California Cannabis Producer Reports Revenue Challenges In Q3 As Gross Margins Improve YoY

Leef Brands, Inc. LEEF LEEEF announced its third-quarter results Tuesday for the three months ended Sept. 30, 2023, revealing a 19% year-over-year decrease in revenue to $5.7 million.

For the nine months ended Sept. 30, 2023, revenue totaled $24.6 million, representing a year-over-year increase of 10%.

"While we faced some revenue challenges in the third quarter, our continued focus on high-quality concentrates, customer service, along with strategic right-sizing has resulted in improved gross margins in the third quarter compared to the same period last year,” said Leef CFO Kevin Wilson. “In addition, the company has decreased operating expenses significantly year over year.”

Q3 2023 Financial Highlights

• Gross profit was $1.9 million, down from $2 million in the prior year’s period.
• Gross margin of 32.8% compared to gross margin of 31% in the prior quarter.
• Adjusted EBITDA came in positive at $224,500 down from an adjusted EBITDA gain of $293,268 in the second quarter of 2023.
• Total operating expenses amounted to $2.9 million, down from $4.8 million in the third quarter of 2022.
• Net loss and comprehensive loss totaled $2 million compared to net income and comprehensive income of $10.5 million in the corresponding quarter of 2022.
• As of Sept. 30, 2023, the company had $48.8 million in total liabilities and shareholders' equity, down from $61.9 million on Dec. 31, 2022.

Leef Price Action

Leef Brands’ shares traded 13.8716% higher at $0.0137 per share after the market close on Monday.

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