LEEF Brands Reports Second Quarter 2025 Financial Results

Executive Summary

• LEEF Brands reported its financial and operating results for the second quarter ended June 30, 2025, showing a 10% year-over-year increase in revenue but a significant decline in gross margins due to higher input costs.
• The company announced the successful harvest and replanting at Salisbury Canyon Ranch, with expectations for margin improvements in Q3 2025 as internal processing begins.
• LEEF closed the acquisition of a New York cannabis license on June 9, 2025, and added Josh Keats as Chief Operating Officer to support operational scaling and market expansion.

Key Details

• Revenue: $8.7 million, an increase of 10% from $7.9 million in Q2 2024, driven by a 19% year-over-year increase in unit sales.
• Gross Margin: 24%, down from 34% in Q2 2024, attributed to higher input costs for clean extraction material; margins are projected to improve in Q3 2025 with the processing of material from Salisbury Canyon Ranch.
• Net Loss: $2.9 million, or ($0.02) per share, representing a 45% improvement from the $5.5 million loss in Q2 2024.
• Adjusted EBITDA: ($1.2) million, compared to $0.3 million in Q2 2024, negatively impacted by lower gross margins and increased operating expenses related to planting Salisbury Canyon Ranch and ramping New York operations.
• Bitcoin Holdings: The company holds 4.4 Bitcoin with an average cost basis of $104,591 per coin and is evaluating opportunities to increase these holdings.
• Salisbury Canyon Ranch: Planted in April, the first harvest exceeded expectations and was successfully completed; a second crop has been replanted for a fall harvest to drive margin improvements.
• New York Expansion: Closed the acquisition of a New York cannabis license on June 9, 2025, with full-range concentrate production expected to begin in Q3 2025.
• Leadership Change: Josh Keats joined as Chief Operating Officer in June 2025, bringing over 20 years of industry experience.

Notable Quotes

• “This quarter marked a pivotal transition for LEEF as we completed our first planting at Salisbury Canyon Ranch and secured our New York license,” said Micah Anderson, CEO of LEEF Brands, Inc. “The Salisbury Canyon Ranch harvest and the New York license are expected to strengthen our margins starting in Q3 2025 by reducing reliance on external biomass and opening new revenue streams.”
• “The first harvest off the Salisbury Canyon Ranch positions us for significant margin improvement in the second half of 2025, as we leverage our vertically integrated supply chain and expand into high-growth markets. Despite pricing pressures in California, our focus on operational efficiency and strategic growth sets a strong foundation for long-term value creation,” added Kevin Wilson, CFO.