cbdMD Reports 19% Year-over-Year and 12% Sequential Revenue Growth; Bluebird Acquisition Integration and Medicare BEI Pathway Position Company for Continued Momentum
Rhea-AI Summary
cbdMD (NYSE American: YCBD) reported Q2 FY2026 net sales of $5.6 million, up 19% year-over-year and 12% sequentially, driven by core growth and the Bluebird Botanicals acquisition.
Wholesale sales rose 65%, direct-to-consumer 4%. Operating loss was $0.8 million; net loss to common shareholders was $0.88 million. Working capital reached $5.4 million.
The Bluebird integration is progressing, with positive income in March. cbdMD is building a clinical healthcare channel to serve CMS’s new BEI Medicare pathway for eligible hemp-derived CBD products, aiming to leverage emerging bipartisan hemp legislation and cannabis rescheduling.
Positive
- Q2 FY2026 net sales grew 19% year-over-year to $5.6 million
- Sequential revenue increased 12% versus Q1 FY2026
- Wholesale net sales rose 65% year-over-year to $1.8 million
- Net loss to common shareholders narrowed to $0.88 million from $1.5 million
- Working capital increased to $5.4 million; cash rose to $2.6 million
- Bluebird Botanicals turned income-positive in March 2026, supporting growth
Negative
- Q2 FY2026 loss from operations was $0.80 million
- Adjusted EBITDA remained negative at a $0.22 million loss
- Operating expenses increased to $4.06 million from $3.45 million year-over-year
- BEI Medicare program faces ongoing legal and administrative scrutiny, including pending litigation
News Market Reaction – YCBD
In the May 15 session, YCBD declined 5.32%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.1% during that session. Argus tracked a trough of -14.5% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 14 | Bluebird acquisition | Positive | +2.9% | Announced closing of Bluebird Botanicals asset acquisition with expected synergies. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Limited history, but prior acquisition news saw a positive move of 2.88% on announcement.
Over recent months, cbdMD has focused on growth and strategic expansion. On Jan 14, 2026, it closed the Bluebird Botanicals asset acquisition using share-based consideration and potential earnout shares, targeting cost and revenue synergies and aiming for positive EBITDA and net income. Today’s update links that acquisition to revenue growth and early integration progress, framing the deal as a key driver of the company’s evolving hemp and wellness roll-up strategy.
Key Terms
adjusted EBITDA financial
ACO REACH Model regulatory
Form 10-K regulatory
restricted stock units financial
going concern financial
evergreen formula financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
CHARLOTTE, N.C. , May 14, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most trusted CBD companies and operator of the cbdMD, Bluebird Botanicals, and Paw CBD brands, along with its THC beverage brand Oasis, today announced financial results for the second quarter of fiscal year 2026, ended March 31, 2026.
The Company delivered
"This was a quarter of meaningful execution on multiple fronts," said Ronan Kennedy, CEO and CFO of cbdMD. "Our core business delivered another quarter of consistent growth, we successfully completed and integrated our first acquisition in years. The Bluebird Botanicals acquisition is a case study for what we can do — leveraging our infrastructure, marketing engine, and NYSE American listing to unlock value in a fragmented industry — and it sets the template for additional roll-up opportunities across hemp and adjacent health and wellness categories."
"At the same time, the regulatory backdrop has shifted more in the last few months than in any period I can recall," Kennedy continued. "Multiple bipartisan legislative proposals are advancing, cannabis has been partially rescheduled, and CMS has opened the first federal Medicare pathway for hemp-derived CBD through the BEI program. We have been preparing for this moment for years. The launch of our clinical healthcare channel, our active engagement with ACOs, and our continued investment in patient science position cbdMD to participate meaningfully as adoption develops. We believe that as regulatory clarity continues to emerge, well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility will be the ones that benefit — and that is precisely where cbdMD stands."
Highlights for the Second Quarter of Fiscal 2026 and Notable Business Updates
- Bluebird Botanicals integration on track. In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. While acquisition and transition costs created an earnings drag during the quarter, Bluebird began generating positive income in March. Early third-quarter revenue is growing, and management expects the brand to contribute meaningfully to both top-line growth and earnings as additional products roll out and integration efficiencies are realized.
- CMS BEI Medicare pathway activated. Subsequent to quarter-end, on April 1, 2026, CMS, through the Center for Medicare & Medicaid Innovation, activated the BEI for eligible participants in select Innovation Center models, including the ACO REACH Model and the Enhancing Oncology Model. The optional BEI allows approved participants, subject to CMS requirements, safeguards, and physician oversight, to furnish eligible hemp-derived products to beneficiaries at up to
$500 - cbdMD positioned as an evidence-based supplier of choice. cbdMD has launched a dedicated clinical healthcare channel to support the BEI pathway and is actively engaging ACOs, oncology practices, and health systems. The Company is continuing to invest in patient science to deepen the clinical evidence base supporting its products and to position itself as a trusted, evidence-based supplier as provider adoption develops. Management expects the early phase of the BEI to be implementation-led, with visibility into adoption developing through the second half of the calendar year. The program remains subject to ongoing legal and administrative scrutiny, including pending litigation, which the Company is actively monitoring.
