Leatt Corporation (LEAT)
OTHER OTC:LEAT
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Leatt
(OTC:LEAT)
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Rating:62Neutral
Price Target:
$10.00
▲(8.11% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by a strong, low-debt balance sheet and a meaningful profitability/revenue rebound highlighted on the latest earnings call. Offsetting this are inconsistent and weakening cash-flow trends and a mixed technical picture with negative MACD and price still below longer-term moving averages; valuation cannot be reliably assessed from the provided P/E and dividend data.
Positive Factors
Balance sheet strength
Leatt’s very low leverage and materially stronger equity provide a durable liquidity and solvency buffer. With cash reserves and a high current ratio, the company can fund multichannel expansion, absorb tariff shocks, and support buybacks or investment without immediate financing stress.
Negative Factors
Cash-flow volatility
Material swings in operating and free cash flow reduce financial flexibility despite a strong balance sheet. A 60% drop in FCF raises the risk that working-capital or capex needs could outpace internal cash generation, forcing reliance on reserves or external financing during growth phases.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Leatt’s very low leverage and materially stronger equity provide a durable liquidity and solvency buffer. With cash reserves and a high current ratio, the company can fund multichannel expansion, absorb tariff shocks, and support buybacks or investment without immediate financing stress.
Read all positive factors
Leatt (LEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.01M
Dividend YieldN/A
Average Volume (3M)2.46K
Price to Earnings (P/E)17.7
Beta (1Y)0.98
Revenue Growth33.89%
EPS GrowthN/A
CountryUS
Employees75
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.07
Shares Outstanding6,237,561
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 Cap0.80
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit1.88
Enterprise Value/Ebitda8.29
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 worldwide. The company offers Leatt-Brace system, an injection molded neck protection system design...
How the Company Makes Money
Leatt makes money primarily by selling branded protective equipment and apparel to the action-sports market. Revenue is generated from product sales across major categories such as helmets, neck braces, body armor/protectors, and related riding ap...
Leatt Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial recovery with significant revenue growth, margin improvement and a return to profitability driven by international demand, direct channel expansion and product category momentum. Key risks highlighted include tariff and global trade uncertainty, rising operating costs and increased working capital needs, and a portion of growth tied to distributor restocking. On balance, the positive performance metrics and liquidity strength outweigh the noted challenges.Positive Updates
Strong Revenue Growth (Full Year 2025)
Total global revenues of $61.91 million, a 41% increase year-over-year (2025 vs 2024).
Negative Updates
Tariff and Global Trade Uncertainty
Uncertainty around global trade tariffs negatively impacted business, particularly in the first half of the year; management implemented price increases to mitigate impact but acknowledged some effect on U.S. business and retail pricing dynamics in Europe.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth (Full Year 2025)
Total global revenues of $61.91 million, a 41% increase year-over-year (2025 vs 2024).
Read all positive updates
Company Guidance
Leatt’s guidance emphasized continued momentum and investment to fuel growth: management expects operating costs to rise (total operating costs were up 12% in 2025) and working‑capital investments to grow as it builds a global multichannel sales and marketing team, while remaining confident it has sufficient liquidity (cash, cash equivalents and restricted cash of $13.23M at 12/31/25 vs $12.37M a year earlier and a current ratio of 4.9:1) to support the plan; the Board extended a share‑repurchase authorization of up to $750,000 through March 31, 2026; operational context cited includes FY 2025 revenues of $61.91M (+41%), Q4 revenues of $16.0M (+43%), gross margin of ~44% for the year (46% in Q4), FY net income $3.26M (+248%; $0.53 basic/$0.51 diluted), income before tax $4.41M, and strong category traction (body armor $28.98M, +29%; helmets $13.31M, +59%; other products $16.73M, +56%; neck braces $2.89M, +18%), with a pipeline of new ADV products expected over the next several quarters.Leatt Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.91M | 44.03M | 47.24M | 76.34M | 72.48M |
| Gross Profit | 27.22M | 17.71M | 19.81M | 31.13M | 31.45M |
| EBITDA | 5.19M | -1.83M | 2.58M | 14.59M | 17.86M |
| Net Income | 3.26M | -2.20M | 803.16K | 9.96M | 12.57M |
Balance Sheet | |||||
| Total Assets | 52.05M | 46.49M | 47.61M | 51.93M | 49.17M |
| Cash, Cash Equivalents and Short-Term Investments | 12.99M | 12.37M | 11.35M | 7.10M | 5.08M |
| Total Debt | 1.14M | 1.32M | 2.12M | 2.37M | 2.64M |
| Total Liabilities | 9.81M | 8.22M | 7.33M | 12.23M | 20.55M |
| Stockholders Equity | 42.23M | 38.26M | 40.28M | 39.69M | 28.62M |
Cash Flow | |||||
| Free Cash Flow | 725.88K | 1.56M | 4.66M | 1.94M | 1.64M |
| Operating Cash Flow | 1.81M | 2.79M | 6.66M | 3.09M | 2.78M |
| Investing Cash Flow | -1.05M | -1.23M | -2.00M | -1.04M | -1.14M |
| Financing Cash Flow | -217.57K | -514.95K | -1.29K | 288.82K | 595.94K |
Leatt Technical Analysis
Positive
9.25
Price Trends
9.11
Positive
9.32
Negative
10.28
Negative
Market Momentum
0.04
Negative
54.75
Neutral
71.04
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 9.25 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 9.11, and below the 200-day MA of 10.28, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 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 30 risk factors in its most recent earnings report. Leatt reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.27B | 26.95 | 19.69% | ― | 10.29% | -3.90% | |
62 Neutral | $58.01M | 17.71 | 5.87% | ― | 33.89% | ― | |
62 Neutral | $894.43M | 60.64 | 4.44% | ― | -0.10% | -53.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $327.18M | -5.64 | -27.24% | ― | ― | 10.52% | |
48 Neutral | $145.34M | -2.52 | -73.64% | ― | 46.09% | 46.01% | |
45 Neutral | $76.69M | -3.49 | -33.62% | ― | -13.01% | 21.49% |
* Consumer Cyclical Sector Average
LEAT
Leatt
9.30
3.30
55.00%
SYPR
Sypris
3.33
1.75
110.76%
THRM
Gentherm
29.30
5.98
25.64%
HYLN
Hyliion Holdings
1.84
0.55
42.64%
XPEL
XPEL
46.07
19.94
76.31%
INVZ
Innoviz Technologies
0.68
0.10
17.53%
Leatt Corporate Events
Business Operations and StrategyFinancial Disclosures
Leatt Reports Strong 2025 Results and Profit Rebound
Positive
Mar 24, 2026
Leatt Corp reported strong results for the fourth quarter and full year ended December 31, 2025, with the March 24, 2026 announcement highlighting a sharp rebound from prior losses. Total 2025 revenues rose 41% year over year to $61.91 million, in...
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.