Leef Brands (LEEF) Q2 2026 earnings summary

Executive summary

• Q2 revenue fell 16.3% YoY to $7.275M amid a temporary biomass gap; gross profit rose 62% to $2.410M and gross margin improved to 33% from 17%.

• H1 revenue was $16.652M, down 7.9%; gross profit reached $7.035M and operating loss narrowed to $0.705M from $4.281M.

• H1 adjusted EBITDA improved to $1.710M from $(2.092)M; H1 net loss was $1.761M versus $2.667M.

• April acquisition of Standard Holdings and the HIMALAYA brand added $1.0M in CPG revenue and a new reporting segment.

• Raised ~$14.2M in 2026 and expanded cultivation to ~80 acres, with the 180-acre ranch footprint targeted for 2027.

Financial highlights

• Q2 operating loss was $1.988M versus $2.373M; net loss was $1.335M versus $2.933M YoY.

• Q2 adjusted EBITDA was $(0.631)M versus $(1.311)M YoY; H1 adjusted EBITDA improved to $1.710M from $(2.092)M.

• Q2 operating expenses were $4.4M, up 13.9%, mainly due to higher legal, professional and wage costs; interest expense declined 58.2% to $0.24M.

• Cash at June 30 was $4.951M, up from $2.191M at year-end; working capital surplus was $8.7M.

• Q2 unit volumes fell 20%, partly offset by a 5% increase in average selling price; hydrocarbon products became the largest revenue category.

Outlook and guidance

• Own biomass was expected to contribute in H2, more fully in Q4; management cited ~50% gross margins in prior quarters using ranch material versus 33% in Q2 without it.

• Sales of higher-potency CAT 4 distillate from the new harvest were expected to begin in August, supporting margin improvement through the second half of Q3.

• Cultivation was expected to reach ~122 acres by fall, with 180 permitted ranch acres targeted for operation in 2027; added processing capacity is intended to support production and reduce costs.

• HIMALAYA is expected to grow and contribute meaningfully to cash flow in 2027; export-ready products are targeted for 2027, subject to market and regulatory conditions.

• Management is focused on branded CPG growth, wholesale concentrate manufacturing, cost management and additional equity financing to support liquidity.