LEEF Brands Reports Third Quarter 2025 Financial Results with Gross Margins More Than Doubling Year-Over-Year

Core Insights - LEEF Brands, Inc. reported strong financial and operational results for Q3 2025, highlighting significant revenue growth and improved margins driven by strategic execution in California and New York [4][6]. Financial Highlights - Revenue reached $8.4 million, a 24% increase from $6.8 million in Q3 2024, attributed to increased market share in California and initial sales in New York [6]. - Gross margin improved to 45%, compared to 22% in Q3 2024, due to lower input costs from in-house cultivation and higher-margin sales in New York [6]. - Operating expenses decreased by 12% year-over-year to $3.9 million, reflecting cost discipline while growing revenue [6]. - Adjusted EBITDA was $0.7 million, a significant improvement from a loss of $2.4 million in Q3 2024, driven by increased gross margins and effective cost controls [6]. - Free cash flow improved to $0.2 million from a negative $0.3 million in Q3 2024, indicating better cash management and profitability [6]. Operational Highlights - The company completed its first successful harvest at Salisbury Canyon Ranch, producing high-quality material that began sales in August [6]. - LEEF launched operations in New York, securing a Type 1 Processor License and bringing its extraction lab online within 90 days, with solventless operations starting in September [6]. - The company completed an oversubscribed $1.5 million private placement, reflecting strong investor confidence in its operational execution and financial performance [6]. Management Commentary - The CEO emphasized that disciplined execution and operational focus are driving measurable progress, setting the stage for continued growth [4]. - The CFO noted significant year-over-year revenue growth, doubled margins, and a substantial reduction in operating expenses, showcasing the scalability of the business model [4].