cbdMD Reports 19% Revenue Growth to $5.64 Million in Q2 Fiscal 2026

cbdMD, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total net sales figure of $5.64 million, a 19% increase from $4.75 million in the same period last year. For the six months ending March 31, 2026, net sales reached $10.66 million, up from $9.86 million in the prior year, marking a 12% increase. Despite this growth, the company reported a net loss of $876,783 for the quarter, a significant improvement compared to a loss of $1.48 million in the same quarter of the previous year. The loss for the first half of fiscal 2026 was $1.20 million, down from $2.47 million in the same period last year.

The company’s operational metrics showed a shift in sales channels, with e-commerce sales contributing 67.3% of total net sales in the latest quarter, while wholesale sales accounted for 32.7%. This represents a notable increase in wholesale sales, which grew by $0.73 million year-over-year. The increase in sales was attributed to the acquisition of Bluebird Botanicals, which is expected to contribute over $500,000 in revenue per quarter moving forward. The company also reported a rise in operating expenses, which totaled $4.06 million for the quarter, up from $3.45 million a year earlier, largely due to costs associated with the Bluebird acquisition and increased marketing efforts.

In terms of strategic developments, cbdMD completed the acquisition of Bluebird Botanicals in January 2026, which included a purchase consideration of 425,000 shares of restricted common stock and potential earnout shares. This acquisition is expected to enhance the company’s customer base and product offerings. Additionally, cbdMD has been actively pursuing opportunities to expand its product portfolio and distribution channels, including the launch of new products under its Oasis brand and exploring international markets.

The company’s balance sheet showed an increase in total assets to $12.25 million as of March 31, 2026, compared to $10.42 million at the end of the previous fiscal year. Cash and cash equivalents rose to $2.64 million, up from $2.26 million. However, cbdMD continues to face challenges, including an accumulated deficit of approximately $180.6 million and ongoing liquidity concerns. The company has indicated that its ability to continue as a going concern is dependent on improving profitability and securing additional funding.

Looking ahead, cbdMD remains focused on optimizing its product portfolio and enhancing customer acquisition strategies. The company is also monitoring regulatory changes that could impact its operations, particularly concerning the upcoming implementation of H.R. 5371, which may affect the definition of hemp and THC limits. Management is optimistic about the potential for growth and profitability, particularly with the integration of Bluebird Botanicals and the expansion of its product offerings.