Leatt Extends Share Buyback Amid Strong Growth and Stock Volatility

CAPE TOWN, South Africa – December 16, 2025 – Leatt Corporation (OTCQB: LEAT), a prominent developer of protective gear for extreme sports, has announced a three-month extension to its share repurchase program, signaling strong internal confidence despite recent market turbulence for its stock.

The company's Board of Directors authorized the extension on December 15, pushing the program's expiration from December 31, 2025, to March 31, 2026. The program maintains its authorization to buy back up to $750,000 of the company's outstanding common stock. To date, Leatt has repurchased shares valued at $249,969.49 under this initiative, which was first announced in August 2025.

"We continue to strategically deploy our capital to drive long-term value for our shareholders," said Sean Macdonald, Leatt's Chief Executive Officer, in a statement. "This extension of the share repurchase program demonstrates our continued confidence in the strength of Leatt and our business plan as we move into 2026 and beyond. The share repurchase authorization reflects our commitment to enhance long-term shareholder value while maintaining strategic flexibility to invest in growth."

A Signal of Confidence Amid Market Headwinds

Corporate share buybacks are often interpreted as a bullish signal from management, suggesting a belief that the company's stock is undervalued in the open market. By extending its program, Leatt's leadership is effectively doubling down on this conviction. The move allows the company to continue purchasing its own shares, which can increase earnings per share and return value to existing shareholders.

This vote of confidence, however, comes at a time of significant volatility for Leatt's stock. Despite reporting impressive financial results for the third quarter of 2025, the company's stock price took a sharp hit. Following the earnings announcement on November 6, which detailed an 18% rise in revenue and a staggering 366% increase in net income, Leatt's stock (LEAT) plummeted over 20% in premarket trading. As of December 12, the stock was trading around $9.38, a considerable distance from its 52-week high of $14.50.

This disconnect between strong fundamentals and negative market sentiment creates a complex picture for investors. While technical indicators like short-term Moving Averages and the MACD histogram have recently turned negative, suggesting a potential near-term downward trend, the company's board is signaling a long-term belief in its intrinsic value. The buyback extension can be seen as a strategic maneuver to capitalize on this perceived undervaluation, acquiring shares at a price management believes is a discount.

Powering Performance with Strong Financials

The confidence projected by Leatt's leadership is anchored in a remarkable financial turnaround throughout 2025. After a challenging 2024 that saw a 7% decrease in annual revenue and a net loss of $2.20 million, the company has posted four consecutive quarters of double-digit revenue growth.

For the first nine months of 2025, global revenues surged 40% to $45.89 million compared to the same period in 2024. Net income followed suit, rocketing 259% to $2.80 million. This growth has been broad-based, with all core product categories—including body armor, helmets, and its flagship neck braces—and key markets like MOTO and MTB experiencing double-digit expansion.

A key indicator of the company's operational health is its balance sheet. As of September 30, 2025, Leatt held $12.39 million in cash and cash equivalents and boasted a robust current ratio of 5:1, indicating its short-term assets far exceed its liabilities. With minimal debt and positive cash flow from operations totaling $1.45 million in the first nine months of the year, the company appears well-capitalized to fund the remainder of the $750,000 buyback program without hampering its investments in growth and innovation.

This financial strength provides the necessary foundation for the board's capital allocation strategy. It allows the company to reward shareholders through repurchases while simultaneously fueling the product development and marketing efforts essential for competing in a dynamic industry.

Navigating a High-Growth, High-Tech Market

Leatt's strategic decisions are set against the backdrop of a booming global market for extreme sports equipment. Valued at an estimated $5 billion in 2025, the market is projected to grow at a compound annual rate of 7%, potentially reaching $25 billion by 2033. This expansion is fueled by a confluence of factors, including increased participation in adventure sports, rising disposable incomes, and a growing cultural emphasis on safety and performance.

Leatt, driven by its mantra of "the science of thrill," is well-positioned to capitalize on these trends. The company's legacy is built on innovation, most notably the award-winning Leatt-Brace®, which set a new standard for neck protection in motorsports. This focus aligns perfectly with an increasingly sophisticated consumer base that demands technologically advanced gear for enhanced safety.

Emerging industry trends favor companies committed to research and development. The integration of smart technology—such as sensors in helmets and braces that monitor impacts—and the use of advanced materials like carbon fiber and impact-resistant polymers are becoming key differentiators. Leatt's ongoing expansion into new segments, such as the Adventure (ADV) motorcycle market, demonstrates an awareness of these evolving opportunities. The company's 61% increase in direct-to-consumer sales in the last quarter also highlights its success in adapting to the growing importance of e-commerce channels.

The Road Ahead: Balancing Value and Growth

The extension of the share repurchase program is a clear, tactical move within Leatt's broader corporate strategy. It reflects a dual objective: delivering immediate value to shareholders by supporting the stock price and boosting earnings per share, while retaining the financial firepower needed for long-term growth.

As CEO Sean Macdonald noted, the goal is to maintain "strategic flexibility." The discretionary nature of the buyback, which can be suspended at any time, provides an essential safety valve. This allows the company to pivot its capital allocation should a more compelling growth opportunity arise, such as a strategic acquisition or an accelerated investment in next-generation product technology.

For now, Leatt is navigating a path of confident reinvestment in itself. By leveraging its strong financial position to repurchase shares at what it deems a favorable price, the company is sending a powerful message to the market. The coming months will reveal whether this strategic bet on its own value can help close the gap between its solid operational performance and its currently volatile stock price, all while it continues to innovate for the thrill-seekers it serves.