Leef Brands (LEEF) AI Stock Analysis

• Market Cap: C$60.62M
• Dividend Yield: N/A
• Average Volume (3M): 144.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• 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: 46 Neutral
• Price Target: C$0.23 ▼(-17.86% Downside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is primarily held back by weak financial performance—deep losses, negative operating cash flow, and negative equity—indicating elevated financial risk. Technicals are comparatively better with positive momentum and price above key moving averages, but near-overbought signals limit upside confidence. Valuation remains unattractive given the negative P/E and no dividend support.

Positive Factors

Manufacturing & distribution model

A vertically focused manufacturing and distribution model in regulated markets provides durable control over product quality, cost structure and shelf access. That setup helps capture manufacturing margin and supports scalable revenue growth if distribution relationships expand over the coming months.

Revenue growth and gross margin

Consistent TTM revenue growth combined with a mid-20s gross margin indicates product demand and the ability to cover direct costs. Over a 2–6 month horizon this underpins potential operational leverage if SG&A and production efficiencies are improved, enabling path to narrower losses.

Positive FCF-to-net-income ratio

A positive free cash flow to net income ratio signals the company can convert reported losses into cash, implying working-capital or non-cash charge dynamics that help liquidity. This cash conversion ability provides a more durable runway than accounting losses alone over several quarters.

Negative Factors

Negative stockholders' equity

Negative equity is a structural balance-sheet weakness that restricts financing options, increases dilution risk, and can trigger covenant issues. It materially limits the firm's ability to invest, acquire capital cheaply or withstand shocks over the next several months unless repaired.

Negative operating cash flow

Sustained negative operating cash flow and sharply falling free cash flow undermine liquidity and force reliance on external financing or asset sales. This reduces strategic flexibility and makes it hard to fund growth or absorb margin pressure over a 2–6 month timeframe.

Deep operating losses

Very large negative net and EBIT margins show the core business is not currently profitable and is consuming capital. Without structural cost reduction or pricing improvements, these losses will continue to erode liquidity and equity, making recovery difficult in the medium term.

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 primarily makes money by selling cannabis products it manufactures into regulated cannabis markets. Revenue is generated through wholesale distribution of its packaged products to licensed dispensaries/retailers and other permitted cannabis operators, and, where applicable, through direct-to-consumer sales via company-operated retail (if and where the company is licensed to do so). The company’s earnings are influenced by product mix (e.g., higher-margin manufactured/processed products versus lower-margin bulk inputs), its ability to scale manufacturing and distribution, prevailing state/provincial regulatory and tax regimes, wholesale pricing dynamics, and access to retail shelf space via distribution relationships. Specific details on named brands, exact revenue breakdown by channel, or material partnerships are null.

Leef Brands Financial Statement Overview

Summary

Financial statements indicate material weakness: strong negative profitability (net margin -80.72%, EBIT margin -84.32%), negative operating cash flow and declining free cash flow (-37.14% TTM), and significant balance-sheet stress with negative stockholders’ equity.

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: Positive
• 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 0.19, above the 50-day MA of 0.18, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.43 is Neutral, neither overbought nor oversold. The STOCH value of 88.39 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$137.10M	-1.15	-119.94%	―	-4.23%	37.33%
JUSH	47 Neutral	C$131.79M	-2.14	88.51%	―	3.17%	-24.07%
LEEF	46 Neutral	C$60.62M	-3.62	163.84%	―	―	―
PLTH	42 Neutral	C$69.95M	-0.45	-90.71%	―	2.19%	-91.41%
AYR.A	40 Neutral	C$18.10M	-0.08	―	―	0.63%	-31.86%

Leef Brands Corporate Events

LEEF Brands Secures US$4.5 Million to Expand Flagship Cannabis Farm and Adds Industry Veteran to Board

LEEF Brands has secured an initial US$4.5 million tranche of up to US$8 million in non-brokered private placement financing led by Mindset Capital, issuing common and preferred shares to fund the expansion of its Salisbury Canyon Ranch cultivation facility in California. The capital is intended to scale the ranch to its full 180-acre permit, boosting internal low-cost biomass supply to improve margins and product consistency over time, while adding cannabis industry veteran Jamie Mendola to the board to strengthen strategic execution and growth planning.

The financing structure includes units priced at CAD $0.25 with attached warrants and preferred shares carrying a 15% annual dividend, with the company targeting completion of the raise within about 45 days. Expanded production at Salisbury Canyon Ranch is expected to position LEEF as a competitive low-cost producer of clean cannabis inputs, potentially enhancing its role in the cannabis supply chain as regulatory reforms evolve and demand for high-quality concentrates grows.

The most recent analyst rating on (TSE:LEEF) stock is a Hold with a C$0.20 price target. To see the full list of analyst forecasts on Leef Brands stock, see the TSE:LEEF Stock Forecast page.