LEEF Brands Reports Second Quarter 2026 Results with Gross Profit up 62% and Gross Margin Nearly Doubling Year Over Year

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Postmedia has not reviewed the content. by GlobeNewswire LEEF Brands Reports Second Quarter 2026 Results with Gross Profit up 62% and Gross Margin Nearly Doubling Year Over YearAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.VANCOUVER, British Columbia, Aug. 06, 2026 (GLOBE NEWSWIRE) — LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) (“LEEF” or the “Company”), a leading California concentrate company, today reported its financial results for the second quarter ended June 30, 2026. All financial information is reported in U.S. dollars and in accordance with U.S. generally accepted accounting principles (“GAAP”), unless otherwise indicated.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSecond Quarter 2026 Financial HighlightsNet revenue was $7.3 million, a decrease of 16% from $8.7 million in Q2 2025, primarily reflecting lower volumes while the Company operated with a temporary biomass gap between 2025 and 2026 harvests from Salisbury Canyon Ranch.Gross profit increased 62% to $2.4 million from $1.5 million, and gross margin nearly doubled to 33% from 17%, driven by disciplined procurement and a growing contribution from higher-margin hydrocarbon products, which became the Company’s largest revenue category for the first time.Net loss improved to $1.3 million from $2.9 million in Q2 2025, driven by the margin improvement and a non-cash gain on derivative liabilities tied to changes in LEEF’s share price.Adjusted EBITDA improved to $(0.6) million from $(1.3) million in Q2 2025. Sales of the new Salisbury Canyon Ranch harvest’s higher-potency, CAT 4 distillate are expected to begin in August, driving margin improvement through the second half of Q3.LEEF ended the quarter with $5.0 million in cash, up from $2.2 million at year-end, and an $8.7 million working capital surplus. This liquidity gives the company the cash to hold this year’s harvest and sell selectively, rather than into depressed prices out of necessity.“I have never been more excited about LEEF’s future,” said Micah Anderson, Chief Executive Officer of LEEF Brands. “We’re scaling Salisbury Canyon Ranch toward its full 180 acres for a bigger, more reliable biomass supply, and adding the processing capacity to support that growth and improve our economics over time. Himalaya is already a valuable, growing, higher-margin business, and there’s more room to build from here. And we’re preparing LEEF to serve interstate and international markets as those opportunities become available.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Q2 clearly demonstrated the value of Salisbury Canyon Ranch,” said Kevin Wilson, Chief Financial Officer. “Gross margin was 33% without our own biomass from the ranch, compared with approximately 50% during the preceding three quarters when we were running material from the ranch. With the harvest now complete, we expect our own material to begin contributing in the second half of Q3 and more fully in Q4, supporting stronger margins moving forward.”________________________________________________Expanding Salisbury Canyon RanchFollowing quarter-end, LEEF completed the largest harvest in its history at Salisbury Canyon Ranch, bringing in nearly one million plants. The first several hundred liters of distillate were produced in July, with sales expected to begin in August. Initial results are among the best the Company has produced: the distillate passed California’s elevated CAT 4 pesticide screens and tested at approximately 95% THC and 99% total cannabinoids.LEEF added 14 acres of cultivation this spring, bringing Salisbury Canyon Ranch to approximately 80 acres, and expects to add another 21 acres this fall. The Company also entered into a supply agreement with a long-term farming partner for an additional 21 acres at a similar cost structure.Together, LEEF’s total internal and contracted cultivation footprint is expected to reach approximately 122 acres by this fall — an 88% increase from a year ago — and is expected to carry the Company through the 2027 harvest without another gap in its own biomass supply.LEEF remains on track to operate the full 180-acre permitted footprint at Salisbury Canyon Ranch in 2027. LEEF’s 180-acre land-use permit for cannabis is the largest in Santa Barbara County, and the capital required to bring the full footprint into production has already been invested.