cbdMD Reports Sequential Revenue Growth, Improved Liquidity, and Strong Start to Fiscal 2026

Rhea-AI Summary

cbdMD (NYSE American: YCBD) reported a sequential revenue increase and improved liquidity for Q1 FY2026 ended December 31, 2025. Net sales were $5.0 million, up 12% sequentially; working capital rose to $5.4 million and cash to $3.4 million. The company closed a $2.25 million Series C and completed the acquisition of Bluebird Botanicals, including GRAS status for full‑spectrum CBD, with integration underway.

Operating loss was $286,000 and adjusted EBITDA was a $36,000 loss; net loss attributable to common shareholders was $0.32 million (loss of $0.04 per share).

Positive

• Revenue +12% sequentially in Q1 FY2026
• Working capital increased to $5.4 million (from $3.3 million)
• Raised approximately $2.25 million in Series C preferred financing
• Wholesale net sales +22% year-over-year
• Completed acquisition of Bluebird Botanicals, including GRAS for full‑spectrum CBD

Negative

• Loss from operations of $286,000 in Q1 FY2026
• Adjusted EBITDA swung to a loss of approximately $36,000
• Net loss attributable to common shareholders of $0.32 million

Key Figures

Net sales: $5.0 million Sequential revenue growth: 12% Loss from operations: $286,000 +5 more

8 metrics

Net sales $5.0 million Q1 fiscal 2026; down 1.9% vs $5.1M in Q1 fiscal 2025

Sequential revenue growth 12% Revenue growth vs fourth quarter of fiscal 2025

Loss from operations $286,000 Q1 fiscal 2026; higher loss vs $86,000 in prior-year quarter

Adjusted EBITDA $36,000 loss Non-GAAP adjusted EBITDA in Q1 fiscal 2026 vs $214,000 profit in Q1 2025

Net loss to common $0.32 million ($0.04/share) Q1 fiscal 2026 vs $1.0 million ($1.73/share) in Q1 fiscal 2025

Working capital & cash $5.4M working capital; $3.4M cash At Dec 31, 2025 vs $3.3M and $2.2M at Sep 30, 2025

DTC net sales $3.6 million (72% of sales) Q1 fiscal 2026; down $0.35M or 9% vs Q1 fiscal 2025

Wholesale net sales $1.4 million (21% of sales) Q1 fiscal 2026; up $0.25M or 22% vs Q1 fiscal 2025

Market Reality Check

Price: $0.7764 Vol: Volume 1,098,484 is below...

low vol

$0.7764 Last Close

Volume Volume 1,098,484 is below the 20-day average of 1,811,664 (relative volume 0.61), suggesting a light pre-news session. low

Technical Shares at $0.7012 trade below the 200-day MA of $0.93 and sit 84.77% under the 52-week high, though still 49.16% above the 52-week low.

Peers on Argus

Sector momentum data flags a broader move, with 2 peers (e.g., BFRI) in the scan...

2 Down

Sector momentum data flags a broader move, with 2 peers (e.g., BFRI) in the scanner moving down (median about -5.0%). By contrast, YCBD was up 2.36% on below-average volume, indicating some stock-specific strength versus weaker peers.

Historical Context

5 past events · Latest: Feb 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Earnings call notice	Neutral	-9.1%	Announcement of upcoming call on Q1 2026 results and business update.
Feb 02	Distribution expansion	Positive	-16.4%	Herbal Oasis THC seltzer distribution expanded into Louisiana with MBG.
Jan 29	Regulatory platform	Positive	+2.3%	New regulatory science program leveraging Bluebird GRAS and cbdMD data.
Jan 14	Strategic acquisition	Positive	+2.9%	Closing of Bluebird Botanicals asset purchase to add revenue and synergies.
Dec 19	Full-year results	Positive	-9.3%	Fiscal 2025 results, balance sheet actions, and listing compliance regained.

Pattern Detected

Recent positive operating and strategic updates have often faced selling pressure, with multiple upbeat releases followed by negative 24-hour price reactions.

Recent Company History

Over the past few months, cbdMD has focused on balance sheet repair, operating improvement, and strategic expansion. A Dec 19, 2025 update highlighted $19.19M in fiscal 2025 net sales and regained NYSE American compliance, yet the stock fell. Announcements on the Bluebird Botanicals acquisition (Jan 14, 2026) and a regulatory science platform showed more constructive 24-hour moves. Distribution expansion for Herbal Oasis and the recent earnings call notice drew negative reactions, underscoring mixed trading responses to fundamentally positive news.

