Leatt Corporation reported a significant increase in financial performance for the first quarter of 2026, with revenues reaching $19.51 million, a 27% increase from $15.37 million in the same period last year. The company's gross profit also rose to $8.57 million, up 28% from $6.72 million, maintaining a gross margin of 44%. Net income available to common shareholders was $1.77 million, reflecting a 58% increase compared to $1.12 million in the prior year. This growth was primarily driven by increased sales across various product lines, particularly in helmets and body armor.
The company experienced notable changes in its operational metrics, with product royalty income surging by 337% to $372,819, attributed to higher sales of licensed products. Leatt's sales to U.S. customers increased to $4.70 million from $3.60 million, while international sales rose to $14.80 million from $11.77 million, indicating a strong demand for its protective gear globally. The company reported a 49% increase in consumer direct sales and a 24% increase in distributor sales, highlighting effective marketing strategies and improved customer engagement.
Leatt's operational efficiency was reflected in its reduced current liabilities, which fell to $5.55 million from $9.78 million, primarily due to a decrease in accounts payable and accrued expenses. The company also reported a decrease in inventory levels, which dropped to $16.36 million from $20.90 million, indicating improved inventory management. The total employee headcount remained stable, with ongoing investments in marketing and digital professionals to support its growth strategy.
Looking ahead, Leatt Corporation expressed optimism about its growth trajectory, citing expectations for continued demand in the motor sports and bicycle markets. The company plans to leverage its strong financial position, with cash and cash equivalents totaling $17.19 million, to support its operational needs and potential expansion initiatives. Management believes that the current cash reserves, along with cash generated from operations, will be sufficient to meet anticipated operating requirements for at least the next twelve months. However, the company remains cautious about external factors such as global economic conditions and trade policies that could impact its performance.
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.
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