Leatt (LEAT) AI Stock Analysis

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Leatt

(Other OTC:LEAT)

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Rating:76Outperform

Price Target:$12.00▲(7.14% Upside)

Action:reiterated

Date:11/13/26

The score is driven primarily by strong underlying financial strength (notably a very low-leverage balance sheet and improving profitability/cash generation) and a highly positive earnings call pointing to sustained momentum and profit expansion. Offsetting these positives are weaker technical momentum signals (negative MACD and price below key moving averages) and only moderate valuation support due to no dividend yield.

Positive Factors

Very low leverageLeatt’s exceptionally low leverage and growing equity base provide financial resilience and flexibility. The company can support product development, marketing and market expansion without relying heavily on debt, while improved returns on equity indicate better capital efficiency.

Negative Factors

Shipping-cost margin pressureHigher shipping costs can weigh on gross margins and operating profitability if they persist or cannot be fully passed through to customers. This creates a structural risk to earnings conversion because international sales represent a substantial portion of the business.

Leatt (LEAT) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $65.92M
Dividend Yield: ―
Average Volume (3M): 5,565
Price to Earnings (P/E): 12.5
Beta (1Y): 1.17
Revenue Growth: 26.79%
EPS Growth: 126.84%
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

Earnings Call Date:Nov 12, 2026(Q3-2026)|% Change Since:10.89%|Next Earnings Date:Mar 30, 2027

Earnings Call SentimentPositive

The call was strongly positive, with record quarterly revenue, broad-based growth across major product categories and sales channels, substantial profit expansion, improved cash generation, and continued momentum in product launches and brand building. The principal challenges were a decline in neck brace sales, moderated consumer-direct growth compared with prior quarters, shipping-related margin pressure, and the potential for geopolitical headwinds.

Positive Updates

Strong Third-Quarter Revenue Growth

Third-quarter global revenue reached $20.46 million, up 43% from $14.34 million in the third quarter of 2025 and the company's highest quarterly revenue in 4 years.

Negative Updates

Neck Brace Revenue and Volume Decline

Neck brace sales decreased $110,000, or 12%, to $750,000 against a strong prior-year quarter in which neck brace volume grew 39%. The decline was primarily due to a 22% decrease in neck brace volume, and neck braces represented 4% of quarterly revenue.

Company Guidance

Management said Leatt is “on track for a very solid year in 2026,” while noting “there is still the potential for geopolitical headwinds” and that it is “optimistic” traction will continue, participation remains strong, demand continues to grow, and international reordering and domestic dealer and consumer sales momentum remain robust. ADV is “less than 20%,” “higher than 16%,” and currently in the “16% to 18% range,” with management expecting it to grow “slightly faster than the other categories”; consumer direct sales are expected to grow “very strong double digits into the future” and “continue to accelerate into the future.” GRiTT is expected in the U.S. “in a couple of weeks,” while an ADV brand campaign for the “model year 2027 ADV range” is planned “in December.”

Leatt Financial Statement Overview

Summary

Financials are anchored by an exceptionally strong balance sheet (very low leverage; healthy equity base) and improving profitability, with TTM revenue growth (~9.2%) and a return to positive operating profit after a loss in 2024. Cash generation is solid (TTM FCF ~$9.8M; FCF growth ~17.3%), but historical cash-flow conversion and earnings have been cyclical/volatile, keeping the score below the top tier.

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.38M	61.91M	44.03M	47.24M	76.34M	72.48M
Gross Profit	29.98M	27.22M	17.71M	19.81M	31.13M	31.45M
EBITDA	7.75M	5.19M	-1.83M	2.58M	14.59M	17.86M
Net Income	5.35M	3.26M	-2.20M	803.16K	9.96M	12.57M
Balance Sheet
Total Assets	58.97M	52.05M	46.49M	47.61M	51.93M	49.17M
Cash, Cash Equivalents and Short-Term Investments	15.43M	12.99M	12.37M	11.35M	7.10M	5.08M
Total Debt	114.56K	1.14M	1.32M	2.12M	2.37M	2.64M
Total Liabilities	11.65M	9.81M	8.22M	7.33M	12.23M	20.55M
Stockholders Equity	47.33M	42.23M	38.26M	40.28M	39.69M	28.62M
Cash Flow
Free Cash Flow	9.78M	725.88K	1.56M	4.66M	1.94M	1.64M
Operating Cash Flow	11.71M	1.81M	2.79M	6.66M	3.09M	2.78M
Investing Cash Flow	-1.46M	-1.05M	-1.23M	-2.00M	-1.04M	-1.14M
Financing Cash Flow	-399.33K	-217.57K	-514.95K	-1,290	288.82K	595.94K

Leatt Technical Analysis

Technical Analysis SentimentNeutral

Last Price11.20

Price Trends

50DMA11.23Negative

100DMA11.82Negative

200DMA11.00Negative

Market Momentum

MACD-0.29Negative

RSI48.61Neutral

STOCH28.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEAT, the sentiment is Neutral. The current price of 11.20 is above the 20-day moving average (MA) of 10.49, below the 50-day MA of 11.23, and above the 200-day MA of 11.00, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

LEAT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEAT	76Outperform	$62.81M	12.53	11.97%	―	26.79%	126.84%
ESCA	73Outperform	$292.89M	11.93	13.48%	2.89%	0.05%	90.86%
AS	70Outperform	$18.08B	31.15	8.72%	―	30.49%	134.07%
CLAR	63Neutral	$199.10M	-7.47	-13.47%	1.93%	-0.75%	67.23%
YETI	63Neutral	$3.12B	15.68	28.68%	―	6.88%	26.20%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JOUT	57Neutral	$492.99M	-61.06	-1.90%	2.77%	17.49%	82.16%

* Consumer Cyclical Sector Average

Performance Comparison

LEAT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LEAT	Leatt Corp	11.20	0.95	9.27%
CLAR	Clarus Corp	5.06	1.87	58.72%
ESCA	Escalade	21.03	8.47	67.49%
JOUT	Johnson Outdoors	47.80	11.36	31.19%
YETI	Yeti Holdings	39.42	3.45	9.59%
AS	Amer Sports, Inc.	29.94	-0.82	-2.67%

Leatt Corporate Events

Regulatory Filings and ComplianceShareholder Meetings

Leatt Sets 2026 Annual Meeting and Proxy Deadlines

Neutral

Sep 29, 2026

Leatt 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...

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 action inadverte...

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 of...

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.

Date of analysis: Nov 13, 2026

Leatt AI Stock Analysis