Q4 2025 Leatt Corp Earnings Call
<unk> results conference call at this time, all participants are in a listen only mode.
Operator: Good day, everyone, welcome to Leatt Corporation Fourth Quarter 2025 Results Conference Call. It is now my pleasure to turn the conference over to Michael Mason. Please go ahead.
You will have the opportunity to ask questions. During the question answer session. You may registered task a question at any time by pressing the star one on your telephone keypad, you may withdraw yourself from the queue by pressing star and two.
Please note this call maybe recorded and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Michael Mason. Please go ahead.
Thanks, Craig.
Good morning, and welcome to the Alere.
Michael Mason: Thanks, Raisa. Good morning, and welcome to the Leatt Corporation Investor Conference Call to discuss the financial results for the Q4 and full year 2025. My name is Michael Mason. The company issued a press release today, Tuesday, 24 March 2026, at 8:00 AM Eastern, and filed its report with the SEC. The press release is posted on Leatt's website at leatt-corp.com. This call is being broadcast live and may be accessed on the company's website. An audio replay of this call will be available for 7 days and may be accessed from North America by calling 18445122921, or 14123176671 for international callers. The replay pin number is 11161317.
Sure.
Financial results for the fourth quarter and full year 2020, My name is Michael <unk>.
The company issued a press release today Tuesday March 24, 2026 at eight a M Eastern and filed its report with the SEC.
The press release is posted on <unk> website.
Yeah, Gosh Corp Dot com.
This call is being broadcast live and may be accessed on the company's website.
An audio replay of this call will be available for seven days and may be accessed from North America by calling one 804 451 to two nine to one or one for 12317 $6 71 for international callers.
The replay number is 11161317.
A replay of the webcast will be available immediately following this call and we will continue for seven days.
Michael Mason: A replay of the webcast will be available immediately following this call and will continue for seven days. Certain statements in this conference call may constitute forward-looking statements. Actual results could differ materially from those discussed in this call. Leatt Corporation does not undertake any obligation to update such statements made in this call. Please refer to the complete cautionary statement regarding forward-looking statements in today's press release dated 24 March 2026. The company will make a presentation on the quarterly results and then open the call to questions. I'd now like to turn the call over to Mr. Sean Macdonald, CEO of Leatt Corporation. Good afternoon to you in Cape Town, Sean.
Certain statements in this conference call May constitute forward looking statements actual results could differ materially from those discussed in this call Lear Corporation does not undertake any obligation to update such statements made in this call.
Please refer to the complete cautionary statement regarding forward looking statements in today's press release dated March 24 2026.
The company will make a presentation on the quarterly results and then open the call to questions I'd now like to turn the call over to Mr. Sean Mcdonald CEO of <unk> Corporation. Good afternoon to you in Cape Town Sean.
Thank you Mike and thank you all for joining us today.
2025 was a remarkable year pass.
Sean Macdonald: Thank you, Mike, and thank you all for joining us today. 2025 was a remarkable year for us, fueled by strong international demand for our innovative products, improved stocking dynamics, encouraging ordering patterns, and a surge in consumer direct sales. The global demand for our products and an expanding Leatt brand that reaches a much wider group of riders around the world are helping us to build tremendous traction and momentum. We achieved double-digit revenue growth for the fifth consecutive quarter and year-over-year growth for the sixth consecutive quarter, following the post-COVID industry-wide inventory overhang. Total global revenues for the year were $61.91 million, a 41% increase over 2024. International revenues were $44.64 million for the full 2025 year, up 47% year over year.
Fueled by strong international demand for our innovative products.
Stocking dynamics, encouraging ordering patents and a surge in consumer direct sales.
The global demand for our products and an expanding list brand that reach a much wider group of riders around the world.
Going out to both tremendous traction and momentum.
We achieved double digit revenue growth.
Consecutive quarter and yet the yet right.
Consecutive quarter.
Knowing the post part of an industry wide inventory overhang.
Total global revenues for the year was $61 1 million.
A 41% increase over 2024.
