Fourth Quarter 2025 Highlights
Revenue of $8.3 million, an increase of 38.9% year-over-year
Gross profit of $3.8 million, up 188.2% year-over-year
Gross margin of 45.5%, an increase of 23.5 percentage points year-over-year
Adjusted EBITDA of $1.0 million, compared to $(3.1) million in Q4 2024, an improvement of 131.9% year-over-year
Free cash flow of $1.2 million, compared to $(1.6) million in Q4 2024, an improvement of 173.4% year-over-year
Full-Year 2025 and Second Half 2025 Highlights
Revenue of $34.8 million, an increase of 22.1% year-over-year, with H2 revenue of $16.7 million, a decrease of 7.7% compared to H1 2025
Gross profit of $10.5 million, up 36.5% year-over-year, with H2 gross profit of $6.9 million, up 94.2% compared to H1 2025
Gross margin of 30.1%, an increase of 3.2 percentage points year-over-year, with H2 gross margin of 41.4%, an increase of 21.7 percentage points compared to H1 2025
Adjusted EBITDA of $(0.4) million for FY 2025, compared to $(2.4) million in FY 2024, with Adjusted EBITDA of $1.7 million in H2 2025, compared to $(2.2) million in H1 2025, an improvement of 179.6%
Free cash flow of $(1.1) million for FY 2025, compared to $(7.3) million in FY 2024, with free cash flow of $1.3 million in H2 2025, compared to $(2.4) million in H1 2025, an improvement of 155.0%
"2025 represents a pivotal year for LEEF and is best understood as two distinct phases," said Micah Anderson, Chief Executive Officer of LEEF Brands. "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."
During the year, LEEF cultivated nearly 2 million plants at Salisbury Canyon Ranch, producing clean, consistent biomass used across the Company's extraction platform.
By vertically integrating cultivation and extraction, LEEF significantly reduced input costs, producing biomass at approximately $8 per pound, compared to $20–$50 per pound when sourced externally, creating a meaningful structural cost advantage.
"The results we delivered in the fourth quarter are the clearest indication of where the business is heading," said Kevin Wilson, Chief Financial Officer of LEEF Brands. "We exited the year with approximately 45.5% gross margins and over $1 million in free cash flow, demonstrating that the business is now cash flow positive and self-funding at the operating level."
Mindset Capital Investment Accelerates ExpansionOn March 12, 2026, the Company announced a US$4.5 million initial closing of an up to US$8 million financing led by Mindset Capital and its founder, Aaron Edelheit, along with the appointment of Jamie Mendola to the Company's Board of Directors.
Proceeds from the financing will primarily support the expansion of Salisbury Canyon Ranch, LEEF's flagship California cultivation asset designed to supply biomass for its concentrate production.
"We are very grateful to Aaron Edelheit and the Mindset team for their support. This investment is a major step forward, enabling us to expand Salisbury Canyon Ranch to its full 180-acre permit size," said Anderson. "Completing Salisbury Canyon Ranch is the highest-return capital project in our business. This investment enables us to bring more of our supply chain in-house, further improve margins, and drive long-term value creation, while creating meaningful optionality as we scale the platform."
OutlookThe Company expects continued strong performance in the near term, supported by the processing of Salisbury Canyon Ranch material.
LEEF anticipates a temporary margin decline in the second quarter of 2026 as it transitions between harvest cycles and relies on third-party sourcing, followed by improved performance in the second half of the year as additional cultivation comes online.
As Salisbury Canyon Ranch approaches full buildout, the Company expects this seasonality to diminish over time, with a more consistent internal supply driving greater stability in margins and cash flow.
With the first $4.5 million investment from Mindset Capital already secured, LEEF will continue to provide updates throughout the year as it invests in expanding Salisbury Canyon Ranch.
LEEF has filed a preliminary base shelf prospectus in Canada. The specific terms of any future offering under the base shelf prospectus will be determined in one or more prospectus supplements filed with applicable Canadian securities regulators.
Adjusted EBITDA Reconciliation
Q4 2024
Q4 2025
H1 2025
H2 2025
FY 2025
Net income (loss)
(7,174,881
)
(11,158,422
)
(2,667,423
)
(14,962,252
)
(17,629,675
)
Add: Depreciation and amortization
487,994
