LEEF Brands Reports Second Quarter 2025 Financial Results

Core Viewpoint - LEEF Brands, Inc. reported a pivotal transition in Q2 2025, highlighted by the completion of its first planting at Salisbury Canyon Ranch and the acquisition of a New York cannabis license, which are expected to enhance margins and open new revenue streams starting in Q3 2025 [4]. Financial Highlights - Revenue for Q2 2025 reached $8.7 million, a 10% increase from $7.9 million in Q2 2024, driven by a 19% year-over-year increase in unit sales [7]. - Gross margin was reported at 24%, down from 34% in Q2 2024, attributed to higher input costs for clean extraction material, with expectations for improvement as the company begins processing material from Salisbury Canyon Ranch in Q3 2025 [7]. - The net loss for the quarter was $2.9 million, or ($0.02) per share, reflecting a 45% improvement from a $5.5 million loss in Q2 2024 [7]. - Adjusted EBITDA was reported at ($1.2) million, compared to $0.3 million in Q2 2024, impacted by lower gross margins and increased operating expenses related to the planting at Salisbury Canyon Ranch and ramping operations in New York [7]. Operational Highlights - The company successfully planted Salisbury Canyon Ranch, one of the largest cannabis farms globally, and has harvested the material, with a second crop replanted for fall harvest [7]. - The summer harvest exceeded expectations and is anticipated to drive significant margin improvements beginning in Q3 2025 [7]. - The acquisition of a New York cannabis license on June 9, 2025, is expected to enable the company to produce a full range of concentrates starting in Q3 2025, contributing to increased revenue and margins [7]. - Josh Keats joined as Chief Operating Officer in June 2025, bringing over 20 years of cannabis industry experience, which is expected to enhance operational excellence as the company scales cultivation and enters new markets [7].