International revenues were $44 six $4 million for the full 2025, yes.
47% year over year.
As our distributors continue to reorder and restock in line with the <unk>.
Sean Macdonald: As our distributors continue to reorder and restock in line with global demand and stocking dynamics. Customer direct sales, an important focus for us, increased by 44% year over year, and dealer direct sales with our reorganized and re-energized domestic sales force increased by 22%. For the Q4 2025, revenues increased by 3% year over year, and gross profit as a percentage of sales increased to 46% as domestic sales continue to grow and we continue to ship our new products. Net income for the quarter was $465,000, an increase of 204% over last year. We closed the year with robust double-digit revenue growth in all of our major product categories in 2025. It's a testament to the expertise of our creative design and engineering team and continued strong brand momentum.
<unk> and stocking dynamics.
Customer direct sell an important focus for us increased by 44%, yeah and delayed already sells with a reorganized and re energize domestic sales force increased by 22%.
For the fourth quarter of 2025 revenues increased by 3%.
Gross profit as a percentage of sales increased to 46% domestic sales continue to grow and we continue to ship our new products.
Net income for the quarter was $465000 an increase of 204% over last year.
Closed the year with robust double digit revenue growth in all of our major product categories in 2025.
The link to the expertise of our creative design and engineering team and continued strong brand momentum.
Health net sales grew by 59% year over year.
Both of our flagship net price increased by 18% what are you on the revenues increased by 29%, which included a 40% increase in footwear sales and settled at all other products parts and accessories category increased by 56% a technical apparel sales continued to show strong progress.
Sean Macdonald: Helmet sales grew by 59% year over year. Sales of our flagship neck brace increased by 18%. Body armor revenues increased by 29%, which included a 40% increase in footwear sales. Sales in our other products, parts, and accessories category increased by 56% as technical apparel sales continued to show strong progress. Gross profit as a percentage of sales for the year increased to 44% year over year as domestic trading conditions continue to improve and our supply chain team achieved logistical efficiencies despite some uncertainty around global trade tariffs. For the full year 2025, income before tax was $4.41 million, an increase of $7.1 million compared to the full year of 2024.
Gross profit as a percentage of sales for the year increased to 44% year over year.
Domestic trading conditions continue to improve and our supply chain team achieved logistical efficiencies. Despite some uncertainty around global trade tariffs.
For the full year 2025 income before tax was $4 1 million, an increase of 7.1 billion compared.
Compared to the full year 2020 full.
Net income for the year 2025 increased by 248% to $3 million to $6 million, which we believe is a testament to our ability to generate strong revenues and robust margins.
Sean Macdonald: Net income for the year 2025 increased by 248% to $3.26 million, which we believe is a testament to our ability to generate strong revenues and robust margins. As we announced in December, our board authorized an extension of our share repurchase program to purchase shares of our standing Leatt common stock valued at up to $750,000. The program has been extended to 31 March 2026. We believe that this demonstrates our continued confidence in the strength of the company and our business plan, as well as our commitment to enhance long-term shareholder value. Now, I will turn to more details on sales of our product categories for the full year 2025 compared to 2024.
As we announced in December our board.
Authorized an extension of our share repurchase program to purchase shares of outstanding common stock valued at up to $750000.
Program has been extended to March 31, 2026, we believe that this demonstrates our continued confidence in the strength of our company and our business plan as well.
Months to enhance long term shareholder value.
Now I will turn into more details on sales of our product categories for the full year 2025 compared to 2020.
Sales of our flagship make price advantage to prevent potentially devastating sports injuries to the cervical spine with two point at $9 million.
Sean Macdonald: Sales of our flagship neck brace, designed to prevent potentially devastating sports injuries to the cervical spine, were USD 2.89 million, a 19% increase, primarily due to a 35% increase in the volume of neck braces sold. Neck braces represented 5% of our total revenues for the year. Our body armor products are comprised of chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. Body armor revenues were USD 28.98 million, a 29% increase over 2024. The increase was due primarily to a 22% increase in the sales of upper body and limb protection products and a 40% increase in footwear sales, comprised of motorcycle boots and mountain biking shoes. Body armor products represented 47% of our total revenues for 2025.
