Leatt Corp. (LEAT) research, news, and more from GeoInvesting

Company description

Wed, 23 Apr 2014 04:00:00 GMT

Leatt Corporation develops and sells protective equipment and ancillary products for all forms of sports, especially extreme high-velocity sports. The Leatt-Brace® is an award-winning neck brace system considered to be the gold standard in neck protection for anyone wearing a crash helmet as a form of protection. The latest generation of the Leatt-Brace, the Five.Five neck brace, is also designed for participants in high-velocity sports such as motorcycling, bicycling, mountain bicycling, driving all-terrain vehicles, snowmobiles and other vehicles, and have potential applications in any downhill or freestyle high-velocity sports.

Research

Tue, 24 Mar 2026 16:34:01 GMT

Leatt Corp. (OTCQB:LEAT) ($8.70; $53.9M market cap) announced Q4 2025 and full-year 2025 results:

Q4 sales of $16.02 million vs. $11.20 million in the prior year
Q4 2025 EPS: $0.07 vs. loss of $(0.07) in the prior year
Full-year sales of $61.91 million vs. $44.03 million in the prior year
Full-year 2025 EPS: $0.51 vs. loss of $(0.34) in the prior year
The company repurchased $255,058 of treasury stock under its share repurchase plan in 2025.
Management said it expects working capital investments to grow in coming periods.

Management Commentary:

"2025 was a remarkable year for us, fueled by strong international demand for our innovative products, improved stocking dynamics and ordering patterns, and a surge in consumer direct sales. The growing global demand for our products and an expanding Leatt® brand that reaches a much wider group of riders around the world are fueling tremendous traction and momentum.

"The momentum we are achieving at all levels of our business has our entire team energized and optimistic about the future of the Company. Although there are some potentially challenging geo-political headwinds globally, domestic sales at the dealer level are gaining very promising traction, participation remains strong and international ordering patterns remain robust.

"Our Adventure motorcycle line-up of apparel, helmet and boot sales, backed by positive industry reviews and our proven ability to develop exciting and durable products, continues to exceed our expectations and contribute strongly to our revenue. We look forward to delivering a pipeline of new innovative products to the growing ADV market over the next several quarters.

The team is building and leveraging revenue opportunities by enabling our brand to reach a much wider group of riders of all levels around the world. We believe that we have sufficient liquidity to fuel this growth.

"Again, we are very enthusiastic about our future. With a growing portfolio of innovative products in the market and in the pipeline, a focus on elevating and amplifying our brand, and a robust balance sheet to fuel the growth, we remain confident that we are well-positioned for future growth and increasing shareholder value.”

Our Quick Take:

After posting negative to flat revenue growth in 2023 and 2024, driven by the post-COVID industry-wide inventory overhang, 2025 looks like a clear rebound year. The industry has recovered, LEAT’s revenues have followed, and the company appears to be back in growth mode. Management is cautiously optimistic, noting strong momentum across both international and domestic markets, and is investing in working capital to support that growth.

If this recovery is real, the operating leverage could be very, very strong. As a reminder, in 2022 the company generated $76.3M in revenue and $10M in net income. If the company were to replicate this performance, it would imply a P/E of around 5.4x.

Leatt Corporation designs and manufactures protective gear, helmets, and related apparel for motorcycle, bicycle, and other action sports riders.

Research

Mon, 16 Aug 2021 14:30:43 GMT

Leatt Corporation (OTC:LEAT) a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports announced record Q2 2021 results:

Sales of $14.3 million vs $$6.9 million in the prior year
EPS of $0.39 vs $0.12 in the prior year

"We continued to build steady momentum during the 2021 second quarter, which marked the fourth quarter in a row of record-breaking revenue growth, and the 13th consecutive quarter of year-on-year revenue growth. We believe that our ongoing growth is a testament to the success of our strategy that is focused on building Leatt into a global consumer brand by growing our product categories to anticipate and serve the needs of our riders.

"Consumer spending on outdoor products continues to increase as people around the world participate widely in outdoor activities that provide some escape from the Covid-19 pandemic, a trend that we expect to continue."

