cbdMD Reports Third Consecutive Year of Operating Improvement, Strengthens Balance Sheet, and Regains NYSE American Continued Listing Compliance

Rhea-AI Summary

cbdMD (NYSE American: YCBD) reported fiscal 2025 results for the year ended September 30, 2025, citing its third consecutive year of operating improvement and steps to strengthen the balance sheet and regain exchange compliance.

Key facts: Net sales $19.19M, gross margin 62%, loss from operations $2.16M (improved vs $3.32M in 2024), net loss to common $4.38M, cash $2.26M, and shareholders' equity ≈ $7.23M. Financing actions include $1.7M Series B (closed Sept 2025), $2.25M Series C (closed Dec 18, 2025), and a $20M equity line of credit (Dec 15, 2025 amendment).

The company said it resolved NYSE American listing deficiencies and noted an audit explanatory paragraph regarding its ability to continue as a going concern.

Positive

• Loss from operations improved by $1.15M year-over-year
• Net loss to common shareholders improved by $3.33M
• Shareholders' equity increased to approximately $7.23M
• Raised $2.25M gross from Series C convertible preferred stock
• Completed $1.7M Series B financing generating $1.5M net proceeds
• Entered a $20M equity line of credit (subject to SEC registration)

Negative

• Independent audit includes an explanatory going-concern paragraph
• Net loss attributable to common shareholders remained $4.38M
• Cash on hand only $2.26M at September 30, 2025

News Market Reaction

-9.27%

15 alerts

-9.27% News Effect

+28.3% Peak Tracked

-3.4% Trough Tracked

-$2M Valuation Impact

$17M Market Cap

0.4x Rel. Volume

On the day this news was published, YCBD declined 9.27%, reflecting a notable negative market reaction. Argus tracked a peak move of +28.3% during that session. Argus tracked a trough of -3.4% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $17M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net sales: $19.1 million Gross margin: 62% Operating loss: $2.1 million +5 more

8 metrics

Net sales $19.1 million Fiscal 2025 vs $19.5 million in fiscal 2024

Gross margin 62% Fiscal 2025, flat vs 62% in fiscal 2024

Operating loss $2.1 million Fiscal 2025 loss from operations vs $3.3 million in 2024

Adjusted EBITDA loss $0.9 million Non-GAAP adjusted EBITDA loss vs $1.6 million in 2024

Net loss to common $4.3 million Fiscal 2025 net loss attributable to common vs $7.7 million in 2024

Cash on hand $2.3 million Cash at September 30, 2025

Working capital $3.4 million Working capital at September 30, 2025 vs approximately negative $2.2 million in 2024

Equity line of credit $20 million Equity line of credit entered December 2025, subject to S-1 and SEC review

Market Reality Check

Price: $0.9454 Vol: Volume 51,692,396 is 1.68...

high vol

$0.9454 Last Close

Volume Volume 51,692,396 is 1.68x the 20-day average of 30,817,579, indicating elevated trading activity ahead of and around the earnings release. high

Technical YCBD at $1.93 is trading above its 200-day MA of $1.13 but remains 70.48% below its 52-week high.

Peers on Argus

YCBD fell 14.98% while peers were mixed: CPHI +3.23%, SNOA +5.26%, versus SBFM -...

YCBD fell 14.98% while peers were mixed: CPHI +3.23%, SNOA +5.26%, versus SBFM -3.53% and BFRI -3.12%. This points to a stock-specific reaction rather than a coordinated sector move.

Historical Context

5 past events · Latest: Dec 17 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 17	Earnings call notice	Neutral	+58.7%	Announcement of Dec 19 call to discuss Q4 and fiscal 2025 results.
Dec 17	Earnings call notice	Neutral	+58.7%	Repeat scheduling of conference call with webcast and phone details.
Dec 08	Listing compliance	Positive	+4.7%	Regained full compliance with NYSE American listing standards and .BC removal.
Dec 08	Listing compliance	Positive	+4.7%	Reiterated notice resolving Sections 1003(a)(i) and (ii) deficiencies.
Nov 21	Preliminary results	Positive	-6.7%	Preliminary fiscal 2025 and Q4 results showing improved net loss but flat sales.

