Leatt Corp (OTCQB: LEAT) posted full-year 2025 revenue of $61.91 million (+41% YoY) and diluted EPS of $0.51, swinging to a net income of $3.26 million from a prior-year loss. The stock rose approximately 6.09% to $8.70 following the earnings announcement, reflecting strong investor confidence.
About Leatt Corp
Leatt Corporation (OTCQB: LEAT), headquartered in Cape Town, South Africa, is a leading developer and marketer of head-to-toe personal protective gear for extreme and action sports. Founded by Dr. Christopher Leatt, the company’s flagship product is the award-winning Leatt-Brace neck protection system, considered the gold standard for neck protection when worn with a helmet. Beyond neck braces, Leatt designs helmets, body armor, boots, apparel, and accessories for motorcycle, mountain bike (MTB), adventure (ADV), and off-road sports participants worldwide.
As of March 25, 2026, Leatt carries a market capitalization of approximately $57.4 million, classifying it as a micro-cap stock with roughly 6.2 million shares outstanding. The company employs approximately 75 people, generating revenue per employee of roughly $825,440. The stock trades at a P/E ratio of approximately 18.06, with no dividend currently paid. International customers contribute 72% of total sales, underscoring the company’s deep global distributor network.
Top Financial Highlights
- Q4 2025 Revenue reached $16.02 million, up 43% year-over-year from $11.20 million
- Q4 2025 Net Income was $464,808 (EPS: $0.07 basic and diluted), reversing a net loss of $(446,459) in Q4 2024
- Full Year 2025 Revenue totaled $61.91 million, a 41% increase over $44.03 million in 2024
- Full Year Net Income was $3.26 million (EPS: $0.53 basic, $0.51 diluted), up 248% from a net loss of $(2.20 million) in 2024
- Gross Profit for full year 2025 was $27.22 million with a gross margin of 44%, up from 40% in 2024
- Q4 Gross Margin improved to 46%, driven by domestic sales momentum and new product shipments
- International Revenues for 2025 were $44.64 million, up 47% year-over-year
- Helmet Sales grew 59% YoY; Body Armor revenues rose 29% (including 40% footwear growth)
- Neck Brace Sales increased 18% YoY; Other Products and Accessories surged 56%
- Cash Flow from Operations was $1.80 million for full year 2025
- Cash, Cash Equivalents and Restricted Cash rose 7% to $13.23 million
- Total Assets grew to $52.05 million (from $46.49 million in 2024); Total Stockholders’ Equity was $42.23 million
- Current Ratio of 4.9:1 signals strong liquidity
- Total Operating Costs increased 12%, reflecting investments in global sales and marketing
Beat or Miss?
No formal analyst consensus estimates were available for Leatt Corp given its OTCQB micro-cap status and limited analyst coverage. The table below compares reported results against the prior year and available context.
| Metric | Reported (FY 2025) | Prior Year (FY 2024) | Difference / Analysis |
| Total Revenue | $61.91 million | $44.03 million | +$17.88 million / +41% – record annual revenue |
| Q4 Revenue | $16.02 million | $11.20 million | +$4.82 million / +43% |
| Net Income (FY) | $3.26 million | $(2.20 million) | Swing of +$5.46 million; +248% turnaround |
| Diluted EPS (FY) | $0.51 | ($0.34) | Full swing from loss to profit |
| Gross Margin (FY) | 44% | ~40% | +400 bps improvement |
| Cash on Hand | $13.23 million | $12.37 million | +7% YoY increase |
| Operating Income | $4.01 million | $(2.98 million) | Full turnaround from operating loss |
| Analyst Estimate | N/A | N/A | No published consensus for OTCQB listing |
What Leadership Is Saying?
CEO Sean Macdonald on Strategy and Vision:
“2025 was a remarkable year for us, fueled by strong international demand for our innovative products, improved stocking dynamics and ordering patterns, and a surge in consumer direct sales. The growing global demand for our products and an expanding Leatt brand that reaches a much wider group of riders around the world are fueling tremendous traction and momentum.”