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Himalaya, the established California concentrates brand LEEF acquired on April 27, 2026, contributed approximately $1.0 million in revenue during its first partial quarter with the Company. The acquisition gives LEEF a platform to sell products manufactured from its own clean, low-cost inputs and to participate in higher CPG margins. LEEF views Himalaya as the first step in a broader branded-products strategy and expects it to deliver strong growth and begin contributing meaningfully to cash flow in 2027.Following the quarter, LEEF raised an additional $5.2 million to fund the planned purchase of a dedicated facility to dry, cure, freeze, and store biomass before it moves to LEEF Labs for extraction. It will support the Company’s full 180-acre footprint at Salisbury Canyon Ranch and, over time, is expected to roughly double the amount of biomass LEEF can retain from each harvest. The facility may also create an additional revenue stream by offering drying, curing, and storage services to other cultivators.Interstate Commerce and International Export OpportunitiesLEEF filed DEA registration applications across its California and Nevada licenses and engaged Shane Pennington, a partner at Blank Rome, to guide the process. The Company is also identifying potential international markets and preparing its cultivation and manufacturing operations to meet applicable GACP and destination-market GMP standards, with a goal of producing export-ready products in 2027.________________________________________________LEEF has met with many of the larger U.S. multi-state operators, several of which have also contacted the Company directly, and describes the response as unanimously positive. Management believes LEEF’s cost structure, extraction expertise, and production capacity could position the Company as a valuable supply and manufacturing partner to other operators as interstate and international markets develop. Interstate commerce and international exports are not guaranteed, and their timing remains uncertain.During the quarter, LEEF strengthened its leadership team and added strategic expertise to support its next phase of growth. Chris Crouch joined LEEF as Chief Revenue Officer, bringing more than a decade of cannabis experience across retail, CPG, operations and revenue leadership, most recently as Chief Operating Officer of Turn, a leading U.S. vape company, and previously in senior roles at Urbn Leaf, Volcom, Pac Sun, and Quiksilver. LEEF also engaged Hirsh Jain of Ananda Strategy as a strategic advisor to help the Company navigate the evolving policy and regulatory environment and evaluate opportunities related to federal rescheduling, interstate commerce, and international exports.During the six months ended June 30, 2026, LEEF raised gross proceeds of approximately $9.0 million through the issuance of preferred and common shares, and raised an additional $5.2 million in July 2026, bringing total gross proceeds raised in 2026 to approximately $14.2 million. Proceeds have funded the expansion of Salisbury Canyon Ranch, the planned purchase of the new processing facility, and continued investment in inventory ahead of the Company’s largest-ever harvest.Date: Thursday, August 6, 2026Time: 5:00 p.m. Eastern TimeWebcast: To listen live or access the replay, please visit: https://edge.media-server.com/mmc/p/29ke5ia3Non-GAAP Financial MeasuresThe Company uses Adjusted EBITDA, a non-GAAP financial measure, to evaluate its operating performance. Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The Company’s calculation may not be comparable to similarly titled measures used by other companies.Beginning with the second quarter of 2026, the Company’s definition of EBITDA excludes excise and other taxes previously included in the income tax adjustment; prior-period amounts have been conformed to the current presentation. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is included in the accompanying financial tables below.________________________________________________ LEEF BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended June 30, 2026 and 2025 Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Net revenue$7,274,908 $8,691,656 Cost of sales$4,864,545 $7,201,635 Gross profit$2,410,363 $1,490,021 Operating expenses Advertising and promotion 21,904 62,061 Depreciation and amortization 350,235 304,107 Wages and salaries 2,155,828 1,943,497 Office and general expenses 705,705 733,569 License and compliance 31,603 13,506 Research and development expenses 6,281 10,570 Legal and professional fees 644,399 338,269 Insurance expenses 110,358 121,780 Excise and other taxes 59,801 59,142 Lease expenses 186,296 183,333 Travel and business development 126,310 93,346 Total operating expenses$4,398,720 $3,863,180 Loss from operations$(1,988,357) $(2,373,159)Other (income) expense Interest expense 242,195 579,387 Change in fair value of derivative liability (1,581,817) (566,681)Other expense (income) (18,037) (60,557)Total other (income) expense$(1,357,659) $(47,851)Loss before provision for income taxes$(630,698) $(2,325,308)Provision for income taxes 704,050 607,891 Net loss and comprehensive loss$(1,334,748) $(2,933,199)Less: Preferred stock dividends 137,491 – Net loss and comprehensive loss applicable to common shareholders$(1,472,239) $(2,933,199)Loss per common share – basic and diluted$(0.01) $(0.02)Weighted average