Canada's Leef Brands Q1 gross margin more than doubles; revenue flat

Leef Brands

06/05/2026 21:13

Overview

US cannabis extractor's Q1 revenue flat yr/yr as higher volumes offset by pricing pressure

Q1 gross margin more than doubled to 49% on lower input costs and higher-margin output

Company closed $4.5 mln Mindset Capital investment and acquired Himalaya concentrates brand

Outlook

Company expects to begin processing first 2026 harvest in June, with volumes in early Q3

Leef Brands expects increased in-house biomass production as additional acreage comes online in 2026

Company says expansion will reduce reliance on third-party sourcing and drive more consistent margins

Result Drivers

PRICING PRESSURE - Co said flat revenue reflected 60% higher unit volumes offset by lower prices in California distillate market

IN-HOUSE BIOMASS - Gross margin more than doubled due to lower input costs from increased use of in-house biomass from Salisbury Canyon Ranch

HIGHER-MARGIN OUTPUT - Increased output from higher-margin hydrocarbon line contributed to margin expansion

Company press release: ID:nGNX3jCL8S

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$9.40 mln
Q1 Adjusted EBITDA
$2.40 mln
Q1 Gross Margin
49.00%


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)