cbdMD Reports $5.02 Million in Q1 Fiscal 2026 Sales, Net Loss Improves

cbdMD, Inc. reported a total net sales of $5.02 million for the first quarter of fiscal 2026, a decrease of 1.9% from $5.11 million in the same period last year. The decline in revenue is attributed to a slight reduction in direct-to-consumer sales and less impactful holiday promotions compared to the previous year. However, the company noted a strengthening in its wholesale business, particularly with its Oasis brand. The gross profit margin fell to 59.8% from 66.5% year-over-year, primarily due to increased costs associated with distribution and regulatory compliance.

The company experienced a net loss of $324,602 for the quarter, a significant improvement compared to a net loss of $985,406 in the prior year. This reduction in losses is attributed to a decrease in operating expenses, which fell to $3.29 million from $3.49 million. The company’s operating loss also improved, totaling $286,288 compared to $86,272 in the same quarter of the previous year. The reduction in operating expenses was driven by lower costs in professional services and other operational areas, although marketing expenses increased.

In terms of strategic developments, cbdMD completed the acquisition of Bluebird Botanicals in January 2026, which is expected to add approximately $500,000 in quarterly revenue once fully integrated. This acquisition is part of the company's broader strategy to enhance its product offerings and expand its customer base. The company also raised $2.25 million through the issuance of Series C Convertible Preferred Stock and entered into an equity line of credit agreement to bolster its financial position.

Operationally, cbdMD reported an increase in cash and cash equivalents to $3.39 million as of December 31, 2025, up from $2.26 million at the end of the previous fiscal year. The company’s working capital also improved to $5.4 million, reflecting a focus on liquidity and financial stability. The total assets increased to $11.78 million, while total liabilities decreased to $2.77 million, indicating a strengthening balance sheet.

Looking ahead, cbdMD remains focused on optimizing its product portfolio and improving profitability. The company is actively monitoring legislative changes that could impact its business, particularly concerning THC content regulations. Management is optimistic about the potential for revenue growth through strategic acquisitions and product innovations, despite the challenges posed by the current market conditions. The company aims to leverage its recent acquisition and enhance its market positioning in the competitive CBD landscape.