Leatt Corp., the South African-based maker of protective gear for MOTO, MTB, and a wide range of extreme and high-velocity sports, reported that profits in the second quarter declined 20.2 percent in the second as it faced some temporary supply chain delays in the period that caused sales to increase only 1 percent. In the half, earnings improved 19 percent on 14 percent revenue growth.

Second Quarter 2026 and Recent Highlights

  • Revenues were $16.39 million in the quarter, up 1 percent compared to the second quarter of 2025
  • Consumer direct sales increased by 68 percent for the second quarter of 2026
  • Revenues for first six months of 2026 were $35.90 million, up 14 percent as compared to the first six months of 2025
  • Consumer direct sales increased by 61 percent for the first six months of 2026
  • Dealer direct sales increased by 11 percent for the first six months of 2026
  • Cash flow generated by operations was $7.44 million for the first six months of 2026
  • Net income for the first six months was $2.68 million, up 19 percent compared to the first six months of 2025
  • Cash, cash equivalents, and restricted cash increased 48 percent to $19.53 million
  • Partnered with Cardo Systems, a leader in wireless communications for powersports, on Cardo Venture, a new off-road helmet integrating Cardo Systems’ wireless real-time mesh communication system into Leatt’s innovative MOTO 8.5 Helmet.

Chief Executive Officer Sean Macdonald commented, “The second quarter of 2026 was another solid quarter for Leatt despite some temporary supply chain timing challenges that have since been resolved. Global consumer demand for our innovative products remains strong and have fueled robust sell-through and re-ordering patterns. International and domestic sales continue to show promising trends and encouraging traction at the consumer and dealer levels.

“Total global revenues for the quarter were $16.39 million, only a slight increase over last year but, due to supply chain timing, the numbers don’t reflect the momentum that, we are achieving. U.S. revenues grew by about 11 percent to $6.15 million. International revenues were $10.24 million, an increase of 4 percent. Consumer direct sales continued to be a highlight and grow strongly, increasing by 68 percent or $961,835 during the quarter.

“In terms of product sales, body armor and helmet sales were the leaders, up $462,309 and $443,803 respectively. MOTO shipments of apparel, boots and helmets that were scheduled for the last half of the second quarter were delayed due to supply chain timing, resulting in a decrease in sales to our global distributors of 6 percent or $652,846. Again, this has been resolved and we continue to fulfill strong global orders.

“Gross profit for the quarter increased by 8 percent to $7.44 million and gross profit as a percentage of sales increased by 2 percent. Net income was $908,989. Total operating costs increased by 16 percent in the second quarter as we continue to build a strong global team of sales and marketing professionals in emerging and developed markets.

“On a year-to-date basis, total global revenues were up $4.35 million or 14 percent to $35.90 million. Net income was $2.68 million, an improvement of $419,825 or 19 percent compared to the first six months of 2025. Consumer direct sales increased by 61 percent. Cash increased by $6.29 million to $19.53 million, with cash flows provided by operations of $7.44 million for the six months of 2026.

“Our current ratio as of June 30, 2026 was 7.4:1 and we believe that we have sufficiently strong liquidity to fuel future growth.”

Founder and Chairman Dr. Christopher Leatt remarked, “Our recent partnership with Cardo Systems integrating their wireless, real-time mesh communication system into our innovative MOTO 8.5 helmet is yet another example of the expertise and competency of our design and engineering team. Our goal is always to be on the cutting edge of industry innovation and, when it is mutually beneficial, collaborate with leading partners in our industry. We look forward to releasing Leatt’s integrated helmet offering in the second half of the year”

