Leef Brands (LEEF) AI Stock Analysis

• Market Cap: C$45.14M
• Dividend Yield: N/A
• Average Volume (3M): 144.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.03
• Shares Outstanding: 257,948,000
• 10 Day Avg. Volume: 233,994
• 30 Day Avg. Volume: 144,567
• PEG Ratio: 0.04
• Price to Book (P/B): -3.44
• Price to Sales (P/S): 1.50
• P/FCF Ratio: -5.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: C$0.16 ▼(-42.50% Downside)

The score is primarily weighed down by very weak financial health—severe losses, negative operating cash flow, and especially negative shareholders’ equity. Technicals add further pressure with a clear downtrend and bearish momentum. Valuation provides limited support because losses make the negative P/E difficult to interpret and there is no dividend yield.

Positive Factors

Multi-channel distribution

A dual DTC plus retail distribution strategy diversifies revenue sources and reduces customer concentration risk. Over 2–6 months this supports durable demand capture, allows targeted marketing and margin improvement from owned channels, and aids scaling into new retail accounts.

Sustained revenue growth

Positive top-line growth, even if modest, indicates persistent consumer demand for Leef's products. Sustained revenue expansion provides a foundation to leverage fixed costs, invest in product development and marketing, and improve operating leverage across the medium term.

Moderate gross margins

A ~27% gross margin shows the business can cover direct costs and retain value per sale. This margin level gives management room to improve operating profitability via scale, better pricing, or cost efficiencies, making margin recovery achievable over several quarters.

Negative Factors

Negative shareholders' equity

Negative equity is a structural balance-sheet weakness that constrains financing options, increases insolvency risk, and typically forces dilutive capital raises or asset sales. Over months this undermines financial flexibility and can hamper long-term strategic execution.

Severe operating losses

Very large negative margins reflect deep operating inefficiencies or pricing/mix issues. Persistent wide losses erode capital and make self-funded growth unlikely, requiring structural margin improvement or external funding to sustain operations beyond the near term.

Negative operating cash flow and falling FCF

Negative operating cash flow and a sharp FCF decline signal cash burn and weakening liquidity. This reduces runway for marketing, R&D, and inventory investment, increasing reliance on external capital and raising execution risk over a multi-month horizon.

Leef Brands Business Overview & Revenue Model

Company Description

Leef Brands (LEEF) is a consumer-focused company specializing in innovative products within the cannabis industry. The company operates in sectors such as health and wellness, personal care, and lifestyle products, offering a diverse range of core products including CBD-infused consumables, topicals, and wellness supplements. With a commitment to quality and sustainability, Leef Brands aims to enhance the everyday lives of its customers through effective and reliable cannabis-based solutions.

How the Company Makes Money

Leef Brands generates revenue primarily through the sale of its product lines, which include CBD oils, edibles, and topical applications. The company employs a direct-to-consumer sales model through its e-commerce platform, as well as partnerships with retail distributors to reach a broader audience. Key revenue streams include online sales, wholesale agreements with retailers, and potential licensing agreements for product formulations. Additionally, Leef Brands benefits from strategic partnerships with other companies in the cannabis space, enhancing its market presence and expanding its product offerings, which further contribute to its overall earnings.

Leef Brands Financial Statement Overview

Summary

Income statement shows modest revenue growth (5.25% TTM) but extremely weak profitability (net margin -80.72%, EBIT margin -84.32%). Balance sheet is a major risk with negative shareholders’ equity. Cash flow is also pressured with negative operating cash flow and declining free cash flow (-37.14% TTM).

Income Statement

Leef Brands shows a mixed performance in its income statement. The company has a positive revenue growth rate of 5.25% in the TTM, indicating some growth momentum. However, profitability metrics such as the net profit margin (-80.72%) and EBIT margin (-84.32%) are significantly negative, reflecting ongoing operational challenges and inefficiencies. The gross profit margin is moderate at 27.47%, suggesting some ability to cover direct costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet of Leef Brands highlights significant financial instability. The company has negative stockholders' equity, leading to an undefined debt-to-equity ratio, which is a major red flag. The return on equity is also negative, indicating that the company is not generating returns for its shareholders. The equity ratio is not calculable due to negative equity, further emphasizing the financial distress.

Cash Flow

Leef Brands' cash flow statement reveals some concerning trends. The operating cash flow is negative, and the free cash flow has decreased by 37.14% in the TTM, indicating cash flow challenges. However, the free cash flow to net income ratio is positive at 2.95, suggesting that despite losses, the company is managing to generate some cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.37M	28.50M	30.61M	27.00M	7.85M	5.94M
Gross Profit	9.92M	8.94M	10.02M	9.55M	2.16M	1.38M
EBITDA	-11.33M	-14.26M	-33.41M	-18.89M	―	―
Net Income	-20.74M	-24.62M	-34.97M	-28.92M	―	―
Balance Sheet
Total Assets	41.46M	42.98M	44.00M	61.93M	47.12M	50.55M
Cash, Cash Equivalents and Short-Term Investments	1.92M	2.73M	6.41M	3.31M	1.45M	1.52M
Total Debt	24.17M	23.15M	20.38M	10.91M	1.33M	998.82K
Total Liabilities	57.68M	55.41M	43.15M	34.19M	10.13M	2.26M
Stockholders Equity	-16.22M	-12.43M	-2.80M	23.94M	36.99M	48.29M
Cash Flow
Free Cash Flow	-4.67M	-7.32M	-7.42M	-6.44M	-2.09M	-2.92M
Operating Cash Flow	-2.65M	-1.05M	187.82K	-6.32M	-710.62K	-2.22M
Investing Cash Flow	-1.61M	-6.27M	-7.28M	2.23M	-1.97M	-786.12K
Financing Cash Flow	4.02M	3.63M	10.38M	49.69K	2.56M	1.05M

Leef Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LEEF, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.21, and above the 200-day MA of 0.24, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LEEF.

Leef Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRBR	56 Neutral	C$173.99M	-9.63	-184.37%	―	40.28%	26.23%
CWEB	52 Neutral	C$111.59M	-3.66	-109.83%	―	-4.23%	37.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JUSH	47 Neutral	C$149.49M	-1.62	―	―	3.17%	-24.07%
PLTH	42 Neutral	C$76.46M	-0.64	-83.55%	―	2.19%	-91.41%
AYR.A	40 Neutral	C$18.10M	-0.04	―	―	0.63%	-31.86%
LEEF	39 Underperform	C$45.14M	-0.83	―	―	―	―

Leef Brands Corporate Events

LEEF Brands Leadership Buys Shares After Record Q3 Performance

LEEF Brands announced that its senior leadership team, including the CEO and CFO, purchased shares on the open market following a strong third-quarter earnings report. The company reported a 24% year-over-year revenue growth, improved gross margins, positive adjusted EBITDA, and positive free cash flow, signaling a significant turning point for the business. These insider purchases reflect confidence in LEEF’s strategic direction and commitment to long-term shareholder value.