LEAT
Leatt CorporationLeatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor range, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee
2-Year Price History
Quarterly Financials & Projections
| Period | Rev | EBITDA | OpIn | NI | OCF | FCF | CapEx | Cash | Debt | Shares | ROIC | IntCov | EV/EBITDA | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Est | 2028-Q1 | 23.5 | 3.3 | -- | 2.4 | -- | 2.6 | -0.2 | 27.7 | -- | -- | -- | -- | -- |
| Est | 2027-Q4 | 18.5 | 1.5 | -- | 0.7 | -- | 1.1 | -0.3 | 25.2 | -- | -- | -- | -- | -- |
| Est | 2027-Q3 | 17.5 | 1.8 | -- | 1.1 | -- | -0.5 | -0.1 | 24.1 | -- | -- | -- | -- | -- |
| Est | 2027-Q2 | 20.5 | 2.6 | -- | 1.7 | -- | 2.5 | -0.2 | 24.6 | -- | -- | -- | -- | -- |
| Est | 2027-Q1 | 22.0 | 3.0 | -- | 2.1 | -- | 2.2 | -0.2 | 22.1 | -- | -- | -- | -- | -- |
| Est | 2026-Q4 | 17.5 | 1.2 | -- | 0.6 | -- | 0.9 | -0.3 | 19.9 | -- | -- | -- | -- | -- |
| Est | 2026-Q3 | 16.5 | 1.7 | -- | 1.0 | -- | -0.8 | -0.1 | 19.0 | -- | -- | -- | -- | -- |
| Est | 2026-Q2 | 19.0 | 2.3 | -- | 1.5 | -- | 2.9 | -0.2 | 19.9 | -- | -- | -- | -- | -- |
| Act | 2026-Q1 | 19.5 | 2.5 | 2.0 | 1.8 | 4.6 | 4.4 | -0.2 | 17.0 | 0.8 | 6.5 | 28.7% | -- | 6.7x |
| Act | 2025-Q4 | 16.0 | 0.9 | 0.6 | 0.5 | 0.4 | 0.1 | -0.3 | 13.0 | 1.1 | 6.2 | 9.4% | -- | -- |
| Act | 2025-Q3 | 14.3 | 1.1 | 0.6 | 0.5 | -2.7 | 1.3 | -0.0 | 12.3 | 0.4 | 6.5 | 10.8% | -- | -- |
| Act | 2025-Q2 | 16.2 | 1.7 | 1.4 | 1.1 | 3.4 | 3.2 | -0.2 | 15.7 | 0.7 | 6.5 | 25.6% | -- | -- |
| Act | 2025-Q1 | 15.4 | 1.8 | 1.4 | 1.1 | 0.8 | 0.6 | -0.2 | 12.7 | 1.0 | 6.5 | 27.4% | -- | -- |
| Act | 2024-Q4 | 11.2 | -0.8 | -1.1 | -0.5 | -0.2 | -0.6 | -0.4 | 12.4 | 1.3 | 6.2 | -19.6% | -- | -- |
| Act | 2024-Q3 | 12.1 | 0.3 | 0.0 | 0.1 | -0.0 | -0.6 | -0.6 | 12.5 | 0.7 | 6.5 | 0.5% | -- | -- |
| Act | 2024-Q2 | 10.1 | -0.8 | -1.2 | -1.1 | 0.2 | -0.0 | -0.2 | 13.3 | 1.5 | 6.2 | -32.4% | -- | -- |
| Act | 2024-Q1 | 10.6 | -0.5 | -0.8 | -0.8 | 2.8 | 2.8 | -0.1 | 13.5 | 1.6 | 6.2 | -20.4% | -20.3x | -- |
| Act | 2023-Q4 | 9.8 | -1.6 | -2.0 | -1.5 | 0.1 | -0.5 | -0.6 | 11.4 | 2.1 | 6.2 | -33.7% | -8419.7x | -- |
| Act | 2023-Q3 | 12.0 | 1.0 | 0.6 | 0.5 | -0.2 | -1.4 | -1.2 | 10.8 | 1.3 | 6.3 | 9.8% | 840.0x | -- |
| Act | 2023-Q2 | 12.4 | 1.4 | 1.3 | 0.8 | 1.5 | 1.6 | -0.1 | 12.0 | 1.6 | 6.3 | 18.1% | 81.5x | -- |
| Act | 2023-Q1 | 13.1 | 1.7 | 1.4 | 1.0 | 5.3 | 4.9 | -0.4 | 11.4 | 1.9 | 6.3 | 22.2% | 82.0x | -- |