Financial Summary

  • Revenues for the quarter ended June 30, 2026 were $16.39 million, a 1 percent increase, compared to $16.18 million for the quarter ended June 30, 2025.
  • This increase in worldwide revenues is attributable to a $462,309 increase in body armor sales, and a $443,803 increase in helmet sales that were partially offset by a $530,016 decrease in other product, part and accessory sales and a $161,491 decrease in neck brace sales.
  • Net income for the second quarter of 2026 was $908,989 or $0.15 per basic and $0.14 per diluted share, down 20 percent, as compared to $ 1.14 million, or $0.18 per basic and $0.18 per diluted share, for the second quarter of 2025.
  • Revenues for the six months ended June 30, 2026 were $35.90 million, a 14 percent increase, compared to $31.54 million for the six months ended June 30, 2025.
  • This increase in worldwide revenue is attributable to a $2.18 million increase in body armor sales and a $2.43 million increase in helmet sales that were partially offset by a $151,334 decrease in other products, parts and accessories sales and a $110,738 decrease in neck brace sales.
  • Net income after taxes for the six-month period ended June 30, 2026 was $2.68 million, compared to net income after taxes of $2.26 million for the six-month period ended June 30, 2025.
  • Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2026, the Company had cash and cash equivalents of $19.53 million.

Category Performance
In its 10Q filing, Leatt noted that although international ordering patterns “continued to show promising trends and reflect strong sell-through, shipments consisting primarily of MOTO apparel, boots and helmets that were scheduled for shipping during the second quarter of 2026 were delayed due to global supply chain constraints, resulting in a decrease in sales to our global distributors of 6 percent or $0.65 million during the second quarter of 2026. Shipping to our global distributors has resumed and we continue to fulfill global orders. Although, dealer direct revenues decreased marginally by 2 percent or $0.09 million for the second quarter of 2026 due to the timing of domestic inventory replenishment, our investments in selling capabilities and dealer outreach programs continue to grow our dealer base and pre-ordering patterns are encouraging.”Sales of Leatt’s flagship neck brace accounted for $0.54 million and $0.70 million, or 3 percent and 5 percent of revenues for the quarters ended June 30, 2026 and 2025, respectively. The 23 percent decrease in neck brace revenues is primarily attributable to a 43 percent decrease in the volume of neck braces sold when compared to the second quarter of 2025.

Sales of body armor, comprising of chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots and mountain biking shoes, accounted for $8.75 million and $8.29 million, or 53 percent and 51 percent of revenues for the quarters ended June 30, 2026 and 2025, respectively. The 6 percent increase in body armor revenues was primarily the result of a 21 percent increase in revenues generated on the sale of the MOTO and ADV boot range designed for off-road and adventure motorcycle riding.

Helmet sales accounted for $3.56 million and $3.11 million or 22 percent and 19 percent of Leatt’s revenues for the quarters ended June 30, 2026 and 2025, respectively. The 14 percent increase in helmet sales during the 2026 second quarter is primarily attributable to a 15 percent increase in revenues generated from the sale of off-road MOTO and ADV helmets sold during the second quarter of 2026 as global demand for these exceptional product categories continues to grow.

Other products, parts and accessories sales accounted for $3.54 million and $4.07 million, or 22 percent and 25 percent of Leatt’s revenues for the quarters ended June 30, 2026 and 2025, respectively. The 13 percent decrease in revenues from the sale of other products, parts and accessories during the 2026 second quarter was primarily due to a 20 percent decrease in revenues generated on the sale of MTB, ADV and MOTO apparel, that was partially offset by a 16 percent increase in revenues generated from the sales of bicycle components when compared to the second quarter of 2025. The segment includes goggles, hydration bags and apparel items including jerseys, pants, shorts, jackets, bicycle components and aftermarket support items required primarily to replace worn or damaged parts through Leatt’s global distribution network.

Business Outlook
Macdonald added, “While there are some potential headwinds globally, participation and consumer demand for our products around the world remains strong. Ordering patterns fueled by sell-through remain robust and very encouraging. Direct to consumer sales are growing rapidly.

“We have developed an exciting range of bike care products through the establishment and acquisition of Bike Care Technologies. It is a Polish entity that will distribute premium bike care products around the world. We expect sales to start to filter through to revenues during the third quarter of 2026 when we expect to launch this new exciting venture.

“We plan to continue to invest in building a diverse global team of sales and marketing professionals, and in the development of a pipeline of exceptional products. We believe that these investments will continue to fuel strong gains in market share and growth.

“Our team remains very excited and enthusiastic about our future driven by our innovative product portfolio, our plans to amplify the brand to reach a much wider rider audience, and a strong balance sheet that is well-positioned to fuel growth and shareholder value.”

Image courtesy Leatt