CV Sciences, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a decline in revenue and an ongoing net loss. The company generated net product sales of $3.3 million for the third quarter, a decrease of 15.8% from $3.9 million in the same period last year. For the nine months ended September 30, 2025, net product sales totaled $10.5 million, down 11.3% from $11.8 million in the prior year. The gross profit for the third quarter was $1.6 million, with a gross margin of 48.5%, compared to $1.8 million and a 46.0% margin in the third quarter of 2024. The decline in sales was attributed to lower sales volume due to out-of-stock issues and restrictive regulations in certain states.
In terms of operational changes, CV Sciences has 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 expected to enhance the company's product offerings and market reach. The company also launched 38 new products since January 2023, contributing to 39% of its net revenue for the third quarter. However, the overall market remains competitive and fragmented, influenced by a lack of clear regulatory frameworks.
The company reported a net loss of $0.8 million for the nine months ended September 30, 2025, an improvement from a loss of $1.7 million in the same period last year. Operating expenses decreased to $5.5 million from $7.0 million, primarily due to reductions in selling, general, and administrative expenses. The company also benefited from a reversal of a previously accrued payroll tax liability, which contributed to the improved financial performance.
As of September 30, 2025, CV Sciences had total assets of $7.0 million and total liabilities of $5.5 million, resulting in stockholders' equity of $1.5 million. The company had cash of $0.4 million and negative cash flows from operations of $0.1 million for the nine months ended September 30, 2025. Management indicated that the company is dependent on additional investment capital to fund operations and growth initiatives, raising concerns about its ability to continue as a going concern.
Looking ahead, CV Sciences is assessing the implications of new federal legislation that will prohibit the sale of hemp-derived products containing more than 0.4 milligrams of total THC per container, effective November 13, 2026. This regulatory change could significantly impact the company's product offerings and market strategy. The company plans to continue its focus on innovation, cost reductions, and potential acquisitions to enhance its competitive position in the market.
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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