LEEF Brands Reports First Quarter 2025 and Full-Year 2024 Financial Results

VANCOUVER, British Columbia, May 01, 2025 (GLOBE NEWSWIRE) -- LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) (the “Company” or “LEEF Brands”), one of California’s largest and most sophisticated cannabis companies, today announced its financial results for the first quarter ended March 31, 2025, and full-year results for the year ended December 31, 2024.

First Quarter 2025 Financial Highlights vs. First Quarter 2024:

• Revenue of $9.4 million, up 19% from $7.9 million, reflecting strengthening market demand and improved sales execution.
• Adjusted EBITDA of -$0.8 million, down from $1.2 million, due to costs associated with ramping new cultivation, positioning the Company for future margin expansion.
• Net income of $2.0 million, compared to a loss of $1.8 million in the prior-year period.

Full Year 2024 Financial Highlights vs. Full Year 2023:

• Revenue of $28.5 million, down 7% from $30.6 million, as the Company repositioned its product and customer mix to support long-term profitability.
• Adjusted EBITDA of -$2.4 million, compared to $1.2 million, due to transitional investments in infrastructure and operational scalability initiatives, including equipment upgrades in California and New York.
• Net loss of $24.6 million, a 29% improvement from $34.7 million, driven by cost containment and operational restructuring. The loss includes significant non-cash items, such as $2.7 million in goodwill and intangible write-downs, $2.9 million from debt extinguishment, and a $6.1 million change in derivative fair value.

“While we’re not yet where we ultimately aim to be, we’ve laid a strong foundation for future growth,” said Kevin Wilson, CFO of LEEF Brands. “Over the past several quarters, we’ve expanded our sales pipeline and advanced our extraction technology. With Salisbury Canyon Ranch set to begin contributing to our supply chain later this year, we expect these efforts to drive meaningful financial improvements.”

Operational Highlights:

• Appointed Jesse Redmond as Head of Investor Relations and Business Development. Jesse is a former hedge fund manager, dispensary operator, and cannabis analyst who is regarded as a thought leader in the industry. He has a proven track record of building strong relationships with investors and identifying high-value growth opportunities.
• Expanded production capacity to meet increased demand. LEEF increased extraction and manufacturing capacity to support rising order volume and growing customer demand. The Company increased ethanol extraction by 66%, solventless by 50%, and hydrocarbon by 38%.
• Entered the New York market with LOI to acquire a Tier 1 processing license. In February, LEEF signed a binding letter of intent to acquire a Tier 1 adult-use processing license in New York. This is expected to be a $1.5B market in 2025, and concentrates are used in 52% of products. New York should drive higher revenue and improved margins in the second half of 2025.
• Planted Salisbury Canyon Ranch, one of the largest cannabis farms in the world. In April, the Company began planting 65 acres at Salisbury Canyon Ranch, a 1,900-acre trophy ranch in Santa Barbara County. This milestone marks the first step in building one of the world’s largest cannabis farms. Salisbury Canyon Ranch is expected to drive higher margins, improve product quality, and give LEEF greater control of the supply chain.
• Salisbury Canyon Ranch was independently valued at $40.8 million, approximately twice the Company’s current market cap. LEEF acquired Salisbury Canyon Ranch in 2023 for $6.4 million and has invested approximately $6.0 million in infrastructure improvements and $700,000 in California DCC cultivation licenses. The $40 million valuation underscores this project’s strong ROI to shareholders.
• LEEF acquired 3.9719766 Bitcoin at an average cost basis of $88,372 in 2024 and during the first quarter of 2025. The Company anticipates increasing its Bitcoin position through the rest of the year.

Outlook
LEEF Brands expects revenue and gross margins to improve throughout 2025, particularly in the second half of the year. Key growth drivers include the first harvest at Salisbury Canyon Ranch and the Company's expansion into New York.

CEO Micah Anderson commented: “The revenue momentum, driven by 20% year-over-year growth in unit sales during Q1, demonstrates strong demand for our products. With the planting of Salisbury Canyon Ranch and our entry into New York, we expect to improve our margin profile as the year evolves. We’re on a path to make 2025 a transformational year for the Company.”

About LEEF Brands, Inc.
LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state’s most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in the country. For more information, visit www.LeefBrands.com.
LEEF Brands Inc.
Per: Jesse Redmond, Head of Investor Relations and Business Development

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 proceeds from the Financing 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 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.

The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

LEEF Brands, Inc., Jesse Redmond, Head of Investor Relations and Business Development, 707-703-4111, ir@leefca.com

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