CV Sciences, Inc. reported a decline in financial performance for the second quarter and first half of 2026, as detailed in its latest 10-Q filing. For the three months ended June 30, 2026, the company generated $2.985 million in net product sales, a decrease of 17.5% from $3.620 million in the same period of 2025. Gross profit also fell to $1.450 million, down 21.4% from $1.844 million year-over-year. The gross margin for the quarter was 48.6%, compared to 50.9% in the prior year. For the six months ended June 30, 2026, net sales totaled $6.180 million, a 14.5% decline from $7.226 million in the first half of 2025, with gross profit decreasing to $3.012 million from $3.502 million.
The company attributed the revenue decline to lower sales volumes, which were impacted by restrictive regulations in certain states and out-of-stock issues for key products. The total number of units sold decreased by 14.9% in the second quarter and 13.5% in the first half of 2026 compared to the respective periods in 2025. Despite these challenges, 44.3% of the net revenue in the second quarter came from new products launched since January 2023, indicating ongoing efforts to innovate and adapt to market demands.
In terms of operational changes, CV Sciences made strategic acquisitions, including Cultured Foods, a European manufacturer of plant-based protein products, and Elevated Softgels, a manufacturer of encapsulated softgels and tinctures. These acquisitions are part of the company's strategy to diversify its product offerings and enhance its market presence. The company also reported a reduction in operating expenses, with total operating expenses for the second quarter of 2026 at $1.751 million, down from $1.975 million in the same quarter of 2025.
As of June 30, 2026, CV Sciences had total assets of $6.521 million, a decrease from $6.962 million at the end of 2025. The company reported an accumulated deficit of $89.4 million and continues to face liquidity challenges, generating only $0.1 million in cash flows from operations during the first half of 2026. Management indicated that the company will rely on additional investment capital to fund operations and growth initiatives, while also implementing cost reductions, including potential employee headcount reductions.
Looking ahead, CV Sciences is navigating a complex regulatory environment for hemp-derived products, with new legislation potentially impacting its operations. The company is assessing the implications of the 2026 Act, which narrows the federal definition of hemp, and is preparing to adapt its product formulations and compliance measures accordingly. Despite the challenges, management remains focused on increasing revenue and operational cash flows to meet future liquidity requirements.
About CV Sciences, Inc.
CV Sciences, Inc. is a consumer wellness company specializing in nutraceuticals, hemp extracts, and plant-based foods. Its core brands include +PlusCBD® for hemp-derived CBD products and Cultured Foods and Lunar Fox for plant-based foods. The company serves retail and online markets in the U.S. and Europe, emphasizing science-backed, high-quality products, with a focus on innovation, regulatory compliance, and strategic acquisitions in the health and food sectors.
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