Canada's Leef Brands Q2 revenue due to lower volumes

Leef Brands

06/08/2026 21:20

Overview
California cannabis concentrate firm's Q2 revenue fell 16% yr/yr due to lower volumes
Gross margin nearly doubled to 33%, driven by higher-margin hydrocarbon products
Adjusted EBITDA loss narrowed to $0.6 mln from $1.3 mln a year earlier

Outlook
Company expects margin improvement in H2 Q3 as sales of new distillate begin in August
Leef aims to expand cultivation footprint to 122 acres by fall 2026, targeting 180 acres in 2027
Company preparing for interstate and international sales but says timing remains uncertain

Result Drivers
BIOMASS SUPPLY GAP - Co said revenue decline was mainly due to lower volumes during a temporary gap between Salisbury Canyon Ranch harvests
PRODUCT MIX SHIFT - Gross margin nearly doubled, driven by disciplined procurement and increased contribution from higher-margin hydrocarbon products
HIMALAYA ACQUISITION - Himalaya brand contributed $1 mln in revenue in its first partial quarter after acquisition

Company press release: ID:nGNX3vM5kv

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$7.30 mln
 
Q2 Net Loss
 
$1.33 mln
 
Q2 Adjusted EBITDA
 
-$631,346 
 
Q2 Gross Margin
 
33.00%
 

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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.)