Leatt Corporation

For Q2 2026, Leatt reported revenue of $16.39 million, up 1% from $16.18 million in Q2 2025. Gross profit increased 8% to $7.44 million and gross margin improved 2 points to 45%. Net income was $909,000, or $0.15 per basic share and $0.14 per diluted share, versus $1.14 million, or $0.18 per basic and diluted share, a year ago. For the first six months of 2026, revenue was $35.9 million, up 14% from $31.54 million, and net income was $2.68 million, up 19% from $2.26 million. Cash and cash equivalents were $19.53 million at June 30, 2026, cash from operations was $7.44 million for the first half, and current ratio was 7.4:1. Management did not give formal numeric guidance, but said Q3 has started strongly because delayed shipments already cleared, it expects some tariff refunds in Q3, and it expects new Cardo and Bike Care initiatives to begin contributing later in the year, including Bike Care sales starting to filter through in Q3 and the integrated helmet launch in the second half.

Sean MacDonald framed the quarter as solid despite temporary supply-chain timing issues, emphasizing that demand, sell-through, and reorder patterns remain strong globally. He highlighted momentum in consumer direct, continued strength in body armor and helmets, and new growth initiatives including the Cardo partnership and Bike Care Technologies. His tone was confident and upbeat, but he acknowledged some potential global headwinds while stressing that the company is still investing in sales, marketing, and product development.

The financial discussion centered on the 1% revenue increase to $16.39 million, with gross profit up 8% to $7.44 million and gross margin at 45%. He noted operating costs rose 16% as the company expanded its global sales and marketing team, while cash increased by $6.29 million to $19.53 million and operating cash flow was $7.44 million in the first half. He also pointed to a strong balance sheet, a 7.4:1 current ratio, and continued share repurchases under the board-authorized program of up to $750,000.

Analysts focused on whether the shipping delay caused any lost revenue, and management said there was no revenue lost—only a timing shift into early Q3—and that Q3 got off to a strong start. Questions also covered the Cardo Systems partnership, with Sean MacDonald saying Leatt will earn revenue by selling helmets with Cardo technology built in and expects strong margins, while the collaboration also extends distribution reach. On Bike Care Technologies, management said it is 100% funded and owned by Leatt, should not require significant long-term funding, and has already seen stronger-than-expected interest from the dealer network. Management also confirmed it expects tariff refunds and said it will discuss that further in Q3.