Leatt Corp reported third‑quarter 2025 results that saw revenue rise 18% to $14.34 million, while net income increased from $115,837 in Q3 2024 to $539,256, a 366% jump. The company’s profit margin improved from a modest profit in the prior year to a healthy profit, reflecting a stronger top line and disciplined cost management.
Body armor sales grew by $0.36 million, helmets by $0.32 million, other products—including apparel, goggles and components—by $1.41 million, and neck‑brace sales by $0.11 million. Consumer‑direct sales surged 61%, underscoring the strength of the direct‑to‑consumer channel.
Gross profit climbed to $6.32 million, giving a gross margin of 44% versus 43% in the prior quarter. Operating expenses rose 11% to $5.74 million, but operating income increased to $630,180, driven by higher revenue and a favorable product mix that shifted toward higher‑margin items.
CEO Sean Macdonald said the quarter delivered double‑digit profitability and revenue growth for the fourth consecutive quarter, and that consumer‑direct sales continue to be a key growth engine as inventory levels normalize and demand strengthens worldwide.
Q2 2025 revenue was $16.18 million, up 61% YoY, and year‑to‑date revenue for the first nine months of 2025 was $45.89 million, up 40% compared to the same period in 2024. The acceleration from 1% growth in Q3 2024 to 18% in Q3 2025 signals a rebound in demand.
The company noted tariff uncertainty and geopolitical risks as headwinds, but highlighted continued inventory digestion at distributor level and expansion into the adventure (ADV) market as tailwinds that support ongoing growth.
Leatt’s cash balance of $12.39 million and a current ratio of 5:1 reinforce its strong balance sheet, giving management flexibility to invest in product innovation and global brand expansion while maintaining profitability.
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