LEEF Brands' Financial Insights for Second Quarter Growth
LEEF Brands Reports Second Quarter Financial Results
Vancouver, British Columbia - LEEF Brands, Inc. (CSE: LEEF, OTC: LEEEF), an industry leader in the cannabis sector with significant operations in California and New York, reported its financial outcomes for the second quarter, highlighting continued growth and operational developments. All figures are stated in U.S. dollars unless specified otherwise.
Key Financial Highlights for Q2 2025
During the second quarter of 2025, LEEF Brands achieved substantial revenue growth and noted several important financial metrics:
Revenue Growth
The company posted $8.7 million in revenue, marking a 10% increase compared to $7.9 million in the same quarter last year. This increase in sales was supported by a robust 19% year-over-year rise in unit sales.
Gross Margin Analysis
LEEF's gross margin for this quarter registered at 24%, a decrease from 34% in Q2 2024. This change reflects heightened input costs concerning clean extraction materials. However, the company expects margins to improve as processing from Salisbury Canyon Ranch begins in Q3 2025.
Net Loss Improvement
The net loss was reported at $2.9 million, translating to a share loss of $0.02. This figure represents a noteworthy 45% improvement from the $5.5 million loss recorded in Q2 2024.
Adjusted EBITDA
LEEF experienced an adjusted EBITDA of ($1.2) million, compared to a positive $0.3 million in Q2 2024. This downturn is attributed to reduced gross margins and increased operational expenses associated with the Salisbury Canyon Ranch plantings and expanding initiatives in New York.
Bitcoin Holdings
In a significant move, LEEF holds 4.4 Bitcoin with an average cost basis of $104,591 per coin. The company is actively exploring strategies to enhance its Bitcoin portfolio for potential financial gains.
Operational Milestones Achieved
The operational advancements during the quarter have positioned LEEF for future growth:
Salisbury Canyon Ranch Development
In April, LEEF made strides by planting at Salisbury Canyon Ranch, recognized as one of the largest cannabis farms globally. Following the quarter’s end, the successful harvest exceeded forecasts, leading to the planting of a subsequent crop aimed for a fall harvest. This initiative is expected to yield significant margin enhancements starting in Q3 2025.
New York License Acquisition
An essential development was the closure of the New York cannabis license acquisition on June 9, 2025. This license will empower LEEF to produce a comprehensive array of concentrates, poised to bolster both revenue and profit margins from Q3 2025 onward.
Strengthening Leadership
June also marked the addition of Josh Keats as the new Chief Operating Officer. With over 20 years of experience in the cannabis industry, including as Founder and CEO of Henry’s Original, Keats' expertise is expected to contribute towards operational excellence and market expansion.
Management Insights
Micah Anderson, CEO of LEEF, shared, “This quarter marked a pivotal transition for LEEF as we completed our first planting at Salisbury Canyon Ranch and secured our New York license. The resultant harvest and strategic license acquisition are set to strengthen our margins starting Q3 2025, reducing our dependence on external biomass and unlocking new revenue opportunities.”
Kevin Wilson, CFO, remarked, “The first harvest from the Salisbury Canyon Ranch positions us well for substantial margin improvement in the latter part of 2025. With our vertically integrated supply chain, we aim to tap into high-growth markets while addressing pricing challenges in California. Our commitment to operational efficiency lays a firm foundation for lasting value creation.”
About LEEF Brands, Inc.
LEEF Brands, Inc. stands out as a leading extraction and manufacturing cannabis entity based in California and New York. With a comprehensive supply chain and innovative manufacturing capabilities, LEEF powers some of the most notable cannabis brands across the United States. For further information, visit www.LeefBrands.com.
Frequently Asked Questions
What are the key financial results for LEEF Brands in Q2 2025?
LEEF Brands reported $8.7 million in revenue, a net loss of $2.9 million, and an adjusted EBITDA of ($1.2) million.
How much Bitcoin does LEEF hold?
LEEF holds 4.4 Bitcoin with an average cost basis of $104,591 per coin, and they are exploring opportunities to increase these holdings.
What operational milestones did LEEF achieve?
LEEF successfully planted at Salisbury Canyon Ranch and acquired a cannabis license in New York, both expected to enhance revenue and margins.
Who is the new COO of LEEF Brands?
Josh Keats has joined as Chief Operating Officer, bringing significant experience in the cannabis industry.
What is the future outlook for LEEF Brands?
The company anticipates improved margins and growth opportunities as it begins processing new materials and expands its operations in high-demand markets.
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