Leatt (LEAT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 27% year-over-year to $19.51 million, driven by strong helmet and body armor sales, robust demand, and growth in consumer direct, dealer direct, and distributor channels.

• Net income rose 58% to $1.77 million, reflecting higher gross profit and improved operating leverage.

• Consumer direct sales surged 49%, dealer direct sales rose 30%, and international sales to distribution partners increased 24%.

• Gross profit margin remained stable at 44% despite increased investments and costs, supported by supply chain efficiencies.

• Operating expenses increased 23% year-over-year, mainly due to higher salaries, marketing, and depreciation.

Financial highlights

• Gross profit: $8.57 million (up 28% year-over-year), gross margin 44%.

• Cash, cash equivalents, and restricted cash increased by 30% to $17.19 million at quarter-end.

• Operating cash flow was $4.55 million, up from $0.77 million in Q1 2025.

• EPS for the quarter was $0.28 basic and $0.27 diluted, up from $0.18 and $0.17, respectively, in Q1 2025.

• Inventory decreased by $4.54 million, reflecting improved inventory management.

Outlook and guidance

• Management expects continued revenue growth, supported by robust domestic and international demand and expansion in both U.S. and global markets.

• Working capital investments are expected to grow as ordering patterns signal continued expansion.

• No major capital expenditures planned for the next twelve months; current cash and cash flow from operations deemed sufficient.

• The company is accelerating investments in product innovation, marketing, and brand development.

• Management remains optimistic about future growth, citing strong brand momentum and global demand.