common shares outstanding 290,003,245 175,442,331 ________________________________________________ LEEF BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued)(Unaudited) Six Months Ended June 30, 2026 and 2025 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Net revenue$16,651,910 $18,089,917 Cost of sales$9,616,897 $14,526,606 Gross profit$7,035,013 $3,563,311 Total operating expenses$7,739,703 $7,844,015 Loss from operations$(704,690) $(4,280,704)Total other (income) expense$(622,319) $(2,942,285)Loss before provision for income taxes$(82,371) $(1,338,419)Provision for income taxes 1,678,630 1,329,004 Net loss and comprehensive loss$(1,761,001) $(2,667,423)Less: Preferred stock dividends 137,491 – Net loss and comprehensive loss applicable to common shareholders$(1,898,492) $(2,667,423)Loss per common share – basic and diluted$(0.01) $(0.02)Weighted average common shares outstanding 275,008,957 175,085,129 ________________________________________________ LEEF BRANDS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2026 (unaudited) December 31, 2025 ASSETS Cash 4,950,962 2,190,722 Accounts receivable, net 2,212,582 1,592,653 Inventory, net 7,146,535 3,350,889 Prepaid expenses and deposits 1,545,020 505,438 Deferred costs and other current assets 512,656 508,987 Total current assets$16,367,755 $8,148,689 Property and equipment, net 25,554,412 25,041,313 Right of use assets, net 1,689,020 1,678,072 Goodwill 6,053,307 – Intangible assets, net 2,335,747 1,122,199 Assets held for sale 400,000 400,000 Other assets 12,605 12,605 Total assets$52,412,846 $36,402,878 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable and other accrued liabilities 4,322,541 4,768,534 Related party payables 1,129,641 1,916,770 Current portion of notes payable 1,956,438 1,001,395 Current portion of related party consideration payable – 340,000 Lease liabilities, short term 277,229 160,285 Taxes payable 6,177 161,770 Total current liabilities$7,692,026 $8,348,754 Lease liabilities, net of current portion 1,559,963 1,659,120 Notes payable, net of current 8,628,069 9,783,361 Derivative liabilities, long term 12,531,203 8,893,600 Uncertain tax positions 22,767,064 15,219,548 Deferred tax liability 1,274,077 766,796 Total liabilities$54,452,402 $44,671,179 Series A-1 Preferred stock 2,212,475 – Additional paid-in capital 137,360,450 131,445,688 Accumulated other comprehensive loss (336,879) (336,879)Accumulated deficit (141,275,602) (139,377,110)Total stockholders’ deficit$(2,039,556) $(8,268,301)Total liabilities and stockholders’ deficit$52,412,846 $36,402,878 ________________________________________________ LEEF BRANDS, INC.RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (NON-GAAP)(Unaudited) Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Net loss (GAAP)$(1,334,748) $(2,933,199) $(1,761,001) $(2,667,423)Depreciation and amortization$656,858 $569,278 $1,224,999 $1,104,515 Interest expense$242,195 $579,387 $559,029 $1,171,888 Income tax expense$704,050 $607,891 $1,678,630 $1,329,004 EBITDA (non-GAAP)$268,355 $(1,176,643) $1,701,657 $937,984 Share-based compensation$700,153 $492,423 $1,189,620 $1,083,885 Change in fair value of derivative liabilities$(1,581,817) $(566,681) $(1,191,412) $(4,105,121)Other expenses (income)$(18,037) $(60,557) $10,064 $(9,053)Adjusted EBITDA (non-GAAP)$(631,346) $(1,311,458) $1,709,929 $(2,092,305)Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” above for additional information.LEEF Brands Inc. is a leading California concentrate company. With a comprehensive supply chain, innovative manufacturing processes, a dynamic bulk concentrate portfolio and a growing line of branded products, LEEF powers some of the largest cannabis brands in the United States. For more information, visit www.leefbrands.com.Forward-Looking StatementsThis news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively, “forward-looking statements”), including statements regarding the anticipated timing and benefits of the Salisbury Canyon Ranch expansion; future cultivation and biomass supply; the anticipated operation and benefits of the Company’s new processing and storage facility; the expected performance and growth of Himalaya; future financial performance; DEA registration; GMP and GACP preparation; and potential interstate-commerce and international-export opportunities.Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, forward-looking statements are not guarantees of future performance, and actual results or developments may differ materially.Factors that could cause actual results to differ materially include the risks disclosed in the Company’s public filings under its issuer profiles on EDGAR and SEDAR+. Readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update forward-looking statements except as required by applicable law.LEEF Brands Inc.Jesse RedmondChief Strategy & Investor Relations OfficerPhone: +1 (805) 717-9327Email: ir@leefca.comNotice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.