19% increase primarily due to a 35% increase in the volume of nickel prices. So.
Nick prices represented 5% of our total revenues for the year.
<unk> products are comprised of chest protect us full upper body protectors upper body protection berth that protect the knee braces.
Oh fried motorcycle boots and knocks blocking shoes.
Audio revenues were $28 nine 8 million.
Joining 9% increase over 2024.
The increase was due primarily to a 22% increase in the sales of upper body and NIM protection products and a 40% increase in footwear sales comprised of motorcycle beta Martin Bloch you've shoes.
Cardiome of products represented 47% of our total revenues for 2025.
All myself with $13 three $1 million.
59% increase primarily due to a 33% increase in the volume of helmets soldiering, yes.
Sean Macdonald: Helmet sales were $13.31 million, a 59% increase, primarily due to a 33% increase in the volume of helmets sold during the year. Helmets represented 21% of our revenues for the 2025 year. Our other parts, products and accessories category is comprised of goggles, hydration packs and apparel items, including jerseys, pants, shorts, and jackets, as well as aftermarket support items. Other products, parts and accessory sales were $16.73 million, a 56% increase in the sales volumes of our Moto, MTB, and ADV technical apparel lines designed for off-road motorcycle, mountain biking, and adventure motorcycle riding. Other products, parts and accessories represented 27% of our total revenues for the year. Now I will turn to our financial results in a bit more detail.
Hello, Ms represented 21% of our revenues for the 2025 yeah.
Our other parts products and accessories category is comprised of goggles hydration bags and apparel items, including James Keyes plant showed some jackups as well as off the market support items.
Other product parts and accessories sales were $16 $73 million.
The 6% increase in Lasalle volume sales volumes of our maritime MTB and ADC Adv technical apparel lines designed for off road motorcycle mountain biking, and adventure motorcycle riding.
Other products parts and accessories represented 27% of our total revenues for the year.
Now I will turn to our financial results in a bit more detail total revenues for the fourth quarter of 2025 were $16 million, a 43% increase compared to $11 2 million for the fourth quarter of 2024.
Sean Macdonald: Total revenues for Q4 2025 were $16 million, a 43% increase compared to $11.2 million for Q4 2024. Net income for Q4 was $465,000 or $0.07 per basic and $0.07 per diluted share, as compared to a net loss of $447,000 or $0.07 per basic and $0.07 per diluted share for Q4 2024. Total revenues for the full year 2025 were $61.91 million, a 41% increase compared to revenues of $44 million for the full year 2024.
Net income for the fourth quarter was $465000 or seven cents per basic and seven cents per diluted share as compared to a net loss of $447000 or seven cents per basic and <unk>.
Per diluted share for the fourth quarter of 2024.
Total revenues for the full year 2025 was $61 nine $1 million, a 41% increase compared to revenues of $44 million.
For the full year 2024. This increase in worldwide revenues is attributable to a $6 $5 2 million dollar increase in body Omnicell, a $4 $92 million increase in home itself.
Sean Macdonald: This increase in worldwide revenues is attributable to a $6.52 million increase in body armor sales, a $4.92 million increase in helmet sales, a $6 million increase in other products, parts, and accessories sales, and a $450 thousand increase in neck brace sales. Net income for the full year 2025 was $3.26 million or $0.53 per basic share and $0.51 per diluted share, up by 248% compared to a net loss of $2.2 million or $0.35 per basic share and $0.34 per diluted share for 2024. Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations.
<unk> million dollars increase in other products parts and accessories sales and a $450000 increase in make lifestyle.
Net income for the full year 2025 was $3 million to $6 million or <unk> 43 per basic share and 51 cents per diluted share.
Up by 248% compared to a net loss of $2 2 million or <unk> 35 per basic share and 34 cents per diluted share for 2024.
