CV Sciences, Inc. Reports Third Quarter-End 2026 Financial Results
Sentiment and the balance of points
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Rhea-AI Summary
CV Sciences (OTCQB:CVSI) reported third-quarter 2026 revenue of $3.028 million, down 7.0% from the same quarter last year. Gross margin rose to 50.0% from 48.5% a year earlier and 48.6% in the second quarter. Operating income reached $377,000 versus a $275,000 loss, helped by a $500,000 legal settlement gain. The net loss narrowed to $93,000 from $382,000. Adjusted EBITDA, a non-GAAP measure of earnings excluding certain expenses, was positive $32,000 versus losses in both comparison quarters.
For the first nine months, revenue fell to $9.208 million from $10.482 million, while the net loss widened to $1.511 million from $752,000. Operating cash flow turned positive at $184,000. September 30 cash was $308,000, and working capital rose to $0.7 million from $0.1 million at year-end. Restrictive federal provisions for hemp-derived cannabinoid products are currently scheduled to take effect December 11, 2026.
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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter operating income of $377,000 reversed a $275,000 operating loss a year earlier.
- Moderate pointOperating expenses excluding the settlement benefit fell 11.6% year over year and 6.6% sequentially to $1.6 million.
- Moderate pointThird-quarter net loss narrowed to $93,000 from $382,000 a year earlier.
- Moderate pointNine-month operating cash flow of $184,000 reversed $53,000 of cash use a year earlier.
- Moderate pointWorking capital rose to $0.7 million at quarter-end from $0.1 million at year-end.
- Moderate pointTotal liabilities fell to $4.161 million from $5.494 million at December 31, 2025.
- Moderate pointStockholders’ equity increased to $2.273 million from $1.468 million at December 31, 2025.
- Moderate pointNine-month interest expense fell to $94,000 from $388,000 a year earlier.
6 minor points
- Minor pointThird-quarter gross margin of 50.0% exceeded 48.5% a year earlier and 48.6% in the second quarter.
- Minor point$500,000 legal settlement gain contributed to third-quarter operating income.
- Minor pointAdjusted EBITDA of $32,000 reversed losses of $118,000 a year earlier and $132,000 in the second quarter.
- Minor pointNew products launched since January 1, 2023 contributed 48% of third-quarter net revenue.
- Minor pointNine-month operating loss narrowed to $242,000 from $395,000 a year earlier.
- Minor pointCash increased to $308,000 at September 30, 2026, from $278,000 at December 31, 2025.
Negative
- Major pointNine-month net loss widened to $1.511 million from $752,000 a year earlier.
- Major pointCommon shares outstanding increased to 235.694 million from 184.264 million at year-end, diluting existing holders.
- Moderate pointThird-quarter revenue declined 7.0% year over year to $3.028 million from $3.256 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Restrictive federal hemp-derived cannabinoid provisions are currently scheduled to take effect December 11, 2026.
- Moderate pointNine-month gross profit fell to $4.526 million from $5.081 million a year earlier.
- Moderate pointDebt conversion losses were $263,000 for the quarter and $512,000 for nine months, versus none a year earlier. 12% of market cap
- Moderate pointConvertible-note fair-value expenses were $207,000 for the quarter and $678,000 for nine months, versus none a year earlier. 9.6% of market cap
- Moderate pointCurrent convertible notes at fair value totaled $741,000 at September 30, versus none at year-end.
3 minor points
- Minor pointThird-quarter units sold fell 4.7% year over year; average selling prices also decreased.
- Minor pointNine-month revenue fell to $9.208 million from $10.482 million a year earlier.
- Minor pointThird-quarter gross profit fell to $1.514 million from $1.579 million a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN DIEGO, CA / ACCESS Newswire / November 12, 2026 / CV Sciences, Inc. (OTCQB:CVSI) (the "Company", "CV Sciences", "our", "us" or "we"), a preeminent consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products, today announced its financial results for the quarter ended September 30, 2026.