| Act | 2022-Q4 | 10.9 | -1.5 | -1.4 | -1.1 | 1.3 | 1.1 | -0.3 | 7.1 | 2.4 | 6.0 | -19.9% | -80.5x | -- |
| Act | 2022-Q3 | 23.3 | 5.8 | 5.5 | 4.1 | 0.8 | 0.4 | -0.4 | 4.9 | 1.5 | 6.3 | 89.2% | -- | -- |
| Act | 2022-Q2 | 17.9 | 4.0 | 3.7 | 2.7 | 1.6 | 1.5 | -0.2 | 5.0 | 1.7 | 6.3 | 73.4% | 481.3x | -- |
| Act | 2022-Q1 | 24.2 | 5.9 | 5.6 | 4.2 | -0.7 | -1.0 | -0.3 | 4.3 | 2.2 | 6.3 | 128.6% | 958.5x | -- |
AI Analysis
LLM Evaluations
Leatt is a high-quality niche protective equipment brand in a durable recovery phase, trading at just 6.3x EV/FCF and 1.1x sales with $17M in net cash (~24% of market cap). The business has demonstrated five consecutive quarters of double-digit growth, margin recovery from the 2023-2024 trough, and successful expansion into ADV motorcycling and DTC channels. At current prices, the market is implying only ~3.5% revenue growth to earn a 10% return — well below the company's demonstrated trajectory. The key risks are China manufacturing tariff exposure, patent litigation, cyclicality in power sports, and governance leakage through related-party fees. However, the fortress balance sheet, negligible dilution, active buyback, and growing brand momentum create an asymmetric risk/reward profile favoring longs.
Latest Earnings Call
Transcript Summary
Leatt Corporation (Q1 2026) delivered strong financial results, highlighted by a 27% increase in total revenue to $19.5 million and a 58% surge in net income to $1.77 million. The quarter saw broad-based growth across all segments, with helmets leading the way at a 59% increase, driven by mountain bike and adventure riding demand. Body armor revenues rose 25%, significantly aided by a 54% increase in footwear volume. Direct-to-consumer sales grew 49%, reflecting strong brand momentum. The company maintains a healthy gross margin of 44% and a formidable balance sheet with $17.2 million in cash and a current ratio of 8.2:1. During the call, CEO Sean MacDonald emphasized the success of the reenergized domestic sales force and a new sponsorship with the Nukeproof team. Management is continuing its $750,000 share buyback program, signaling confidence in the company's value. Despite potential global economic headwinds, international demand remains robust across Europe and emerging markets. The company plans to continue investing in product innovation and marketing to expand its rider audience and sustain its growth trajectory in the coming quarters.
