Leatt (LEAT 0.10%), a leading innovator in protective gear and equipment for motorsports and cycling, released its second quarter 2025 financial results on August 7, 2025. The company reported GAAP revenue of $16.18 million and diluted earnings per share (GAAP) of $0.18, sharply reversing last year’s loss, with net income (GAAP) of $1.14 million compared to a net loss (GAAP) of $1.06 million for Q2 2024, as Leatt marked its fourth straight quarter of growth and continued its return to profitability. There were no analyst estimates to compare with this period, but the results show significant year-over-year acceleration in both sales and profits, with GAAP revenues up 61% and GAAP net income up 208% compared to Q2 2024. Management noted progress in distribution, strong demand for new products, and robust execution in core markets, setting a positive tone for recent performance.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS – Diluted (GAAP) | $0.18 | ($0.16) | NM* |
| Revenue (GAAP) | $16.18 million | $10.08 million | 61 % |
| Gross Profit | $6.89 million | $3.92 million | 76 % |
| Gross Margin | 43 % | 39 % | 4.0 pp |
| Net Income (GAAP) | $1.14 million | ($1.06 million) | NM* |
| Cash and Cash Equivalents | $15.73 million | $12.37 million† | 27 % |
About Leatt and recent strategic focus
Leatt designs and markets protective equipment for motorcycling, mountain biking, and other action sports. Its primary products include body armor, neck braces, helmets, and a range of apparel and accessories engineered to enhance rider safety and comfort. The company's heritage lies in its patented neck brace, a device created to help prevent serious cervical injuries in sports.
In recent years, Leatt has broadened its product lineup, investing in research and innovation to develop new protective technologies. Marketing and distribution have become more global, with a focus on multi-channel sales spanning direct-to-consumer, online, and dealer networks. Success for the company hinges on protecting its intellectual property, expanding its market reach, and continuously launching award-winning gear that meets rigorous industry safety standards.
Key developments in the quarter
Leatt delivered its fourth consecutive quarter of revenue growth, with sales (GAAP) up 61% compared to Q2 2024. This surge was consistent across all product segments. Body armor sales, which include items like upper and lower body protection and protective footwear, increased 48% compared to Q2 2024. Helmet sales jumped 117% compared to Q2 2024, and other products—including apparel, goggles, and various components—rose 65% compared to Q2 2024. Neck brace sales, the company’s original cornerstone product type, registered a 19% advance.
Consumer direct sales climbed 35%, while global dealer sales rose 45%. In the United States, brick-and-mortar dealers in motorcycling (MOTO) and mountain biking (MTB) returned to growth, although some elevated inventory levels and industry-wide disruptions persisted. Management stated these issues are stabilizing but still require close monitoring.
Profitability saw marked improvement: gross profit (GAAP) was up 76% and gross margin (GAAP) increased 4 points to 43%. Operating income swung from a prior-year loss to a gain of $1.40 million. Net income turned positive, resulting in a diluted EPS (GAAP) of $0.18 after a ($0.16) loss per share a year ago. Higher sales and expanded margins were major drivers, as improved product mix and strong global sell-through contributed to the turnaround.
The quarter also featured milestones in innovation and recognition. The 5.0 Gravity Helmet (a protective sports helmet) and the 6.0 HydraDri Jacket (a high-performance riding jacket) each received awards at Eurobike 2025. Research and development (R&D) expenses were $616,795, with the first half of 2025 up slightly from the first half of 2024. The company reported no major one-time events and made further reductions in debt and payables, reducing financial risk while boosting liquidity.
Looking ahead
Management did not provide numeric forward guidance for revenue or profit, but commentary was upbeat about the near-term outlook. Leatt sees a continuation of reordering patterns and revenue growth as demand strengthens across channels and geographies. Management also cautioned about ongoing geopolitical and economic challenges, especially around tariffs in the United States, and noted these could affect future margins and demand. The company said it continues to collaborate with suppliers and customers to manage cost and regulatory risks as effectively as possible.
Management expects working capital investments to increase in the coming periods as ordering patterns at the consumer, dealer, and distributor levels continue to show growth. Competitive pressures, especially around the intellectual property that underpins new product launches, remain a critical focus.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
