Leatt Q1 Earnings Call Highlights

Leatt (OTCMKTS:LEAT) reported a stronger first quarter of 2026, with revenue and earnings rising as the company cited broad-based demand across major product lines, stronger domestic dealer activity and continued growth in international distribution.

Chief Executive Officer Sean Macdonald said the quarter was “a great start to the year,” pointing to what he described as robust reordering patterns globally and encouraging traction in the U.S. market at both the dealer and consumer levels.

Revenue for the quarter ended March 31, 2026, was $19.51 million, up 27% from $15.37 million in the first quarter of 2025. Net income rose 58% to $1.77 million, or $0.28 per basic share and $0.27 per diluted share, compared with $1.12 million in the year-earlier period. Income before tax increased by $880,000 to $2.39 million.

Macdonald said Leatt is continuing to invest in emerging markets and in building the company as a global consumer brand. “Consumer direct sales increased by 49%, which we believe is a testament to the tremendous momentum of the Leatt brand at the consumer level,” he said.

Helmet and body armor sales drive growth

The company reported year-over-year growth in all major product categories. Helmet sales were the fastest-growing category, rising 59% to $5.39 million and accounting for 28% of quarterly revenue. Macdonald said the increase was primarily due to a 61% rise in sales of helmets designed for mountain biking and adventure motorcycle riding.

Body armor revenue increased 25% to $8.59 million, representing 44% of revenue. Leatt said the growth was primarily tied to a 54% increase in footwear sales volume, including motorcycle boots and mountain biking shoes.

Sales of the company’s flagship neck brace products rose 7% to $750,000, reflecting an 11% increase in units sold. Neck braces accounted for 4% of quarterly revenue.

Revenue from other products, parts and accessories rose 9% to $4.8 million. The category includes goggles, hydration bags, apparel, sunglasses, bicycle components and aftermarket support items. Macdonald said the increase was primarily due to a 152% rise in eyewear sales, including sunglasses and goggles. The category represented 24% of revenue.

Domestic and international channels both expand

Leatt reported growth across its main sales channels. International sales to distribution partners increased 24%, while dealer direct sales rose 30%. Macdonald attributed the domestic dealer growth to the company’s reorganized moto and mountain bike sales force, which he said is building a more sustainable dealer network and gaining traction with Leatt’s “head-to-toe” product offerings.

During the question-and-answer portion of the call, shareholder Olivier Colombo asked which international regions were showing the strongest demand. Macdonald said growth was broad-based across Europe, Latin America, the U.K., Eastern Europe and Australia.

“There’s no single area that stands out as contributing in excess of the kind of growth that we’re seeing in all of the countries on the international side,” Macdonald said, adding that Europe remains a strong region across the company’s core markets and that Leatt continues to see potential in both emerging and developed markets.

Margins stable as cash balance rises

Gross profit as a percentage of sales remained stable at 44%. Macdonald said the company benefited from growing domestic sales, shipments of newer products and improvements in global logistics efficiency.

Leatt ended the quarter with cash, cash equivalents and restricted cash of $17.19 million, up $3.96 million from $13.23 million at Dec. 31, 2025. Cash flow provided by operations was $4.55 million, and the company reported a current ratio of 8.22:1.

Macdonald said Leatt expects working capital investments to increase in coming periods as ordering patterns continue to point to growth, but added that the company has sufficient liquidity to support that expansion.

The company also said it is continuing its previously announced board-authorized share repurchase program of up to $750,000 of outstanding common stock. In response to a question from Colombo, Macdonald clarified that the program is not a new $750 million authorization, but rather the continuation of the previously announced $750,000 authorization.

Management highlights marketing and product pipeline

Macdonald said Leatt remains focused on product innovation and brand development, while acknowledging “potentially challenging global headwinds.” He said domestic sales are gaining traction, consumer participation remains strong and international ordering patterns remain robust.

Asked about motocross helmet sales compared with mountain bike and adventure helmet growth, Macdonald said motocross remained strong but did not grow as quickly as the MTB and ADV categories during the quarter.

“Moto is our most established category or market since we started in moto,” Macdonald said. “Although we obviously are still growing there, we are seeing slightly stronger growth levels on the ADV, which is a lot newer, and the MTB category.”

He added that the company has “some really interesting products” in the pipeline that he expects to support future motocross helmet growth.

Macdonald also highlighted Leatt’s marketing efforts, saying the company is “elevating everything: athletes, content, media impact, and people.” He cited the company’s recent sponsorship of the Nukeproof team as a partnership that Leatt believes will support new content and consumer engagement.

“With a focus on investing in our innovative product portfolio, the drive to accelerate and amplify our brand to meet a much wider rider audience, and a robust balance sheet to fuel growth, we remain confident that we are well positioned for future growth and shareholder value,” Macdonald said.

About Leatt (OTCMKTS:LEAT)

Leatt (OTCMKTS:LEAT) is a designer and manufacturer of protective sports gear, specializing in advanced safety equipment for high-impact activities such as motocross, mountain biking, and snow sports. The company’s product portfolio includes the patented Leatt Brace® neck protection system, impact-absorbing body armor, full-face and off-road helmets, goggles, gloves, and riding apparel. These offerings are engineered to mitigate the risk of spinal and head injuries, combining biomechanical research with lightweight materials and user-focused design.

Founded by Dr.