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Leef Brands
(LEEF)
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Rating:55Neutral
Price Target:
C$0.28
▼(-1.07% Downside)
Action:Reiterated
Date:07/10/26
The score is held back primarily by weak financial health—continued net losses, slightly negative free cash flow, and especially negative shareholder equity—despite improving margins, positive operating cash flow, and reduced debt. Technicals are a relative bright spot with price above major moving averages and positive momentum indicators. Valuation is difficult to assess meaningfully given the negative P/E and no dividend yield.
Positive Factors
Improving gross margins
A rise to ~30% gross margin from ~25% indicates durable improvements to product margins or cost structure. Sustained higher gross margins increase operating leverage potential, making future revenue growth more profitable and reducing the revenue breakpoint required to achieve positive operating income.
Negative Factors
Negative shareholder equity
A persistent negative shareholders' equity position limits financial flexibility and can restrict access to traditional financing. It signals accumulated losses that may constrain strategic choices, increase refinancing risk, and require equity issuance or creditor concessions to restore a healthy capital structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving gross margins
A rise to ~30% gross margin from ~25% indicates durable improvements to product margins or cost structure. Sustained higher gross margins increase operating leverage potential, making future revenue growth more profitable and reducing the revenue breakpoint required to achieve positive operating income.
Read all positive factors
Leef Brands (LEEF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$84.03M
Dividend YieldN/A
Average Volume (3M)144.57K
Price to Earnings (P/E)―
Beta (1Y)-0.59
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees81
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.09
Shares Outstanding305,556,500
10 Day Avg. Volume233,994
30 Day Avg. Volume144,567
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-2.68
Price to Sales (P/S)1.14
P/FCF Ratio-4.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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
Leef Brands Business Overview & Revenue Model
Company Description
Leef Brands Inc. operates as a U.S.-based manufacturer of branded cannabis products. The company's operations are divided into two main divisions: Wholesale Concentrates and Retail. Its Wholesale Concentrates segment manages the complete productio...
How the Company Makes Money
Leef Brands makes money primarily by selling cannabis products into licensed markets. Its key revenue stream is wholesale revenue generated from manufacturing branded cannabis products (including cannabis derivative products such as concentrates/e...
Leef Brands Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2027
Earnings Call Sentiment Positive
The call portrayed a company in transition: Q2 showed temporary softness with a 16% revenue decline, negative adjusted EBITDA for the quarter and volume pullbacks due to running purchased biomass. Offsetting those near-term headwinds are strong strategic and operational developments — an oversubscribed capital raise (~$14.2M YTD), completion of the largest harvest with exceptionally high-quality oil (95% THC, passed CAT4), acquisition of HIMALAYA (added ~$1M revenue), materially improved gross profit (+62% YoY) and margin expansion (33% vs 17% prior year), a growing acreage footprint targeting 180 acres in 2027, new processing capacity, and active regulatory and customer engagement positioning the company for interstate and export opportunities. Overall, management presented these negatives as temporary and solvable via vertical integration and recent investments.Positive Updates
Gross Profit and Margin Expansion
Gross profit increased 62% year-over-year to $2.4 million and gross margin nearly doubled to 33% from 17% a year ago, driven by mix shift to higher-margin hydrocarbon products and improved extraction performance when running owned biomass.
Negative Updates
Quarterly Revenue and Volume Decline
Net revenue declined 16% year-over-year to $7.3 million (from $8.7 million) and unit volumes were down approximately 20%, reflecting a deliberate pullback on purchased biomass and softer California wholesale demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Gross Profit and Margin Expansion
Gross profit increased 62% year-over-year to $2.4 million and gross margin nearly doubled to 33% from 17% a year ago, driven by mix shift to higher-margin hydrocarbon products and improved extraction performance when running owned biomass.
Read all positive updates
Company Guidance
The company guided that its Q2 softness was temporary and tied to running third‑party biomass, with revenue down 16% to $7.3M, unit volumes down ~20% partially offset by a ~5% ASP improvement, and adjusted EBITDA of negative $631k (first half adjusted EBITDA still +$1.7M vs -$2.1M YoY), while gross profit rose 62% to $2.4M and gross margin nearly doubled to 33% from 17% as hydrocarbon products became the largest revenue category; operationally Leef completed an oversubscribed $9.3M financing, raised roughly $9M in H1 plus $5.2M in July (≈$14.2M YTD) to buy a processing facility, acquired Himalaya (≈$1M contributed in the partial quarter), filed DEA registration applications, finished its largest harvest with the first several hundred liters in July testing ~95% THC / ~99% total cannabinoids and passing CA CAT4 screens, and expects acreage to reach ~122 acres this fall (an 88% YoY increase) en route to operating the full 180‑acre permit in 2027 (plus contracted/partnered 21‑acre blocks), inventory grew to $7.1M (WIP $4.2M), cash was $5M (from $2.2M), working capital turned to a surplus of $8.7M, and management reiterated that running its own biomass historically drives gross margins toward ~50% (vs ~33% on bought material), with margin and distillate volume recovery expected in late Q3 and into Q4 and longer‑term cost targets like distillate < $0.50/gram (vs CA sell price ~$1/g and potential out‑of‑state prices of $3.50–$12/g) implying very high incremental margins.Leef Brands Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.16M | 30.75M | 28.50M | 30.61M | 27.00M | 9.80M |
| Gross Profit | 10.43M | 7.62M | 8.94M | 10.02M | 9.55M | -3.05M |
| EBITDA | -11.24M | -17.43M | -14.26M | -33.41M | -18.89M | -4.52M |
| Net Income | -16.69M | -17.63M | -24.62M | -34.97M | -28.92M | -6.34M |
Balance Sheet | ||||||
| Total Assets | 52.33M | 41.27M | 42.98M | 44.00M | 61.93M | 47.12M |
| Cash, Cash Equivalents and Short-Term Investments | 4.94M | 887.89K | 2.73M | 6.41M | 3.31M | 1.45M |
| Total Debt | 12.40M | 24.14M | 23.15M | 20.38M | 10.91M | 1.66M |
| Total Liabilities | 54.36M | 54.35M | 55.41M | 43.15M | 34.19M | 10.13M |
| Stockholders Equity | -2.04M | -13.08M | -12.43M | -2.80M | 23.94M | 36.99M |
Cash Flow | ||||||
| Free Cash Flow | -3.84M | -7.43M | -7.32M | -7.42M | -6.44M | -2.09M |
| Operating Cash Flow | -1.87M | -4.01M | -1.05M | 187.82K | -6.32M | -710.62K |
| Investing Cash Flow | -1.78M | -3.01M | -6.27M | -7.28M | 2.23M | -2.46M |
| Financing Cash Flow | 7.75M | 4.76M | 3.63M | 10.38M | 49.69K | 3.20M |
Leef Brands Technical Analysis
Positive
0.28
Price Trends
0.26
Positive
0.24
Positive
0.23
Positive
Market Momentum
>-0.01
Positive
50.06
Neutral
66.67
Neutral
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 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LEEF.
Leef Brands Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | C$84.03M | -2.19 | 206.83% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | C$129.80M | -1.33 | 53.44% | ― | 4.96% | -12.20% | |
46 Neutral | C$68.74M | -0.77 | -125.32% | ― | -21.90% | -25.05% | |
43 Neutral | C$110.93M | -2.76 | -285.96% | ― | -7.77% | -52.56% | |
40 Neutral | C$18.10M | -0.03 | -74.75% | ― | ― | ― |
* Healthcare Sector Average
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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.