Leef Brands (LEEF) Q2 2026 earnings summary

Executive summary

• Net revenue for the six months ended June 30, 2026 was $16.7M, down 7.9% year-over-year, reflecting a strategic focus on wholesale concentrate manufacturing and ongoing pricing pressure in California’s cannabis market.

• Completed an oversubscribed CAD 9.3 million financing to expand Salisbury Canyon Ranch and strengthen the balance sheet.

• Acquired Himalaya Vapor Company and Standard Holdings, Inc., adding a leading California concentrate brand and a new CPG segment.

• Filed multiple DEA registration applications and began the largest harvest in company history, now completed and processed.

• Expanded cultivation footprint to 80 acres, with plans to reach 122 acres by fall 2026 and 180 acres by 2027.

Financial highlights

• Q2 2026 revenue was $7.3M, down 16% year-over-year due to reliance on third-party biomass and a temporary biomass gap.

• Gross profit increased 62% year-over-year to $2.4M in Q2; gross margin nearly doubled to 33% from 17%.

• Gross margin for the six months ended June 30, 2026 was 42%, up from 20% year-over-year.

• Adjusted EBITDA for Q2 2026 was CAD -631,000 (or $(0.6)M); first half adjusted EBITDA was CAD 1.7M, up from CAD -2.1M a year ago.

• Cash at June 30, 2026 was $5.0M, up from $2.2M at year-end; working capital surplus was $8.7M.

Outlook and guidance

• Management expects continued margin expansion from vertically integrated supply and disciplined cost management.

• Expansion to 122 acres by fall 2026 and full 180-acre operation in 2027, with capital already invested.

• Anticipate strong growth from Himalaya in 2027 and meaningful cash flow contribution.

• Preparing for interstate and international markets as regulatory changes allow, with DEA registration applications filed and GMP/GACP compliance underway.

• Ongoing efforts to secure additional equity financing and reduce operational expenses to support liquidity.