Third Quarter 2026 and Recent Financial and Operating Highlights, and Regulatory Update
- Generated revenue of
$3.0 million for the third quarter 2026 compared to$3.3 million for the third quarter 2025 and compared to$3.0 million for the second quarter 2026; - Recognized gross margin of
50.0% for the third quarter 2026 compared to48.5% for the third quarter 2025 and compared to48.6% for the second quarter 2026; - Reduced operating expenses by
11.6% to$1.6 million for the third quarter 2026 compared to$1.8 million for the third quarter 2025, and by6.6% from$1.7 million in the second quarter 2026, excluding the benefit from the gain on legal settlement; - Recognized positive adjusted EBITDA of
$32,000 for the third quarter 2026 compared to adjusted EBITDA losses of$118,000 for third quarter 2025 and$132,000 for the second quarter 2026; - Cash balance of
$0.3 million at quarter and year end; - Strengthened our financial position by increased working capital of
$0.7 million at quarter end, significantly improved from$0.1 million at year end; - Expanded the +PlusHLTH™ portfolio with personalized wellness solutions for healthy aging; and
- Continued monitoring of potential updates to the implementation of restrictive federal provisions for hemp-derived cannabinoid products which are currently scheduled to be in effect on December 11, 2026.
"Our third quarter results demonstrate continued progress in strengthening the operating performance of our business despite ongoing regulatory challenges and pressure on revenue. We expanded gross margins to
At the same time, we continue to advance our product innovation and diversification strategy. Products launched since January 2023 accounted for
Operating Results - Third Quarter 2026 Compared to Third Quarter 2025
Sales for the third quarter 2026 were
We generated operating income of
Conference Call and Webcast
The Company will host a conference call and webcast to discuss these results today at 4:30 pm EDT/1:30 pm PDT. The webcast of the conference call will be available on the Investor Relations section of the Company's website at https://ir.cvsciences.com/news-events or directly at https://viavid.webcasts.com/starthere.jsp?ei=1779873&tp_key=be4c149620. Investors interested in participating in the live call can also dial (844) 825-9789 from the U.S. or international callers can dial (412) 317-5180. A telephone replay will be available approximately three hours after the call concludes, and will be available through Thursday, November 26, 2026, by dialing (844) 512-2921 from the U.S. or (412) 317-6671 from international locations, and entering confirmation code 10212857.
About CV Sciences, Inc.
CV Sciences, Inc. (OTCQB:CVSI) is a preeminent consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products. The Company's products are sold through a range of sales channels from B2B to B2C. The Company's +PlusCBD™ branded products are sold at select retail locations throughout the U.S. and are the top-selling hemp-extract brand in the natural products market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry. With a commitment to science, +PlusCBD™ product benefits in healthy people are supported by human clinical research data, in addition to three published clinical case studies available on PubMed.gov. +PlusCBD™ was the first hemp extract supplement brand to invest in the scientific evidence necessary to receive self-affirmed Generally Recognized as Safe (GRAS) status. The Company also produces non-cannabinoid supplements under its +PlusHLTH™ brand, with targeted formulations to optimize health, improve performance, and increase vitality. Our Cultured Foods™ brand provides a variety of
Forward Looking Statements
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risk and uncertainties. CV Sciences does not undertake any obligation to publicly update any forward-looking statements, except as required by applicable law. As a result, investors should not place undue reliance on such forward-looking statements.