Market Pulse Summary

This announcement highlights cbdMD’s sequential revenue growth, with Q1 fiscal 2026 net sales of $5....

Analysis

This announcement highlights cbdMD’s sequential revenue growth, with Q1 fiscal 2026 net sales of $5.0 million and improved liquidity, including about $3.4 million in cash and roughly $5.4 million in working capital. At the same time, the company remained unprofitable, posting an operating loss near $286,000 and slightly negative adjusted EBITDA. Investors may watch integration of Bluebird Botanicals, mix shifts between DTC and wholesale, regulatory developments, and capital-raising activity for future progress toward sustainable profitability.

Key Terms

thc-free, definitive proxy statement, non-gaap financial measures, adjusted ebitda

4 terms

thc-free medical

"a comprehensive line of U.S. produced THC-free1 CBD products and an array of Farm Bill compliant Delta 9 products."

thc-free indicates a product has no detectable tetrahydrocannabinol (THC), the psychoactive compound found in cannabis, based on laboratory testing and the limits set by regulators or sellers. For investors, claiming a product is THC-free affects legal compliance, market access and consumer trust—like a “no nuts” label that reduces allergy risk—because it can lower regulatory and reputational risk and broaden the customer base.

definitive proxy statement regulatory

"the Company also recently filed a definitive proxy statement for its 2026 annual meeting"

A Definitive Proxy Statement is a detailed document that a company sends to its shareholders before a big meeting, like voting on important decisions. It explains what's being voted on and gives important information so shareholders can make informed choices. It matters because it helps shareholders understand and participate in key company decisions.

non-gaap financial measures financial

"This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted EBITDA because management uses this measure"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

adjusted ebitda financial

"Our non-GAAP adjusted EBITDA loss from operations in the first quarter of fiscal 2026 was approximately $36,000"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., Feb. 17, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most highly trusted and recognized CBD companies, and operator of the leading CBD brands cbdMD, Bluebird Botanicals, Paw CBD, along with its THC beverage brand Oasis today announced its financial results for the first quarter of fiscal year ended December 31, 2025.

cbdMD reported 12% sequential revenue growth and improved liquidity in the first quarter of fiscal 2026, reflecting continued stabilization of the core business and early benefits from recent strategic actions.

"We are encouraged by our return to sequential revenue growth and the continued stabilization of our core business," said Ronan Kennedy, CEO and CFO of cbdMD. "This quarter reflects several consecutive months of improving trends, including our strongest December and January in the past three years. With a stronger balance sheet, disciplined cost structure, and the addition of Bluebird Botanicals, we believe we are increasingly well positioned to drive improved operating results."

"The acquisition of Bluebird Botanicals represents a meaningful step forward for cbdMD. In addition to expanding our revenue base, Bluebird brings valuable intellectual property and regulatory assets, including GRAS status for full-spectrum CBD. As we integrate operations during the second fiscal quarter, we are focused on unlocking synergies and driving incremental earnings. We believe these actions position us to continue improving operating results and attain to sustainable profitability."

In addition to announcing its financial results, the Company also recently filed a definitive proxy statement for its 2026 annual meeting, scheduled March 30, 2026. Shareholders of record as of February 2, 2026 will be eligible to vote.

Highlights for the First Quarter of Fiscal 2026 and Notable Business Updates

• In December 2025, the Company raised approximately $2.25 million in Series C preferred financing, enhancing liquidity and working capital to support ongoing operations and integration efforts.
• In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. The transaction includes Bluebird's e-commerce business and select intellectual property, including GRAS status for full-spectrum CBD formulations. Integration is underway, with a focus on operational efficiencies, cost synergies, and revenue optimization. 
• The Company continues to monitor and support bipartisan efforts to address restrictive hemp legislation introduced in November 2025. cbdMD believes that increased regulatory clarity will favor well-capitalized, compliance-focused operators with strong quality and safety standards.

