How LEEF Brands Powers Growth from the Lab, Not the Retail Shelf

When investors talk about “picks-and-shovels” plays in the cannabis sector, they usually mean companies supplying equipment or packaging. LEEF Brands, Inc. (CSE: LEEF; OTCQB: LEEEF) offers a twist on this theme: it’s a cannabis picks-and-shovels story powered by B2B extraction, with a business model that’s now opening new doors across state lines, especially with its major move into New York in 2025.

Not Just a Brand: The Engine Behind the Brands

LEEF made its name in California not as a flashy dispensary name, but as the “infrastructure” beneath the cannabis sector’s most profitable segments. The company specializes in extraction, taking raw cannabis and transforming it into high-value concentrates, oils, and ingredients that power everyone from boutique craft brands to major multi-state operators. Instead of having its revenue depend on building a single iconic consumer brand, LEEF enables dozens of brands through white-label manufacturing, toll extraction, and partner supply contracts.​

This approach buffers LEEF against the notorious volatility of retail cannabis sales. When consumer trends, stores, or state regulations change, brand clients may swap out flavors, change packaging, or pivot their marketing, but they still need reliable, compliant, and high-quality extract inputs. LEEF’s role as a manufacturing partner means steady throughput and diversified cash flows, not just a bet on a single logo or retail footprint.​

If you step back, this “manufacturing-first” model is akin to an ingredient brand in the food or beverage industry. Think of who supplies the juice in a premium drink or the resin in a specialized product, These companies can command stable margins and sometimes even pricing power, as the real magic for end products happens upstream.

New York: The Next Wedge (and Why It Matters)

In 2025, LEEF catalyzed its multistate ambitions with the opening of its upstate New York extraction lab, a move that’s more than just geographic expansion. The strategy is clear: take a proven platform from the most competitive cannabis market in the world (California) and apply that operational muscle on the East Coast, where the market is growing fast and concentrates are in demand.​

LEEF’s New York lab began producing premium solventless rosin this fall, and early output sold out entirely to existing brand partners from California and local brands looking for stability, quality, and expertise. Orders were booked even before the first concentrate batch left the facility, highlighting both demand and partner trust. ​Hydrocarbon concentrate production is coming online in Q4, allowing LEEF to offer a full portfolio of high-margin oils and dabs.

Why is this such a big deal? New York’s cannabis market is projected to surpass $1.5 billion in 2025, with industry observers expecting further rapid growth as new licenses are issued and more brands compete for shelf space. Concentrates are also a crucial product class in New York, used in more than half of all legal cannabis SKUs. As the product mix and consumer demand shift toward vapes, oils, and edibles, LEEF’s expertise in extraction rather than the flower itself gives it a structural advantage. Brand partners lacking extraction facilities turn to LEEF as a reliable, technical supplier who can deliver compliant, quality-controlled outputs at scale.​

This “laboratory wedge” propels LEEF beyond the limits of California’s high taxes and oversupply, letting the company tap into a new market while leveraging the same extraction playbook that created its West Coast success. It also means LEEF can sell its tech and SOPs, not just its extracts—building relationships with local brands and MSOs desperate for product differentiation and reliable supply.​

Upside and Resilience

For investors, LEEF’s dual B2B and expansion narrative has real teeth. Its New York traction is already driving meaningful revenue. According to management, higher-margin concentrate business from the East Coast—especially as solventless offerings command premium pricing—should lift consolidated margins through 2026. LEEF posted Q3 2025 revenue of $8.4 million, a 24% increase from $6.8 million in the same period last year. And the company doubled its margins, up to 45% from 22% a year earlier.​ These results include only a small fraction of what the New York operations will do for the company, starting with Q4 2025.

LEEF’s positioning means it can weather tough conditions better than most pure-play consumer names. With sub-$10/lb in-house biomass costs and capacity sellouts, the California operation exemplifies operating discipline. Meanwhile, New York offers a clean slate with less legacy overhead, early-mover advantages, and a healthy appetite among brand and retail partners for LEEF’s capabilities. Instead of fighting for shelf space, LEEF becomes the “supply-chain solution” behind many of the products consumers already know.​

Final Word

There will always be risks, including regulatory delays, oversupply, and shifting consumer behaviors, but the B2B extraction model combined with a smart, early landing in New York gives LEEF Brands a rare mix of resilience, optionality, and multistate growth potential. For investors, this combination positions LEEF as more than just a cannabis name: it’s the laboratory fueling the next crop of market winners.