Pattern Detected

Recent news has often seen positive price reactions to compliance and conference updates, but the stock sold off on preliminary fiscal 2025 results despite operational improvement.

Recent Company History

Over the past months, cbdMD has focused on financial stabilization and exchange compliance. Preliminary fiscal 2025 results on Nov 21, 2025 highlighted improving net sales and narrowing losses but saw a -6.67% move. On Dec 8, 2025, the company announced regaining NYSE American compliance, which coincided with a modest gain of 4.69%. A Dec 17, 2025 conference-call announcement preceded a sharp 58.74% rise. Today’s full-year results, balance sheet actions, and compliance confirmation extend this narrative of gradual operational improvement amid ongoing losses and capital structure changes.

Market Pulse Summary

The stock moved -9.3% in the session following this news. The decline reflects tension between cbdMD...

Analysis

The stock moved -9.3% in the session following this news. The decline reflects tension between cbdMD’s operational improvement and its still-elevated risk profile. Fiscal 2025 net sales were about $19.1 million with a narrower $2.1 million operating loss and improved working capital of roughly $3.4 million, yet auditors included a going-concern paragraph. Recent capital actions include Series B and Series C preferred raises and a $20 million equity line, while insider net selling of 550,701 shares and a 986,851-share Rule 144 filing may contribute to supply concerns and pressure despite regaining NYSE American compliance.

Key Terms

Series C Convertible Preferred Stock, Series B Convertible Preferred equity financing, equity line of credit, going concern, +4 more

8 terms

Series C Convertible Preferred Stock financial

"raised an additional $2.25 million in gross proceeds from the sale of Series C Convertible Preferred Stock"

Series C convertible preferred stock is a class of investment shares issued in a later private financing round that combine safety and upside: they usually pay ahead of ordinary shares if a company pays dividends or is sold, but can be converted into common stock to share in future growth. For investors this acts like a VIP ticket with a safety net—offering priority protection while preserving the option to participate in a successful exit.

Series B Convertible Preferred equity financing financial

"completed $1.7 million in Series B Convertible Preferred equity financing, generating $1.5 million in net proceeds"

A Series B convertible preferred equity financing is a later-stage private funding round where investors buy special shares that act like a safe mix of debt and ownership: they usually get priority for getting paid back and can later convert into regular common shares under agreed terms. It matters to investors because it changes who owns the company, how future profits or sale proceeds are split, and can dilute existing shareholders — think of it as getting paid now with an option to become a partner later.

equity line of credit financial

"the Company entered into a $20 million equity line of credit, providing cbdMD with a potential flexible and efficient mechanism"

An equity line of credit is a loan that allows homeowners to borrow money against the value of their property, similar to having a flexible credit card secured by their home. It matters to investors because it provides a way for property owners to access cash for various needs, which can influence real estate markets and overall economic activity. This type of credit offers ongoing borrowing capacity, making it a valuable financial tool for those with significant property equity.

going concern financial

"includes an explanatory paragraph related to cbdMD's ability to continue as a going concern"

A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.

non-GAAP 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 loss from operations because management uses this measure"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

THC-free medical

"a comprehensive line of U.S. produced THC-free1 CBD products and an array of Farm Act 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.

GMP manufacturing medical

"we have invested millions of dollars in GMP manufacturing, product testing, and compliance systems"

GMP manufacturing, or Good Manufacturing Practice, is a set of strict guidelines that ensure products, especially medicines and health-related items, are consistently produced and controlled to meet quality standards. For investors, it signifies that a company follows high-quality processes, reducing risks of defects or contamination, which can impact product safety and market trust. This adherence helps ensure the reliability and reputation of the products in the marketplace.

Delta 9 medical

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

Delta 9 (short for delta-9-tetrahydrocannabinol or Δ9-THC) is the main psychoactive compound in cannabis that produces the “high.” For investors, its importance is like alcohol percentage on a bottle: it determines product potency, consumer appeal, regulatory limits and labeling requirements, and can directly affect sales, legal compliance and risk for companies in cannabis-related markets.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., Dec. 19, 2025 /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 and Paw CBD, along with hemp derived THC beverage line Herbal Oasis today announced our financial results for the full fiscal year ended September 30, 2025.

