Leatt Corporation

What they do

Leatt designs, develops, markets and distributes personal protective equipment for motor sports and leisure activities such as motorcycles, bicycles, snowmobiles and ATVs. It sells globally through a network of distributors and retailers, and also acts as an OEM for other international brands. Products include neck braces, helmets, body armor, apparel, goggles and sunglasses.

Revenue drivers

• Helmets — Helmet sales increased $443,803 in Q2 2026; includes MOTO and MTB lines with various certifications. Part of the increase offset declines in other categories.
• Body Armor — Body armor sales increased $462,309 in Q2 2026, the largest product increase in the quarter.
• Neck Braces — Neck brace sales decreased $161,491 in Q2 2026; still a core product line based on the patented Leatt-Brace system.
• Other Products, Parts and Accessories — Decreased $530,016 in Q2 2026; includes goggles, apparel, boots and other accessories.

Recent performance

For Q2 2026, revenues were $16.39 million, up 1% year-over-year, with net income of $908,989 ($0.14 diluted EPS), down 20%. For the first six months of 2026, revenues were $35.90 million, up 14% year-over-year, and net income was $2.68 million, up 19%. Consumer direct sales increased 68% in Q2 and 61% in the first half, while dealer direct sales rose 11% in the first half. Cash and equivalents increased 48% to $19.53 million, with operating cash flow of $7.44 million in the first half.

Strategy

Leatt is expanding its global sales and marketing team in emerging and developed markets, which increased operating costs 16% in Q2 2026. The company is focusing on direct-to-consumer sales, which grew sharply. It is also pursuing innovation partnerships, such as the Cardo Systems collaboration that integrates wireless mesh communication into the MOTO 8.5 helmet. Management emphasizes maintaining strong liquidity to fuel future growth.

Risks

• Supply chain timing — Temporary delays in shipping MOTO apparel, boots and helmets to global distributors reduced Q2 2026 sales by $652,846, though management says it has been resolved.
• Concentration of manufacturing rights — The company relies on an exclusive license from Xceed Holdings, controlled by its Chairman, for the Leatt-Brace technology, creating related-party dependence.
• Market competition — The protective equipment market is competitive, and Leatt may fail to increase market share against larger competitors.
• Regulatory and certification changes — Products must comply with numerous international safety standards; failure to maintain certifications could hurt sales in key markets.

Outlook

Management expects continued strong global demand and robust sell-through, with supply chain challenges resolved. They anticipate the Cardo Systems integrated helmet to launch in the second half of 2026, expanding their product offering. Future growth is expected to be fueled by strong liquidity and a current ratio of 7.4:1 as of June 30, 2026.