Leatt Corp

Leatt Corp designs, develops, markets, and distributes personal protective equipment for riders in motorsports and action sports, with its best-known product being the Leatt-Brace neck protection system. The company sells through a global distributor network, e-commerce partners, and direct channels in the U.S. and South Africa, while also manufacturing products through outsourced third-party factories, primarily in China.

8,6 %

44,0 %

5,3 %

+40,6 %

4.87

2.73

— Leatt Corp
	%
Neck protection systems	25% Leatt-Brace neck braces and related protection products sold under licensing arrangements.
Motorcycle protective gear	35% Protective apparel and equipment for motorcycle riders, including impact and body protection.
Bicycle protective gear	20% Protection products for mountain biking and other cycling use cases.
Other motorsport and leisure PPE	15% Protection products for snowmobiles, ATVs, and other action-sport activities.
OEM and royalty income	5% Original equipment manufacturing for third-party brands and small royalty streams.

Leatt sells primarily to distributors, dealers, and e-commerce partners that then serve retailers and end consumers in...

Distributors and dealersprimary
Buy Leatt products for resale into motorcycle and bicycle retail channels worldwide.
Direct-to-consumer online buyerssecondary
Purchase directly in the U.S. and South Africa when dealer coverage is limited or convenience matters.
E-commerce partnerssecondary
Online channel partners that extend reach and help convert end-user demand digitally.
OEM brand customersemerging
Third-party brands that source protective equipment manufacturing from Leatt.

Leatt sells products worldwide through approximately 61 distributors and 6 e-commerce partners, with direct...

•Worldwide sales through a distributor-led channel model
•Direct U.S. distribution through a wholly owned subsidiary
•Direct South Africa distribution through a local branch
•Manufacturing is predominantly in China
•Additional manufacturing capacity is being built in Thailand and Bangladesh

Leatt's near-term focus is to support working capital with cash flow, its revolving credit line, and inventory...

Expand sales in the U.S. and abroadmedium-term

Revenue growth depends on widening distribution and increasing brand penetration across rider categories.

Diversify manufacturing footprintshort-term

Reducing reliance on China lowers supply chain and geopolitical concentration risk.

Preserve liquidity and working capitalshort-term

The business is inventory- and channel-dependent, so cash and credit availability support operations.

Leatt faces supply-chain concentration risk because most products are manufactured by third-party subcontractors in...

high

Manufacturing concentration in China

Most products are produced by third-party subcontractors in China, so disruptions there can affect supply, lead times, and cost.

Scope: Product availability and gross margin
Materiality: high

high

Channel inventory and distributor dependence

Sales rely on distributors, dealers, and e-commerce partners, which can create order volatility and stocking cycles.

Scope: Revenue timing and working capital
Materiality: high

medium

Royalty and licensing obligations

The company pays 4% and 1% royalties on neck brace sales, directly reducing profitability on a core product line.

Scope: Gross margin and operating income
Materiality: medium

medium

Discretionary consumer demand

Motorcycle and cycling protective gear purchases can soften when consumer spending weakens.

Scope: Top-line growth
Materiality: medium

Revenue recognition timing

Affects quarterly revenue comparability and cut-off risk

Inventory valuation

Can affect gross margin and working capital

Allowance for doubtful accounts

Affects receivables and earnings

Income tax estimates

Can create volatility in tax expense and deferred tax assets

Royalty expense on neck brace sales

Directly reduces profitability on a core product line

Leatt Corp

Manufacturing concentration in China

Channel inventory and distributor dependence

Royalty and licensing obligations

Discretionary consumer demand

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