Valuation & Metrics
Market Stats
TTM Financial Snapshot
DCF Fair Value Estimate
Forward Outlook & Risk
Short Interest
Forward Projections & Estimates
Employees
Institutional Ownership
Headline & net flow
Ownership composition
Trading behavior
▸ Compare to holder-profile behavior (across all their stocks)
Top-5 holders · 0.0%
Top Holders Over Time
5-year share-count history (top 10 holders by peak, incl. exited) + price
Corporate
Executive Compensation (2022-2024)
Order Flow (FINRA, ~3w lag)
Filing Risk Analysis
Filing Risk Scores
LEATT CORPORATION: High-Liquidity Growth Story With Governance Leakage and Patent Litigation Risks
Counter-Thesis
Counter-Thesis & Recent News
On May 11-12, 2026, LEAT shares experienced a significant 10.37% decline despite reporting a 27% year-over-year revenue increase for Q1 2026. While the top line grew to $19.51 million, the market reacted negatively to a 23% surge in operating expenses, driven by higher salaries, R&D, and marketing costs. Additionally, the company reported a shift in bad debt expense from a recovery to a charge, signaling potential credit risks among its accounts receivable (Sources: StockTitan, StockInvest.us).
The bear case centers on Leatt’s 'unstable profits' and the cyclical nature of the power-sports industry. Despite a recovery in 2025, the company faces significant margin pressure from rising operating costs and an 'elevated external risk environment.' Short-sellers point to the high sensitivity to U.S.-China trade relations, as the majority of manufacturing is concentrated in China, leaving the company vulnerable to 30%+ tariffs and supply chain disruptions. Furthermore, the stock is currently flagged for a potential technical pullback after hitting 'overbought' territory in April 2026 (Sources: Tickeron, TradingView).
A major red flag is the 'unstable profit' rating, which has historically led to significant drawdowns. Specific Q1 2026 data shows a 23% rise in operating expenses and a swing to bad debt charges. Additionally, the company has a high customer concentration risk, where a substantial portion of revenue is derived from a limited number of distributors. Insider activity has also been noted as a concern, with $8.25 million in high-impact sales by insiders over the long term, though recent activity is neutral (Sources: StockTitan, StockInvest.us, SEC 10-K).
Leatt operates in a fragmented and highly competitive market against much larger international manufacturers (e.g., Fox Racing, Alpinestars, Bell) that possess greater financial resources and broader distribution networks. This competition forces Leatt into aggressive promotional selling to manage inventory, which historically compressed gross margins from 42% to 40% during downturns. The threat of price wars remains high as larger competitors can afford to undercut Leatt's premium pricing (Sources: TradingView, Morningstar).
While Leatt's hard protective gear (neck braces and helmets) remains highly regarded, customer sentiment for 'soft gear' is mixed. Recent reviews highlight durability flaws, including stitching issues in gloves and fragile materials in the GPX 5.5 pants line. Specific complaints regarding the $650 8.5 Adventure Helmet—such as plastic buttons ripping out and difficult-to-use strap clips—suggest that quality control is not keeping pace with the premium price point (Sources: TenereTeam, YouTube: Adventure Tomek, Bike Hub).
Full Earnings Call Transcript
Full Earnings Call Transcript — Q1 • 2026-05-12
Operator: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star and a member of our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0, and a member of our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0 at a member of our team will be happy to help you. Please stand by. Your program is about to begin. Hello, and welcome, everyone, joining today's Leatt Corporation First Quarter 26 Results Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. Please note this call is being recorded. We are standing by should you need any assistance. It is now my pleasure to turn the meeting over to Michael Mason, Investor Relations. Please go ahead. Michael Mason: Thanks, Aaron. Good morning, and welcome to the Leatt Corporation Investor Conference Call to discuss the financial results for the First Quarter 26. The company issued a press release today, Tuesday, May 12, 2026 at 8AM eastern and filed this 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. Audio replay of this call will be available for 7 days. And may be accessed from North America by calling +1 (844) 512-2.92 thousand or +1 (412) 317-6.67 thousand for international callers. Replay PIN number is 11.2 million. A replay of the webcast will be available immediately following this call. And will continue for 7 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 May 12, 2026. The company will make a presentation on the quarterly results and then open the call to questions. I would now like to turn the call over to Mr. Sean MacDonald, who is