Press Release: Leatt Corp Announces Results for Fourth Quarter and Full Year 2025

Dow Jones03-24 20:00

Total revenues increase 41%; net income increases 248%;

6(th) consecutive quarter of year-over-year growth

CAPE TOWN, South Africa, March 24, 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 action sports, today announced financial results for the fourth quarter and full year ending December 31, 2025. All financial numbers are in U.S. dollars.

Fourth Quarter and Full Year 2025 Recent Highlights

   -- Fourth quarter 2025 revenues were $16.02 million, up 43% compared to 
      2024. 
 
   -- Fourth quarter 2025 net income was $464,808, up 204% compared to 2024. 
 
   -- Total global revenues for 2025 were $61.91 million, up 41% compared to 
      2024. 
 
   -- International revenues for 2025 were $44.64 million, up 47% compared to 
      2024. 
 
   -- Net Income for 2025 was $3.26 million, up 248% compared to 2024. 
 
   -- Double-digit revenue growth in all major product categories and sales 
      channels. 
 
   -- Cash flow generated by operations was $1.80 million for 2025. 
 
   -- Cash, cash equivalents and restricted cash for 2025 increased 7%, to 
      $13.23 million. 
 
   -- 5.0 Gravity Helmet and 6.0 HydraDri$(R)$ Jacket honored at Eurobike 2025. 

CEO Sean Macdonald commented, "2025 was a remarkable year for us, fueled by strong international demand for our innovative products, improved stocking dynamics and ordering patterns, and a surge in consumer direct sales. The growing global demand for our products and an expanding Leatt(R) brand that reaches a much wider group of riders around the world are fueling tremendous traction and momentum.

"We achieved double-digit revenue growth for the fifth consecutive quarter, and year-over-year growth for the sixth consecutive quarter following the post-covid industry-wide inventory overhang. Total global revenues for the year were $61.91 million, a 41% increase over the full year 2024. International revenues were $44.64 million for the full 2025 year, up 47%, year over year, as our distributors continue to re-order and re-stock. Customer direct sales, an important focus area for us, increased by 44%, year over year, and dealer direct sales with our re-organized and re-energized domestic sales force increased by 22%.

"For the fourth quarter of 2025, revenues increased by 43%, year over year, and gross profit as a percentage of sales increased to 46%, as domestic sales continued to grow and we continued to ship our new products. Net income for the quarter was $464,808, an increase of 204% over the fourth quarter of 2024.

"We closed the year with double-digit revenue growth in all of our major product categories in 2025, a testament to the expertise of our creative design and engineering team and continued strong brand momentum. Helmet sales grew by 59%, year over year, sales of our flagship neck brace increased by 18%, body armor revenues increased by 29%, including a 40% increase in footwear sales, and sales of our other products, parts and accessories category increased by 56%.

"Gross profit as a percentage of sales for the year increased to 44%, year over year, as domestic trading conditions continue to improve and our supply chain team achieved logistical efficiencies, despite some uncertainty around global trade tariffs.

"For the full year 2025, income before tax was $4.41 million, an increase of $7.11 million, compared to the full year 2024. Net income for the full year 2025 increased by 248% to $3.26 million, which we believe is a testament to our ability to generate strong revenues and robust margins."

Financial Summary

Total revenues for the fourth quarter of 2025 were $16.02 million, a 43% increase, compared to $11.20 million for the fourth quarter of 2024.

Net Income for the fourth quarter of 2025 was $464,808 or $0.07 per basic and $0.07 per diluted share, as compared to net loss of $(446,459), or $(0.07) per basic and $(0.07) per diluted share, for the fourth quarter of 2024.

Total revenues for the full year 2025 were $61.91 million, a 41% increase, compared to revenues of $44.03 million for the full year 2024. This increase in worldwide revenues is attributable to a $6.52 million increase in body armor sales, a $4.92 million increase in helmet sales, a $5.99 million increase in other products, parts, and accessories sales and a $0.45 million increase in neck brace sales.

Net income for the full year 2025 was $3.26 million, or $0.53 per basic share and $0.51 per diluted share, up 248%, compared to a net loss of $(2.20 million), or $(0.35) per basic share and $(0.34) per diluted share, for 2024.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At December 31, 2025, the Company had cash, cash equivalents and restricted cash of $13.23 million, compared to $12.37 million at December 31, 2024, and a current ratio of 4.9:1.