We have continued to meet its working capital needs from cash on hand, and internally generated cash flow from operations and at December 31, 2025, the company had cash cash equivalents and restricted cash of $13 to $3 million.
Sean Macdonald: At 31 December 2025, the company had cash equivalents and restricted cash of $13.23 million compared to $12.37 million at 31 December 2024, and a current ratio of 4.9 to 1. Looking forward, the momentum we are achieving at all levels of our business has our entire team energized and optimistic about the future of the company. Although there are some potentially challenging geopolitical headwinds globally, domestic sales at the dealer level are gaining very promising traction. Participation remains strong and international ordering patterns remain robust, all driven by strong demand for Leatt products around the world. Sales of our adventure motorcycling lineup of apparel, helmets and boots, backed by positive industry reviews and our proven ability to develop exciting and durable products, continues to exceed our expectations and contributes strongly to our revenues.
Page 12, $3 7 million at December 31, 2024, and a current ratio of four nine to one.
Okay.
Looking forward the momentum we are achieving at all levels of our business has always tie up team energized and optimistic about the future of the company. Although they are some potentially challenging geopolitical headwinds globally domestic sales at the deal level are gaining very promising traction participation remained strong and international ordering patterns remained robust.
All driven by strong demand for led product around the world.
Sales of our adventure Motorcycling lineup of apparel helmets, and boots backed by positive industry reviews, and our proven ability to develop exciting and durable products continues to exceed our expectations and contribute strongly to our revenues. We look forward to delivering our pipeline of new innovative products to the growing ATV market over there.
Sean Macdonald: We look forward to delivering a pipeline of new innovative products to the growing ADV market over the next several quarters. Total operating costs increased by 12%, we do expect working capital investments to grow in the coming periods, reflecting our strong drive to continue building a global multi-channel team of sales and marketing professionals in emerging and developed markets. The team is building and leveraging revenue opportunities by enabling our brand to reach a much wider group of riders of all levels around the world. We are confident that we have sufficient liquidity to fuel this growth. As always, we are very proud of our design, engineering, and innovation expertise focused on technical innovations and functional rider protection. These innovations are being increasingly recognized by riders at all levels all over the world, as well as by our peers.
Next several quarters.
Total operating costs increased by 12% and we do expect working capital investments to grow in the coming periods.
Reflecting our strong drive to continue building, our global multichannel team of sales and marketing professionals in emerging and developed markets.
The team is building and leveraging revenue opportunities by enabling our brands to reach a much wider group of writers of all levels around the world. We are confident that we have sufficient liquidity to fuel this growth.
As always we are very proud of our design engineering and innovation expertise focused on technical innovations and functional rider protection. These.
These innovations are being increasingly recognized by rod isn't all that all over the world as well as by our peers.
<unk> was on a twice as euro by 2020, 550 gravity helmet and a six zero hydro dry jacket designs.
Sean Macdonald: Our team was honored twice at Eurobike 2025 for our Gravity 5.0 helmet and our HydraDri 6.0 jacket designs. In conclusion, we are very enthusiastic about the future. With a growing portfolio of innovative products in the market and in the pipeline, a focus on elevating and amplifying our brand, and a robust balance sheet position to fuel growth, we remain confident that we are very well positioned for future growth and sustained shareholder value. As always, we'd like to thank our entire Leatt family, our dedicated employees, business partners, and team riders for their continued strong support. With that, I'd like to turn the call over to the operator for questions.
In conclusion, we are very enthusiastic about the future with a growing portfolio of innovative products in the market and in the pipeline are focused on elevating and amplifying our brand and a robust balance sheet positioned to fuel growth.
My confidence that we are very well positioned for future growth and sustained shareholder value as always we'd like to thank our entire <unk> family, our dedicated employees business partners and <unk> for their continued strong support with that I'd like to turn the call over to the operator for questions.
At this time, we will open the floor for questions if you'd like to ask a question. Please press the star key followed by the one key on your telephone keypad.
Operator: At this time, we will open the floor for questions. If you would like to ask a question, please press the star key followed by the 1 key on your telephone keypad. Once again, that is star 1 to ask a question. We'll take our first question from Olivier Colombo. Please go ahead.