Financial Highlights from our First Quarter of Fiscal Year 2026:

• Net sales totaled $5.0 million in the first quarter of fiscal 2026 or a decrease of 1.9% compared to $5.1 million in first quarter of fiscal 2025. Sequentially, revenue was up 12% from the fourth quarter of fiscal 2025.
• Our loss from operations was $286,000 in the first quarter of fiscal 2026 as compared to a loss of $86,000 in the prior year comparative period.
• Our non-GAAP adjusted EBITDA loss from operations in the first quarter of fiscal 2026 was approximately $36,000 compared to Adjusted EBITDA of $214,000 from operations in the first quarter of fiscal 2025.
• Net loss attributable to common shareholders for the first quarter of fiscal 2026 was approximately $0.32 million or a loss of $0.04 per share as compared to a net loss for the first quarter of fiscal 2025 of approximately $1.0 million, or $1.73 per share.
• At December 31, 2025, we had working capital of approximately $5.4 million and cash on hand of approximately $3.4 million as compared to working capital of approximately $3.3 million and cash on hand of approximately $2.2 million at September 30, 2025.
• We reported direct to consumer (DTC) net sales of $3.6 million or 72% of total net sales in the first quarter of fiscal 2026, a decrease of $0.35 million, or 9% from the first quarter of fiscal 2025.
• We reported wholesale net sales of $1.4 million or 21% of total wholesale net sales in the first quarter of fiscal 2026, an increase of $0.25 million, or 22% from the first quarter of fiscal 2025.

We will host a conference call at 4:20 p.m., Eastern Time, on Tuesday, February 17, 2026, to discuss our December 31, 2025, first quarter of fiscal 2026 financial results and business progress.

CONFERENCE CALL DETAILS

Tuesday February 17, 2026, 4:20 p.m. Eastern Time
USA/Canada:	888-880-3330
Webcast/Webcast Replay link- available through February17, 2027: https://app.webinar.net/YzX7D4ynvN2

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. To learn more about cbdMD as well as our 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.
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 U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using 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 stabilization of our core business; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition; our ability to unlock operational efficiencies, cost synergies, and revenue optimization; our expectations regarding regulatory clarity and its impact on our business; our belief that we are well-positioned to drive improved operating results; 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 restrictive hemp 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, as filed with the Securities and Exchange Commission (the "SEC") on December 18, 2025, our Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, and our other filings with 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, including, but not limited to, Instagram and Facebook, is not part of this press release.

¹ THC-free is defined as below the level of detection using validated scientific analytical methods.

No Offer or Solicitation

This press release is for informational purposes only and shall not constitute a solicitation of a proxy, consent or authorization with respect to the Company's 2026 annual meeting. This communication may be deemed to be solicitation material in respect of the annual meeting proposals. In connection with the annual meeting proposals, the Company has filed a definitive proxy statement with the SEC and commenced mailing of the definitive proxy statement to its record shareholders, and the Company may file other documents with the SEC regarding the proposals in the proxy statement. THE COMPANY'S SHAREHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY IN THEIR ENTIRETY, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSALS.

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 U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted EBITDA because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has included below with this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

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.

FAQ

What drove cbdMD (YCBD) sequential revenue growth in Q1 FY2026?

Sequential growth was driven by operational stabilization and post‑holiday strength in December and January. According to cbdMD, improved trends and early benefits from strategic actions, including integration work and targeted cost discipline, supported the 12% sequential revenue increase.

How material is cbdMD's (YCBD) Bluebird Botanicals acquisition completed in January 2026?

The acquisition adds e‑commerce, IP and GRAS status for full‑spectrum CBD, supporting product breadth. According to cbdMD, integration focuses on synergies, operational efficiencies, and revenue optimization to drive incremental earnings.

How did cbdMD (YCBD) improve liquidity in Q1 FY2026?

Liquidity improved via a $2.25 million Series C financing and stronger working capital. According to cbdMD, cash increased to $3.4 million and working capital rose to $5.4 million at December 31, 2025.

What were cbdMD's (YCBD) profitability metrics for Q1 FY2026?

The company reported a loss from operations of $286,000 and adjusted EBITDA loss of about $36,000. According to cbdMD, net loss attributable to common shareholders was approximately $0.32 million, or $0.04 per share.

How did cbdMD's (YCBD) sales mix change in Q1 FY2026 between DTC and wholesale?

Direct‑to‑consumer remained the largest channel at 72% of sales, while wholesale grew year‑over‑year. According to cbdMD, DTC net sales were $3.6 million and wholesale net sales increased 22% to $1.4 million.

When is cbdMD's (YCBD) 2026 annual meeting and who is eligible to vote?

The annual meeting is scheduled for March 30, 2026; shareholders of record as of February 2, 2026 can vote. According to cbdMD, a definitive proxy statement has been filed and mailed to record shareholders.