It took a while for some of the growth strategies we outlined in our March 15, 2019 LEAT RFT (Reasons For Tracking) to play out, but now it seems the company's growth plan centered around broadening its product categories is clicking on all cylinders. The good news is that the stock has risen 942% in the 2 years since the RFT. The bad news is that we never added the stock to any of our model portfolios.

Previous to our RFT, GeoInvesting Research Contributor William Xion also published an article on LEAT on May 24, 2016 explaining why he thought the stock was a good buy after having experienced a pullback. While he didn’t necessarily buy at the bottom, we’d still like to congratulate him on what is an impressive 800% 5-yr return on his pick.

Research

Wed, 24 Mar 2021 16:48:22 GMT

Leatt Corporation (OTC:LEAT) ($9.45, $50.9M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced Q4 2020 results:

Sales of $12.7 million vs $7.3 million in the prior year
EPS of $0.30 vs $0.00 in the prior year

“By nearly every measure, 2020 was our best year ever, topped off by a fantastic fourth quarter, the best quarter in our history in terms of revenue and profitability...

...We are always at work refining our product categories and, thanks to the diligence and creativity of our engineering team and our professional riders, we have created a strong pipeline of innovative products going forward...

...While we are achieving outstanding growth, and both ordering patterns and consumer demand are promising, we have a long runway ahead of us. Our market share potential is still in its infancy in the majority of categories that we sell. We are especially encouraged by the consumer demand, the reviews and the performance in the field of our recent product launches in goggles, boots, shoes, helmets and other protective gear. In particular, we believe that our investment in the re-engineering of our Moto helmet line will contribute to significant revenue gains.”

It's taken a while for some of the growth strategies we outlined in our March 15, 2019 LEAT RFT (Reasons For Tracking) to play out, but now it seems the company's growth plan centered around broadening its product categories is clicking on all cylinders. Q4 marks the 7th consecutive quarter of strong revenue and earnings growth.

Research

Wed, 13 May 2020 17:31:28 GMT

Leatt Corporation (OTCQB:LEAT) ($1.95, $10.5M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced Q1 2020 results:

Sales of $7.5 million vs $6.1 million in the prior year
EPS of $0.07 vs $0.00 in the prior year

"Despite the severe economic conditions presented by the COVID-19 pandemic, particularly in the last three weeks of the first quarter, we are pleased to report a record-breaking quarter, our best first quarter ever in terms of revenue. Total worldwide revenues were up 24% over the first quarter of 2019, to $7.5 million...

...With global headwinds from the COVID-19 pandemic expected to affect our revenues in the next several quarters, we are focused on operating more efficiently while continuing to develop our pipeline of innovative, medically-proven products that define Leatt as a premium 'Head to Toe' brand. With revenue increasing by 24% and costs increasing by only 6%, we believe we can continue to build on the tremendous momentum that we have achieved across our core markets...

...We have been actively developing our e-commerce capabilities and key relationships for the last several quarters in order to reach a greater volume of end consumers with marketing and sales campaigns. Naturally, the COVID-19 pandemic has resulted in an increase in e-commerce buying patterns which have benefited Leatt, our partners and consumers tremendously. We continue to refine and accelerate our e-commerce partnerships and presence as a key revenue builder moving forward.”

We are very impressed with the company’s progress over the last couple of quarters. It's taken a while for some of the growth strategies we outlined in our March 15, 2019 LEAT RFT (Reasons For Tracking) to play out. We are going to listen to the earnings conference call scheduled for 10 a.m. Eastern time today. Here is a link to join that call.

Research

Tue, 12 Nov 2019 15:49:45 GMT

Leatt Corporation (OTCQB:LEAT) ($1.90, $8.0M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced Q3 2019 results:

Sales of $9.6 million vs $8.6 million in the prior year
EPS of $0.24 vs $0.20 in the prior year

"We are pleased by this record-breaking quarter and what it means for the future of our company. These results prove that our strategy of building a pipeline of exceptional protective gear in multiple categories can fuel revenue growth which we expect to continue in the future. Our design team is making use of advanced manufacturing technology and efficient materials to design and deliver products at exceptional value to a wide range of consumers globally. Our customers are enthusiastic about our 2020 product offering that started shipping during the third quarter and will continue through the fourth quarter and beyond.

