CV Sciences Reports $643,000 Net Loss in Q1 2026, Product Sales Decline 11.4%

CV Sciences, Inc. reported its financial results for the first quarter of 2026, revealing a net loss of $643,000, compared to a net loss of $109,000 in the same period of the previous year. The company's product sales for the quarter totaled $3.2 million, a decline of 11.4% from $3.6 million in the first quarter of 2025. This decrease was attributed to a 12.2% reduction in the total number of units sold, although the average sales price per unit increased by 0.9%. The gross profit for the quarter was $1.6 million, resulting in a gross margin of 48.9%, an improvement from 46.0% in the prior year, primarily due to lower costs of goods sold.

In terms of operational changes, CV Sciences has made strategic acquisitions, including the purchase of Cultured Foods Sp. z.o.o. in December 2023 and Elevated Softgels LLC in May 2024. These acquisitions are expected to enhance the company's product offerings in the plant-based protein and supplement markets. The company also launched 45 new products since January 2023, contributing to 42.7% of its net revenue for the quarter. However, the overall market remains competitive, with challenges stemming from a lack of clear regulatory frameworks affecting hemp-derived products.

The company's financial position showed a slight increase in total assets, which amounted to $6.7 million as of March 31, 2026, down from $6.9 million at the end of 2025. Current liabilities increased to $5.2 million, primarily due to higher accrued expenses. The company reported cash and cash equivalents of $309,000, a modest increase from $278,000 at the end of the previous year. Despite generating positive cash flows from operations of $101,000 in the first quarter, CV Sciences has faced negative cash flows in prior years and has an accumulated deficit of $88.6 million.

Looking ahead, CV Sciences is focused on increasing revenue and improving operational cash flows to meet its liquidity needs. The company is also evaluating the potential impact of new legislation that could restrict the sale of hemp-derived products containing more than 0.4 milligrams of THC per container, effective November 2026. Management has indicated that it will continue to implement cost reductions and explore additional capital-raising opportunities to support its operations and growth initiatives. The company remains committed to innovation and expanding its market presence in the evolving hemp and CBD landscape.