Leef Brands (LEEF) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with the first successful cultivation of nearly 65 acres, growing close to 2 million plants and significantly improving core extraction business economics.

• Achieved revenue of $8.3 million in Q4 2025, up 38.9% year-over-year, and $34.8 million for FY 2025, up 22.1% year-over-year.

• Gross profit rose to $3.8 million in Q4 2025, up 188.2% year-over-year, and $10.5 million for FY 2025, up 36.5% year-over-year.

• The company is focused on completing its California farm in 2026, aiming to bring more supply chain needs in-house for greater cost efficiency.

• The addition of Jamie Mendola to the board brings industry expertise to support scaling efforts.

Financial highlights

• Revenue increased 22% year-over-year; Q4 revenue was $8.3 million, up 39% from Q4 2024.

• Gross margins expanded from 27%-30% to 41.4% in the second half, with Q4 gross margin at 45.5%.

• Positive operating cash flow of $1.3 million and free cash flow of $1.2 million achieved in Q4.

• Adjusted EBITDA turned positive in Q4 2025 at $1.0 million, with FY 2025 at $(0.4) million, a substantial improvement from FY 2024.

• Year-end cash position was $2.2 million, more than double the mid-year level.

Outlook and guidance

• Main focus in 2026 is completing the California farm, with plans to add 15 acres in spring and more in fall.

• Expects continued strong performance in the near term, driven by internal supply from Salisbury Canyon Ranch.

• Anticipates a temporary margin decline in Q2 2026 due to harvest cycle transition, with improvement expected in H2 2026.

• Seasonality expected to diminish as internal supply stabilizes, leading to more consistent margins and cash flow.

• Anticipated improvements in margin and output as more in-house material becomes available and farm expansion continues.