10-Q · May 12, 2026
Leatt Corporation reported a strong Q1 2026, with revenues of $19.51 million, a 27% increase over Q1 2025. The net income also improved, reaching $1.77 million, up 58% YoY, supported by growth in helmet and body armor…
Earnings analysis · 10-Q
LEAT earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Leatt delivered strong first-half growth, with revenue up 14% to $35.90 million, operating income up 23% to $3.47 million and net income up 19% to $2.68 million. Second-quarter performance was mixed: revenue increased…
Read full summary
Leatt delivered strong first-half growth, with revenue up 14% to $35.90 million, operating income up 23% to $3.47 million and net income up 19% to $2.68 million. Second-quarter performance was mixed: revenue increased just 1%, gross margin improved to approximately 45.4%, but operating income declined 18% and net income fell 20% as operating expenses rose 16%. Cash generation was a major positive, with $7.44 million of operating cash flow and $19.53 million of cash, cash equivalents and restricted cash at June 30, 2026. The filing reports no material changes to the risk factors from the December 31, 2025 Form 10-K and provides no quantitative guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Strong Six-Month Growth, Softer Q2 Profit
Six-month revenue increased 14% to $35,898,430 from $31,544,203, while six-month net income rose 19% to $2,679,683 from $2,259,858. However, second-quarter revenue grew only 1% to $16,390,944 and net income declined 20% to $908,989.
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Gross Margin Expanded 280 Basis Points
Gross profit increased 8% in Q2 to $7,435,242 from $6,889,193, lifting gross margin to approximately 45.4% from 42.6%. Management attributed the improvement to better domestic and international margins and improved shipping and logistics efficiency.
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Helmets and Body Armor Led Product Growth
Helmet revenue rose 14% to $3,557,586 in Q2, while body armor revenue increased 6% to $8,749,179. For the six months, helmet revenue grew 37% to $8,948,113 and body armor revenue increased 14% to $17,339,848.
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Operating Cash Flow and FCF Strengthened
Operating cash flow increased 81% to $7,438,967 for the six months from $4,114,440 in the prior-year period. Using disclosed capital expenditures of $490,405, implied free cash flow was approximately $6,948,562.
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Liquidity Position Remains Strong
Cash, cash equivalents and restricted cash rose 48% to $19,527,927 from $13,233,047 at December 31, 2025. Management said these balances and internally generated operating cash should cover anticipated operating requirements for at least the next twelve months.
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Direct Channels Offset Distributor Delays
Consumer-direct sales increased 68%, or $960,000, in Q2. Although distributor sales declined 6%, or $650,000, because shipments were delayed by supply-chain constraints, management said shipping had resumed and global orders continued to be fulfilled.
What to watch
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Supply Chain and China Tariff Exposure
Management reported that shipments of primarily MOTO apparel, boots and helmets were delayed by global supply-chain constraints, reducing Q2 global distributor sales by 6%, or $650,000. The company manufactures predominantly in China and is exposed to possible tariffs, customs duties and other trade restrictions.
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Expense Growth Pressured Q2 Operating Profit
Operating expenses increased 16% in Q2 to $6,417,826 from $5,537,581, including a 24% increase in advertising and marketing expense to $1,428,833 and an 18% increase in salaries and wages to $2,176,254. The resulting operating income fell 18% to $1,152,531 despite the 1% revenue increase.
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Inventory and Customer Credit Risk
Inventory declined by $6,886,587 and accounts receivable declined by $811,561 during the first six months, supporting cash generation, but the company maintained an inventory-obsolescence reserve of $597,835 and an accounts-receivable credit-loss allowance of $249,782 at June 30, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management states that it expects growth in the motor sports and bicycle markets, increasing demand for protective equipment, increased revenue growth and profitability from higher production volumes, and plans to launch and ship the GRITT bike-care product range in the second half of 2026.
Earlier filings 4
10-Q · August 7, 2025
Leatt reported a strong Q2 with revenues of $16,176,339 (up from $10,078,695 in Q2 2024), a swing to operating income of $1,399,918 (from an operating loss of $1,130,386), and GAAP basic EPS of $0.18 (vs. $(0.17) in Q2…
10-K · March 28, 2025
Leatt's 10-K emphasizes its core proprietary Leatt‑Brace® technology (licensed from Xceed Holdings, controlled by the founder) and a broad product roadmap spanning neck braces, helmets, body armor, boots and shoes with…
10-Q · August 9, 2024
Leatt reported a weaker quarter with revenue of $10,078,695 (down $2,271,529 or -18.4% vs Q2 2023) and a gross profit of $3,921,413 (gross margin ~38.9%, down ~4.4 ppt). Operating results swung to an operating loss of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.