Contact Information
ir@cvsciences.com
CV SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Product sales, net | $ | 3,028 | $ | 3,256 | $ | 9,208 | $ | 10,482 | ||||||||
Cost of goods sold | 1,514 | 1,677 | 4,682 | 5,401 | ||||||||||||
Gross profit | 1,514 | 1,579 | 4,526 | 5,081 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 19 | 24 | 55 | 104 | ||||||||||||
Selling, general and administrative | 1,618 | 1,830 | 5,213 | 5,894 | ||||||||||||
Gain on legal settlement | (500 | ) | - | (500 | ) | - | ||||||||||
Benefit from reversal of accrued payroll taxes | - | - | - | (522 | ) | |||||||||||
Total operating expenses | 1,137 | 1,854 | 4,768 | 5,476 | ||||||||||||
Operating income (loss) | 377 | (275 | ) | (242 | ) | (395 | ) | |||||||||
Other expense (income): | ||||||||||||||||
Gain on extinguishment of debt | - | - | (20 | ) | (38 | ) | ||||||||||
Loss on debt conversion | 263 | - | 512 | - | ||||||||||||
Change in fair value of convertible notes | 207 | - | 678 | - | ||||||||||||
Interest expense, net | - | 107 | 94 | 388 | ||||||||||||
Total other expense | 470 | 107 | 1,264 | 350 | ||||||||||||
Loss before income taxes | (93 | ) | (382 | ) | (1,506 | ) | (745 | ) | ||||||||
Income tax expense | - | - | 5 | 7 | ||||||||||||
Net loss | $ | (93 | ) | $ | (382 | ) | $ | (1,511 | ) | $ | (752 | ) | ||||
Weighted average common shares outstanding, basic and diluted | 226,096 | 184,264 | 207,803 | 184,264 | ||||||||||||
Net loss per common share, basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.00 | ) | ||||
CV SCIENCES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data)
| September 30, 2026 | December 31, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 308 | $ | 278 | ||||
Accounts receivable, net | 346 | 402 | ||||||
Inventory | 3,965 | 4,087 | ||||||
Prepaid expenses and other | 273 | 366 | ||||||
Total current assets | 4,892 | 5,133 | ||||||
Property and equipment, net | 302 | 344 | ||||||
Right of use assets | 148 | 347 | ||||||
Intangibles, net | 55 | 76 | ||||||
Goodwill | 990 | 1,015 | ||||||
Other assets | 47 | 47 | ||||||
Total assets | $ | 6,434 | $ | 6,962 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 813 | $ | 1,044 | ||||
Accrued expenses | 2,450 | 2,447 | ||||||
Current portion of operating lease liability | 150 | 247 | ||||||
Convertible notes, at fair value | 741 | - | ||||||
Current portion of long-term debt, net | - | 1,262 | ||||||
Total current liabilities | 4,154 | 5,000 | ||||||
Operating lease liability | - | 100 | ||||||
Debt, net | - | 387 | ||||||
Deferred tax liability | 7 | 7 | ||||||
Total liabilities | 4,161 | 5,494 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | 24 | 18 | ||||||
Additional paid-in capital | 91,687 | 89,330 | ||||||
Accumulated deficit | (89,450 | ) | (87,939 | ) | ||||
Accumulated other comprehensive income | 12 | 59 | ||||||
Total stockholders' equity | 2,273 | 1,468 | ||||||
Total liabilities and stockholders' equity | $ | 6,434 | $ | 6,962 | ||||
CV SCIENCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
OPERATING ACTIVITIES | ||||||||
Net loss | $ | (1,511 | ) | $ | (752 | ) | ||
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 68 | 171 | ||||||
Stock-based compensation | 428 | 374 | ||||||
Amortization of debt discount | 91 | 386 | ||||||
Loss on debt conversion | 94 | - | ||||||
Initial fair value of true-up convertible notes issued | 418 | - | ||||||
Change in fair value of convertible notes | 678 | - | ||||||
Amortization of right of use assets | 198 | 175 | ||||||
Gain on debt extinguishment | (20 | ) | (38 | ) | ||||
Gain on legal settlement | (500 | ) | - | |||||
Benefit from reversal of accrued payroll tax | - | (522 | ) | |||||
Other | (12 | ) | 128 | |||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable, net | 69 | 130 | ||||||
Inventory | 108 | 830 | ||||||
Prepaid expenses and other | 91 | 141 | ||||||
