Leatt (LEAT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues increased 1% year-over-year to $16.39 million, led by growth in body armor and helmet sales, while neck brace and other product sales declined.

• Net income for Q2 was $909,000, down 20% year-over-year, primarily due to higher operating expenses.

• For the first six months of 2026, revenues rose 14% to $35.90 million and net income increased 19% to $2.68 million.

• Consumer direct sales surged 68% in Q2 and 61% for the first half, while dealer direct sales grew 11% for the six months.

• Temporary supply chain delays impacted Q2 shipments but have since been resolved, with no revenue lost as shipments shifted to Q3.

Financial highlights

• Gross profit for Q2 increased 8% to $7.44 million, with gross margin up 2 percentage points to 45%.

• Cash, cash equivalents, and restricted cash totaled $19.53 million at June 30, 2026, up 48% from year-end 2025.

• Cash flow from operations for the first six months was $7.44 million.

• U.S. revenues in Q2 grew 11% to $6.15 million; international revenues increased 4% to $10.24 million.

• Body armor and helmet sales led product growth, offsetting declines in other product categories.

Outlook and guidance

• Strong start to Q3 expected as delayed Q2 shipments are now fulfilled.

• Management anticipates continued robust global demand, especially in direct-to-consumer channels, and growth in protective equipment markets.

• Launch of Bike Care Technologies, a new premium bike care product line, is expected to contribute to revenues starting Q3 2026.

• Continued investment in sales, marketing, and product development is planned to drive future growth.

• No major capital expenditures are planned for the next twelve months; current cash and cash flow are expected to meet operating needs.