LEEF Brands Reports Fourth Quarter And Full Year 2025 Results; Salisbury Canyon Ranch Drives Margin Expansion And Mindset Capital Investment Fuels Next Phase Of Growth
VANCOUVER, British Columbia, March 25, 2026 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. (CSE: LEEF) (OTCQB: LEEEF) (“LEEF” or the “Company”), a rapidly growing cannabis company, today reported financial results for the fourth quarter and full year ended December 31, 2025.
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 Expansion
On 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.”
Outlook
The 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 | 604,938 | 1,104,515 | 1,203,885 | 2,308,400 | |||||
| Add: Interest expense | 497,575 | 559,087 | 1,171,889 | 1,194,472 | 2,366,361 | |||||
| Add: Income tax provision | 1,103,866 | 151,548 | 1,329,004 | 1,189,611 | 2,518,615 | |||||
| EBITDA | (5,085,446 | ) | (9,842,849 | ) | 937,985 | (11,374,284 | ) | (10,436,299 | ) | |
| Adjustments: | ||||||||||
| Share-based compensation | (1,013,860 | ) | 1,157,468 | 983,885 | 1,453,714 | 2,437,599 | ||||
| Loss on extinguishment of debt | 51,784 | 13,878,098 | 13,878,098 | 13,878,098 | ||||||
| Loss on impairment | 2,661,384 | 2,337,264 | 2,337,264 | 2,337,264 | ||||||
| Change in fair value of derivative liability | 1,101,052 | (6,799,670 | ) | (4,105,121 | ) | (4,829,502 | ) | (8,934,632 | ) | |
| Change in FV of Contingent Consideration | (855,000 | ) | ||||||||
| Non-recurring costs | 1,397 | 271,317 | (9,053 | ) | 280,389 | 271,345 | ||||
| Adjusted EBITDA | (3,138,689 | ) | 1,001,628 | (2,192,304 | ) | 1,745,679 | (446,625 | ) | ||
Conference Call Details
Date: Wednesday, March 25, 2026
Time: 5:00 p.m. Eastern Time
Webcast: To listen via webcast, please register at: https://edge.media-server.com/mmc/p/a23jf8ew/
Dial-in: To receive the conference call dial-in details and a unique PIN, please register at: https://register-conf.media-server.com/register/BI2e1133a10dc74566a25f746938fcb36e
Replay: A replay will be available until 12:00 midnight Eastern Time on Thursday, March 25, 2027, at the following link: https://edge.media-server.com/mmc/p/a23jf8ew
About LEEF Brands, Inc.
LEEF Brands, Inc. is a leading California and New York-based extraction and manufacturing cannabis company. With a comprehensive supply chain, innovative manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest cannabis brands in the United States. For more information, visit www.LeefBrands.com.
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, statements regarding the Company’s future financial condition, operations, and objectives.
Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements.
There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including, but not limited to, the risks disclosed in the Company’s public filings on the Company’s issuer profile on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
LEEF Brands, Inc.
Per: Jesse Redmond
Chief Strategy & Investor Relations Officer
Phone: +1 (805) 717-9327
Email: ir@leefca.com
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