Leatt (LEAT) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues rose 14% year-over-year to $11.20 million, driven by international sell-through, new stocking dynamics, and strong distribution partnerships, with net loss improving to $(446,459) from $(1.46) million in Q4 2023.

• Full-year 2024 revenues were $44.03 million, a 7% decrease from 2023, mainly due to declines in helmet, neck brace, and body armor sales, partially offset by strong ADV apparel and direct-to-consumer channels.

• Net loss for 2024 was $(2.20) million, compared to net income of $803,159 in 2023.

• International distributor sales rebounded 24% in Q4, while consumer direct sales grew 15% for the year.

• New U.S. VP of MOTO and ADV sales appointed; two 2025 Design & Innovation Awards received.

Financial highlights

• Q4 2024 revenues: $11.19 million, up 14% year-over-year; full-year revenues: $44.03 million, down 7% from $47.24 million in 2023.

• Q4 gross margin improved to 41% from 36% in Q4 2023; full-year margin decreased to 40% from 42% due to promotional selling in H1.

• Cash and cash equivalents at year-end: $12.37 million, up from $11.35 million a year ago.

• Cash flows from operations: $2.8 million for the full year.

• EPS for 2024 was $(0.35) basic and $(0.34) diluted.

Outlook and guidance

• Expectation of continued double-digit growth as inventory levels stabilize and new distribution partnerships mature.

• Anticipate increased investment in working capital, inventory, and marketing to support growth, especially in the ADV segment.

• New distributor partnerships in the UK, Europe, and emerging markets expected to boost future revenues.

• Management remains confident in achieving sustainable growth and profitability as industry conditions normalize, but remains cautious due to ongoing geopolitical and economic headwinds.