cbdMD Reports 20% Year-over-Year Revenue Growth for the Third Fiscal Quarter of 2026
Rhea-AI Summary
cbdMD (NYSE American: YCBD) reported third fiscal quarter 2026 net sales of $5.6 million, up 20% year-over-year, driven by a 61% increase in wholesale net sales, expanding Oasis beverage distribution, and the first full-quarter contribution of over $0.5 million from Bluebird Botanicals.
Direct-to-consumer sales were $3.9 million (70% of revenue), up about 9%, while wholesale reached $1.7 million (30% of revenue). Gross margin declined to from 61.5%, and loss from operations widened to about $1.13 million. However, non-GAAP Adjusted EBITDA loss improved to approximately $508,000. Net loss attributable to common shareholders was about $1.2 million, or $0.11 per share, versus $0.21 per share a year earlier.
For the first nine months of fiscal 2026, net sales rose 12% to $16.2 million and net loss attributable to common shareholders improved to about $2.4 million. According to cbdMD, cost-reduction actions initiated in July target $100,000–$150,000 in monthly savings as the company prepares for pending U.S. hemp regulations.
Positive
- Revenue +20% YoY to $5.6 million in Q3 2026
- Wholesale net sales +61% YoY to $1.7 million, 30% of revenue
- Nine-month net sales +12% to $16.2 million vs. $14.5 million
- Bluebird Botanicals contributed over $0.5 million in Q3 revenue
- Adjusted EBITDA loss improved to ~$508,000 from ~$624,000 YoY
- Planned cost reductions of $100,000–$150,000 per month from Q4 2026
Negative
- Gross margin fell to 54.7% from 61.5% year-over-year
- Loss from operations widened to ~$1.13 million from ~$0.90 million
- Net loss to common shareholders remained ~$1.2 million in Q3
- Operating cash outflow of ~$1.98 million for nine months ended June 30, 2026
- Over $100,000 in legal and M&A due-diligence costs weighed on results
News Explained
Bluebird was acquired with stock, and reported common shares rose to 11,118,820 by June 30, 2026, affecting existing ownership percentages.
cbdMD reports that Bluebird Botanicals was recently acquired and contributed a full quarter of revenue, while the purchase was an all-stock transaction; the consideration was stock rather than cash, creating a larger-share-base mechanism that can reduce existing common holders’ percentage ownership.
In the supplied definition, dilution occurs when additional shares increase total shares and reduce an existing holder’s percentage ownership absent offsetting changes.
The balance sheet reports 11,118,820 common shares issued and outstanding at
The named regulatory resolution path is a House vote on H.R. 6500 by the end of
Market Reaction – YCBD
Following this news, YCBD has declined 0.32%, reflecting a mild negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.56.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 10 | Conference call notice | Neutral | +0.2% | Scheduled discussion of June 30 third-quarter results and business progress |
| Aug 03 | Hemp policy support | Positive | +12.3% | Senate proposal extended protections for naturally derived hemp products |
| Jul 24 | Hemp legislation support | Positive | -6.7% | Company supported legislation seeking a long-term federal hemp framework |
| Jul 14 | Distribution partnership | Positive | -3.6% | Oasis expanded availability across South Carolina through a distributor |
| Jul 09 | Conservation partnership | Positive | +8.0% | Bluebird partnered with Denver Audubon and committed one percent of profits |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive announcements produced both aligned and divergent reactions, while the recent conference-call notice had a 0.18% reaction.
Key Terms
self-gras regulatory
adjusted ebitda financial
continuing resolution regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Accelerating Oasis Beverage Momentum, a Full Quarter of Bluebird Botanical Contribution, and Advancing Federal Hemp Legislation Strengthen the Company's Positioning for Competing under Pending Federal Regulations
The Company delivered
"The third quarter was another quarter of top-line growth and real strategic progress," said Ronan Kennedy, Chief Executive Officer and Chief Financial Officer of cbdMD. "Revenue was up
"The regulatory picture is also moving in a more constructive direction," Kennedy continued. "A Senate-driven extension has given cbdMD and the broader industry additional time ahead of the November effective date of the H.R. 5371 Sec. 781 legislation to ensure company compliance with the pending laws, and the number of bipartisan legislative proposals continues to grow, including the Beverage Regulatory Parity Act introduced this week, which would regulate hemp-derived beverages much like alcohol. We believe momentum is building toward a workable federal framework, and that well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility, such as cbdMD, will be the ones that benefit as clarity emerges."
