
Leatt Corp Announces Results for the Second Quarter 2026
Global revenues increase 14% for first six months; Net income increases 19% for first six months
CAPE TOWN, South Africa, Aug. 14, 2026 /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, 2026. All financial numbers are in U.S. dollars.
Second Quarter 2026 and Recent Highlights
- Revenues were $16.39 million, up 1% compared to the second quarter of 2025
- Consumer direct sales increased by 68% for the second quarter of 2026
- Revenues for first six months of 2026 were $35.90 million, up 14% as compared to the first six months of 2025
- Consumer direct sales increased by 61% for the first six months of 2026
- Dealer direct sales increased by 11% for the first six months of 2026
- Cash flow generated by operations was $7.44 million for the first six months of 2026
- Net income for the first six months was $2.68 million, up 19% compared to the first six months of 2025
- Cash, cash equivalents, and restricted cash increased 48% to $19.53 million
- Partnered with Cardo Systems, a leader in wireless communications for powersports, on Cardo Venture, a new off-road helmet integrating Cardo Systems' wireless real-time mesh communication system into Leatt's innovative MOTO 8.5 Helmet.
Chief Executive Officer Sean Macdonald commented, "The second quarter of 2026 was another solid quarter for Leatt despite some temporary supply chain timing challenges that have since been resolved. Global consumer demand for our innovative products remains strong and have fueled robust sell-through and re-ordering patterns. International and domestic sales continue to show promising trends and encouraging traction at the consumer and dealer levels.
"Total global revenues for the quarter were $16.39 million, only a slight increase over last year but, due to supply chain timing, the numbers don't reflect the momentum that, we are achieving. U.S. revenues grew by about 11% to $6.15 million. International revenues were $10.24 million, an increase of 4%. Consumer direct sales continued to be a highlight and grow strongly, increasing by 68% or $961,835 during the quarter.
"In terms of product sales, body armor and helmet sales were the leaders, up $462,309 and $443,803 respectively. MOTO shipments of apparel, boots and helmets that were scheduled for the last half of the second quarter were delayed due to supply chain timing, resulting in a decrease in sales to our global distributors of 6% or $652,846. Again, this has been resolved and we continue to fulfill strong global orders.
"Gross profit for the quarter increased by 8% to $7.44 million and gross profit as a percentage of sales increased by 2%. Net income was $908,989. Total operating costs increased by 16% in the second quarter as we continue to build a strong global team of sales and marketing professionals in emerging and developed markets.
"On a year-to-date basis, total global revenues were up $4.35 million or 14% to $35.90 million. Net income was $2.68 million, an improvement of $419,825 or 19% compared to the first six months of 2025. Consumer direct sales increased by 61%. Cash increased by $6.29 million to $19.53 million, with cash flows provided by operations of $7.44 million for the six months of 2026.
"Our current ratio as of June 30, 2026 was 7.4:1 and we believe that we have sufficiently strong liquidity to fuel future growth."
Founder and Chairman Dr. Christopher Leatt remarked, "Our recent partnership with Cardo Systems integrating their wireless, real-time mesh communication system into our innovative MOTO 8.5 helmet is yet another example of the expertise and competency of our design and engineering team. Our goal is always to be on the cutting edge of industry innovation and, when it is mutually beneficial, collaborate with leading partners in our industry. We look forward to releasing Leatt's integrated helmet offering in the second half of the year"
Financial Summary
Revenues for the quarter ended June 30, 2026 were $16.39 million, a 1% increase, compared to $16.18 million for the quarter ended June 30, 2025.
This increase in worldwide revenues is attributable to a $462,309 increase in body armor sales, and a $443,803 increase in helmet sales that were partially offset by a $530,016 decrease in other product, part and accessory sales and a $161,491 decrease in neck brace sales.
Net income for the second quarter of 2026 was $908,989 or $0.15 per basic and $0.14 per diluted share, down 20%, as compared to $ 1.14 million, or $0.18 per basic and $0.18 per diluted share, for the second quarter of 2025.
Revenues for the six months ended June 30, 2026 were $35.90 million, a 14% increase, compared to $31.54 million for the six months ended June 30, 2025.
This increase in worldwide revenue is attributable to a $2.18 million increase in body armor sales and a $2.43 million increase in helmet sales that were partially offset by a $151,334 decrease in other products, parts and accessories sales and a $110,738 decrease in neck brace sales.
Net income after taxes for the six-month period ended June 30, 2026 was $2.68 million, compared to net income after taxes of $2.26 million for the six-month period ended June 30, 2025.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2026, the Company had cash and cash equivalents of $19.53 million.
Business Outlook
Macdonald added, "While there are some potential headwinds globally, participation and consumer demand for our products around the world remains strong. Ordering patterns fueled by sell-through remain robust and very encouraging. Direct to consumer sales are growing rapidly.
"We have developed an exciting range of bike care products through the establishment and acquisition of Bike Care Technologies. It is a Polish entity that will distribute premium bike care products around the world. We expect sales to start to filter through to revenues during the third quarter of 2026 when we expect to launch this new exciting venture.