For fiscal year 2025, cbdMD delivered its third consecutive year of operational and financial improvement, reflecting disciplined cost management, focused execution, and continued investment in quality and science.

The Company reported a loss from operations of $2.1 million, representing a $1.2 million year-over-year improvement from a $3.3 million operating loss in fiscal 2024. As a result of balance-sheet actions completed during the year, including the conversion of Series A preferred equity, net book value improved from under $2.0 million to approximately $7.2 million at year-end.  The Company took further steps this week to strengthen its balance sheet and raised an additional $2.25 million in gross proceeds from the sale of Series C Convertible Preferred Stock.  Management believes the current capital structure provides flexibility to support growth initiatives and opportunities ahead in 2026.

"Fiscal 2025 marked an important inflection point for cbdMD as we delivered our third straight year of operating improvement while completing several foundational balance-sheet and compliance milestones," said Ronan Kennedy, CEO and CFO of cbdMD. "We believe our performance during the September quarter compared favorably with many of our public peers and reflects the early impact of strategic changes we made to our sales and marketing organization."

"Our core cbdMD business continues to gain traction, and our Herbal Oasis team is seeing consistent month-over-month improvement in case sell-through across key markets as distribution expands throughout the Southeast. Importantly, we have paired this commercial momentum with a disciplined approach to capital allocation and balance-sheet management."

"As federal policy discussions continue to evolve around cannabinoids and hemp-derived products, cbdMD remains focused on operating at the highest standards of safety, quality, and scientific rigor," Kennedy continued. "Since our founding, we have invested millions of dollars in GMP manufacturing, product testing, and compliance systems to ensure our products meet or exceed applicable regulatory expectations."

 "We are very encouraged by the White House's executive order on Thursday.  We believe decriminalization will allow significant investment to further prove the benefits of cannabinoids. Since our formation, we have invested millions to ensure we provide safe, effective cannabinoid products that meet high-GMP quality standards. What makes us most excited are the statements around Medicare supporting the reimbursement of full spectrum hemp for seniors.  This gives us confidence the regulators will figure out how to rework the language in Novembers' H.R. 5371 to more palatable language. There are over 60 million seniors on Medicaid who have the potential to become regular consumers to our core market.

"We believe increasing regulatory clarity will encourage additional research and institutional investment across the category. With our long-standing emphasis on THC-free and broad-spectrum CBD formulations, as well as our experience responsibly operating in hemp-derived THC beverages, cbdMD is well positioned to adapt as regulatory frameworks mature."

"With a stronger balance sheet, restored exchange compliance, improving operations, and a disciplined approach to growth, we believe cbdMD enters calendar 2026 in a materially stronger position," Kennedy concluded. "Our focus remains on executing responsibly, investing in science and quality, and creating long-term value for shareholders."

Highlights for Fiscal 2025 and Notable Business Updates 

• Herbal Oasis expanded into Texas through a distribution partnership with Morales Beverage Group. The brand now has established distribution in North Carolina, Florida, Alabama, Texas, Tennessee, and Minnesota, with the ability to ship directly to additional states where permitted.
• At the end of September 2025, cbdMD completed $1.7 million in Series B Convertible Preferred equity financing, generating $1.5 million in net proceeds to support working capital and strengthen net book value.
• The NYSE American formally notified the Company in a letter dated December 5, 2025, confirming that cbdMD has resolved all deficiencies related to Sections 1003(a)(i) and (ii) of the NYSE American Company Guide.
• On December 18, 2025 cbdMD closed a $2.25 million Series C Convertible Preferred equity financing, generating $2.2 million in net proceeds from the sale of 1,000,000 shares of Series C Convertible Preferred Stock which have rights and preferences substantially the same as the Company's outstanding Series B Preferred Stock and are initially convertible at $2.25 per share, to further enhance equity and liquidity.
• On December 15 2025, as amended December 18, 2025, the Company entered into a $20 million equity line of credit, providing cbdMD with a potential flexible and efficient mechanism to access capital under favorable market conditions. The ELOC is subject to an S-1 registration statement to be filed by the Company and SEC review.

