LEEF Brands Reports Third Quarter 2025 Financial Results with Gross Margins More Than Doubling Year-Over-Year

VANCOUVER, British Columbia, Nov. 04, 2025 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. (CSE: LEEF, OTCQB: LEEEF) (“LEEF” or the “Company”), a leading multi-state operator, today announced its financial and operating results for the third quarter ended September 30, 2025. All figures are reported in U.S. dollars unless otherwise indicated.

Q3 2025 Financial Highlights

Revenue: $8.4 million, up 24% from $6.8 million in Q3 2024, reflecting increased market share in California and strong initial sales in New York.
Gross Margin: 45%, compared to 22% in Q3 2024. Margins more than doubled due to lower input costs from in-house cultivation in California and higher-margin sales in New York.
Operating Expenses: $3.9 million, down 12% year-over-year, demonstrating continued cost discipline while growing revenue and doubling margins.
Adjusted EBITDA: $0.7 million, compared to ($2.4) million in Q3 2024, driven by increased gross margins and strong cost controls.
Free Cash Flow: $0.2 million, compared to ($0.3) million in Q3 2024. Free cash flow improved significantly due to higher gross margins and disciplined expense management, which reduced operating outflows.
Bitcoin: LEEF holds 4.58 Bitcoin with an average cost basis of $103,458 per coin. The Company is evaluating opportunities to increase its Bitcoin holdings significantly.

Operational Highlights

Successful Harvest and Replanting at Salisbury Canyon Ranch: LEEF completed its first successful harvest at Salisbury Canyon Ranch, its 1,900-acre cultivation site in Santa Barbara County. The 65-acre initial planting produced clean, high-quality material that began running through LEEF’s extraction lines in July, with sales starting in August. The ranch was replanted in July for a fall harvest featuring a wider range of strains optimized for the Company’s ethanol, hydrocarbon, and solventless extraction lines.
Launching in New York: LEEF secured its Type 1 Processor License in June and brought its upstate New York extraction lab online in just 90 days. Solventless operations began in September, generating high-margin sales by quarter-end. The hydrocarbon line is expected to come online shortly, expanding LEEF’s production capabilities, with all 2025 output already committed and strong demand extending into 2026.
Oversubscribed Capital Raise: During the quarter, LEEF completed an oversubscribed $1.5 million private placement, reflecting strong investor confidence in the Company’s operational execution, improving financial performance, and expanding national footprint.

Management Commentary

“This quarter we executed on the goals we set out for 2025—strengthening our California foundation with successful harvests at Salisbury Canyon Ranch and launching operations in New York—and it’s paying off in improved financial results,” said Micah Anderson, CEO of LEEF Brands, Inc. “This quarter’s results demonstrate that disciplined execution and operational focus are driving measurable progress across our business. We’re encouraged to see our strategy delivering tangible results and setting the stage for continued growth.”

Kevin Wilson, CFO, added, “We achieved significant year-over-year revenue growth, margins more than doubled, and we saw a substantial reduction in operating expenses. Our ability to grow revenue while controlling costs demonstrates the scalability of our model. We also generated positive operating and free cash flow this quarter—important milestones on our path to sustainable profitability.”

Conference Call Details

LEEF Brands will host its first earnings conference call and webcast to discuss the results.

Date: Tuesday, November 4, 2025, at 5:00 p.m. Eastern Time
Webcast: https://edge.media-server.com/mmc/p/4j32bxrb
Dial-in Numbers: 1 (800) 715-9871; 1 (646) 307-1963 (international)
Replay: A replay will be available until 12:00 midnight Eastern Time on Tuesday, November 3, 2026, at the following link: https://edge.media-server.com/mmc/p/4j32bxrb

Corporate Update

In addition, the Company has issued 537,023 common shares to a service provider in consideration for services rendered and 1,150,820 common shares upon the exercise of employee stock options.

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 portfolio of bulk concentrates, 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 anticipated use of net proceeds from the Offering and 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 that the Company does not use the net proceeds from the Offering as anticipated, as well as 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.

For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR+ at www.sedarplus.ca.

LEEF Brands, Inc.

Per: Jesse Redmond, Head of Investor Relations and Business Development
Phone: +1 (707) 703-4111
Email: ir@leefca.com

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