		16,651,858
Income from Operations		2,943,855		630,180		6,414,531		3,459,380
Other Income
Interest and other income, net		83,907		100,756		234,671		300,640
Total other income		83,907		100,756		234,671		300,640
Income Before Provision for Income Taxes		3,027,762		730,936		6,649,202		3,760,020
Provision for Income taxes		823,860		191,680		1,765,617		960,906
Net Income Available to Common Shareholders		$   2,203,902		$      539,256		$   4,883,585		$   2,799,114
Net Income per Common Share
Basic		$             0.35		$             0.09		$             0.78		$             0.45
Diluted		$             0.34		$             0.08		$             0.76		$             0.43
Weighted Average Number of Common Shares Outstanding
Basic		6,222,104		6,212,483		6,229,291		6,216,379
Diluted		6,457,437		6,483,852		6,464,594		6,487,748
Comprehensive Income
Net Income		$   2,203,902		$      539,256		$   4,883,585		$   2,799,114
Other comprehensive income, net of $0 and
$0 deferred income taxes in 2026 and 2025
Foreign currency translation		(132,572)		111,526		(86,485)		314,002
Total Comprehensive Income		$   2,071,330		$      650,782		$   4,797,100		$   3,113,116
The accompanying notes are an integral part of these consolidated financial statements

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
		2026		2025
Cash flows from operating activities
Net income		$           4,883,585		$            2,799,114
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation		1,089,179		1,003,179
Stock-based compensation		477,208		366,539
Bad debt expense (recovery)		88,840		(69,424)
Inventory reserve		346,573		93,856
Gain on sale of property and equipment		(388)		(18,916)
Increase in refund liability		24		-
(Increase) decrease in:
Accounts receivable		(5,811,835)		(4,313,446)
Inventory		1,253,382		611,529
Payments in advance		320,536		(130,723)
Prepaid expenses and other current assets		(1,218,544)		(944,530)
Income tax receivable		300,372		31,330
Long-term accounts receivable		-		56,391
Deposits		(359)		(7,319)
Increase (decrease) in:
Accounts payable and accrued expenses		2,818,679		1,010,354
Income tax payable		-		958,993
Other current liabilities		46,289		-
Net cash provided by operating activities		4,593,541		1,446,927
Cash flows from investing activities
Capital expenditures		(1,243,151)		(771,864)
Proceeds from sale of property and equipment		743		19,916
Net cash used in investing activities		(1,242,408)		(751,948)
Cash flows from financing activities
Repayment of notes payable to bank		(1,804)		(23,379)
Repayments of short-term loan, net		(793,892)		(728,058)
Purchase of treasury stock under share repurchase plan		(181,555)		(136,686)
Net cash used in financing activities		(977,251)		(888,123)
Effect of exchange rates on cash, cash equivalents and restricted cash		(108,655)		216,507
Net increase in cash, cash equivalents and restricted cash		2,265,227		23,363
Cash, cash equivalents and restricted cash - beginning of period		13,233,047		12,368,100
Cash, cash equivalents and restricted cash - end of period		$         15,498,274		$          12,391,463
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents		15,434,899		12,278,149
Restricted cash		63,375		113,314
Total cash, cash equivalents and restricted cash		$         15,498,274		$          12,391,463
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest		$                46,120		$                 39,160
Other noncash investing and financing activities
Cancellation of treasury shares		$              415,455		$                          -
The accompanying notes are an integral part of these consolidated financial statements

 

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SOURCE Leatt Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Leatt's third-quarter 2026 revenue and earnings?

Leatt reported $20.46 million in revenue and $2.20 million in net income for the quarter ended September 30, 2026, up 43% and 309% year over year, respectively. Basic earnings per share were $0.35 versus $0.09, while diluted earnings per share were $0.34 versus $0.08.

How did Leatt perform in the first nine months of 2026?

Leatt's nine-month revenue increased 23% to $56.36 million, while net income increased 74% to $4.88 million compared with the same period in 2025. Operating cash flow was $4.59 million, compared with $1.45 million a year earlier.

What is Leatt's outlook after its third-quarter 2026 results?

Leatt expects its sales momentum to continue, while acknowledging potential geopolitical headwinds. The company plans to expand its global sales, marketing and brand management team and continue developing its product pipeline.