Highlights for the Third Quarter of Fiscal 2026 and Notable Business Updates
- Revenue growth accelerated year-over-year. Net sales increased
20% to$5.6 million $4.6 million 61% year-over-year. For the first nine months of fiscal 2026, net sales rose12% to$16.2 million $14.5 million - Oasis momentum continued to build. The Company added distribution for Oasis in
South Carolina and transitioned to a new distribution partner inTexas that more than quadrupled the number of stores with access to the brand, with continued market growth into the fourth quarter. The recently launched Oasis Mixer has been well received and is contributing to brand growth. Distributor depletions grew25% in the third fiscal quarter. We had record distributor depletions in July up over34% from the Q3 average and currently at a pace to double in August - Oasis ingredient expansion. As of today, the Company is introducing a zero-proof Kava beverage under its Oasis brand as a follow-on to the successful Oasis Mixer. Kava is a natural euphoric people can feel! Immediate, functional, and free of intoxication and regulatory overhang of THC. This is the first of other natural compounds we anticipate launching before the end of the calendar year.
- Bluebird Botanicals delivered its first full quarter of revenue. Bluebird Botanicals ("Bluebird") contributed more than
$0.5 million - A federal extension creates procedural time to advance a permanent fix on Section 781. While the additional time helps cbdMD and the broader industry manage near-term compliance, its more important benefit is the procedural runway it creates for Congress to put a durable, industry-wide framework in place. A Senate stopgap appropriations proposal released in early August 2026 would, through December 11, 2026, temporarily exempt naturally occurring cannabinoids from the revised total-THC definition and the 0.4 milligram per-container limit under Section 781 of H.R. 5371, signed into law in November 2025, providing additional time ahead of the November 12, 2026 effective date both to bring products into compliance and, more significantly, to advance a permanent legislative solution for the industry. The continuing resolution, H.R. 6500, now moves to the House of Representatives for a vote by the end of September.
- Bipartisan legislative momentum is growing. A growing number of bipartisan bills would repeal, delay, modify, or replace Section 781's restrictions, including the White House-supported Lawful Hemp Protection Act (H.R. 9830) introduced in July 2026. Most recently, on August 10, 2026, Representatives Beth Van Duyne (R-TX) and Greg Landsman (D-OH) introduced the bipartisan Beverage Regulatory Parity Act, which would establish an alcohol-style regulatory framework for hemp-derived beverages, a development directly relevant to the Company's Oasis brand.
- Deliberate investments and one-time costs affected the bottom line. Results reflected more than
$100,000 $100,000 $150,000 $1.2 million $1.8 million
Financial Highlights from the Third Quarter of Fiscal Year 2026
- Net sales totaled
$5.6 million 20% compared to$4.6 million $16.2 million 12% compared to$14.5 million - Direct-to-consumer (e-commerce) net sales were
$3.9 million 70% of total net sales, an increase of approximately9% from the third quarter of fiscal 2025. The increase was attributed to addition of Bluebird, with some offsets related to increased state level restrictions. - Wholesale net sales were
$1.7 million 30% of total net sales, an increase of61% from the third quarter of fiscal 2025, reflecting continued progress with the Oasis brand and core cbdMD initiatives. - Gross profit as a percentage of net sales was
54.7% in the third quarter of fiscal 2026, compared to61.5% in the prior-year quarter, primarily reflecting a shift in sales mix toward wholesale, incremental warehouse and repacking costs related to changing state-level requirements, and an increase in inventory reserves in anticipation of pending regulatory changes. - Loss from operations was approximately
$1.13 million $0.90 million - Non-GAAP Adjusted EBITDA loss was approximately
$508,000 $624,000 - Net loss attributable to common shareholders for the third quarter of fiscal 2026 was approximately
$1.2 million $0.11 $1.2 million $0.21 $2.4 million $0.24 $3.7 million $1.56 - At June 30, 2026, the Company had working capital of approximately
$4.7 million $2.1 million $3.4 million $2.3 million
Conference Call Details
The Company will host a conference call at 4:20 pm Eastern Time, on August 13, 2026, to discuss its third quarter fiscal 2026 financial results and business progress.
Webcast / Webcast Replay link: https://app.webinar.net/PGD52PJopeq
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 U.S.-produced THC-free1 CBD products and an array of Farm Bill-compliant Delta 9 products. The Company owns and operates the cbdMD, Paw CBD, and Bluebird Botanicals CBD brands, the Oasis line of hemp-derived THC beverages, the Kavari line of Kava products, and the ATRx Labs functional-mushroom brand. To learn more about cbdMD and its other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
1 THC-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 U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes," "will," "could," "would," "potential," "continue," "seek," and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and the performance of our core business and Oasis brand; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition and our pursuit of additional acquisitions; the anticipated benefits of our cost-reduction and supply-chain initiatives; our expectations regarding federal and state regulatory developments, including proposed legislation and the effective date of Section 781 of the Act, and their impact on our business; and our liquidity and working capital position. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of Section 781 of the Act and related legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and our other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms is not part of this press release.
