LEEF Brands Reports Q4 and FY 2025 Financial Results

VANCOUVER – LEEF Brands Inc. released its fourth-quarter and full-year 2025 financial results, showing the first clear effects of its shift to in-house cultivation at the Salisbury Canyon Ranch in California. In an industry still dealing with soft wholesale prices and cash-flow pressures, the company pointed to lower biomass costs and steadier operations in H2 2025.

Fourth-quarter revenue reached $8.3 million, an increase of 38.9% from the same period a year earlier. Gross profit climbed to $3.8 million, up 188.2%, pushing the gross margin to 45.5% from 22% in the prior-year quarter. The company posted adjusted EBITDA of $1 million, compared with a loss of $3.1 million a year earlier, and generated $1.2 million in free cash flow versus a deficit of $1.6 million.

For the full year, revenue totaled $34.8 million, up 22.1% from 2024. Gross profit rose 36.5% to $10.5 million, lifting the annual gross margin to 30.1%. The second half of the year delivered stronger results, with gross margins reaching 41.4% on $16.7 million in revenue. Adjusted EBITDA for the year narrowed to a loss of $0.4 million from $2.4 million in 2024, while free cash flow improved to a deficit of $1.1 million from $7.3 million. The company recorded a net loss of $17.6 million, narrower than the $24.6 million loss in 2024, though the figure included significant non-cash charges such as a roughly $13.9 million loss on debt extinguishment and impairment expenses.

Management attributed the gains to vertical integration at Salisbury Canyon Ranch, where the company cultivated nearly 2 million plants during the year. In-house biomass production cut input costs to about $8 per pound, compared with $20 to $50 per pound for externally sourced material. Bulk concentrate sales to brands in California and New York accounted for $31.3 million of total revenue.

“2025 represents a year best understood as two distinct phases,” CEO Micah Anderson said in the release. “The first half reflected a legacy cost structure, while the second half demonstrates the impact of Salisbury Canyon Ranch on our business. The second-half exit rate reflects a fundamentally stronger company, with higher margins, improved cash flow and a more efficient operating model.” Chief Financial Officer Kevin Wilson added that the company exited the year “cash-flow positive and self-funding at the operating level.”

On March 12, LEEF announced an initial $4.5 million closing of up to $8 million in financing led by Mindset Capital. Proceeds will fund expansion of the ranch to its full 180-acre permitted capacity. Anderson described the project as the company’s highest-return capital investment.

The company said it expects continued performance from internal supply in the near term but anticipates a temporary gross-margin decline in Q2 2026 during the transition between harvest cycles. Margins should improve in the second half as additional cultivation comes online, with seasonality expected to ease as the ranch reaches full build-out.