Earnings release
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Source: LEEF Brands Inc. November 04, 2025 16:01 ET LEEF Brands Reports Third Quarter 2025 Financial Results with Gross Margins More Than Doubling Year- Over-Year VANCOUVER, British Columbia, Nov. 04, 2025 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. (CSE: LEEF, OTCQB: LEEEF) (“LEEF” or the “Company”), a leading multi-state operator, today announced its nancial and operating results for the third quarter ended September 30, 2025. All gures are reported in U.S. dollars unless otherwise indicated. Q3 2025 Financial Highlights Revenue: $8.4 million, up 24% from $6.8 million in Q3 2024, re ecting increased market share in California and strong initial sales in New York. Gross Margin: 45%, compared to 22% in Q3 2024. Margins more than doubled due to lower input costs from in-house cultivation in California and higher-margin sales in New York. Operating Expenses: $3.9 million, down 12% year-over-year, demonstrating continued cost discipline while growing revenue and doubling margins. Adjusted EBITDA: $0.7 million, compared to ($2.4) million in Q3 2024, driven by increased gross margins and strong cost controls. Free Cash Flow: $0.2 million, compared to ($0.3) million in Q3 2024. Free cash ow improved signi cantly due to higher gross margins and disciplined expense management, which reduced operating out ows. Bitcoin: LEEF holds 4.58 Bitcoin with an average cost basis of $103,458 per coin. The Company is evaluating opportunities to increase its Bitcoin holdings signi cantly.
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Operational Highlights Successful Harvest and Replanting at Salisbury Canyon Ranch: LEEF completed its rst successful harvest at Salisbury Canyon Ranch, its 1,900-acre cultivation site in Santa Barbara County. The 65-acre initial planting produced clean, high-quality material that began running through LEEF’s extraction lines in July, with sales starting in August. The ranch was replanted in July for a fall harvest featuring a wider range of strains optimized for the Company’s ethanol, hydrocarbon, and solventless extraction lines. Launching in New York: LEEF secured its Type 1 Processor License in June and brought its upstate New York extraction lab online in just 90 days. Solventless operations began in September, generating high-margin sales by quarter-end. The hydrocarbon line is expected to come online shortly, expanding LEEF’s production capabilities, with all 2025 output already committed and strong demand extending into 2026. Oversubscribed Capital Raise: During the quarter, LEEF completed an oversubscribed $1.5 million private placement, re ecting strong investor con dence in the Company’s operational execution, improving nancial performance, and expanding national footprint. Management Commentary “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 nancial results,” said Micah Anderson, CEO of LEEF Brands, Inc. “This quarter’s results demonstrate that disciplined execution and operational focus are driving measurable progress across our business. We’re encouraged to see our strategy delivering tangible results and setting the stage for continued growth.” Kevin Wilson, CFO, added, “We achieved signi cant year-over-year revenue growth, margins more than doubled, and we saw a substantial reduction in operating expenses. Our ability to grow revenue while controlling costs demonstrates the scalability of our model. We also generated positive operating and free cash ow this quarter—important milestones on our path to sustainable pro tability.” Conference Call Details LEEF Brands will host its rst earnings conference call and webcast to discuss the results. Date: Tuesday, November 4, 2025, at 5:00 p.m. Eastern Time Webcast: https://edge.media-server.com/mmc/p/4j32bxrb Dial-in Numbers: 1 (800) 715-9871; 1 (646) 307-1963 (international) Replay: A replay will be available until 12:00 midnight Eastern Time on Tuesday, November 3, 2026, at the following link: https://edge.media-server.com/mmc/p/4j32bxrb Corporate Update In addition, the Company has issued 537,023 common shares to a service provider in consideration for services rendered and 1,150,820 common shares upon the exercise of employee stock options. About LEEF Brands, Inc. LEEF Brands, Inc. is a leading California and New York-based extraction and manufacturing cannabis company. With a comprehensive supply chain, innovative manufacturing processes, and a dynamic portfolio of bulk concentrates, LEEF powers some of the largest cannabis brands in the United States. For more information, visit www.LeefBrands.com. Forward-Looking Statements This news release contains certain forward-looking information and forward-looking statements, as de ned in applicable securities laws (collectively, “forward-looking statements”), including, but not
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limited to, statements regarding the anticipated use of net proceeds from the Offering and the Company’s future nancial condition, operations, and objectives. Forward-looking statements re ect current expectations or beliefs regarding future events or the Company’s future performance or nancial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identi ed by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein, are quali ed by this cautionary statement. Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including, but not limited to, the risks that the Company does not use the net proceeds from the Offering as anticipated, as well as the risks disclosed in the Company’s public lings on the Company’s issuer pro le on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements. For more information on the Company, investors are encouraged to review the Company’s public lings on SEDAR+ at www.sedarplus.ca. LEEF Brands, Inc. Per: Jesse Redmond, Head of Investor Relations and Business Development Phone: +1 (707) 703-4111 Email: ir@leefca.com