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Leatt (LEAT) AI Stock Analysis
Leatt
(Other OTC:LEAT)
The score is driven primarily by strong financial quality (very low leverage, solid cash generation, and a clear rebound in revenue/profitability). Earnings-call outlook is supportive with expected Q3 uplift and product catalysts, though near-term profit pressure and external/tariff uncertainty remain. Technicals are the main drag, with weak momentum signals despite the stock trading above key moving averages, and valuation appears only moderate with no dividend yield support.
Leatt (LEAT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $67.17M
- Dividend Yield
- ―
- Average Volume (3M)
- 4,692
- Price to Earnings (P/E)
- 18.3
- Beta (1Y)
- 0.98
- Revenue Growth
- 20.74%
- EPS Growth
- 90.53%
- Country
- US
- Employees
- 88
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Leisure
Leatt Business Overview & Revenue Model
Company Description
Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities. The company offers a Leatt-Brace system, an injection molded neck protection system designed to preve...
How the Company Makes Money
Leatt makes money primarily by selling its branded protective gear and riding apparel. Revenue is generated from product sales across categories such as neck braces, body protection (e.g., chest/back protectors), helmets, knee braces and other braces...
Leatt Earnings Call Summary
The call presents a generally positive operational and strategic outlook: solid YTD revenue growth (+14%), strong consumer-direct gains (+68% in Q2), improving gross margin (45%), robust cash generation ($19.53M cash, $7.44M operating cash flow) and strategic initiatives (Cardo partnership, Bike Care acquisition). However, Q2 profitability was pressured (net income down 20%, operating costs +16%) and certain product lines (neck braces, apparel) and distributor sales experienced declines due to timing and unit-volume shifts. Management attributes distributor weakness to resolved shipping timing issues and expects a Q3 uplift. Overall, the fundamental growth, liquidity, and strategic wins outweigh the near-term profitability headwinds and temporary supply timing impacts.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company guided that near‑term momentum should be stronger than Q2 suggests because temporary MOTO shipment timing issues were fully cleared (no revenue lost, shipments moved from late Q2 into an early, “hot” Q3), it expects tariff refunds to be discussed in Q3, and it plans product catalysts in the back half of the year including a Cardo‑integrated MOTO 8.5 helmet launching in H2 and initial Bike Care Technologies revenues beginning in Q3; management also reiterated continued investment in sales and marketing, the Board‑authorized share repurchase program of up to $750,000, and confidence in liquidity supported by cash of $19.53 million (up $6.29M), operating cash flow of $7.44M year‑to‑date, a current ratio of 7.4:1, year‑to‑date revenue up 14% to $35.9M, Q2 revenue of $16.39M, consumer‑direct sales growth of 68% in Q2 ($962K) and 61% YTD, gross profit of $7.44M (45% margin, +2 pts), Q2 net income of $909K ($0.15 basic / $0.14 diluted, down 20%), YTD net income of $2.68M (up 19%), and product‑level trends including body armor $8.75M (53% of sales, +6%), helmets $3.56M (22%, +14%), other products $3.54M (22%, −13%) and neck braces $542K (3%, −23%).
Leatt Financial Statement Overview
Summary
Strong overall fundamentals supported by an exceptionally low-debt balance sheet (debt-to-equity ~0.01) and very strong TTM operating/free cash flow. Revenue rebounded sharply (TTM +32.5%) with profitability back to positive, but margins are still well below 2021–2022 peaks and historical earnings volatility (including a 2024 loss year) keeps the score below top-tier.
