Wed, May 14, 12:17 PM (35 days ago)
**Leatt Corporation (LATN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $15.37 million, up 45% YoY, driven by increased sales in body armor, helmets, and other products. - **Gross Profit:** $6.72 million, up 68% YoY, with a gross margin of 44%. - **Net Income:** $1.12 million, a significant improvement from a loss of $0.82 million in Q1 2024. - **Cash Flow:** Positive operating cash flow of $768,124, with a net increase in cash of $331,242. **Profit Margins:** - **Gross Margin:** 44%, up from 38% in Q1 2024. - **Operating Margin:** 9.3%, improved from -7.4% in Q1 2024. - **Net Margin:** 7.3%, a significant improvement from -7.7% in Q1 2024. **Key Metrics:** - **Earnings per Share (EPS):** $0.18 (basic) and $0.17 (diluted), compared to a loss of $0.13 in Q1 2024. - **Cash and Cash Equivalents:** $12.70 million, up from $12.37 million at the end of 2024. **Trends and Uncertainties:** - **Positive Trends:** Strong revenue growth, improved margins, and positive net income. - **Uncertainties:** Global economic fragility, trade restrictions, and geopolitical instability may impact future performance. **Future Operations Impact:** - **Growth Strategy:** Focus on increasing revenue in the U.S. and abroad, with no major capital expenditures planned for the next 12 months. - **Liquidity:** Sufficient cash and cash equivalents to meet operating cash requirements for at least the next 12 months. **Management Discussion:** - **Revenue Growth:** Driven by increased sales in body armor, helmets, and other products, with strong international sales. - **Cost Management:** Improved gross margins due to dealer direct promotional selling activity and shipping efficiencies. - **Operating Expenses:** Increased due to higher salaries, general and administrative, and research and development costs. **Risks and Uncertainties:** - **Global Economic Fragility:** Ongoing turmoil in the global economy may impact business and financial condition. - **Trade Restrictions:** Exposure to trade restrictions and disruptions could harm business and competitive position. - **Product Liability Litigation:** Potential exposure to product liability claims and the cost of product liability insurance. - **Foreign Exchange Risk:** Exposure to fluctuations in foreign currency exchange rates. **Conclusion:** Leatt Corporation demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved margins, and positive net income. However, the company faces uncertainties related to global economic conditions, trade restrictions, and geopolitical instability. Management is focused on growth strategies and maintaining sufficient liquidity to support future operations.