cbdMD Reports $2.04 Million Net Loss, Sees Shift in Sales Strategy and New Product Launch

cbdMD, Inc. reported a net loss of $2.04 million for the fiscal year ending September 30, 2025, a significant improvement from the $3.7 million loss recorded in the previous fiscal year. Total net sales for the year were approximately $19.19 million, slightly down from $19.48 million in fiscal 2024. The company attributed the decline in sales primarily to a decrease in e-commerce revenue, which fell by 6% year-over-year, while wholesale sales increased by 17%, reflecting a strategic shift in focus towards expanding distribution channels.

In terms of operational changes, cbdMD made significant strides in restructuring its capital and operational framework. The company successfully converted its Series A Convertible Preferred Stock into common stock, which helped it regain compliance with NYSE American listing standards. This conversion resulted in the issuance of approximately 65 million shares of common stock, effectively reducing the outstanding preferred stock and improving the company's equity position. Additionally, cbdMD launched its new hemp-derived THC beverage brand, Herbal Oasis, which is expected to contribute to future revenue growth despite initially being a financial drag as the company invests in scaling this new product line.

The company’s customer engagement metrics showed a mixed performance. E-commerce sales accounted for 76.7% of total sales, down from 80.4% in the previous year, while wholesale sales grew to represent 23.3% of total sales. The company reported a total of 42 full-time employees as of December 1, 2025, reflecting ongoing efforts to streamline operations and reduce costs. cbdMD also identified nearly $200,000 in potential overhead savings, which are expected to be implemented in early 2026.

Looking ahead, cbdMD's management expressed cautious optimism about the company's trajectory, citing positive trends in direct-to-consumer sales and wholesale distribution. However, the company faces significant regulatory challenges, particularly following the enactment of H.R. 5371, which limits THC content in hemp-derived products. This legislation could impact approximately 40-45% of cbdMD's revenue derived from full-spectrum products. The company is actively monitoring these developments and is committed to adapting its product offerings to comply with evolving regulations while pursuing international market opportunities to expand its customer base.