Once again that is star one to ask a question.
Our first question from Oliver Colombo. Please go ahead Doug.
Uh huh.
Yes in Ocean.
Hello there.
Olivier Colombo: Yes. Hello, Sean.
Congrats on the fantastic for a moment sort of 2025.
Sean Macdonald: Hey, Olivier.
Olivier Colombo: Congrats on the fantastic performance of 2025. I'm looking for future growth as well this year. I had 3 questions for you this afternoon. The first one is regarding the US business, which saw a very significant growth of 27%. This is quite an achievement. How happy are you with this performance? What are you doing to push those US sales even higher to match the overall international growth of 41%?
I'm looking for future growth as well this year.
I had three questions for you. This afternoon. The first one is regarding the U S business, which saw a very significant growth of 27%. This is quite an achievement.
How happy are you with this performance and what are you taking.
What are you doing to push those U S sales, even higher to match the overall international growth of about 41%.
Thanks, Olivia good to hear from you.
I think we're very happy with the performance has been quite a strong turnaround in the U S.
Sean Macdonald: Well, thanks, Oliver. Good to hear from you. I think we're very happy with the performance. It's been quite a strong turnaround in the US. We have a brand-new management and sales team in place. We have a re-energized and refocused group of sales representatives on the motorcycle and the mountain biking side in place, all highly motivated to take sales in the US to the next level. I think it's a very strong performance. I'm proud of the team there. I think this is just the beginning of what we can achieve in the US. I think, you know, we've managed to gain some significant footprint through our outreach to dealers around the country.
Have a brand new management and sales team in place.
We have a re NSC five and refocus our.
A group of sales representatives on the motorcycle and the mountain biking site in place or are highly motivated to textiles in the U S.
To the next level.
I think it's a very strong performance I'm proud of the team there.
And I think this is.
At the beginning of what we can achieve.
In the U S I think we.
We've managed to gain some some significant footprint.
Through our outreach to dealers around the country, we managed to grow our consumer direct cells are in the U S significantly offer.
Sean Macdonald: We've managed to grow consumer direct sales in the US significantly also. We really are pushing on all cylinders there. I think in future, you can expect us to continue to build up the team and to improve our dealer penetration across the country, as well as our direct-to-consumer business, which is a strong focus area for us. Balancing that out with our B2B business. A strong push on the distribution side in the US and also a very strong focus on marketing. You know, we've got a new Head of Marketing Global, Nick Larson, and he's very enthusiastic about the future and the opportunities that this will have.
So we really really are pushing on all cylinders there.
In future you can expect us to continue to build out the team.
To improve.
Improved dealer penetration.
Across the country as well as all of our direct to.
Schumer business, which is a strong focus area for us balancing that out with Oh.
B to B business.
It's a strong push on the distribution side in the U S.
And also a very strong focus on marketing.
Got it.
Our head of marketing global.
<unk> loss in <unk>.
Yes.
Very enthusiastic about the.
In the future and the opportunities that this will have.
There will be a strong focus on the U S market.
We still got a lot of market share.
Sean Macdonald: There'll be a strong focus on the US market, where I think we've still got a lot of market share that we can still gain. Big opportunities in the US for sure.
But we can we can still gain but big opportunities in the U S for sure.
Perfect. Thank you very much my question is regarding the tariffs how much do you think the tariff situation has hurt your business in the U S.
Olivier Colombo: Perfect. Thank you very much. My next question is regarding the tariffs. How much do you think the tariff situation has hurt your business in the US?
Well, that's an interesting question to quantify I think it definitely has had an impact of course, we've tried our best to mitigate that as far as possible. We haven't have we had at some price increases, but having said that if I look at them.
Sean Macdonald: That's an interesting question to quantify. I think it definitely has had an impact. Of course, we've tried our best to mitigate that as far as possible. We have had some price increases. Having said that, if I look at, you know, competing brands, the supply chain is very similar. There have been increases across the board. I think the biggest impact has perhaps been due to the uncertainty that tariff situation created in terms of global trade. You know, the dollar has obviously weakened, and it's started to strengthen again. For us, you know, that is beneficial in Europe for sure.