CEO of the Leatt Corporation. Good afternoon to you in Cape Town, Sean. Sean MacDonald: Good morning, and thank you, Mike. And thank you all for joining us today. The 2026 was a great start to the year for our company. Strong revenue growth continues as global demand for our products fueled robust reordering patterns, and domestic sales showed very encouraging traction at the dealer and consumer levels. We continue to accelerate our investments in developing emerging markets as well as in developing Leatt as a global consumer brand that compels riders to engage with us Global revenues for the first quarter were $19.5 million an increase of 27% compared to the 2025. Consumer Direct sales increased by 49% which we believe is a testament to the tremendous momentum of the Leatt brand at the consumer level. International sales to our distribution partners increased by 24% Dealer Direct sales increased by 30% as our reorganized and reenergized motor and MTD domestic sales force continues to develop and build a strong sustainable, and committed dealer network and gain substantial traction with our head to toe product offerings. We grew revenues year over year in all of our major product categories. Helmet revenues increased by 59% Neck Brace revenues increased by 7%. Body armor revenues increased by 25%. And other product parts and accessory revenues increased by 9%. Net income for the quarter was $1.77 million an increase of 58% over the 2025 first quarter, and income before tax was $2.39 million an increase of $880 thousand. Gross profit as a percentage of sales, remained stable at 44% as domestic sales continued to grow and we continue to ship our newer products and improve global logistics efficiencies. Despite strong investments in our marketing and selling capabilities, product and brand development that will fuel future growth, cash increased by $3.96 million to $17.2 million with cash flows provided by operations of $4.55 million. We do expect working capital investments to grow in the coming periods, as ordering patterns continue to signal growth and we have sufficient liquidity. To fuel this growth. We are continuing our previously announced board authorized share repurchase program of up to $750 thousand of outstanding common stock. This demonstrates our continued confidence in the strength of our 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 2026. Sales of our flagship Neck Brace designed to prevent potentially devastating sports injuries to the cervical spine, was $750 thousand a 7% increase compared to the 2025. The increase was primarily due to an 11% increase in the volume of Neck Braces sold. Neck Braces represented 4% of revenues for the quarter. Our body armor products are comprised of chest protectors, full upper body protectors, knee braces, knee and elbow guards, off road motorcycle boots, and mountain biking shoes. Body armor revenues were $8.59 million a 25% increase compared to the 2025 This increase was primarily due to a 54% increase in the volume of footwear sales in the quarter, comprising of motorcycle boots and mountain biking shoes. Body armor products represented 44% of our revenues for the first quarter. Helmet sales totaled $5.39 million a 59% increase compared to the 2025. The increase in helmet sales was primarily due to a 61% increase in sales of helmets designed for mountain biking and adventure motorcycle riding. Helmet sales represented 28% of our revenues for the quarter. Our other products, parts and accessories category is comprised of goggles, hydration bags, and apparel items, including jerseys, pants, shorts, jackets, sunglasses, particle components, as well as aftermarket support items. The category was $4.848 million in sales, a 9% increase compared to the 2025, primarily due to a 152% increase in the sale of eyewear including sunglasses and goggles. Other products, parts and accessories represented 24% of our revenues for the quarter. Now I will turn to our financial results in a bit more detail. Revenues for the 3 months ended March 31, 2026 were $19.5 million a 27% increase compared to revenues of $15.4 million for the same 2025 quarter This increase in worldwide revenues is primarily due to a $1.99 million increase in helmet sales $1.72 million increase in body armor sales, a $380 thousand increase in other product, parts, and accessory sales, and a $50 thousand increase in Neck Brace sales. Net income for the 3 months ended March 31, 2026 was $1.77 million or $0.28 per basic and $0.27 per diluted share. A 58% increase compared to $1.12 million for the same 2025 quarter. We have continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. Cash, cash equivalents and restricted cash increased by $3.96 million or 30% for the 3 months ended March 31, 2026 when compared to $13.2 million of cash, cash equivalents, and restricted cash on hand at December 31, 2025, and a current ratio of 8.2:1. Looking forward, our entire team is excited about the future of Leatt. While there are some potentially