CV Sciences Reports Improved Net Loss of $109,000 in Q1 2025

CV Sciences, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $109,000, a significant improvement from a net loss of $628,000 in the same period last year. The company generated $3.6 million in product sales, down 9.9% from $4.0 million in the first quarter of 2024. The decrease in revenue was attributed to a reduction in sales volume, with the total number of units sold declining by 11.8%. Despite this, the average sales price per unit increased by 0.9%. The gross profit for the quarter was $1.7 million, resulting in a gross margin of 46.0%, slightly lower than the 46.3% margin reported in the previous year.

In terms of operational efficiency, CV Sciences managed to reduce its cost of goods sold by 9.4% to $1.9 million, primarily due to lower sales volume. The company also benefited from a reversal of accrued payroll taxes, which contributed to the reduction in net loss. Selling, general, and administrative expenses decreased to $2.1 million from $2.4 million, driven by lower sales commissions, reduced marketing expenditures, and cost-cutting measures in administrative expenses. The company’s total assets as of March 31, 2025, stood at $7.8 million, a slight decrease from $7.9 million at the end of 2024.

Strategically, CV Sciences has made significant acquisitions to bolster its product offerings. In December 2023, the company acquired Cultured Foods, a European manufacturer of plant-based protein products, and in May 2024, it acquired Elevated Softgels, a manufacturer of encapsulated softgels and tinctures. These acquisitions are expected to enhance the company’s market presence and product diversity. The company has also launched 34 new products since January 2023, contributing to 35% of its net revenue for the quarter.

Looking ahead, CV Sciences faces challenges due to a competitive market landscape and regulatory uncertainties surrounding CBD products. The company reported an accumulated deficit of $87.1 million and negative cash flows from operations of $0.1 million for the quarter. Management anticipates that additional investment capital will be necessary to fund operations and growth initiatives. The company is actively pursuing strategies to increase revenue and improve cash flows, including potential further acquisitions and product innovations. However, there is no assurance that these efforts will be successful, and the company continues to evaluate its operational strategies in light of market conditions.