LEEF Brands Reports First Quarter 2025 and Full-Year 2024 Financial Results

Core Viewpoint - LEEF Brands Inc. reported financial results for Q1 2025 and full-year 2024, highlighting a mix of growth in revenue and challenges in profitability, while emphasizing future growth potential through operational improvements and market expansion [1][4]. Financial Highlights First Quarter 2025 vs. First Quarter 2024 - Revenue increased to $9.4 million, a 19% rise from $7.9 million, driven by stronger market demand and improved sales execution [5]. - Adjusted EBITDA was -$0.8 million, down from $1.2 million, attributed to costs related to new cultivation efforts [5]. - Net income reached $2.0 million, compared to a loss of $1.8 million in the prior-year period [5]. Full Year 2024 vs. Full Year 2023 - Revenue decreased to $28.5 million, a 7% decline from $30.6 million, as the company adjusted its product and customer mix for long-term profitability [5]. - Adjusted EBITDA was -$2.4 million, compared to $1.2 million, due to investments in infrastructure and operational scalability [5]. - Net loss improved to $24.6 million, a 29% reduction from $34.7 million, aided by cost containment and operational restructuring [5]. Operational Highlights - The company appointed Jesse Redmond as Head of Investor Relations and Business Development, bringing expertise from hedge funds and cannabis analysis [6]. - Production capacity was expanded, with increases in extraction capabilities: ethanol extraction up 66%, solventless by 50%, and hydrocarbon by 38% [6]. - LEEF entered the New York market with a letter of intent to acquire a Tier 1 processing license, targeting a projected $1.5 billion market in 2025 [6]. - The company began planting at Salisbury Canyon Ranch, a significant cannabis farm, which is expected to enhance margins and product quality [6]. - Salisbury Canyon Ranch was valued at $40.8 million, significantly higher than the company's current market cap, indicating strong ROI potential [6]. Outlook - LEEF Brands anticipates improvements in revenue and gross margins throughout 2025, particularly in the latter half, driven by the first harvest at Salisbury Canyon Ranch and expansion into New York [8]. - The CEO noted a 20% year-over-year growth in unit sales during Q1, reflecting strong demand and positioning for a transformational year ahead [9].