Leatt Corporation reported its financial results for the second quarter and first half of 2026, revealing a modest increase in revenue and profitability compared to the same periods in 2025. For the three months ended June 30, 2026, the company generated revenues of $16.39 million, a 1% increase from $16.18 million in the prior year. Net income for the quarter was $908,989, down 20% from $1.14 million in the same quarter of 2025. For the six-month period, revenues rose 14% to $35.90 million, while net income increased by 19% to $2.68 million, compared to $2.26 million in the first half of 2025.

The company's financial performance was influenced by several factors, including a 14% increase in gross profit for the six months ended June 30, 2026, which reached $16.01 million, up from $13.61 million in 2025. This improvement was attributed to increased sales of body armor and helmets, which saw significant growth, while sales of neck braces and other products experienced declines. Specifically, body armor sales accounted for 48% of total revenues, maintaining the same percentage as the previous year, while helmet sales increased to 25% of total revenues, up from 21% in 2025.

Leatt also made strategic moves during the reporting period, including the acquisition of Bike Care, a Polish company focused on premium bike care products. This acquisition, completed in May 2026, is expected to enhance Leatt's product offerings, although it did not contribute to revenues in the second quarter. The company plans to launch a new range of bike care products, branded GRITT, in the latter half of 2026. Additionally, Leatt's direct-to-consumer sales increased by 68% during the second quarter, reflecting strong consumer demand for its products.

Operationally, Leatt reported a decrease in inventory levels, which fell to $13.92 million from $20.90 million at the end of 2025, indicating improved inventory management. The company also experienced a reduction in accounts payable and accrued expenses, which decreased to $5.93 million from $8.60 million. As of June 30, 2026, Leatt had cash and cash equivalents of $19.38 million, a significant increase from $12.99 million at the end of 2025, providing a solid liquidity position to support ongoing operations and future growth initiatives.

Looking ahead, Leatt's management expressed optimism about the company's growth potential, particularly in the motor sports and bicycle markets. The company anticipates continued demand for its protective equipment and aims to leverage its recent acquisition to expand its product portfolio. However, management also acknowledged potential challenges, including global supply chain constraints and fluctuating market conditions, which could impact future performance. The company remains committed to enhancing its operational efficiencies and expanding its market presence to drive long-term growth.

About Leatt Corp

Leatt designs, develops, and markets protective gear for motor sports and cycling, including neck braces, helmets, body armor, and accessories. Its innovative products focus on safety, leveraging proprietary technology and extensive certifications worldwide. The company serves global markets through a network of distributors and direct channels, emphasizing quality, brand recognition, and strategic growth in recreational and competitive sports segments.

This description was generated via AI from an annual report. Updated about 1 year ago.

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