LEEF Brands Reports Third Quarter 2025 Financial Results with Gross Margins More Than Doubling Year-Over-Year
Executive Summary
- LEEF Brands reported Q3 2025 revenue of $8.4 M (up 24% YoY) and adjusted EBITDA of $0.7 M, a turnaround from a $(2.4) M loss in Q3 2024.
- Gross margin more than doubled to 45% driven by lower input costs from in‑house cultivation in California and higher‑margin sales in New York.
- The company completed an oversubscribed $1.5 M private placement and issued over 1.7 M common shares for services and employee stock options.
Key Details
- Revenue: $8.4 M (↑24% YoY vs. $6.8 M in Q3 2024).
- Gross Margin: 45% (vs. 22% in Q3 2024).
- Operating Expenses: $3.9 M (↓12% YoY).
- Adjusted EBITDA: $0.7 M (vs. $(2.4) M in Q3 2024).
- Free Cash Flow: $0.2 M (vs. $(0.3) M in Q3 2024).
- Bitcoin Holdings: 4.58 BTC at an average cost basis of $103,458 per coin; company evaluating further purchases.
Operational Highlights
* Completed first successful harvest at Salisbury Canyon Ranch (1,900‑acre California site); 65‑acre initial planting entered extraction lines in July with sales starting August.
Replanted the ranch in July for a fall harvest featuring expanded strain portfolio for ethanol, hydrocarbon, and solventless extraction lines.
Secured Type 1 Processor License in New York (June) and launched upstate NY extraction lab within 90 days; solventless operations began September with all 2025 output already committed.
Financing Activity
* Oversubscribed private placement raised $1.5 M during Q3 2025, reflecting strong investor confidence.
Issued 537,023 common shares to a service provider for services rendered.
Issued 1,150,820 common shares upon exercise of employee stock options.
Management Commentary
* CEO Micah Anderson highlighted successful California harvests and New York launch as drivers of improved financial results.
* CFO Kevin Wilson emphasized revenue growth, margin expansion, expense reduction, and generation of positive operating and free cash flow as milestones toward sustainable profitability.
Conference Call
* Date/Time: Tuesday, November 4 2025 at 5:00 p.m. ET.
* Webcast link provided; replay available until midnight Eastern Time on November 3 2026.
Notable Quotes
“This quarter we executed on the goals we set out for 2025—strengthening our California foundation with successful harvests at Salisbury Canyon Ranch and launching operations in New York—and it’s paying off in improved financial results.” – Micah Anderson, CEO
“We achieved significant year‑over‑year revenue growth, margins more than doubled, and we saw a substantial reduction in operating expenses…we also generated positive operating and free cash flow this quarter—important milestones on our path to sustainable profitability.” – Kevin Wilson, CFO