The company is not in any of GeoInvesting’s model portfolios, but we previously released an RFT as we wait to see if the company’s turnaround plan will drive consistent growth.

This was the highest revenue quarter in the company's history
Growth is being fueled by the introduction of new products
Legacy product growth has matured
The company has a history of reporting lumpy quarters
Shipping of new products has just begun
Caveat: Q3 is a seasonally strong quarter
It's worth reaching out to management to see if the company has attained the point where sales and earnings growth will be more predictable and less lumpy

Research

Thu, 08 Aug 2019 15:31:46 GMT

Leatt Corporation (OTCQB:LEAT) ($2.00, $10.7M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced Q2 2019 results:

Sales of $5.3 million vs $4.8 million in the prior year
EPS of $0.01 vs a loss of $0.01 in the prior year

"We had a solid quarter and made substantial progress, particularly in terms of revenue growth and the market acceptance of our newest product lines in both the U.S. and International markets. Global revenue for the 2019 second quarter was up 10 percent to $5.3 million, driven by double digit increases in sales of our new, innovative knee braces and our array of body armor for riders' safety and protection. Our full line of medically-proven, revolutionary knee braces continues to gain traction globally, with a 69 percent increase in sales, as compared to the second quarter of 2018.

We are also very excited about the enthusiastic market acceptance of our new, bulletproof Velocity 6.5 goggle line, launched in March 2019. The demand has exceeded our expectations and our goggle category has become another important revenue contribution segment. Initial shipments and continued ordering patterns are showing great promise for future growth."

We are still waiting for LEAT to make consistent growth strides on sales and earnings, something they have been unable to do for several years.

Research

Mon, 13 May 2019 15:41:25 GMT

Leatt Corporation (OTCQB:LEAT) ($2.30, $12.3M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports announced Q1 2019results:

Sales of $6.1 million vs $5.5 million in the prior year
EPS of $0.00 vs EPS of $0.03

"We are now experiencing the best year in our history in terms of revenue so we are all excited about our future. While revenue in the U.S. in the first quarter of 2019 was softer than we hoped, the second quarter of 2019 is already showing promising results. We believe our overall strategy of bringing exceptional protective gear categories to a much wider group of riders is on point. Investments we are making are driving expenses higher in the short term, but we believe that these investments are necessary for building revenue growth and sustained profitability in the future.

Our team is encouraged by continuing customer ordering patterns for our existing and new product categories both in the US and abroad. Our goal is to add one new product category each season to extend into new markets and grow our brand recognition globally. Sales of our new helmets increased in the first quarter year over year. Our new helmets and our new Velocity goggle line, which we officially introduced in March, are uniquely designed products and an ideal medium for introducing new consumers to the Leatt brand. We were all excited to receive Descend Mountain Bike Product of the Month accolade for April."

As we mentioned in our Q4 LEAT update, management has yet to prove that its new product expansion initiatives that began a few years ago can meaningfully contribute to offset seasonality issues, as well as revenue and margin erosion from legacy products. For these reasons, LEAT remains a sideline stock for us and is not included in any of our model portfolios/long screens.

Research

Mon, 08 Apr 2019 15:08:51 GMT

**LEAT Update

Leatt Corporation (OTCQB:LEAT) ($2.38, $12.8M market cap) - On Tuesday, we were able to reconnect with the CEO of LEAT, a leading developer and marketer of protective equipment and ancillary products for many forms of sports.

This was following the company’s quiet period ended after they reported Q4 earnings for 2018. LEAT reported sales of $5.5 million, slightly up from $5.3 million the year prior and EPS of $0.00 versus a loss of $0.02 last year.

The purpose of the call was to get a little more color on what inning the company was in pertaining to the penetration of its new diversified product line into its target markets. Our original article published on March 5 stated that the company has been in the midst of a multi-year transition period of broadening its product offering, with more affordable price points, to broaden its consumer reach.

Q4 results were slightly up year-over-year, but significantly lower on a sequential basis when compared to Q3 2018; sales and EPS were up 57.3% and 280%, respectively.

