Leatt (LEAT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues rose 61% year-over-year to $16.18 million, marking the fourth consecutive quarter of growth and strong gains in body armor, helmets, and accessories.

• Net income for Q2 2025 was $1.14 million, up 208% from Q2 2024, compared to a $1.06 million loss in the prior year.

• For the first half of 2025, revenue increased 52% to $31.54 million, with net income of $2.26 million, up 221% year-over-year.

• International sales accounted for 66% of Q2 revenue and 71% of six-month revenue, reflecting robust global demand and improved distributor and dealer ordering patterns.

• Awards received at Eurobike 2025 for the 5.0 Gravity Helmet and 6.0 HydraDriⓇ Jacket highlight product innovation.

Financial highlights

• Q2 2025 revenues: $16.18 million (+61% YoY); six months: $31.54 million (+52% YoY).

• Gross profit: $6.89 million in Q2 2025, up 76% year-over-year; gross margin improved from 39% to 43%.

• Net income: $1.14 million ($0.18 per share) in Q2 2025; six months: $2.26 million ($0.36 basic, $0.35 diluted).

• Cash and cash equivalents at June 30, 2025: $15.73 million, up 27% from year-end 2024.

• Operating cash flow for six months: $4.11 million; inventory decreased to $12.90 million at June 30, 2025.

Outlook and guidance

• Management expects continued strong demand and revenue growth, driven by international restocking, domestic sales momentum, and ongoing investments in talent and product innovation.

• Confident in sufficient liquidity and ability to support working capital needs; no major capital expenditures planned in the next year.

• Monitoring tariff, geopolitical, and economic risks, but anticipate market adjustment unless tariffs rise significantly.