Leatt Corporation Reports Remarkable Growth in Q2 2025 Financial Results

Leatt Corporation (OTCQB: LEAT) has made waves in the sports protective gear industry with its impressive financial results for the second quarter of 2025, showcasing a strong recovery and remarkable growth. Based in Cape Town, South Africa, Leatt continues to lead in the development and marketing of head-to-toe protective equipment designed for extreme sports, particularly in the realms of motocross and mountain biking.

Financial Performance Highlights

For the quarter ending June 30, 2025, Leatt reported total revenues of $16.18 million, a striking 61% increase compared to $10.08 million during the same period last year. The company attributed this growth to a $2.7 million boost in body armor sales, a $1.68 million rise in helmet sales, and other products, accessories, and parts generating an additional $1.6 million. This marked the fourth consecutive quarter of revenue growth, demonstrating resilience in the market despite challenges posed by the post-COVID era.

In terms of profitability, Leatt's net income surged by an astonishing 208%, reaching $1.14 million compared to a net loss of $1.06 million in Q2 2024. This significant turnaround can be largely attributed to improved operational efficiency and increased market demand. The company improved its gross profit margin as well, rising from 39% to 43% compared to the previous year.

CEO Sean Macdonald expressed optimism regarding the company’s progress, stating, “This second quarter marks a fantastic period for Leatt, with strong revenue growth and profitability. Our dedicated team has worked diligently to overcome industry-wide challenges and adapt to the evolving landscape.”

Innovation and Recognition

Leatt's success is not only reflected in its financial performance but also in its commitment to innovation. The company recently received accolades at Eurobike 2025, where its 5.0 Gravity Helmet was honored with the Gold Award for Technical Highlights, underscoring the brand's dedication to technical advancements in rider protection. Additionally, the 6.0 HydraDri® Jacket was recognized for its excellence in performance clothing.

These accolades are a testament to Leatt's ongoing efforts in research and development. Dr. Christopher Leatt, the company's founder, emphasized the importance of innovation in creating effective protection for extreme sports enthusiasts worldwide.

Strong Sales Channels

The growth in sales is largely supported by effective marketing strategies and an expanded sales organization. Leatt reported a substantial increase in direct-to-consumer sales, which rose by 35% compared to the previous year. Furthermore, dealer sales within the U.S. for both MOTO and MTB equipment have shown significant recovery, with a remarkable 45% increase in global dealer sales in Q2.

While the company acknowledges that some brick-and-mortar dealers are still grappling with elevated inventory levels and the aftermath of the pandemic, demand for Leatt products remains robust, with consumer sentiment trending positively.

Looking Ahead

With a strong cash flow of $4.11 million generated in the first half of 2025, Leatt is well-positioned to continue its upward trajectory. Cash and cash equivalents have also risen by 27%, totaling $15.73 million. The leadership team is optimistic about continuing to scale operations to meet increasing demand while carefully managing working capital and investments.

Macdonald added, “Our team is energized by the strong demand for Leatt products globally and our consistent revenue growth. We are confident that as we continue to launch innovative products, our market presence will only strengthen.”

Leatt’s strong financial performance, award-winning products, and commitment to innovation are all strong indicators that the company is set for sustained growth in the competitive landscape of protective sports gear. As it continues to navigate through the complexities of the market, Leatt remains focused on creating high-quality, effective protective equipment suitable for participants in extreme sports across the globe.

For more information about Leatt Corporation and its range of products, please visit leatt.com.