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Leatt
(OTC:LEAT)
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Rating:75Outperform
Price Target:
$14.50
▲(12.32% Upside)
Action:Reiterated
Date:08/25/26
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.
Positive Factors
Revenue Growth and Direct Sales
Broad revenue growth and accelerating consumer-direct sales indicate stronger end-market demand and improving channel control. Direct expansion can support customer relationships, brand visibility and potentially better economics over the medium term.
Negative Factors
Profitability Below Historical Peaks
Although profitability has recovered, margins remain materially below prior peaks and earnings history is volatile. This suggests Leatt has not fully restored operating leverage, leaving results more sensitive to product mix and demand changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Direct Sales
Broad revenue growth and accelerating consumer-direct sales indicate stronger end-market demand and improving channel control. Direct expansion can support customer relationships, brand visibility and potentially better economics over the medium term.
Read all positive factors
Leatt (LEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.56M
Dividend YieldN/A
Average Volume (3M)2.46K
Price to Earnings (P/E)21.1
Beta (1Y)0.95
Revenue Growth20.74%
EPS Growth90.53%
CountryUS
Employees88
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.59
Shares Outstanding6,229,556
10 Day Avg. Volume3,538
30 Day Avg. Volume2,459
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.37
Price to Sales (P/S)0.93
P/FCF Ratio79.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 pr...
How the Company Makes Money
Leatt makes money primarily by selling branded protective sports equipment and apparel. Its core revenue stream is product sales across categories such as helmets, neck braces, body and chest protection, and limb protection (e.g., knee and elbow g...
Leatt Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Year-to-Date and Quarterly Revenue Growth
Q2 2026 revenue of $16.39M, up 1% YoY; 6-month revenue of $35.9M, up 14% YoY (+$4.35M). U.S. revenue grew ~11% to $6.15M and international revenue rose 4% to $10.24M.
Negative Updates
Quarterly Net Income and EPS Decline
Q2 net income was $909K, down 20% YoY (Q2 2025 net income $1.14M). EPS: $0.15 basic / $0.14 diluted vs $0.18 previously.
Read all updates
Q2-2026 Updates
Positive
Negative
Year-to-Date and Quarterly Revenue Growth
Q2 2026 revenue of $16.39M, up 1% YoY; 6-month revenue of $35.9M, up 14% YoY (+$4.35M). U.S. revenue grew ~11% to $6.15M and international revenue rose 4% to $10.24M.
Read all positive 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
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very 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 | -1.29K | 288.82K | 595.94K |
Leatt Technical Analysis
Positive
12.91
Price Trends
12.42
Positive
11.72
Positive
10.55
Positive
Market Momentum
-0.05
Positive
48.72
Neutral
63.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Positive. The current price of 12.91 is above the 20-day moving average (MA) of 12.69, above the 50-day MA of 12.42, and above the 200-day MA of 10.55, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 63.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leatt Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $77.56M | 21.07 | 8.52% | ― | 20.74% | 90.53% | |
73 Outperform | $274.36M | 12.01 | 13.11% | 3.25% | 0.97% | 80.59% | |
70 Outperform | $17.97B | 31.46 | 8.72% | ― | 30.49% | 134.07% | |
64 Neutral | $3.05B | 18.03 | 27.27% | ― | 6.24% | 10.22% | |
62 Neutral | $471.63M | -58.67 | -1.90% | 2.87% | 17.49% | 82.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $142.81M | -4.57 | -15.46% | 3.07% | -0.10% | 61.92% |
* Consumer Cyclical Sector Average
LEAT
Leatt
12.46
-0.54
-4.14%
CLAR
Clarus
3.76
0.25
7.03%
ESCA
Escalade
20.05
7.94
65.51%
JOUT
Johnson Outdoors
45.76
6.59
16.82%
YETI
Yeti Holdings
41.84
6.68
19.00%
AS
Amer Sports, Inc.
30.52
-8.80
-22.38%
Leatt Corporate Events
Regulatory Filings and ComplianceStock Split
Leatt Corrects Preferred Stock Split and Amends Designation
Neutral
Aug 17, 2026
On 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 a...
Business Operations and StrategyFinancial Disclosures
Leatt Posts Q2 2026 Results, Highlights Growth Momentum
Positive
Aug 14, 2026
On 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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.