Financial Highlights from our Fiscal Year 2025:

• Net sales totaled $19.1 million in fiscal 2025 compared to $19.5 million in fiscal 2024.
• Our gross profit for the year was flat at 62% in fiscal 2025 compared to 62% in fiscal 2024.
• Our loss from operations was $2.1 million in fiscal 2025 as compared to a loss of $3.3 million in fiscal 2024.
• Our non-GAAP adjusted EBITDA loss from operations in fiscal 2025 was approximately $0.9 compared to our non-GAAP adjusted EBITDA from operations in fiscal 2024 of approximately $1.6. million.
• Net loss attributable to common shareholders for fiscal 2025 was approximately $4.3 million or $0.51 per share as compared to a net loss for fiscal 2024 of approximately $7.7 million, or $14.29 per share. The improvement in fiscal 2025 was principally attributable to ongoing management's efforts on improving profitability.
• At September 30, 2025, we had $2.3 million in cash on hand and working capital of approximately $3.4 million as compared to $2.4 million of cash and approximately negative $2.2 million of working capital (which includes $4.7 million of accrued Series A dividend payments) at September 30, 2024.
• We reported direct to consumer (DTC) net sales of $14.7 million or 77% of total net sales in fiscal 2025, a decrease of $0.9 million, or 6% from fiscal 2024.

Pursuant to the disclosure requirements of the NYSE American Company Guide Section 610(b), cbdMD is reporting that its audited consolidated financial statements for the fiscal year ended September 30, 2025, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 18, 2025, contains an audit opinion from its independent registered public accounting firm that includes an explanatory paragraph related to cbdMD's ability to continue as a going concern. This announcement does not represent any change or amendment to cbdMD's financial statements or to its Annual Report on Form 10-K for the fiscal year ended September 30, 2025. 

We will host a conference call at 4:20 p.m., Eastern Time, on Friday, December 19, 2025, to discuss our September 30, 2025, fourth quarter and full fiscal year financial results and business progress.

CONFERENCE CALL DETAILS

Friday December 19, 2025, 4:20 p.m. Eastern Time
USA/Canada:	888-880-3330
Webcast/Webcast Replay link- available through December 19, 2026:  https://app.webinar.net/13voDmbBlxj

About cbdMD, Inc.

cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced THC-free¹ CBD products and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products and our ATRx brand features functional mushroom products. In addition, we operate Herbal Oasis, a premium, award winning THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free¹ CBD and Full Spectrum products as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, ATRxlabs.com, or Herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.

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,'' and ''proposes.'' 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. You are urged to carefully review and consider any cautionary statements, including but not limited to expectations on our ability to continue as a going concern, increasing our revenues, continued cost reductions, potential need for additional working capital, evolving regulatory and legal requirements and potential changes in federal law and federal and state oversight of CBD, continued listing on the NYSE American, future profitability, development and sales of new products, and other disclosures, including the statements made 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 19, 2025, and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by 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.

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 loss from operations 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. The adjusted operating loss has not been prepared 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 attached to this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

cbdMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024
					September 30,		September 30,
					2025		2024
Assets
Cash and cash equivalents					$       2,261,242		$       2,452,553
Accounts receivable, net					1,040,887		983,910
Inventory, net					2,732,127		2,365,187
Inventory prepaid					214,795		159,006
Prepaid sponsorship					25,231		21,754
Prepaid expenses and other current assets					277,147		406,674
Total current assets					6,551,429		6,389,084
Other assets:
Property and equipment, net					277,377		454,268
Operating lease assets					703,934		85,817
Deposits for facilities					62,708		62,708
Intangible assets, net					2,124,502		2,889,580
Investment in other securities, noncurrent					700,000		700,000
Total other assets					3,868,521		4,192,373
Total assets					$     10,419,950		$     10,581,457
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024
(continued)
					September 30,		September 30,
					2025		2024
Liabilities and shareholders' equity
Current liabilities:
Accounts payable					$       1,173,642		$       1,541,108
Accrued expenses					735,672		632,674
Accrued dividends					-		4,671,000
Deferred revenue					506,289		503,254
Operating leases - current portion					778,240		98,696
Convertible notes, at fair value					-		1,171,308
Total current liabilities					3,193,843		8,618,040
Long term liabilities:
Operating leases - long term portion					-		-
Total long term liabilities					-		-
Total liabilities					3,193,843		8,618,040
cbdMD, Inc. shareholders' equity:
Preferred stock, authorized 50,000,000W shares, $0.001
par value, 1,700,000 and 5,000,000 shares issued and outstanding, respectively					1,700		5,000
Common stock, authorized 150,000,000 shares, $0.001
par value, 8,917,054 and 492,383  shares issued and outstanding, respectively					8,917		492
Additional paid in capital					186,650,640		184,033,012
Comprehensive other expense					-		(7,189)
Accumulated deficit					(179,435,150)		(182,067,898)
Total cbdMD, Inc. shareholders' equity					7,226,107		1,963,417
Total liabilities and shareholders' equity					$     10,419,950		$     10,581,457