<unk> brands the supply chain is very similar.
There have been increases across the board I think the biggest.
Impact has perhaps been.
The uncertainty that tariff situation created in terms of global trade.
But are.
The dollar has obviously weakened and that's it.
To strengthen again and for us.
You know that is beneficial in Europe for sure.
Impacts of the retail setting price in Europe, when the dollar gets weaker bucket.
Sean Macdonald: It impacts the retail selling price in Europe when the dollar gets a bit weaker. The tariff uncertainty around the world definitely did impact our business, particularly in H1 of the year. I do think that we acted quite quickly. We got support of our suppliers. We increased pricing without doing anything that takes the price point outside of where the consumers are at. We analyzed the market very, very carefully to make sure that we were acting within market constraints. I think it definitely did have an impact. I do not think it was extreme, though.
But the tariff uncertainty around the world definitely did impact our business, particularly in the first half.
Or do you think could be active quite quickly.
Got support of our suppliers, we increase pricing.
Without doing anything that takes the price points outside of where the consumers are at.
And we analyze the market very very carefully to make sure.
That we were acting within market constraints.
So I think it's definitely does have an impact.
I do not think it was extreme.
Perfect. Thank you very much.
My final question is.
How much of growth came from the new customers.
Olivier Colombo: Perfect. Thank you very much. My final question is, how much growth came from the new customers and distributors versus distributors restocking?
And distributors versus distributors restocking.
So I think it was a it was a combination of things in terms of on the distribution side I think the biggest factors in an increasingly demand for led products.
Sean Macdonald: I think it was a, it was a combination of things in terms of on the distribution side. I think the biggest factor has been an increase in the demand for Leatt products. Of course, that leads to restocking, and that's certainly been the biggest contributor of the growth on the international side. If I look at the new customers that we brought on, you know, we have new customers in emerging markets and also in some developed areas. I mean, we had really strong sales to those customers as well. And they're very energized by the sell-through that they've experienced. We are expecting that, you know, to carry on driving sales and reordering patterns in the future.
So of course that leads to restocking.
And that's certainly been the biggest contributor.
The growth on the international side.
If I look at the new customers that would be both on you know we have a new customers in emerging markets.
Developed areas.
We had really strong sales to those customers as well and a very.
Energized by the sell through that that experience and we are expecting that.
Two to carry on driving sales and reordering pattern in the future.
Yeah restocking due to an increase in demand.
Sean Macdonald: Primarily, restocking due to an increase in demand, but a really nice contribution from new customers as well.
But a really nice contribution from new customers as well.
Okay perfect. Thank you very much for your French remain my question, Olivia and Great David talk syndrome.
Olivier Colombo: Okay, perfect. Thank you very much for answering my questions.
Yeah.
Sean Macdonald: Thanks, Olivier.
Okay.
Olivier Colombo: Have a great day.
As a reminder, if you would like to ask a question that is star and flying to join the question queue.
Sean Macdonald: Talk soon.
Operator: As a reminder, if you would like to ask a question, that is star and one to join the question queue. We'll pause for just a moment to allow questions to queue. Once more, that is star one to ask a question. We'll pause for another moment. It appears we have no further questions. I'll turn the call back to the speakers for any additional or closing remarks.
For just a moment to allow questions to queue.
Yeah.
And once more that is star one to ask a question.
We will pause for another moment.
It appears we have no further questions I'll turn the call back to the speakers for any additional or closing remarks.
Thank you all for joining US today, we are looking forward to our next call to review the results for the 2026 this quarter.
Sean Macdonald: Thank you all for joining us today. We are looking forward to our next call to review the results for the 2026 Q1.
Yeah.
This concludes today's program. Thank you for your participation and you may disconnect at any time.
Operator: This concludes today's program. Thank you for your participation, and you may disconnect at any time.
