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].

Core Insights - LEEF Brands, Inc. has commenced operations at its extraction lab in Upstate New York, producing solventless concentrates and planning to introduce hydrocarbon capabilities next quarter, positioning the company to meet rising demand in a rapidly growing cannabis market [1][3] - All concentrate production for 2025 has been allocated to established brand partners and new in-state clients, indicating strong demand for LEEF's products [2] - New York's cannabis market generated over $1 billion in sales in 2024, with expectations to exceed $1.5 billion in 2025 and potentially surpass $2 billion in 2026, making it an ideal market for LEEF's concentrates [3] Company Developments - The operational launch in New York marks a significant milestone for LEEF, transforming it into a multi-state operator with a strong presence in two of the top ten cannabis markets in the U.S. [3] - The company expects meaningful revenue growth and higher margins as it scales operations in New York, alongside successful harvests in California [4] - LEEF's leadership team will participate in various industry and investor events in October, enhancing engagement with brand partners and stakeholders [5][6] Market Context - Concentrates account for approximately 55% of products sold in New York, highlighting the market's potential for LEEF's offerings [3] - The rapid transition from license acquisition to operational launch in New York reflects the company's strategic execution and market readiness [4]