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 19% year-over-year and 12% sequential revenue growth, reflecting continued momentum in the core business and the contribution of newly acquired Bluebird Botanicals. Quarterly revenue, excluding revenue associated with the Bluebird acquisition, was the highest since our first fiscal quarter ending December 2023.
"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 annually per
eligible beneficiary. Eligible products include non-intoxicating
full-spectrum hemp-derived CBD products containing up to 3 milligrams of
naturally occurring THC per serving. The FDA has issued a limited
enforcement-discretion letter providing additional regulatory clarity for
eligible ingestible CBD products furnished through the BEI.
-- 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 in the second quarter of fiscal 2026 or an
increase of 19% compared to $4.7 million in second quarter of fiscal
2025. Sequentially, revenue was up 12% from the first quarter of fiscal
2026.
-- Our loss from operations was $801,000 in the second quarter of fiscal
2026 as compared to a loss of $485,000 in the prior year comparative
period.
-- Our non-GAAP adjusted EBITDA loss from operations in the second quarter
of fiscal 2026 was approximately $220,000 compared to Adjusted EBITDA
loss of $197,000 from operations in the second quarter of fiscal 2025.
-- Net loss attributable to common shareholders for the second quarter of
fiscal 2026 was approximately $0.88 million or a loss of $0.08 per share
as compared to a net loss for the second quarter of fiscal 2025 of
approximately $1.5 million, or $1.90 per share.
-- At March 31, 2026 we had working capital of approximately $5.4 million
and cash on hand of approximately $2.6 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 $3.8 million or 67% of
total net sales in the second quarter of fiscal 2026, an increase of
$0.16 million, or 4% from the second quarter of fiscal 2025.
-- We reported wholesale net sales of $1.8 million or 33% of total net sales
in the second quarter of fiscal 2026, an increase of $0.73 million, or
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 USA/Canada: 888-880-3330 Webcast/Webcast Replay link- available through May 14, 2027: 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-free(1) 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.
(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 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, 2025and 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.
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.
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,
$0.001
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,
$0.001
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 $ 10,656,964 $ 9,862,902
------------------------- ---------------------- ------------- ------------------
Total Net Sales $ 5,640,059 $ 4,749,426 $ 10,656,964 $ 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.
(END) Dow Jones Newswires
May 14, 2026 16:10 ET (20:10 GMT)
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