We mentioned that despite the strong Q3 results, investors might not be ready to conclude that future quarters would see a new level of earnings for the company. One quarter does not make a trend, and Q4 results may have confirmed this.

After talking to management, we understand that in order for the company to start reporting more consistent growth across multiple quarters, it's going to have to target less professional riders and start to gain business from the more casual rider. After further due diligence, we think the company might be two or three years away from such an inflection point.

With that being said, we do believe LEAT can grow year-over-year, but we can't rule out lumpiness in its quarters. Taking all that into account, it's still worth noting that the valuation of the company appears too low.

Investors who are willing to look at the company over the long term, as opposed to on a quarterly basis, may eventually be rewarded. Remember, we invested in REPR in 2007, well ahead of any inflection points, and ATGN in 2015, also well ahead of meaningful inflection points (both now multi-baggers). Some of the inflection points may arrive in the short-term and some may take longer to materialize. You’re not always going to have perfect timing.

However, if you buy the right companies, at some point they can become multi-baggers. That decision is a personal decision that you need to figure out for yourself. As long-term investors, we think the odds are in our favor, but short-term investors may get frustrated with the possibility of lumpy quarters.

Another thing that we want to point out is that we believe LEAT must do a better job branding their products within their core customer base. After some on the ground due diligence, we concluded that customers who used LEAT neck braces believe that they are the best in the industry. However, we also must concede that many of its core customers are not aware that the company has a broader portfolio of products outside of neck braces.

We relayed this message to management. We believe that a hidden growth opportunity is available to the company if they can do a better job marketing the product depth. If management does heed our advice, we believe that a near-term positive catalyst could be in the cards for the company. We also suggested that the company buy back stock, or at least have insiders buy stock in order to establish confidence with current shareholder base, and can be a good strategy to attract new ones.

We hope this update helps. As of now, we have no position in LEAT.

Research

Wed, 27 Mar 2019 15:17:55 GMT

Leatt Corporation (OTCQB:LEAT) ($2.50, $13.4M market cap), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced Q4 2018 results:

Sales of $5.5 million vs $5.3 million in the prior year
EPS of $0.00 vs loss of $0.02 in the prior year

"We are pleased to report that 2018 was another record year for Leatt. Global revenues grew by $4.25 million to $24.4 million, an increase of 21%, compared to 2017, and included double digit revenue growth worldwide. We saw revenue growth in every single major product category, but we are particularly encouraged by the increase in sales volumes of our flagship neck braces, our innovative knee braces, our apparel line and our upper body armor and helmets. Our range of award-winning products has increased substantially over the year, and we remain committed to offering our premium revolutionary technology to more riders globally at attractive price points.

Our growth in 2018 was the result of the continued expansion of our entire global footprint. We have an evolving international distribution network that continues to add new top tier partners. We also now have a more potent in-house sales force, led by strong regional sales managers, as well as wider consumer brand reach and engagement. Our team is bolstered by our stable of exceptional protective products, as well as our new focus on the global bicycle market. We are developing an emerging bicycle distribution network and have added strong regional sales managers and bicycle sales reps to our team.

Although operating costs have increased this year when compared to 2017, this increase was primarily attributable to increased marketing, advertising, selling and related staff costs targeted directly at building a global consumer brand and launching our exceptional products – areas that we believe will fuel our growth moving forward. We continue to focus on our favorable operating leverage.”

Our decision to not yet buy LEAT shares seems to have been the right decision, at least in the near term. Our hesitation is from the uncertainty surrounding management's ability to drive consistent growth and reduce lumpiness in quarterly financial performance. An excerpt from our recent article states:

We believe LEAT’s stock is priced very modestly after our initial look at the company. Based on how peers have traditionally been valued, and given LEAT’s recent strong financial results, we believe shares could be poised for upside and/or that the company may become an attractive target for a potential acquirer. Still, we don't own shares of LEAT as we are still continuing our diligence. And although I recently (last year) had the pleasure of interviewing the CEO of Leatt Corporation (OOTC:LEAT), Sean Macdonald, we still have some questions we need answered that he and management will be able to hopefully address when the company's quiet period ends after it reports 2018 fourth-quarter earnings later this month.

