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.
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SOURCE Leatt Corporation