cbdMD, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
JUNE 30, 2026 AND SEPTEMBER 30, 2025 | ||||||||
(unaudited) | ||||||||
June 30, | September | |||||||
2026 | 2025 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ 21,18,339 | $ 22,61,242 | ||||||
Accounts receivable, net | 17,52,661 | 10,40,887 | ||||||
Inventory, net | 32,78,436 | 27,32,127 | ||||||
Inventory prepaid | 1,86,763 | 2,14,795 | ||||||
Prepaid sponsorship | 21,161 | 25,231 | ||||||
Prepaid expenses and other current assets | 3,39,162 | 2,77,147 | ||||||
Total current assets | 76,96,522 | 65,51,429 | ||||||
Other assets: | ||||||||
Property and equipment, net | 3,34,840 | 2,77,377 | ||||||
Operating lease assets | 21,83,117 | 7,03,934 | ||||||
Deposits for facilities | 62,708 | 62,708 | ||||||
Intangible assets, net | 19,78,646 | 21,24,502 | ||||||
Goodwill | 1,90,000 | - | ||||||
Investment in other securities, noncurrent | 7,00,000 | 7,00,000 | ||||||
Total other assets | 54,49,311 | 38,68,521 | ||||||
Total assets | $ 1,31,45,833 | $ 1,04,19,950 | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
JUNE 30, 2026 AND SEPTEMBER 30, 2025 | ||||||||
(continued) | ||||||||
June 30, | September 30, | |||||||
2026 | 2025 | |||||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ 14,92,250 | $ 11,73,642 | ||||||
Accrued expenses | 5,87,767 | 7,35,672 | ||||||
Operating leases - current portion | 3,50,949 | 7,78,240 | ||||||
Note payable | 7,321 | - | ||||||
Total current liabilities | 30,79,569 | 31,93,843 | ||||||
Long term liabilities: | ||||||||
Operating leases - long term portion | 15,83,994 | - | ||||||
Total long term liabilities: | 15,83,994 | - | ||||||
Total liabilities: | 46,63,563 | 31,93,843 | ||||||
Commitments and Contingencies | ||||||||
cbdMD, Inc. shareholders' equity: | ||||||||
Preferred stock, authorized 50,000,000 shares, | ||||||||
par value, 1,591,210 and 1,700,000 shares issued and outstanding, | 1,591 | 1,700 | ||||||
Common stock, authorized 150,000,000 shares, | ||||||||
par value, 11,118,820 and 8,917,054 shares issued and outstanding, | 11,119 | 8,917 | ||||||
Additional paid in capital | 19,00,34,330 | 18,66,50,640 | ||||||
Accumulated deficit | (18,18,34,770) | (17,94,35,150) | ||||||
Total cbdMD, Inc. shareholders' equity | 82,12,270 | 72,26,107 | ||||||
Total liabilities and shareholders' equity | $ 1,28,75,833 | $ 1,04,19,950 | ||||||
cbdMD, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025 | ||||||||||||
(unaudited) | ||||||||||||
Three months ended June 30, | Nine months ended June 30, | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Gross Sales | $ 55,53,738 | $ 46,06,796 | ||||||||||
Total Net Sales | $ 55,53,738 | $ 46,06,796 | ||||||||||
Cost of sales | $ 25,16,204 | $ 17,75,709 | $ 69,14,955 | $ 52,78,638 | ||||||||
Gross Profit | $ 30,37,534 | $ 28,31,087 | $ 92,95,746 | $ 91,91,060 | ||||||||
Operating expenses | $ 41,68,011 | $ 37,35,773 | ||||||||||
Loss from operations | $ (11,30,477) | $ (9,04,686) | $ (22,17,553) | $ (14,76,774) | ||||||||
Decrease (increase) in fair value of convertible debt | $ - | $ - | $ - | $ 87,380 | ||||||||
Interest expense (income) | $ 3,275 | $ 9,414 | $ 9,238 | $ 28,460 | ||||||||
Loss before provision for income taxes | $ (11,27,202) | $ (8,95,272) | $ (22,08,315) | $ (13,60,934) | ||||||||
Net (loss) income | $ (11,27,202) | $ (8,95,272) | $ (22,08,315) | $ (13,60,934) | ||||||||
Preferred dividends | $ 71,031 | $ 3,33,500 | $ 1,91,307 | $ 23,34,501 | ||||||||
Net Loss attributable to cbdMD, Inc. common | $ (11,98,233) | $ (12,28,772) | $ (23,99,622) | $ (36,95,435) | ||||||||
Net Loss per share: | ||||||||||||
Basic and diluted earnings per share | $ (0.11) | $ (0.21) | $ (0.24) | $ (1.56) | ||||||||
Weighted average number of shares Basic and Diluted: | 1,06,16,617 | 57,83,354 | 1,00,16,121 | 23,76,157 | ||||||||
cbdMD, INC. | ||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||
FOR THE NINE MONTHS ENDED JUNE, 2026 AND 2025 | ||||||