 

cbdMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
					September 30,		September 30,
					2025		2024
Gross Sales					$     19,190,678		$     19,922,319
Allowances					(210)		(440,152)
Total Net Sales					19,190,468		19,482,167
Cost of sales					7,222,213		7,486,626
Gross Profit					11,968,255		11,995,541
Operating expenses					14,130,845		15,310,951
Loss from operations					(2,162,590)		(3,315,410)
Decrease of contingent liability					-		74,580
Decrease (increase) in fair value of convertible debt					87,380		(429,789)
Interest expense (income)					34,308		(29,507)
Loss before provision for income taxes					(2,040,902)		(3,700,126)
Net (loss) income					(2,040,902)		(3,700,126)
Preferred dividends					2,334,501		4,004,001
Net Loss attributable to cbdMD, Inc. common shareholders					$     (4,375,403)		$     (7,704,127)
Net Loss per share:
Basic and diluted earnings per share					$              (1.09)		$            (14.29)
Weighted average number of shares Basic and Diluted:					4,022,629		539,069

 

cbdMD, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
					September 30,		September 30,
					2025		2025
Net (Loss)					$     (2,040,902)		$     (3,700,126)
Comprehensive (Loss) income					(2,040,902)		(3,700,126)
Other Comprehensive income (loss)					$              7,189		$            (7,189)
Preferred dividends					(2,334,501)		(4,004,001)
Comprehensive Loss attributable to cbdMD, inc. common shareholders					$     (4,368,214)		$     (7,711,316)

 

cbdMD, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
			September 30,		September 30,
			2025		2024
Cash flows from operating activities:
Net Loss			$     (2,040,902)		$     (3,700,126)
Adjustments to reconcile net loss to net
cash used by operating activities:
Stock based compensation			-		5,015
Restricted stock expense			14,121		11,885
Issuance of stock for services			86,657		-
Inventory and materials impairment			365,979		921,314
Intangibles amortization			765,078		697,510
Depreciation			361,063		452,326
Credit losses			382,588		54,322
Decrease in contingent liability			-		(74,580)
Increase in fair value of convertible debt			(87,380)		429,789
Gain on termination of operating lease asset			-		696,280
Amortization of operating lease asset			669,781		670,621
Changes in operating assets and liabilities:
Accounts receivable			(439,565)		177,858
Deposits			-		76,000
Inventory			(732,919)		766,472
Prepaid inventory			(55,789)		23,670
Prepaid expenses and other current assets			126,051		396,311
Accounts payable and accrued expenses			(261,883)		(1,124,141)
Operating lease liability			(608,354)		(1,151,326)
Deferred revenue / customer deposits			3,099		318,008
Cash flows from operating activities			(1,452,375)		(352,792)
Cash flows from investing activities:
Purchase of intangible assets			-		(100,000)
Purchase of property and equipment			(184,172)		(190,015)
Cash flows from investing activities			(184,172)		(290,015)
Cash flows from financing activities:
Proceeds from issuance of common stock			-		50,001
Note payable					1,247,499
Proceeds from issuance of preferred stock			1,445,236		-
Cash flows from financing activities			1,445,236		1,297,500
Net increase (decrease) in cash			(191,311)		654,693
Cash and cash equivalents, beginning of period			2,452,553		1,797,860
Cash and cash equivalents, end of period			$       2,261,242		$       2,452,553
Supplemental Disclosures of Cash Flow Information:
			2025		2024
Cash paid for interest			$                     -		$            74,638
Non-cash financing/investing activities:
Issuance of shares for conversion of debt and accrued interest			$       1,079,639		$          515,601
Change in lease asset related to extinguishment of HQ lease and new warehouse lease			$     (1,723,544)		$                    -
Issuance of shares for intangible asset			$                   -		$            40,725
Conversion accrued preferred dividends to common stock			$       7,008,151		$                    -
Preferred dividends accrued but not paid			$       2,334,501		$       4,004,001