Accounts payable and accrued expenses | 181 | (892 | ) | |||||
Operating lease liabilities | (197 | ) | (184 | ) | ||||
Net cash flows provided by (used in) operating activities | 184 | (53 | ) | |||||
INVESTING ACTIVITIES | ||||||||
Purchases of property and equipment | (10 | ) | (100 | ) | ||||
Net cash flows used in investing activities | (10 | ) | (100 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from note payable | - | 1,200 | ||||||
Debt issuance costs related to note payable | (15 | ) | (82 | ) | ||||
Repayment of note payable | - | (900 | ) | |||||
Repayment of unsecured debt | (125 | ) | (139 | ) | ||||
Net cash flows provided by (used in) financing activities | (140 | ) | 79 | |||||
Effect of exchange rate changes on cash | (4 | ) | 1 | |||||
Net increase (decrease) in cash | 30 | (73 | ) | |||||
Cash, beginning of period | 278 | 454 | ||||||
Cash, end of period | $ | 308 | $ | 381 | ||||
Supplemental cash flow disclosures: | ||||||||
Interest paid | $ | 3 | $ | 4 | ||||
Income tax paid | $ | 6 | $ | 7 | ||||
Supplemental disclosure of non-cash transactions: | ||||||||
Conversion of convertible notes | $ | (1,935 | ) | $ | - | |||
Issuance of convertible notes | $ | 1,999 | $ | - | ||||
Services paid with common stock | $ | - | $ | 60 | ||||
Right of use asset financed by lease liabilities | $ | - | $ | 486 | ||||
Debt modification cost | $ | - | $ | (150 | ) | |||
Original issuance discount for note payable | $ | - | $ | (400 | ) | |||
CV SCIENCES, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
We prepare our consolidated financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures, such as net loss per share and Adjusted EBITDA included in this press release are different from those otherwise presented under GAAP. We use non-GAAP measures internally to evaluate our performance and make financial and operational decisions that are presented in a manner that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures. The non-GAAP financial measures exclude non-cash compensation expense for stock options. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results.
Adjusted EBITDA is defined by us as EBITDA (net loss plus depreciation, amortization, interest, and income tax expense, further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use Adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
We use Adjusted EBITDA in communicating certain aspects of our results and performance, including in this press release, and believe that Adjusted EBITDA, when viewed in conjunction with our GAAP results and the accompanying reconciliation, can provide investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of Adjusted EBITDA is useful to investors in making period-to-period comparison of results because the adjustments to GAAP are not reflective of our core business performance.
A reconciliation from our GAAP net loss to non-GAAP net income (loss) for the three and nine months ended September 30, 2026 and 2025 is detailed below (in thousands, except per share data):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Net loss - GAAP | $ | (93 | ) | $ | (382 | ) | $ | (1,511 | ) | $ | (752 | ) | ||||
Stock-based compensation (1) | 132 | 124 | 428 | 374 | ||||||||||||
Loss on debt conversions (2) | 263 | - | 512 | - | ||||||||||||
Change in fair value of convertible notes (3) | 207 | - | 678 | - | ||||||||||||
Gain on debt extinguishment (4) | - | - | (20 | ) | (38 | ) | ||||||||||
Note discount (5) | - | 107 | 91 | 388 | ||||||||||||
Gain on legal settlement (6) | (500 | ) | - | (500 | ) | - | ||||||||||
Benefit from reversal of accrued payroll tax (7) | - | - | - | (522 | ) | |||||||||||
Net income (loss) - non-GAAP | $ | 9 | $ | (151 | ) | $ | (322 | ) | $ | (550 | ) | |||||
Diluted EPS - GAAP | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.00 | ) | ||||
Stock-based compensation (1) | - | - | - | - | ||||||||||||