A notable caveat we highlighted:

LEATT has been implementing its new growth strategy for several years and has had a pretty diversified product lineup for a few years

Investors are probably not going to assume that one good quarter is setting a new trend.

We believe management needs to show a few consecutive quarters of growth before investors start to get excited. Furthermore, after taking a closer look at the company's brand awareness strategy, we feel significant changes need to be made so that its current customers become more familiar with new products the company has launched.

We do think the plan to diversify its revenue makes sense, but something seems off. For example, why can’t the company break through a new inflection point, especially after several years of building up the product lineup? Maybe the conference call we’ll be on at 10:00 AM EST will shed some light on this.

Reasons For Tracking

Tue, 05 Mar 2019 17:55:57 GMT

We have released our long-awaited RFT (Reasons For Tracking) on Leatt Corporation (OTCQB:LEAT) ($2.59, $13.9m market cap).

LEAT appears to be yet another underfollowed and unnoticed Peter Lynch-style “buy what you know” investment that has recently piqued our interest. The company operates in the traditional and “unsexy” retail business of protective gear for extreme sports, but still has a large runway for growth and is considered by sporting enthusiasts to be a “best in class” brand.

We interviewed LEAT twice, yet we still have some questions we need answered that management will be able to hopefully address after their quiet period ends when they report 2018 Q4 earnings later this month. We currently do not own shares of LEAT.

Please read the full RFT here.

Research

Thu, 31 Jan 2019 18:51:38 GMT

Leatt Corporation (OOTC:LEAT) is still answering follow up questions we had after our 2nd interview with them, mainly on market stats and market share position. We will continue to keep you updated on our progress.

Research

Thu, 27 Dec 2018 15:45:15 GMT

** LEAT Reasons for Tracking Forthcoming

Our Reasons for Tracking document on Leatt Corporation (OOTC:LEAT) is on its way, as promised. We are putting the final touches on the document and hope to deliver it over the next week or so, informing our members as to what has initially caught our eye about the company.

Research

Fri, 07 Dec 2018 15:50:04 GMT

Leatt Corporation (OTC:LEAT) ($2.40; $12.88M market cap) - In mid November we covered the Company’s strong Q3 results and mentioned we wanted to take a deeper look into the story. Maj had chance to interview management yesterday and we are compiling the notes for a potential reasons for tracking (RFT) note. LEAT designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide.

Research

Fri, 16 Nov 2018 17:00:09 GMT

Leatt Corporation (OTC:LEAT) ($2.76; $14.82M market cap) a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, announced third quarter earnings on Wednesday that have us keeping an eye on the company.

Third quarter revenues of $8.6 million, up 57%, compared to the year ago period
Net income of $1.1 million, up 277%, compared to the year ago period
Cash provided by operating activities of $1.2 million year-to-date
Balance sheet remains strong with cash and cash equivalents of $1.7 million and no long-term debt

Commentary:

"We continued our momentum from the first half of 2018 with strong, double-digit sales growth across all of our product lines in the third quarter, both in the United States and abroad, partly as a result of targeted marketing programs highlighting the launch of our 2019 product line. Additionally, by continually prioritizing research and development we have further expanded our product categories and substantially increased our sales volume while maintaining healthy product margins, by appealing to a broader consumer market."

"In the U.S. we remain focused on growing and developing an internal sales force and a robust distribution network, which is positively impacting our business model and contributing significantly to our sales growth," added Mr. Macdonald. "We are continuing to add top level partners and strengthen our relationships with long-term partners abroad, evolving our model for the most effective distribution of our stable of exceptional protective products. The investments we are making in advertising and marketing, primarily aimed at developing direct business partners, consumer brand engagement, on-going research and product development and growing an internal, professional sales force, are providing exceptional returns as evidenced by the increase in sales volume and enthusiastic pre-ordering activity we are seeing at the dealer level."

We’re going to take a deeper look into the company. We have been following LEAT internally for several years and it seems that management is taking a more decisively positive stance on near-term growth prospects than they have in the past, after a couple years of investing for growth.