"I thank my team for their hard work, and of course my sponsors. We did our best, but it wasn't quite enough.
"I won't be endorsing another mayoral candidate just yet, but I may do so once I scrutinise their policies in more detail. If I do endorse, it'll be a fiscally responsible candidate - not a reckless spender."
Molloy indicated he would be keen on another tilt at mayor in three years' time.
"The trend is your friend and the trend is going against me, but I'm happy, I'm robust.
"I have no regrets, I thoroughly enjoyed it and I will definitely be back for another dip in 2025 if they don't sort the council out," he said.
Nominations for the election close at midday today.
Molloy's decision came shortly after the latest Rateayers' Alliance-Curia poll showed he had dropped to third place behind businessman Wayne Brown.
His poll numbers had fallen over the past month from 23 per cent to 14.5 per cent. Brown had overtaken him in the latest poll, with 18.6 per cent support - still behind the frontrunner, Efeso Collins, on 22.3 per cent.
Molloy's campaign endured a rocky spell this month.
Last week he lost a second key figure from his campaign team when Kate Gourdie said she'd stepped aside as his director of communications due to his decision to take a "new approach".
Molloy has also reportedly parted ways with the digital group working on his mayoral bid called The Digital Company, while last month businesswoman June McCabe stepped aside as his campaign chair.
Following Molloy's withdrawal this morning, Brown said Aucklanders now had a "clear choice" for their next mayor.
Craig Lord, another candidate for mayor, said Leo Molloy's exit from the race enabled voters to have a "more targeted and strategic" choice, and eliminated unhelpful rhetoric from the public debate.
Collins, who is leading today's poll, issued a short statement saying he appreciated the enthusiasm Molloy brought to the campaign.
"Regardless of the news today, we are going to continue to be focused on our campaign for creating a more just, sustainable Auckland," Collins said.
Mayoral candidate Viv Beck said she had nothing to add to the news of Molloy's exit.
Community advocate David Letele wrote on social media: "Sorry to read this brother. Thank you for all you do, and all that you will continue to do even when the cameras aren't on. We appreciate you Leo Molloy,"
Wayne Brown in second place in new poll out today
Brown has shot into second place behind Collins, whose support has fallen away, according to the latest Ratepayers' Alliance-Curia poll out today.
Brown has leapfrogged restaurateur Molloy as the leading contender to challenge Collins, who has been endorsed by the Labour and Green parties, and continues to hold a small lead to win the prized job of leading the Super City.
Collins has 22.3 per cent support among committed voters in the poll of 500 Aucklanders - a five-point drop from last month's poll and way short of the 50 per cent support Labour-endorsed mayors Len Brown and Phil Goff secured in each of their two mayoral wins.
Trailing Collins is Brown on 18.6 per cent support, Molloy on 14.5 per cent, Viv Beck on 12.5 per cent and Lord on 7.2 per cent.
The August poll included more candidates and had lawyer and New Conservative co-leader Ted Johnston on 6.4 per cent, Hibiscus and Bays Local Board chairman Gary Brown on 6.2 per cent, John Lehmann on 4 per cent and animal rights campaigner Michael Morris on 3.1 per cent.
Brown called out Molloy's behaviour on the show, saying his foul-mouthed rants suggested he isn't a suitable person to hold the dignified office of Mayor of Auckland.
Auckland Ratepayers' Association spokesman Josh Van Veen said the poll confirmed for the third month in a row, most Aucklanders do not want a Labour-endorsed mayor.
"Collins still hasn't galvanised the left and is struggling to crack 25 per cent. Wayne Brown is now the leading anti-establishment candidate, but the lead he has over Molloy is within the margin of error, so he's still a contender.
"Viv Beck [endorsed by National's de facto local government arm Communities & Residents] is really struggling to look viable. An eleventh-hour intervention by National Party power brokers would change the race dramatically. It's time they stepped up," Van Veen said.
Brown, who is standing on a platform to "Fix Auckland" and begun cranking up his advertising campaign, said the trend is clear.
"As we get closer to the election and voters are looking more closely at the issues and the candidates' track records, my support is increasing.
"Aucklanders are understandably worried about other candidates' promises for big spend-ups of ratepayer money, and realise I am the only candidate who will get more done for less," said Brown.
Collins said it is obviously a tight race and taking nothing for granted "but this result also reflects that voters are keen for candidates to debate on the issues and not attack each other".
"That's why I will continue to be focused on sharing our vision for a just and sustainable Auckland over the coming weeks," he said.
Beck played down her poor poll numbers, saying the polls are bouncing around and cannot be taken too seriously.
"Nominations close today and election signs have just gone up - my campaign starts now," said Beck, who announced her mayoral bid nearly five months ago in March.
"I am ramping up and Aucklanders can expect to see more policy releases in the coming weeks. I am the only true centre-right candidate that will stand up for Auckland and ensure we do not have another Labour-controlled Mayor.
"Efeso Collins should be most worried, he is the only endorsed candidate on the left and can't crack 25 per cent," she said.
Lord said the size of the poll and number of undecided voters was disappointing and he is comfortable with his campaign and the support he is getting in the community.
The poll was conducted between August 3-11 and found 45 per cent did not know who they would support, although this dropped to 29 per cent when the initially undecided voters were given a list of mayoral candidates to choose from. It has a margin of error of plus or minus 4.4 per cent. Just one in three Aucklanders voted at the Auckland Council elections in 2019.
The elections are set down for October 8. Voting papers will be sent out to people on the electoral roll between September 16-21.
Voting opens on September 16 and votes have to be cast by noon on October 8. The initial results will be announced shortly afterwards and final results about a week to 10 days later.
Nominations for the mayoralty, council and 21 Local Boards close today at noon.
Full statement from Leo Molloy
I'm today announcing the end of my bid to become mayor of Auckland – for now!
While some aspects of my polling are still strong, there are clear trends emerging that suggest I cannot win – this time.
On that basis, I will be withdrawing immediately.
I want to thank you all for your incredible support to get the campaign to this point. It has been an amazing journey, and I've met so many great people and made many new friends along the way.
Roll on 2025.
I've learnt some valuable lessons and if there's an opportunity in three years' time I'll be in, boots and all.
I won't be endorsing another mayoral candidate right now, but I may do so once I scrutinise their policies in more detail. If I do endorse it'll be a fiscally responsible candidate - not a reckless spender.
For now, I'm going to get on with my other life as a hospo legend.
I have a new restaurant and bar to design and build, and I'm looking forward to concentrating on that.
I thank my team for their hard work, and of course my sponsors. We did our best, but it wasn't quite enough.
To the many battlers in the street, the hard-working, kind and generous people who backed me, supported me, and even just chatted to me ... I thank you, you are the Auckland I love.
I have no regrets. It was fun, and I thank you for your incredible support.