📊 LEAT Key Takeaways
Is LEAT a Good Investment? Thesis Analysis
Leatt Corp exhibits explosive headline revenue growth but demonstrates poor operational efficiency with weak profitability metrics (6.5% operating margin, 5.3% net margin) and minimal free cash flow conversion (1.2% FCF margin). While the balance sheet is exceptionally strong with zero debt and excellent liquidity, the company is not generating adequate returns on capital (7.7% ROE, 6.3% ROA) relative to typical cost of capital.
Why Buy LEAT? Key Strengths
- Fortress balance sheet with 4.87x current ratio and virtually zero debt ($1.8K long-term debt)
- Strong cash position of $13.0M representing 25% of total assets
- Positive operating cash flow and free cash flow generation despite operational headwinds
- Liabilities represent only 18.8% of total assets indicating low financial risk
LEAT Investment Risks to Consider
- Severely anomalous 15,493.9% YoY revenue growth suggests non-comparable prior year baseline or one-time events reducing growth quality assessment
- Operating cash flow of $1.8M significantly lags net income of $3.3M indicating potential earnings quality concerns and working capital consumption
- Weak free cash flow margin of 1.2% and minimal capital returns despite $61.9M revenue base
- Low returns on capital (ROE 7.7%, ROA 6.3%) suggest value destruction on an economic basis despite accounting profitability
- OTC market listing and small company profile increase execution and sustainability risks
Key Metrics to Watch
- Free cash flow conversion and operating cash flow sustainability relative to net income
- Operating margin trends to assess whether 6.5% level is sustainable or improves with scale
- Return on equity and return on assets progression to determine if capital is being deployed productively
- Revenue growth normalization in subsequent periods to verify base year anomaly hypothesis
- Working capital management to explain divergence between net income and cash generation
LEAT Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.87x current ratio provides a solid financial cushion.
LEAT Profitability Ratios
LEAT vs Default Sector
How Leatt Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LEAT Overvalued or Undervalued?
Based on fundamental analysis, Leatt Corp has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LEAT Balance Sheet & Liquidity
LEAT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Leatt Corp's revenue has declined by 15% over the 5-year period, indicating business contraction. The most recent EPS of $-0.34 indicates the company is currently unprofitable.
LEAT Growth Metrics (YoY)
LEAT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $12.1M | $115.8K | $0.02 |
| Q2 2025 | $10.1M | -$816.7K | $-0.16 |
| Q1 2025 | $10.6M | -$816.7K | $-0.13 |
| Q3 2024 | $12.0M | $115.8K | $0.02 |
| Q2 2024 | $10.1M | $776.1K | $0.12 |
| Q1 2024 | $10.6M | -$816.7K | $-0.13 |
| Q3 2023 | $12.0M | $460.5K | $0.07 |
| Q2 2023 | $12.4M | $776.1K | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LEAT Capital Allocation
LEAT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Leatt Corp (CIK: 0001456189)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEAT
What is the AI rating for LEAT?
Leatt Corp (LEAT) has an AI rating of HOLD with 60% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEAT's key strengths?
Claude: Fortress balance sheet with 4.87x current ratio and virtually zero debt ($1.8K long-term debt). Strong cash position of $13.0M representing 25% of total assets.
What are the risks of investing in LEAT?
Claude: Severely anomalous 15,493.9% YoY revenue growth suggests non-comparable prior year baseline or one-time events reducing growth quality assessment. Operating cash flow of $1.8M significantly lags net income of $3.3M indicating potential earnings quality concerns and working capital consumption.
What is LEAT's revenue and growth?
Leatt Corp reported revenue of $61.9M.
Does LEAT pay dividends?
Leatt Corp does not currently pay dividends.
Where can I find LEAT SEC filings?
Official SEC filings for Leatt Corp (CIK: 0001456189) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEAT's EPS?
Leatt Corp has a diluted EPS of $0.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LEAT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Leatt Corp has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LEAT stock overvalued or undervalued?
Valuation metrics for LEAT: ROE of 7.7% (sector avg: 15%), net margin of 5.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LEAT stock in 2026?
Our dual AI analysis gives Leatt Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEAT's free cash flow?
Leatt Corp's operating cash flow is $1.8M, with capital expenditures of $1.1M. FCF margin is 1.2%.
How does LEAT compare to other Default stocks?
Vs Default sector averages: Net margin 5.3% (avg: 12%), ROE 7.7% (avg: 15%), current ratio 4.87 (avg: 1.8).