"We plan to continue to invest in building a diverse global team of sales and marketing professionals, and in the development of a pipeline of exceptional products. We believe that these investments will continue to fuel strong gains in market share and growth.
"Our team remains very excited and enthusiastic about our future driven by our innovative product portfolio, our plans to amplify the brand to reach a much wider rider audience, and a strong balance sheet that is well-positioned to fuel growth and shareholder value."
Conference Call
The Company will host a conference call at 10:00 am ET on Friday, August 14, 2026, to discuss the 2026 second quarter results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-833-419-0865 (U.S.A) or 1-785-838-9333 (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 11162418.
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 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
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 Company's ability to maintain sufficient liquidity to continue investing in its product portfolio and elevating the brand to reach a wider audience and fuel growth; the Company's ability to continue developing a pipeline of innovative products that connect with consumers; the general ability of the Company to achieve its commercial objectives,; 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 that we file with the United States Securities and Exchange Commission.
[FINANCIAL TABLES TO FOLLOW]
LEATT CORPORATION |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
ASSETS |
||||||||
June 30, 2026 |
December 31, 2025 |
|||||||
Unaudited |
Audited |
|||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ 19,384,885 |
$ 12,988,111 |
||||||
Restricted cash |
143,042 |
244,936 |
||||||
Accounts receivable, net |
7,043,786 |
7,904,885 |
||||||
Inventory, net |
13,923,847 |
20,897,693 |
||||||
Payments in advance |
1,275,524 |
1,197,284 |
||||||
Income tax receivable |
808,615 |
734,193 |
||||||
Prepaid expenses and other current assets |
5,064,000 |
3,634,255 |
||||||
Total current assets |
47,643,699 |
47,601,357 |
||||||
Property and equipment, net |
3,373,116 |
3,660,704 |
||||||
Operating lease right-of-use assets, net |
186,657 |
342,413 |
||||||
Deferred tax asset, net |
396,294 |
396,294 |
||||||
Other Assets |
||||||||
Deposits |
45,534 |
45,189 |
||||||
Total Assets |
$ 51,645,300 |
$ 52,045,957 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable and accrued expenses |
$ 5,925,043 |
$ 8,595,892 |
||||||
Refund liability |
65,162 |
65,140 |
||||||
Notes payable, current |
- |
1,804 |
||||||
Operating lease liabilities, current |
186,657 |
309,019 |
||||||
Other current liabilities |
63,291 |
8,370 |
||||||
Short term loan, net of finance charges |
224,409 |
800,000 |
||||||
Total current liabilities |
6,464,562 |
9,780,225 |
||||||
Operating lease liabilities, net of current portion |
- |
33,394 |
||||||
Total liabilities |
6,464,562 |
9,813,619 |
||||||
Commitments and contingencies |
||||||||
Preferred stock, $.001 par value, 1,120,000 shares authorized, |
||||||||
120,000 shares issued and outstanding as of June 30, 2026 |
3,000 |
3,000 |
||||||
and December 31, 2025 |
||||||||
Common stock, $.001 par value, 28,000,000 shares authorized, |
||||||||
6,229,556 shares issued and 6,227,380 outstanding as of |
||||||||
June 30, 2026 and 6,255,989 shares issued and 6,234,689 |
||||||||
outstanding as of December 31, 2025 |
130,527 |
130,534 |
||||||
Accumulated other comprehensive loss |
(937,553) |
(983,640) |
||||||
Retained earnings |
34,538,786 |
31,859,103 |
||||||
Additional paid - in capital |
11,472,346 |
11,478,399 |
||||||
Treasury stock, at cost, 2,176 and 21,300 shares of common stock, |
||||||||
as of June 30, 2026 and December 31, 2025, respectively |
(26,368) |
(255,058) |
||||||
Total stockholders' equity |
45,180,738 |
42,232,338 |
||||||
Total Liabilities and Stockholders' Equity |
$ 51,645,300 |
$ 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 |
Six Months Ended |
|||||||
June 30 |
June 30 |
|||||||
2026 |
2025 |
2026 |
2025 |
|||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||
Revenues |
$ 16,390,944 |
$ 16,176,339 |
$ 35,898,430 |
$ 31,544,203 |
||||
Cost of Revenues |
8,955,702 |
9,287,146 |
19,888,761 |
17,933,997 |
||||
Gross Profit |
7,435,242 |
6,889,193 |
16,009,669 |
13,610,206 |
||||
Product Royalty Income |
135,115 |
48,306 |
507,934 |
133,604 |
||||
Operating Expenses |
||||||||
Salaries and wages |
2,176,254 |
1,846,237 |
4,324,880 |
3,703,617 |
||||
Commissions and consulting expenses |