Founder and Chairman Dr. Christopher Leatt remarked, "We are very proud of our design, engineering and innovation expertise that focused on rider safety and performance. These innovations are increasingly being recognized by riders at all levels all around the world as well as our peers. Our team was once again honored at Eurobike 2025 -- where our 5.0 Gravity Helmet won the Eurobike Gold Award for Technical Highlight, and our 6.0 HydraDri(R) Jacket won the Eurobike Award for Performance Clothing."

Business Outlook

Mr. Macdonald added: "The momentum we are achieving at all levels of our business has our entire team energized and optimistic about the future of the Company. Although there are some potentially challenging geo-political headwinds globally, domestic sales at the dealer level are gaining very promising traction, participation remains strong and international ordering patterns remain robust.

"Our Adventure motorcycle line-up of apparel, helmet and boot sales, backed by positive industry reviews and our proven ability to develop exciting and durable products, continues to exceed our expectations and contribute strongly to our revenue. We look forward to delivering a pipeline of new innovative products to the growing ADV market over the next several quarters.

"Total operating costs increased by 12% last year, and we do expect working capital investments to grow in the coming periods, reflecting our strong drive to building a global, multi-channel team of sales and marketing professionals in emerging and developed markets. The team is building and leveraging revenue opportunities by enabling our brand to reach a much wider group of riders of all levels around the world. We believe that we have sufficient liquidity to fuel this growth.

"Again, we are very enthusiastic about our future. With a growing portfolio of innovative products in the market and in the pipeline, a focus on elevating and amplifying our brand, and a robust balance sheet to fuel the growth, we remain confident that we are well-positioned for future growth and increasing shareholder value."

Conference Call

The Company will host a conference call at 10:00 AM ET on Tuesday, March 24, 2026, to discuss the 2025 fourth quarter and full year results.

Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-800-579-2543 (U.S.A) or 1-785-424-1789 (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 11161317.

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(R), 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(R) 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 amplifying the brand to fuel growth; the Company's ability to continue developing a pipeline of innovative products; 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.

[FINANCIAL TABLES TO FOLLOW]

 
                            LEATT CORPORATION 
                       CONSOLIDATED BALANCE SHEETS 
                     As of December 31, 2025 and 2024 
 
                                  ASSETS 
 
                           December 31, 2025         December 31, 2024 
Current Assets 
 Cash and cash 
  equivalents            $            12,988,111  $             12,368,100 
 Restricted cash                         244,936                         - 
 Accounts receivable, 
  net                                  7,904,885                 6,409,610 
 Inventory, net                       20,897,693                17,988,737 
 Payments in advance                   1,197,284                   870,920 
 Income tax 
  receivable                             734,193                   526,498 
 Prepaid expenses and 
  other current 
  assets                               3,634,255                 3,003,173 
                       -------------------------  ------------------------ 
   Total current 
    assets                            47,601,357                41,167,038 
 
Property and 
 equipment, net                        3,660,704                 4,000,225 
Operating lease 
 right-of-use assets, 
 net                                     342,413                   552,970 
Accounts receivable, 
 net                                           -                    56,391 
Deferred tax asset, 
 net                                     396,294                   675,000 
 
Other Assets 
 Deposits                                 45,189                    37,322 
                       -------------------------  ------------------------ 
 
Total Assets             $            52,045,957  $             46,488,946 
                       =========================  ======================== 
 
                   LIABILITIES AND STOCKHOLDERS' EQUITY 
 
Current Liabilities 
  Accounts payable 
   and accrued 
   expenses            $               8,595,892    $            6,906,939 
  Refund liability                        65,140                         - 
  Notes payable, 
   current                                 1,804                    28,722 
  Operating lease 
   liabilities, 
   current                               309,019                   251,946 
  Other current 
   liabilities                             8,370                         - 
  Short term loan, 
   net of finance 
   charges                               800,000                   733,794 
                       -------------------------  ------------------------ 
     Total current 
      liabilities                      9,780,225                 7,921,401 
 