Loss on debt conversions (2) | - | - | - | - | ||||||||||||
Change in fair value of convertible notes (3) | - | - | 0.01 | - | ||||||||||||
Gain on debt extinguishment (4) | - | - | - | - | ||||||||||||
Note discount (5) | - | - | - | - | ||||||||||||
Gain on legal settlement (6) | - | - | - | - | ||||||||||||
Benefit from reversal of accrued payroll tax (7) | - | - | - | - | ||||||||||||
Diluted EPS - non-GAAP | $ | 0.00 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||
Shares used to calculate diluted EPS - GAAP and non-GAAP | 226,096 | 184,264 | 207,803 | 184,264 | ||||||||||||
| (1) | Represents stock-based compensation expense related to stock options awarded to employees and non-executive directors based on the grant date fair value using the Black-Scholes valuation model. | |
| (2) | Represents the loss on debt conversions related to the true-up obligation. | |
| (3) | Represents change in fair value of our convertible notes. | |
| (4) | Represents gain on extinguishment of debt related to our Streeterville note payable in 2025 and the extinguishment of our note payable with an Investor in 2026. | |
| (5) | Represents amortization of OID/debt issuance costs for notes payable. | |
| (6) | Represents the gain recognized associated with the settlement of our legal action against Procopio, our long-time legal counsel. | |
| (7) | Represents benefit from reversal of accrued payroll tax associated with RSU release to founder in 2019. |
A reconciliation from our net loss to Adjusted EBITDA, a non-GAAP measure, for the three and nine months ended September 30, 2026 and 2025 is detailed below (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Net loss | $ | (93 | ) | $ | (382 | ) | $ | (1,511 | ) | $ | (752 | ) | ||||
Depreciation expense | 17 | 27 | 49 | 155 | ||||||||||||
Amortization expense | 6 | 6 | 18 | 18 | ||||||||||||
Interest expense, net | - | 107 | 94 | 388 | ||||||||||||
Income tax expense | - | - | 5 | 7 | ||||||||||||
EBITDA | (70 | ) | (242 | ) | (1,345 | ) | (184 | ) | ||||||||
Stock-based compensation (1) | 132 | 124 | 428 | 374 | ||||||||||||
Loss on debt conversions (2) | 263 | - | 512 | - | ||||||||||||
Change in fair value of convertible notes (3) | 207 | - | 678 | - | ||||||||||||
Gain on debt extinguishment (4) | - | - | (20 | ) | (38 | ) | ||||||||||
Gain on legal settlement (5) | (500 | ) | - | (500 | ) | - | ||||||||||
Benefit from reversal of accrued payroll tax (6) | - | - | - | (522 | ) | |||||||||||
Adjusted EBITDA | $ | 32 | $ | (118 | ) | $ | (247 | ) | $ | (370 | ) | |||||
| (1) | Represents stock-based compensation expense related to stock options awarded to employees and non-executive directors based on the grant date fair value using the Black-Scholes valuation model. | |
| (2) | Represents the loss on debt conversions related to the true-up obligation. | |
| (3) | Represents change in fair value of our convertible notes. | |
| (4) | Represents gain on extinguishment of debt related to our notes payable. | |
| (5) | Represents gain recognized associated with the settlement of our legal action against Procopio, our long-time legal counsel. | |
| (6) | Represents benefit from reversal of accrued payroll tax associated with RSU release to founder in 2019. |
SOURCE: CV Sciences, Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were CV Sciences’ third-quarter 2026 revenue and net loss?
CV Sciences reported $3.028 million in revenue and a $93,000 net loss for the quarter ended September 30, 2026. Revenue was $3.256 million and the net loss was $382,000 in the same quarter of 2025.
Why did CV Sciences’ sales decline in the third quarter of 2026?
CV Sciences attributed the sales decline to lower volume caused by restrictive federal and state regulations. Units sold decreased 4.7% compared with the third quarter of 2025, and average selling prices also decreased.