Leatt Corporation reported second-quarter 2026 revenue of $16.39 million, a modest 1% year-over-year increase, as temporary global shipping delays temporarily offset strong U.S. and direct-to-consumer sales growth. Chief Executive Officer Sean Macdonald noted that no revenue was lost and confirmed expansion into bicycle care and communications.
Total revenue reached $16.39 million for the three months ending June 30, up 1% from $16.18 million during the same period in 2025. While the percentage gain appeared flat compared to the company’s robust historical trajectory, underlying demand across key regions and product categories painted a much more active operational picture.
Net income for the quarter declined 20% to $909,000, or $0.15 per basic and $0.14 per diluted share, down from $1.14 million a year earlier. Operating costs rose 16% as the Stocktitan protector and helmet developer continued expanding its global sales and marketing teams.
Supply Chain Disruptions and Delayed Global Shipments
The modest 1% overall revenue growth masked a sharp divergence between surging domestic demand and temporary international fulfillment bottlenecks. Global distributor sales fell 6%, or $653,000, during the quarter after shipping lines changed routes due to regional blockages, creating a global container shortage.
Rather than absorbing high air-freight costs that would have burnished second-quarter totals at the expense of long-term margins, management chose to hold the affected motorcycle apparel, boots, and helmets until sea freight containers became available.
Macdonald emphasized that the stock earmarked to ship in the final weeks of June went out during the first few weeks of July and has already cleared. This is really just weeks in terms of shipping,
he noted, adding that the delay had nothing to do with our production, nothing to do with our manufacturing, and nothing to do with our planning.
U.S. Markets and Direct-to-Consumer Momentum
Domestic growth provided a reliable anchor while international shipments waited on containers. U.S. revenue climbed 11% to $6.15 million, while international revenue rose 4% to $10.24 million. The standout performer, however, was the direct-to-consumer channel.
D2C sales surged 68% year-over-year, adding $962,000 in quarterly revenue and underscoring strong end-user engagement with the brand’s protective gear. Body armor remained the company’s largest product category at $8.75 million, up 6% and representing 53% of total quarterly revenue, driven primarily by strong performance in the Moto and ADV boot range. Helmet sales rose 14% to $3.56 million, accounting for 22% of revenues, while neck brace sales declined 23% to $542,000 due to a 43% drop in units sold.
Expanding Into Bike Care and Integrated Communications
Beyond quarterly logistics, Leatt is pushing deeper into new product categories. In May, the company acquired Bike Care Technologies, establishing a wholly owned subsidiary to distribute premium bicycle maintenance and cleaning products under a GRITT-branded line.
Management expects the new venture to be largely self-funded through pre-orders and inventory turns, with sales beginning to register on the ledger during the third quarter of 2026. Simultaneously, the company partnered with Cardo Systems to develop the Cardo Venture, an off-road helmet integrating wireless real-time mesh communication.
First-Half Financial Health and Liquidity
Despite the second quarter’s net income dip, Leatt’s six-month performance reflects broader upward momentum. Overall revenue for the first half of 2026 rose 14% to $35.90 million, compared to $31.54 million during the first half of 2025. First-half net income climbed 19% to $2.68 million.
The company’s cash position strengthened significantly, with cash, cash equivalents, and restricted cash increasing 48% to $19.53 million—a gain of $6.29 million. Operating cash flow reached $7.44 million for the first six months, supported by a healthy current ratio of 7.42 as of June 30, 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.”
Sean Macdonald, CEO/CFO, via Stocktitan
What Lies Ahead for the Third Quarter
With shipping container bottlenecks cleared and delayed inventory already in transit, Leatt enters the third quarter with a backlog-driven tailwind. The expected commercial rollout of the GRITT-branded bike care line and the market introduction of the Cardo-integrated helmet series will test whether these new ventures can diversify revenue streams away from traditional protection gear.
Management also anticipates potential tariff refunds from the previous year, with further details expected during the upcoming third-quarter earnings call. As global demand for high-velocity sports protection holds firm, the company’s financial liquidity provides ample runway to absorb ongoing marketing investments while scaling its newest market entries.