Notes payable, neof 
 current portion                               -                     1,804 
Operating lease 
 liabilities, net of 
 current portion                          33,394                   301,024 
                       -------------------------  ------------------------ 
     Total 
      liabilities                      9,813,619                 8,224,229 
                       -------------------------  ------------------------ 
 
Commitments and contingencies 
 
  Preferred stock, $.001 par value, 1,120,000 shares authorized, 
    120,000 shares 
     issued and 
     outstanding as 
     of December 31, 
     2025                                  3,000                     3,000 
    and December 31, 
    2024 
  Common stock, $.001 par value, 28,000,000 shares authorized, 
    6,255,989 shares issued and 6,234,689 outstanding as of December 
    31, 2025 and 6,217,550 shares issued and outstanding as of 
    December 31, 
     2024, 
     respectively                        130,534                   130,555 
  Accumulated other 
   comprehensive 
   loss                                (983,640)               (1,452,335) 
  Retained earnings                   31,859,103                28,595,181 
  Additional paid - 
   in capital                         11,478,399                10,988,316 
  Treasury stock, at cost, 21,300 and 0 shares of common stock, 
    as of December 
     31, 2025 and 
     December 31, 
     2024, 
     respectively                      (255,058)                         - 
     Total 
      stockholders' 
      equity                          42,232,338                38,264,717 
                       -------------------------  ------------------------ 
 
Total Liabilities and 
 Stockholders' 
 Equity                  $            52,045,957  $             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) 
                    FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 
 
                                     2025                             2024 
 
 
Revenues                    $                61,907,914       $              44,027,942 
 
Cost of Revenues                             34,685,970                      26,314,945 
                       --------------------------------  ------------------------------ 
 
Gross Profit                                 27,221,944                      17,712,997 
                       --------------------------------  ------------------------------ 
 
Product Royalty 
 Income                                         381,757                         326,614 
 
Operating Expenses 
  Salaries and wages                          7,917,387                       7,140,550 
  Commissions and 
   consulting 
   expenses                                     764,602                         535,584 
  Professional fees                             853,065                         627,659 
  Advertising and 
   marketing                                  4,563,919                       4,454,906 
  Office lease and 
   expenses                                     923,839                         702,785 
  Research and 
   development costs                          2,704,071                       2,523,881 
  Bad debt recovery                            (65,923)                        (76,278) 
  General and 
   administrative 
   expenses                                   4,372,333                       3,879,553 
  Depreciation                                1,327,190                       1,229,847 
  Impairment loss                               234,224                               - 
      Total operating 
       expenses                              23,594,707                      21,018,487 
                       --------------------------------  ------------------------------ 
 
Income (Loss) from 
 Operations                                   4,008,994                     (2,978,876) 
                       --------------------------------  ------------------------------ 
 
Other Income 
  Interest and other 
   income, net                                  397,000                         275,413 
     Total other 
      income                                    397,000                         275,413 
                       --------------------------------  ------------------------------ 
 
Income (Loss) Before 
 Provision for 
 (Benefit from) 
 Income Taxes                                 4,405,994                     (2,703,463) 
 
Provision for 
 (benefit from) 
 Income taxes                                 1,142,072                       (498,799) 
                       --------------------------------  ------------------------------ 
 
Net Income (Loss) 
 Available to Common 
 Shareholders              $                  3,263,922      $              (2,204,664) 
                       ================================  ============================== 
 
Net Income (Loss) per Common Share 
  Basic                $                           0.53  $                       (0.35) 
                       ================================  ============================== 
  Diluted              $                           0.51  $                       (0.34) 
                       ================================  ============================== 
 
Weighted Average Number of Common Shares Outstanding 
  Basic                                       6,214,861                       6,215,619 
                       ================================  ============================== 
  Diluted                                     6,447,385                       6,471,072 
                       ================================  ============================== 
 
Comprehensive Income 
(Loss) 
   Net Income (Loss)       $                  3,263,922      $              (2,204,664) 
   Other comprehensive income (loss), net of $0 and 
       ($49,800) deferred income taxes in 2025 and 2024 
      Foreign 
       currency 
       translation                              468,695                        (54,077) 
                       --------------------------------  ------------------------------ 
 
      Total 
       Comprehensive 
       Income (Loss)       $                  3,732,617      $              (2,258,741) 
                       ================================  ============================== 
 

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