Leatt Corp Reports Record-Breaking 2025 Financial Results

Revenue Soars 41%, Net Income Up 248%; Sixth Consecutive Quarter of Year-Over-Year Growth

Leatt Corporation (OTCQB: LEAT), a global leader in protective equipment for Moto, MTB, and extreme sports, has released its financial results for the fourth quarter and full year ended December 31, 2025. The results showcase robust growth across all metrics, marking a pivotal year for the company and potentially offering significant upside for investors.

Key Financial Highlights

• Fourth quarter revenues: \$16.02 million, up 43% year-over-year.
• Fourth quarter net income: \$464,808 (up 204% vs. Q4 2024).
• Full year global revenues: \$61.91 million, a 41% increase over 2024.
• Full year international revenues: \$44.64 million, up 47% year-over-year.
• Full year net income: \$3.26 million, up 248% vs. a net loss of \$(2.20) million in 2024.
• All major product categories and sales channels delivered double-digit growth.
• Cash flow from operations: \$1.80 million.
• Cash, cash equivalents, and restricted cash: \$13.23 million (up 7% YOY).
• Current ratio: 4.9:1, indicating strong liquidity.

Product & Brand Momentum

• Helmet sales surged by 59% year-over-year.
• Flagship neck brace sales grew by 18%.
• Body armor revenues increased by 29%, with footwear sales up 40%.
• Other products, parts, and accessories category saw a 56% increase.
• Gross profit margin improved to 44% for the year, up from 40% in 2024.
• Leatt’s 5.0 Gravity Helmet won the Eurobike Gold Award for Technical Highlight, and the 6.0 HydraDri® Jacket received the Eurobike Award for Performance Clothing.

Operational Performance

• Customer direct sales increased by 44% year-over-year.
• Dealer direct sales with a reorganized domestic sales force grew by 22%.
• Operating costs increased by 12%, reflecting investments in global sales and marketing teams.
• Income before tax for 2025 was \$4.41 million, compared to a loss of \$2.70 million in 2024.
• Comprehensive income for 2025 totaled \$3.73 million, a full turnaround from a comprehensive loss in 2024.

Balance Sheet Strength

• Total assets: \$52.05 million (up from \$46.49 million).
• Total liabilities: \$9.81 million (up from \$8.22 million).
• Total stockholders’ equity: \$42.23 million, up from \$38.26 million.

Cash Flow and Capital Expenditure

• Net cash provided by operating activities: \$1.81 million.
• Net cash used in investing activities: \$(1.05) million, mainly for capital expenditures.
• Net cash used in financing activities: \$(217,574), including share repurchases.
• Strong liquidity position with cash, cash equivalents, and restricted cash of \$13.23 million.

Business Outlook & Shareholder Considerations

• Leatt’s management remains highly optimistic, citing strong international demand, improved domestic sales traction, and robust ordering patterns.
• Adventure motorcycle apparel, helmet, and boot sales are expected to drive continued revenue growth, with new product launches planned for the ADV market in coming quarters.
• Despite potential geo-political headwinds, domestic and international markets remain strong.
• Leatt intends to increase working capital investments to support its expanding global sales and marketing teams.
• Management believes current liquidity is sufficient to fuel further growth.
• Continued double-digit revenue growth and innovation pipeline indicate strong future prospects and potential share price catalysts.

Conference Call & Investor Engagement

Leatt Corp will host a conference call on March 24, 2026, at 10:00 AM ET to review its fourth quarter and full year results. Investors may participate by dialing the provided numbers or accessing the audio webcast through the company’s website. A replay will be available for seven days, and an archived webcast will remain online for 30 days.

Forward-Looking Statements

The press release contains forward-looking statements regarding Leatt’s growth, liquidity, product pipeline, and business strategy. These statements are subject to risks and uncertainties, including market conditions, competition, and geopolitical factors, which may impact actual results.

Conclusion: Implications for Shareholders

Leatt Corp’s 2025 performance marks a significant turnaround and sets the stage for sustained growth. Key drivers include strong international sales, successful product launches, and improving margins. The robust balance sheet, enhanced liquidity, and clear strategic direction position the company for continued expansion. Shareholders should monitor ongoing product innovation, market expansion, and potential geopolitical risks. The remarkable revenue and profit growth, coupled with accelerating momentum in major product categories and sales channels, could be price sensitive and may positively affect share values.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should review the company’s filings and consult their financial advisor before making investment decisions.

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