Leatt (OTCMKTS:LEAT) executives highlighted a sharp rebound in growth and profitability during the company’s fourth-quarter and full-year 2025 earnings call, citing strong international demand, improved distributor ordering patterns following an industry-wide inventory overhang, and rising direct-to-consumer sales.
Full-year results show broad-based growth
CEO Sean Macdonald said 2025 marked “a remarkable year,” with total global revenue rising 41% year over year to $61.91 million. International revenue increased 47% to $44.64 million, and Macdonald pointed to continued distributor reorders and restocking “in line with global demand and stocking dynamics.”
Profitability improved substantially versus 2024. Income before tax for full-year 2025 was $4.41 million, which Macdonald said represented an increase of $7.1 million compared to the prior year. Net income rose 248% to $3.26 million, or $0.53 per basic share and $0.51 per diluted share, compared with a net loss of $2.2 million in 2024.
Fourth-quarter revenue rose and the company returned to profit
For the fourth quarter of 2025, Leatt reported revenue of $16.0 million, up 43% compared to $11.2 million in the fourth quarter of 2024. Macdonald said gross profit as a percentage of sales increased to 46% as domestic sales continued to grow and the company shipped new products.
Net income for the quarter was $465,000, or $0.07 per basic and diluted share, compared with a net loss of $447,000, or a $0.07 loss per share, in the year-ago quarter.
Product categories: helmets and apparel led growth
Macdonald said Leatt posted “robust double-digit revenue growth in all of our major product categories” in 2025. He outlined performance by category, including the share of total revenue each represented:
- Neck braces: $2.89 million, up 18% year over year, driven primarily by a 35% increase in unit volume; 5% of total revenue.
- Body armor: $28.98 million, up 29%, driven by a 22% increase in upper body and limb protection and a 40% increase in footwear sales; 47% of total revenue.
- Helmets: $13.31 million, up 59%, attributed primarily to a 33% increase in helmet unit volume; 21% of total revenue.
- Other products, parts and accessories: $16.73 million, up 56%, reflecting higher volumes in Moto, MTB and ADV technical apparel; 27% of total revenue.
Management also tied gross margin improvement to a better operating environment domestically and supply-chain efficiencies. For the full year, gross profit as a percentage of sales increased to 44%, with Macdonald noting the company achieved “logistical efficiencies despite some uncertainty around global trade tariffs.”
Balance sheet and share repurchase update
Leatt said it continued to fund working capital needs through cash on hand and internally generated operating cash flow. At December 31, 2025, the company had cash equivalents and restricted cash of $13.23 million, up from $12.37 million at the end of 2024. Management reported a current ratio of 4.9 to 1.
Macdonald also pointed to a previously announced capital return program. He said the board authorized an extension of the share repurchase program to buy up to $750,000 of the company’s common stock, with the program extended to March 31, 2026. He said the extension reflected management’s confidence in the business plan and a commitment to enhancing long-term shareholder value.
Outlook: U.S. traction, ADV demand, and tariff uncertainty
Looking ahead, Macdonald said the company remained optimistic while acknowledging “potentially challenging geopolitical headwinds globally.” He said domestic dealer-level sales were gaining traction, participation remained strong, and international ordering patterns remained robust.
He highlighted continued strength in the adventure motorcycling (ADV) product lineup, saying sales of Leatt’s ADV apparel, helmets and boots had exceeded expectations and contributed strongly to revenue. Macdonald said the company expected to deliver a pipeline of new products aimed at the growing ADV market over the next several quarters.
During the Q&A session, investor Olivier Colombo asked about growth in the U.S. business. Macdonald said the company was “very happy” with the performance and credited a new management and sales team, along with renewed dealer outreach and growth in U.S. direct-to-consumer sales. He said Leatt expected to continue building the U.S. team, improve dealer penetration, and maintain a strong focus on marketing, including efforts led by a new head of global marketing, Nick Larsen.
Colombo also asked about the impact of tariffs. Macdonald said tariffs had an impact that was difficult to quantify and that the biggest effect may have been uncertainty, particularly in the first half of the year. He said Leatt implemented price increases and worked with suppliers to mitigate the impact, while monitoring the market to keep pricing within consumer constraints, adding that he did not believe the impact was extreme.
Asked how much growth came from new customers and distributors versus distributor restocking, Macdonald said it was a combination, with the “biggest contributor” being restocking driven by increased demand. He added that new customers in emerging markets and developed regions also contributed meaningfully and were encouraged by sell-through results, supporting expectations for ongoing reorders.
Macdonald said operating costs increased 12% and that working capital investments were expected to rise as Leatt continued building a global multi-channel sales and marketing organization, adding that the company believed it had sufficient liquidity to support this growth.
He also noted the company received two honors at Eurobike 2025 for its Gravity 5.0 helmet and 6.0 HydraDri jacket designs, which he said reflected Leatt’s focus on technical innovation and rider protection.
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.