(unaudited) | ||||||
June 30, | June 30, | |||||
2026 | 2025 | |||||
Cash flows from operating activities: | ||||||
Net Loss | $ (22,08,315) | $ (13,60,934) | ||||
Adjustments to reconcile net loss to net | ||||||
cash used by operating activities: | ||||||
Restricted stock expense | $ 3,62,109 | $ 3,693 | ||||
Issuance of stock for services | $ - | $ 82,250 | ||||
Intangibles amortization | $ 6,12,751 | $ 5,73,801 | ||||
Depreciation | $ 1,43,210 | $ 2,90,275 | ||||
Decrease in fair value of convertible debt | $ - | $ (87,380) | ||||
Amortization of operating lease asset | $ 5,24,525 | $ 4,99,309 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | $ (6,90,727) | $ 17,351 | ||||
Inventory | $ (2,83,110) | $ (4,33,495) | ||||
Prepaid inventory | $ 28,032 | $ (2,21,034) | ||||
Prepaid expenses and other current assets | $ 49,023 | $ 37,017 | ||||
Accounts payable and accrued expenses | $ 77,762 | $ (1,94,632) | ||||
Operating lease liability | $ (5,77,005) | $ (4,23,855) | ||||
Deferred revenue / customer deposits | $ (15,377) | $ 6,008 | ||||
Cash flows from operating activities | $ (19,77,122) | $ (12,11,626) | ||||
Cash flows from investing activities: | ||||||
Purchase of property and equipment | $ (1,88,615) | $ (1,81,368) | ||||
Purchase of Bluebird | $ 56,427 | $ - | ||||
Cash flows from investing activities | $ (1,32,188) | $ (1,81,368) | ||||
Cash flows from financing activities: | ||||||
Proceeds from ELOC draw | $ 61,990 | |||||
Proceeds from issuance of preferred stock | $ 20,24,693 | |||||
Preferred dividends distribution | $ (1,20,276) | $ - | ||||
Cash flows from financing activities | $ 19,66,407 | $ - | ||||
Net increase (decrease) in cash | $ (1,42,903) | $ (13,92,994) | ||||
Cash and cash equivalents, beginning of period | $ 22,61,242 | $ 24,52,553 | ||||
Cash and cash equivalents, end of period | $ 21,18,339 | $ 10,59,559 | ||||
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 | $ - | $ 10,79,639 | ||||
Change in lease asset related to extinguishment of HQ lease and new warehouse lease | $ - | $ (17,23,544) | ||||
ROU Assets obtained in exchange for lease liabilities | $ 20,03,708 | $ - | ||||
All stock purchase of Bluebird | $ 9,36,992 | $ - | ||||
Conversion of accrued preferred dividends to preferred stock | $ - | $ 66,72,652 | ||||
Preferred dividends accrued but not paid | $ 71,031 | $ 23,34,501 | ||||
Non-GAAP Financial Measures
This press release includes a financial measure, Adjusted EBITDA, that excludes the impact of certain items and therefore has not been calculated in accordance with
Reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted EBITDA (Unaudited)
cbdMD, Inc. | ||||||||||
NON GAAP ADJUSTED EBITDA | ||||||||||
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025 | ||||||||||
(unaudited) | ||||||||||
Three months ended June 30, | Nine months ended June 30, | |||||||||
2026 | 2025 | 2026 | 2025 | |||||||
GAAP (loss) from operations | $ (11,30,477) | $ (9,04,686) | $ (22,17,553) | $ (5,72,088) | ||||||
Adjustments: | ||||||||||
Depreciation and Amortization (1) | $ 2,58,969 | $ 2,80,172 | $ 7,55,962 | $ 5,83,903 | ||||||
Employee and director stock compensation (2) | $ 65,159 | $ 825 | $ 3,66,963 | $ 5,016 | ||||||
Inventory Reserve (3) | $ 1,20,000 | $ 1,20,000 | ||||||||
Regulatory and Legal Mattters (4) | $ 53,000 | $ 53,000 | ||||||||
Mergers and Acquisitions and financing transaction expense (5) | $ 1,26,000 | $ - | $ 1,57,671 | $ - | ||||||
Non-GAAP adjusted EBITDA | $ (5,07,349) | $ (6,23,689) | $ (7,63,957) | $ 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 additional inventory reserve in preparation for pending regulatory changes. | |||||||
(4) Represents regulatory costs associated with pending legislation. | |||||||
(5) Represents costs associated with the Bluebird acquisition, preferred stock offerings and review of additional potential acquisition opportunities. | |||||||
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.