Leatt (LEAT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues increased 27% year-over-year to $19.51 million, driven by strong helmet and body armor sales, robust demand, and growth in consumer direct, dealer direct, and distributor channels.

• Net income rose 58% to $1.77 million, reflecting improved profitability and operational leverage.

• Consumer direct sales surged 49%, dealer direct sales rose 30%, and international sales to distribution partners increased 24% year-over-year.

• Gross profit margin remained stable at 44% despite increased costs and investments in marketing and product development.

• Operating expenses increased 23% year-over-year, mainly due to higher salaries, marketing, and depreciation.

Financial highlights

• Revenues for Q1 2026 were $19.51 million, up from $15.37 million in Q1 2025.

• Net income reached $1.77 million, or $0.28 per basic share and $0.27 per diluted share, up from $1.12 million in Q1 2025.

• Gross profit was $8.57 million (up 28% year-over-year), with a gross margin of 44%.

• Cash, cash equivalents, and restricted cash increased by $3.96 million to $17.19 million at quarter-end.

• Operating cash flow was $4.55 million for the quarter, up from $0.77 million in Q1 2025.

Outlook and guidance

• Management remains optimistic about future growth, citing strong domestic and international demand, robust consumer direct sales, and ongoing investments in brand and product innovation.

• Working capital investments are expected to increase to support continued expansion, with sufficient liquidity available.

• No major capital expenditures planned for the next twelve months; current cash and cash flow from operations are deemed sufficient.

• The company is accelerating investments in product innovation and brand development.