- Bipartisan legislative momentum building. The Company continues to monitor and support bipartisan efforts to address the restrictive hemp legislation enacted in November 2025, including delay and comprehensive-framework proposals introduced in both the House and Senate. cbdMD believes that increased regulatory clarity — combined with the partial rescheduling of cannabis to Schedule III in April 2026 — will favor well-capitalized, compliance-focused operators with strong quality, safety, and clinical standards.
Financial Highlights from our Second Quarter of Fiscal Year 2026:
- Net sales totaled
$5.6 million 19% compared to$4.7 million 12% from the first quarter of fiscal 2026. - Our loss from operations was
$801,000 $485,000 - Our non-GAAP adjusted EBITDA loss from operations in the second quarter of fiscal 2026 was approximately
$220,000 $197,000 - Net loss attributable to common shareholders for the second quarter of fiscal 2026 was approximately
$0.88 million $0.08 $1.5 million $1.90 - At March 31, 2026 we had working capital of approximately
$5.4 million $2.6 million $3.3 million $2.2 million - We reported direct to consumer (DTC) net sales of
$3.8 million 67% of total net sales in the second quarter of fiscal 2026, an increase of$0.16 million 4% from the second quarter of fiscal 2025. - We reported wholesale net sales of
$1.8 million 33% of total net sales in the second quarter of fiscal 2026, an increase of$0.73 million 65% from the second quarter of fiscal 2025.
We will host a conference call at 4:20 p.m., Eastern Time, on Thursday, May 14, 2026, to discuss our March 31, 2026, second quarter of fiscal 2026 financial results and business progress.
CONFERENCE CALL DETAILS
Thursday, May 14, 2026, 4:20 p.m. Eastern Time | ||||||||||
888-880-3330 | ||||||||||
Webcast/Webcast Replay link- available through May 14, 2027: | ||||||||||
About cbdMD, Inc.
cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands with a comprehensive line of
1THC-free is defined as below the level of detection using validated scientific analytical methods.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
Non-GAAP Financial Measures
This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with
cbdMD, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
MARCH 31, 2026 AND SEPTEMBER 30, 2025 | ||||||||
(unaudited) | ||||||||
March 31, | September 30, | |||||||
2026 | 2025 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ 2,635,243 | $ 2,261,242 | ||||||
Accounts receivable, net | 1,573,101 | 1,040,887 | ||||||
Inventory, net | 3,321,045 | 2,732,127 | ||||||
Inventory prepaid | 331,694 | 214,795 | ||||||
Prepaid expenses and other current assets | 520,110 | 302,378 | ||||||
Total current assets | 8,381,193 | 6,551,429 | ||||||
Other assets: | ||||||||
Property and equipment, net | 361,119 | 277,377 | ||||||
Operating lease assets | 361,558 | 703,934 | ||||||
Deposits for facilities | 62,708 | 62,708 | ||||||
Intangible assets, net | 2,193,271 | 2,124,502 | ||||||
Goodwill | 190,000 | - | ||||||
Investment in other securities, noncurrent | 700,000 | 700,000 | ||||||
Total other assets | 3,868,656 | 3,868,521 | ||||||
Total assets | $ 12,249,849 | $ 10,419,950 | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
MARCH 31, 2026 AND SEPTEMBER 30, 2025 | ||||||||
(continued) | ||||||||
March 31, | September 30, | |||||||
2026 | 2025 | |||||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ 1,393,402 | $ 1,173,642 | ||||||
Accrued expenses | 626,722 | 735,672 | ||||||
Accrued dividends | 78,805 | - | ||||||
Deferred revenue | 454,039 | 506,289 | ||||||
Operating leases - current portion | 407,811 | 778,240 | ||||||
Note payable | 7,321 | - | ||||||
Total current liabilities | 2,968,100 | 3,193,843 | ||||||
cbdMD, Inc. shareholders' equity: | ||||||||
Preferred stock, authorized 50,000,000 shares, | ||||||||
par value, 1,591,210 and 1,700,000 shares issued and outstanding, respectively | 1,591 | 1,700 | ||||||
Common stock, authorized 150,000,000 shares, | ||||||||
par value, 10,070,560 and 8,917,054 shares issued and outstanding, respectively | 10,496 | 8,917 | ||||||
Additional paid in capital | 189,909,199 | 186,650,640 | ||||||
Accumulated deficit | (180,636,537) | (179,435,150) | ||||||
Total cbdMD, Inc. shareholders' equity | 9,284,749 | 7,226,107 | ||||||
Total liabilities and shareholders' equity | $ 12,252,849 | $ 10,419,950 | ||||||
cbdMD, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025 | ||||||||||||
(unaudited) | ||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Gross Sales | $ 5,640,059 | $ 4,749,426 | $ 9,862,902 | |||||||||
