LEEF Brands Reports Q2 2025 Financial Results

VANCOUVER – LEEF Brands Inc. disclosed its second-quarter financials, showing steady revenue gains offset by squeezed margins and ongoing losses. The company reported $8.7 million in revenue for the period ended June 30, a 10% rise from $7.9 million a year earlier, fueled by a 19% jump in unit sales. Gross margins dipped to 24% from 34% in the prior year’s quarter, largely due to elevated costs for raw materials used in extraction processes.

The net loss narrowed to $2.9 million, marking a 45% improvement over the $5.3 million deficit recorded in Q2 2024. Adjusted EBITDA came in at negative $1.2 million, down from a positive $0.3 million last year, reflecting the margin hit alongside higher expenses tied to farm development and market expansion.

On the operations front, LEEF completed its inaugural planting at Salisbury Canyon Ranch in April, a massive cultivation site billed as one of the world’s largest for Cannabis. The summer harvest outperformed projections, and a second crop is now in the ground for a fall yield, setting the stage for cost savings through in-house sourcing starting in the third quarter. In June, the firm finalized a New York Cannabis license acquisition, paving the way for concentrate production there by Q3, which executives anticipate will boost both top-line growth and profitability. Bolstering its team, LEEF brought on Josh Keats as Chief Operating Officer, leveraging his two decades in the sector, including founding Henry’s Original.

CEO Micah Anderson described the quarter as a turning point, citing the ranch harvest and New York entry as key drivers for margin rebound by reducing dependence on outside suppliers and tapping fresh markets. CFO Kevin Wilson echoed this, pointing to efficiency gains and vertical supply chain advantages amid California’s competitive pricing environment.

From a financial perspective, LEEF’s results underscore the challenges of scaling in a fragmented industry, where input cost volatility can erode gains from volume growth. The 10% revenue increase signals demand resilience, yet the EBITDA slide highlights the need for swift integration of the ranch output to stabilize margins. The Bitcoin holdings (4.4 BTC at an average cost of $104,591 per coin) add an intriguing layer, potentially serving as a hedge against sector uncertainties, though their impact remains speculative. Separately, the company raised $2.1 million via a private placement, providing liquidity to support ongoing expansions.

Industry analysts note that while California pressures persist, LEEF’s push into New York and self-reliant cultivation could yield competitive edges, provided execution aligns with projections in a market still dealing with regulatory and economic challenges.