Founder and Chairman Dr. Christopher Leatt on Innovation:
“We are very proud of our design, engineering and innovation expertise that focused on rider safety and performance. These innovations are increasingly being recognized by riders at all levels all around the world as well as our peers. Our team was once again honored at Eurobike 2025, where our 5.0 Gravity Helmet won the Eurobike Gold Award for Technical Highlight, and our 6.0 HydraDri Jacket won the Eurobike Award for Performance Clothing.”
On financials, CEO Macdonald further noted that income before tax for full year 2025 reached $4.41 million, an increase of $7.11 million compared to full year 2024, and that gross profit as a percentage of sales improved to 44% as domestic trading conditions improved and the supply chain team achieved logistical efficiencies, despite uncertainty around global trade tariffs.
Historical Performance
Q4 2025 vs Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Revenue | $16.02 million | $11.20 million | 43.00% |
| Net Income | $464,808 | ($446,459) | 204% |
| Gross Margin | 46% | ~40% (estimated) | ~+600 bps |
| EPS (Diluted) | $0.07 | ($0.07) | Full swing |
Full Year 2025 vs Full Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Total Revenue | $61.91 million | $44.03 million | 40.60% |
| Net Income | $3.26 million | $(2.20 million) | 248% |
| Gross Profit | $27.22 million | $17.71 million | 53.70% |
| Gross Margin | 44% | 40% | +400 bps |
| Total Operating Expenses | $23.59 million | $21.02 million | 12.20% |
| Operating Income | $4.01 million | $(2.98 million) | Full swing |
| Cash from Operations | $1.81 million | $2.79 million | -35.20% |
| Total Assets | $52.05 million | $46.49 million | 12.00% |
| Stockholders’ Equity | $42.23 million | $38.26 million | 10.40% |
Competitor Comparison
Leatt operates in the motocross and extreme sports protective gear market. Publicly available competitor revenue figures are limited, as most major rivals such as Fox Racing, Alpinestars, and Troy Lee Designs are privately held. The table below provides context using available data.
| Company | Segment | FY 2025 Revenue (approx.) | FY 2024 Revenue (approx.) | Change (%) |
| Leatt Corp (LEAT) | Moto / MTB / ADV protective gear | $61.91 million | $44.03 million | 40.60% |
| Fox Racing | Motocross / MTB gear | Privately held, N/A | Privately held, N/A | N/A |
| Alpinestars | Moto / racing protection | Privately held, N/A | Privately held, N/A | N/A |
| Troy Lee Designs | MTB / Moto gear | Privately held, N/A | Privately held, N/A | N/A |
| Thor MX | Motocross apparel | Privately held, N/A | Privately held, N/A | N/A |
In the broader motocross gear market, Fox Racing, Alpinestars, and Thor hold approximately 60% combined market share, while Leatt is ranked in the next tier of competitors alongside O’Neal, Shift MX, 100%, and Klim, collectively holding roughly 15% of the market. Leatt’s 41% revenue surge in 2025 versus an industry that has faced post-COVID inventory corrections positions the brand as one of the fastest-growing competitors in its segment.
How the Market Reacted?
Leatt’s stock price rose by approximately 6.09% to $8.70 on the day of the earnings announcement, reflecting positive investor sentiment toward the record-breaking results. Over the trailing 12 months, LEAT shares have gained approximately 28.3%, driven by the company’s sixth consecutive quarter of year-over-year revenue growth.
The stock’s P/E ratio at the time of the release stood around 26.58, and analysts noted an exceptionally low PEG ratio of approximately 0.14, suggesting the stock appears attractively valued relative to its growth trajectory. The combination of a full swing to profitability, improved gross margins, strong cash position, and forward momentum in the Adventure motorcycle segment contributed to the bullish market reaction.
