Leef Brands (LEEF) AI Stock Analysis

• Market Cap: C$51.59M
• Dividend Yield: N/A
• Average Volume (3M): 144.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• 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: -0.23
• Price to Book (P/B): -2.68
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -4.72
• 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$0.20 ▼(-27.50% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

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

Diversified distribution & product portfolio

Leef's multi-channel sales model (DTC e-commerce plus retail distribution and partnerships) and varied product set (oils, edibles, topicals) reduce single-channel concentration. This structural diversification supports steadier revenue, broader customer acquisition, and scalable growth over months.

Modest but positive revenue growth

Consistent TTM revenue growth of ~5.25% indicates ongoing product adoption and market traction rather than one-off spikes. Over a 2–6 month horizon this trend supports operating leverage potential and validates distribution/product strategy if maintained or accelerated.

Relative cash conversion versus losses

A positive free cash flow to net income ratio (~2.95) suggests the business converts reported losses into some operating cash, implying working-capital management or non-cash charges. This provides more durable liquidity flexibility than headline losses alone, easing short-term refinancing stress.

Negative Factors

Negative shareholders' equity

Negative shareholders' equity is a structural solvency concern: it can limit borrowing capacity, restrict access to strategic financing, complicate partnerships, and increase default/dilution risk. Over months this undermines financial flexibility needed for growth or setbacks.

Severe operating losses

Extremely negative margins indicate the core business currently destroys value on sales. Persistently large operating losses reduce retained capital, constrain reinvestment in marketing/product development, and create structural reliance on external funding to sustain operations.

Negative operating cash flow and falling FCF

Negative operating cash flow combined with a 37% decline in free cash flow signals deteriorating internal cash generation. Structurally, this increases dependence on financing, elevates dilution or covenant risk, and reduces ability to invest or weather demand shocks over coming months.

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	Jun 2025	Mar 2025	Mar 2024	Mar 2023	Jul 2021
Income Statement
Total Revenue	32.37M	30.75M	28.50M	30.61M	27.00M	7.85M
Gross Profit	9.92M	7.62M	8.94M	10.02M	9.55M	2.16M
EBITDA	-11.33M	-17.43M	-14.26M	-33.41M	-18.89M	―
Net Income	-20.74M	-26.13M	-24.62M	-34.97M	-28.92M	―
Balance Sheet
Total Assets	41.46M	41.27M	42.98M	44.00M	61.93M	47.12M
Cash, Cash Equivalents and Short-Term Investments	1.92M	887.89K	2.73M	6.41M	3.31M	1.45M
Total Debt	24.17M	24.14M	23.15M	20.38M	10.91M	1.33M
Total Liabilities	57.68M	54.35M	55.41M	43.15M	34.19M	10.13M
Stockholders Equity	-16.22M	-13.08M	-12.43M	-2.80M	23.94M	36.99M
Cash Flow
Free Cash Flow	-4.67M	-7.43M	-7.32M	-7.42M	-6.44M	-2.09M
Operating Cash Flow	-2.65M	-4.01M	-1.05M	187.82K	-6.32M	-710.62K
Investing Cash Flow	-1.61M	-3.01M	-6.27M	-7.28M	2.23M	-1.97M
Financing Cash Flow	4.02M	4.76M	3.63M	10.38M	49.69K	2.56M

Leef Brands Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LEEF, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.19, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.14 is Neutral, neither overbought nor oversold. The STOCH value of 85.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LEEF.

Leef Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CWEB	51 Neutral	C$162.61M	-1.15	-109.83%	―	-4.23%	37.33%
JUSH	47 Neutral	C$131.79M	-2.14	―	―	3.17%	-24.07%
PLTH	42 Neutral	C$71.58M	-0.45	-83.55%	―	2.19%	-91.41%
AYR.A	40 Neutral	C$18.10M	-0.08	―	―	0.63%	-31.86%
LEEF	39 Underperform	C$51.59M	-3.62	―	―	―	―