challenging global headwinds, domestic sales are gaining traction, consumer participation remains strong, and international ordering patterns remain robust. All driven by strong global demand for our products. There is real excitement about the Leatt brand in the U.S. I have just attended the 2026 U.S. national sales meeting. And I have returned energized and encouraged by the strength of the team that we have built. And their strong culture of results driven collaboration. On the marketing front, we are elevating everything. Athletes, content, media impact, and people. I am very enthusiastic about sharing the results of this shift in the coming quarters. We have recently sponsored the Nukeproof team, which is proving to be an extremely strong partnership that we believe will result in disruptive content and consumer engagement well beyond our previous capabilities. In conclusion, we are very excited about our future. 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. As always, we would like to thank our entire Leatt family our dedicated employees, business partners, and team riders for their continued strong support. With that, I would like to turn the call over for questions. Operator? Operator: Thank you. Press 1 on your keypad. To leave the queue at any time, press 2. Once again, that is 1 to ask a question, we will pause for just a moment to allow everyone a chance to queue. And we can take our first question from investor Olivier Colombo. Your line is open. Analyst (Olivier Colombo): Good afternoon, Sean. Sean MacDonald: Hello, Olivier. How are you? Analyst (Olivier Colombo): I am doing fine. Thanks. And you? Sean MacDonald: Congratulations on the very impressive Q1. Analyst (Olivier Colombo): Thank you. I had 3 questions for you this afternoon. The first 1 is regarding your comments on the share buyback that you just mentioned. I did not hear it properly. Are you initiating $750 thousand share buyback? Or did I not understand correctly? Sean MacDonald: No. So we are going to be we still have some funds available, as part of the original $750 thousand we originally announced, and we are going to continue buying back shares up to the limit of $750 thousand. In total. Analyst (Olivier Colombo): Perfect. Thank you very much. I had a question regarding the helmet revenues that increased 59% this quarter, which is quite impressive. And now represent 28% of the overall revenues. So it looks like the mountain bike and the Advent side went very well. How did the motocross helmet perform during that period? Sean MacDonald: I mean, still strong, but not as strong as MTB and ADV. During the period. I mean, I think, you know, Moto is our most established category or market since we started in Moto. So 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. But certainly, no issues on the motor side. So still a very viable area for us here, and motocross helmet sales are expected to continue to grow. We have got some really interesting product coming in the pipeline, which I think are going to stimulate the growth there as well. So, certainly, maybe did not grow quite as strongly as ADV and MTB, but still looking really good. Analyst (Olivier Colombo): Excellent. Thank you very much. And my last question is regarding the international sales that were very good once more. Which regions or channels are showing the strongest demand right now? And where do you see the biggest white space opportunity? Sean MacDonald: it is really interesting, actually. We are seeing strong growth in Europe. In Latin America, in The UK, in Eastern Europe, we have got some really good, growth levels, in Eastern Europe as well and in Australia. So, actually, I mean, this is really across the board. International sales is in emerging markets and in more developed markets. Where we, you know like, for example, in The UK on the mountain biking side, we have got new distributor there that is doing really, really well for us. We continue to sell to Eastern Europe. it is still a strong and viable market for us. And Europe, in general, is still remains a really strong area for us across all of our of our core markets. So I would say across the board, Olivier, there is no single area that stands out as contributing, in excess of the kind of growth that we are seeing in all of the countries on the international side. Still a lot of potential, in those areas. Analyst (Olivier Colombo): Okay. Thank you very much. that is very helpful. And I wish you and your team a very good Q2 as well. Sean MacDonald: Thank you very much. Thank you so much, Olivier. Operator: And there are no additional questions at this time. I would like to turn the program back over to Sean McDonald for any closing remarks. Sean MacDonald: Thank you all for joining us today. We are looking forward to our next call to review the results of the 2026 second quarter. Operator: Thank you. This brings us to the end of today's meeting, and we appreciate your time and participation. You may now disconnect.