Leef Brands Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Leef Brands Q2 2026 Earnings Summary

  • Revenue: $7.3 million, down 16% from $8.7 million in Q2 2025. Unit volumes declined ~20%, partially offset by ~5% higher average selling prices due to product mix shift.
  • Gross Profit: $2.4 million, up 62% year-over-year from $1.5 million in Q2 2025.
  • Gross Margin: 33%, nearly doubled from 17% in Q2 2025. Improvement driven by higher-margin hydrocarbon products becoming the largest revenue category for the first time.
  • Adjusted EBITDA: Negative $631,000 for Q2; first-half 2026 positive $1.7 million vs. negative $2.1 million in first-half 2025.
  • Cash Position: $5 million at quarter-end, up from $2.2 million at 2025 year-end.
  • Working Capital: Surplus of $8.7 million vs. deficit at start of year.
  • Inventory: $7.1 million, up from $3.4 million at 2025 year-end (includes $4.2 million work-in-process).

Key Operational Highlights

  • Completed oversubscribed $9.3 million financing to expand Salisbury Canyon Ranch and strengthen balance sheet; additional $5.2 million closed in July (total ~$14.2 million raised YTD).
  • Acquired Himalaya Vapor Company (contributed ~$1 million revenue in partial quarter); hydrocarbon products now largest revenue category with higher margins.

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Operator: Good day, and thank you for standing by. Welcome to the Leef Brands Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that, today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jesse Redmond, Chief Strategy and Investor Relations Officer. Please go ahead. Jesse Redmond: Good afternoon, everyone, and thank you for joining us. Welcome to Leef Brands Second Quarter 2026 Earnings Call. Joining me today are Micah Anderson, our Chief Executive Officer; and Kevin Wilson, our Chief Financial Officer. Please note that today's discussion will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from what we discuss today. For a full discussion of these risks, please refer to our filings with the SEC and SEDAR+ as well as the Investor Relations section of our website. On today's call, Michael will begin with an overview of the quarter. Kevin will walk through our financial results in more detail. Michael will then return to discuss why we are so excited about Leef's future. With that, I'll turn the call over to Micah. Micah Anderson: Thanks, Jesse, and good afternoon, everyone. I want to start with the progress we made during the quarter and why it validates the strategy we have been building toward. We completed an oversubscribed $9.3 million financing to expand Salisbury Canyon Ranch and strengthen our

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