219,661 |
187,434 |
455,454 |
345,156 |
||||
Professional fees |
212,003 |
155,345 |
502,495 |
515,396 |
||||
Advertising and marketing |
1,428,833 |
1,152,207 |
2,490,029 |
2,044,264 |
||||
Office lease and expenses |
199,053 |
176,120 |
439,768 |
345,296 |
||||
Research and development costs |
664,839 |
616,795 |
1,462,187 |
1,281,285 |
||||
Bad debt (expense) recovery |
(80,543) |
(31,155) |
49,539 |
(94,659) |
||||
General and administrative expenses |
1,313,482 |
1,101,992 |
2,523,715 |
2,114,641 |
||||
Depreciation |
284,244 |
332,606 |
798,860 |
659,614 |
||||
Total operating expenses |
6,417,826 |
5,537,581 |
13,046,927 |
10,914,610 |
||||
Income from Operations |
1,152,531 |
1,399,918 |
3,470,676 |
2,829,200 |
||||
Other Income |
||||||||
Interest and other income, net |
76,268 |
117,737 |
150,764 |
199,884 |
||||
Total other income |
76,268 |
117,737 |
150,764 |
199,884 |
||||
Income Before Provision for Income Taxes |
1,228,799 |
1,517,655 |
3,621,440 |
3,029,084 |
||||
Provision for Income taxes |
319,810 |
378,921 |
941,757 |
769,226 |
||||
Net Income Available to Common Shareholders |
$ 908,989 |
$ 1,138,734 |
$ 2,679,683 |
$ 2,259,858 |
||||
Net Income per Common Share |
||||||||
Basic |
$ 0.15 |
$ 0.18 |
$ 0.43 |
$ 0.36 |
||||
Diluted |
$ 0.14 |
$ 0.18 |
$ 0.41 |
$ 0.35 |
||||
Weighted Average Number of Common Shares Outstanding |
||||||||
Basic |
6,229,656 |
6,217,550 |
6,232,899 |
6,217,550 |
||||
Diluted |
6,464,988 |
6,475,942 |
6,468,231 |
6,475,942 |
||||
Comprehensive Income |
||||||||
Net Income |
$ 908,989 |
$ 1,138,734 |
$ 2,679,683 |
$ 2,259,858 |
||||
Other comprehensive income, net of $0 and |
||||||||
$0 deferred income taxes in 2026 and 2025 |
||||||||
Foreign currency translation |
160,119 |
136,096 |
46,087 |
202,476 |
||||
Total Comprehensive Income |
$ 1,069,108 |
$ 1,274,830 |
$ 2,725,770 |
$ 2,462,334 |
||||
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, 2026 AND 2025 |
||||
2026 |
2025 |
|||
Cash flows from operating activities |
||||
Net income |
$ 2,679,683 |
$ 2,259,858 |
||
Adjustments to reconcile net income to net cash provided by |
||||
operating activities: |
||||
Depreciation |
798,860 |
659,614 |
||
Stock-based compensation |
324,523 |
243,017 |
||
Bad debt expense (recovery) |
49,539 |
(100,091) |
||
Inventory reserve |
87,259 |
40,203 |
||
Gain on sale of property and equipment |
(388) |
(18,943) |
||
Increase in refund liability |
22 |
- |
||
(Increase) decrease in: |
||||
Accounts receivable |
811,561 |
(1,753,961) |
||
Inventory |
6,886,587 |
5,052,510 |
||
Payments in advance |
(78,240) |
(206,557) |
||
Prepaid expenses and other current assets |
(1,429,745) |
(416,686) |
||
Income tax receivable |
(74,422) |
31,330 |
||
Long-term accounts receivable |
- |
56,391 |
||
Deposits |
(345) |
(6,904) |
||
Increase (decrease) in: |
||||
Accounts payable and accrued expenses |
(2,670,848) |
(2,498,082) |
||
Other current liabilities |
54,921 |
772,741 |
||
Net cash provided by operating activities |
7,438,967 |
4,114,440 |
||
Cash flows from investing activities |
||||
Capital expenditures |
(490,405) |
(349,011) |
||
Proceeds from sale of property and equipment |
743 |
19,250 |
||
Net cash used in investing activities |
(489,662) |
(329,761) |
||
Cash flows from financing activities |
||||
Repayment of notes payable to bank |
(1,804) |
(18,140) |
||
Repayments of short-term loan, net |
(575,591) |
(548,464) |
||
Purchase of treasury stock under share repurchase plan |
(101,893) |
- |
||
Net cash used in financing activities |
(679,288) |
(566,604) |
||
Effect of exchange rates on cash, cash equivalents and restricted cash |
24,863 |
140,013 |
||
Net increase in cash, cash equivalents and restricted cash |
6,294,880 |
3,358,088 |
||
Cash, cash equivalents and restricted cash - beginning of period |
13,233,047 |
12,368,100 |
||
Cash, cash equivalents and restricted cash - end of period |
$ 19,527,927 |
$ 15,726,188 |
||
Reconciliation of cash, cash equivalents and restricted cash |
||||
Cash and cash equivalents |
19,384,885 |
15,726,188 |
||
Restricted cash |
143,042 |
- |
||
Total cash, cash equivalents and restricted cash |
$ 19,527,927 |
$ 15,726,188 |
||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||
Cash paid for interest |
$ 33,269 |
$ 30,206 |
||
Other noncash investing and financing activities |
||||
Cancellation of treasury shares |
$ 330,583 |
$ - |
||
The accompanying notes are an integral part of these consolidated financial statements. |
||||
SOURCE Leatt Corporation
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