 

cbdMD, Inc.
SUPPLEMENTAL FINANCIAL INFORMATION
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
(unaudited)
			Three Months Ended September 30,				Year Ended September 30,
			2025		2024		2025		2024
Revenue			$       4,720,770		$       4,556,367		$     19,140,468		$19,482,167
Gross profit			2,777,135		$       2,453,803		$     11,968,255		$11,995,541
Gross margin			58.8 %		53.9 %		62.4 %		61.6 %
Operating Expenses			3,461,458		$       2,770,356		$     14,130,845		$15,310,951
Operating loss from operations			(684,323)		$        (316,553)		$     (2,162,590)		$ (3,315,410)
Corporate overhead operating expense (1)			399,501		$          462,068		$       1,816,563		$  1,978,953
Non-GAAP adjusted (loss) income from operations			$        (284,822)		$          145,515		$        (346,027)		$ (1,336,457)
GAAP loss from operations			$        (684,323)		$        (316,553)		$     (2,162,590)		$ (3,315,410)
Adjustments:
Depreciation & Amortization			262,065		287,783		1,126,141		1,149,836
Employee and director stock compensation (2)			7,754		5,881		13,595		43,688
Inventory adjustment (3)			113,008		588,160		113,008		588,160
Non-cash expense incurred as a credit (4)			-		-		-		439,926
Non-cash accelerated amortization of expense related to terminated IT contracts			-		-		-		72,101
Termination of HQ lease			-		(696,280)		-		(696,280)
Mergers and acquisitions expense			-		-		-		125,838
Non-GAAP adjusted loss from operations			$        (301,496)		$        (131,009)		$        (909,846)		$ (1,592,141)
Public Company Costs
Staff related expense			70,698		119,975		310,647		288,602
Accounting/legal expense			103,532		125,874		524,352		710,188
Professional outside services			41,496		73,843		291,455		310,448
Business insurance			176,021		136,495		676,514		626,027
Non-GAAP adjusted income from operations, excluding public company costs			$            90,251		$          325,178		$          893,122		$     343,124
(1) Represents corporate overhead operating expenses
(2)  Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period
(3)  Represents an operating expense related to inventory loss related to regulatory changes impacting labels and packaging and obsolete/expired inventory.
(4) Represents non-cash expense incurred as a credit provided to GNC to replace expired product.

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 were cbdMD's fiscal 2025 net sales and gross margin (YCBD)?

cbdMD reported $19.19 million in net sales for fiscal 2025 with a 62% gross margin.

How did cbdMD's operating loss change in fiscal 2025 (YCBD)?

Loss from operations improved to $2.16 million in fiscal 2025 from $3.32 million in 2024.

What financing did cbdMD (YCBD) complete in December 2025?

cbdMD closed a $2.25 million Series C convertible preferred financing on December 18, 2025 and announced a $20 million equity line of credit.

Has cbdMD (YCBD) regained NYSE American continued listing compliance?

Yes. The NYSE American confirmed on December 5, 2025 that cbdMD resolved the referenced listing deficiencies.

What liquidity and balance-sheet position did cbdMD (YCBD) report at September 30, 2025?

At September 30, 2025 cbdMD reported $2.26 million cash and approximately $7.23 million shareholders' equity.

Does cbdMD's 2025 audit raise any concerns for investors (YCBD)?

The audited financial statements include an explanatory paragraph about cbdMD's ability to continue as a going concern.