Total Net Sales | $ 5,640,059 | $ 4,749,426 | $ 9,862,902 | |||||||||
Cost of sales | $ 2,383,137 | $ 1,790,062 | $ 4,398,751 | $ 3,502,929 | ||||||||
Gross Profit | $ 3,256,922 | $ 2,959,364 | $ 6,258,213 | $ 6,359,973 | ||||||||
Operating expenses | $ 4,057,706 | $ 3,445,180 | $ 7,345,287 | $ 6,932,061 | ||||||||
Loss from operations | $ (800,784) | $ (485,816) | $ (1,087,074) | $ (572,088) | ||||||||
Decrease (increase) in fair value of convertible debt | $ - | $ (2,583) | $ - | $ 87,380 | ||||||||
Interest expense (income) | $ 2,806 | $ 7,642 | $ 5,963 | $ 19,046 | ||||||||
Loss before provision for income taxes | $ (797,978) | $ (480,757) | $ (1,081,111) | $ (465,662) | ||||||||
Net (loss) income | $ (797,978) | $ (480,757) | $ (1,081,111) | $ (465,662) | ||||||||
Preferred dividends | $ 78,805 | $ 1,000,500 | $ 120,276 | $ 2,001,001 | ||||||||
Net Loss attributable to cbdMD, Inc. common shareholders | $ (876,783) | $ (1,481,257) | $ (1,201,387) | $ (2,466,663) | ||||||||
Net Loss per share: | ||||||||||||
Basic and diluted earnings per share | $ (0.08) | $ (1.90) | $ (0.12) | $ (3.67) | ||||||||
Weighted average number of shares Basic and Diluted: | 10,443,617 | 778,410 | 9,715,873 | 672,558 | ||||||||
cbdMD, INC. | ||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||
FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025 | ||||||
(unaudited) | ||||||
March 31, | March 31, | |||||
2026 | 2025 | |||||
Cash flows from operating activities: | ||||||
Net Loss | $ (1,081,111) | $ (465,662) | ||||
Adjustments to reconcile net loss to net | ||||||
cash used by operating activities: | ||||||
Restricted stock expense | $ 296,950 | $ 2,868 | ||||
Issuance of stock for services | $ - | $ 82,250 | ||||
Intangibles amortization | $ 398,126 | $ 382,534 | ||||
Depreciation | $ 98,866 | $ 201,369 | ||||
Decrease in fair value of convertible debt | $ - | $ (87,380) | ||||
Amortization of operating lease asset | $ 342,376 | $ 330,969 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | $ (511,168) | $ (67,408) | ||||
Inventory | $ (325,720) | $ (297,518) | ||||
Prepaid inventory | $ (116,899) | $ (62,623) | ||||
Prepaid expenses and other current assets | $ (110,764) | $ (62,361) | ||||
Accounts payable and accrued expenses | $ (121,059) | $ (277,135) | ||||
Operating lease liability | $ (370,428) | $ (241,489) | ||||
Deferred revenue / customer deposits | $ (34,133) | $ 54,160 | ||||
Cash flows from operating activities | $ (1,534,964) | $ (507,426) | ||||
Cash flows from investing activities: | ||||||
Purchase of property and equipment | $ (170,550) | $ (179,893) | ||||
Purchase of Bluebird | $ 56,427 | $ - | ||||
Cash flows from investing activities | $ (114,123) | $ (179,893) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of preferred stock | $ 2,026,088 | $ - | ||||
Cash flows from financing activities | $ 2,026,088 | $ - | ||||
Net increase (decrease) in cash | $ 377,001 | $ (687,319) | ||||
Cash and cash equivalents, beginning of period | $ 2,261,242 | $ 2,452,553 | ||||
Cash and cash equivalents, end of period | $ 2,638,243 | $ 1,765,234 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||
2026 | 2025 | |||||
Cash Payments for: | ||||||
Interest expense | $ 19,046 | |||||
Non-cash financing/investing activities: | ||||||
Issuance of shares for conversion of debt and accrued interest | $ - | $ 1,079,639 | ||||
All stock purchase of Bluebird | $ 936,992 | $ - | ||||
Issuance of shares for service | $ - | $ 82,250 | ||||
Preferred dividends accrued but not paid | $ 78,805 | $ 2,001,000 | ||||
cbdMD, Inc. | ||||||||||
NON GAAP ADJUSTED EBITDA | ||||||||||
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025 | ||||||||||
(unaudited) | ||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||
2026 | 2025 | 2026 | 2025 | |||||||
GAAP (loss) from operations | $ (800,784) | $ (485,816) | $ (1,087,074) | $ (572,088) | ||||||
Adjustments: | ||||||||||
Depreciation and Amortization (1) | $ 251,550 | $ 285,896 | $ 496,992 | $ 583,903 | ||||||
Employee and director stock compensation (2) | $ 296,872 | $ 1,934 | $ 301,804 | $ 5,016 | ||||||
Mergers and Acquisitions and financing transaction expense (3) | $ 31,671 | $ - | $ 53,688 | $ - | ||||||
Non-GAAP adjusted EBITDA | $ (220,691) | $ (197,986) | $ (234,590) | $ 16,831 | ||||||
(1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets. | ||||||||||
(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period. | ||||||||||
(3) Represents costs associated with the Bluebird acquisition. | ||||||||||
Contacts:
Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064
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SOURCE cbdMD, Inc.