CV Sciences Reports Revenue Decline and Improved Net Loss in Q2 2025

CV Sciences, Inc. reported its financial results for the second quarter and first half of 2025, revealing a decline in revenue and net loss compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated $3.6 million in product sales, down 8.4% from $4.0 million in the prior year. The gross profit for the quarter was $1.8 million, with a gross margin of 50.9%, slightly improved from 47.0% in the same quarter of 2024. For the first half of 2025, total revenue was $7.2 million, a decrease of 9.2% from $8.0 million in the first half of 2024, with a gross profit of $3.5 million and a gross margin of 48.5%.

The company’s operating loss for the second quarter was $131,000, a significant improvement from a loss of $583,000 in the same quarter of 2024. The net loss for the quarter was $261,000, compared to a net loss of $584,000 in the prior year. For the first six months, the net loss was $370,000, down from $1.2 million in the same period last year. The reduction in losses was attributed to lower selling, general, and administrative expenses, which decreased by 20% to $1.9 million in the second quarter, and by 16% to $4.1 million in the first half of 2025.

Strategically, CV Sciences has made significant 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 expected to enhance the company’s product offerings and market reach. The company also launched 34 new products since January 2023, contributing to 38.9% of its net revenue in the second quarter of 2025. However, the overall market remains competitive, with challenges stemming from regulatory uncertainties and evolving consumer preferences.

Operationally, CV Sciences reported a slight increase in cash reserves, ending the quarter with $886,000 in cash, up from $454,000 at the end of 2024. The company generated positive cash flows from operations of $206,000 in the first half of 2025, a notable improvement from negative cash flows of $575,000 in the same period of 2024. The company’s total liabilities decreased to $6.1 million, down from $6.2 million at the end of 2024, while stockholders' equity increased to $1.8 million.

Looking ahead, CV Sciences faces ongoing challenges, including a lack of clear regulatory frameworks for CBD products and intense competition in the market. The company plans to continue its focus on product innovation, cost management, and potential capital-raising efforts to support its operations and growth initiatives. Management has expressed concerns regarding the company's ability to continue as a going concern, emphasizing the need for additional investment capital to fund future operations and strategic initiatives.