Income Statement
72PositiveBalance Sheet
90Very PositiveCash Flow
84Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.26M | 61.91M | 44.03M | 47.24M | 76.34M | 72.48M |
| Gross Profit | 26.97M | 27.22M | 17.71M | 19.81M | 31.13M | 31.45M |
| EBITDA | 5.93M | 5.19M | -1.83M | 2.58M | 14.59M | 17.86M |
| Net Income | 3.68M | 3.26M | -2.20M | 803.16K | 9.96M | 12.57M |
Balance Sheet | ||||||
| Total Assets | 51.65M | 52.05M | 46.49M | 47.61M | 51.93M | 49.17M |
| Cash, Cash Equivalents and Short-Term Investments | 19.38M | 12.99M | 12.37M | 11.35M | 7.10M | 5.08M |
| Total Debt | 411.07K | 1.14M | 1.32M | 2.12M | 2.37M | 2.64M |
| Total Liabilities | 6.46M | 9.81M | 8.22M | 7.33M | 12.23M | 20.55M |
| Stockholders Equity | 45.18M | 42.23M | 38.26M | 40.28M | 39.69M | 28.62M |
Cash Flow | ||||||
| Free Cash Flow | 8.34M | 725.88K | 1.56M | 4.66M | 1.94M | 1.64M |
| Operating Cash Flow | 9.10M | 1.81M | 2.79M | 6.66M | 3.09M | 2.78M |
| Investing Cash Flow | -1.21M | -1.05M | -1.23M | -2.00M | -1.04M | -1.14M |
| Financing Cash Flow | -330.26K | -217.57K | -514.95K | -1,290 | 288.82K | 595.94K |
Leatt Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Negative. The current price of 10.80 is below the 20-day moving average (MA) of 10.96, below the 50-day MA of 11.58, and below the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEAT.
Leatt Risk Analysis
Leatt disclosed 29 risk factors in its most recent earnings report. Leatt reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksLeatt Peers Comparison
Overall Rating
- LEAT75Outperform
ESCA73Outperform
AS71Outperform
YETI64Neutral
CLAR57Neutral
JOUT56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| LEAT | 75Outperform | $67.17M | 18.26 | 8.52% | ― | 20.74% | 90.53% |
| ESCA | 73Outperform | $271.02M | 11.19 | 13.48% | 3.08% | 0.05% | 90.86% |
| AS | 71Outperform | $17.12B | 30.34 | 8.72% | ― | 30.49% | 134.07% |
| YETI | 64Neutral | $3.19B | 18.82 | 27.27% | ― | 6.24% | 10.22% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| CLAR | 57Neutral | $169.62M | -5.39 | -15.46% | 2.26% | -0.10% | 61.92% |
| JOUT | 56Neutral | $473.60M | -58.55 | -1.90% | 2.89% | 17.49% | 82.16% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LEAT | Leatt Corp | 10.80 | -0.57 | -5.01% | |
| CLAR | Clarus Corp | 4.43 | 1.19 | 36.64% | |
| ESCA | Escalade | 19.70 | 8.41 | 74.48% | |
| JOUT | Johnson Outdoors | 45.67 | 6.62 | 16.95% | |
| YETI | Yeti Holdings | 43.66 | 10.12 | 30.17% | |
| AS | Amer Sports, Inc. | 29.43 | -2.04 | -6.48% |
Leatt Corporate Events
Leatt Sets 2026 Annual Meeting and Proxy Deadlines
NeutralLeatt Corporation announced it will hold its 2026 Annual Meeting of Stockholders virtually on Friday, November 20, 2026, with September 24, 2026 set as the record date for shareholders entitled to notice and voting rights. The company plans to file a...
Leatt Corrects Preferred Stock Split and Amends Designation
NeutralOn September 26, 2012, Leatt Corporation implemented a 1‑for‑25 reverse stock split of its common shares and reduced its authorized common and preferred stock, following stockholder approval granted on December 22, 2011. However, the acti...
Leatt Posts Q2 2026 Results, Highlights Growth Momentum
PositiveOn August 14, 2026, Leatt reported results for the second quarter and first half of 2026, showing modest quarterly growth but stronger year-to-date momentum. Second-quarter revenue rose 1% to $16.39 million, with gross profit up 8% and net income of...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 25, 2026