1. cbdMD improved operations for three consecutive years with disciplined cost management. 2. The company reported a $1.2 million improvement in operating loss year-over-year. 3. cbdMD raised $2.25 million through Series C Convertible Preferred Stock sales. 4. Regulatory clarity, especially for seniors, can lead to increased market potential. 5. Direct-to-consumer sales account for 77% of total sales, indicating strong brand loyalty.
FAQ
Why Bullish?
cbdMD shows operational improvements and better financial management, improving investor confidence. Historical cases, like companies recovering from restructuring, demonstrate potential future growth.
How important is it?
The article highlights key financial improvements and potential market expansion, which are critical for YCBD's valuation.
Why Long Term?
Ongoing improvements and market regulatory changes suggest a sustained impact over 1-2 years, similar to other recovering firms in the sector.
cbdMD Reports Third Consecutive Year of Improvement and Strengthens Balance Sheet
cbdMD, Inc. (NYSE American: YCBD), a leading CBD company recognized for its trusted brands, has announced its financial results for the fiscal year ending September 30, 2025. This year marks the company's third consecutive year of operational and financial improvement, which is attributed to disciplined cost management and a focus on quality and science.
Financial Performance Highlights
For fiscal year 2025, cbdMD reported a loss from operations of $2.1 million, a significant improvement of $1.2 million compared to a $3.3 million loss in fiscal 2024. The company's net book value increased from under $2.0 million to approximately $7.2 million at year-end, thanks to strategic balance-sheet actions including the conversion of Series A preferred equity.
Additionally, cbdMD strengthened its balance sheet further by raising $2.25 million in gross proceeds from the sale of Series C Convertible Preferred Stock. Management believes this new capital structure fosters flexibility to support future growth initiatives in 2026.
Strategic Initiatives and Market Position
CEO and CFO Ronan Kennedy stated, “Fiscal 2025 marked an important inflection point for cbdMD as we completed foundational milestones in both balance sheet stability and compliance.” He emphasized the company’s operational performance aligns favorably with public peers, reflecting the strategic changes to their sales and marketing organization.
The core cbdMD business continues to see positive momentum, with month-over-month improvements in case sell-through for the Herbal Oasis line across key Southeastern markets. Kennedy added that the company maintains a disciplined approach to capital allocation and balance sheet management.
Regulatory Environment and Future Outlook
As discussions around federal policies for cannabinoids evolve, cbdMD remains committed to operating with the highest standards of safety and quality. The company has invested millions in Good Manufacturing Practices (GMP), product testing, and compliance systems, ensuring they meet or exceed regulatory standards.
Kennedy expressed optimism regarding recent White House executive orders, indicating potential decriminalization could lead to substantial investment in cannabinoids. He noted that over 60 million seniors on Medicaid could become significant consumers of their products if Medicare supports reimbursement for full-spectrum hemp products.
“With a stronger balance sheet and improved operational efficiency, cbdMD enters calendar 2026 in a materially stronger position," Kennedy concluded, underscoring their focus on creating long-term value for shareholders.
Business Updates and Expansion Initiatives
- Herbal Oasis expanded into Texas through a distribution partnership with Morales Beverage Group.
- cbdMD completed $1.7 million in Series B Convertible Preferred equity financing, generating $1.5 million in net proceeds.
- The NYSE American confirmed that cbdMD has resolved all deficiencies related to listing compliance.
- On December 18, 2025, cbdMD closed a $2.25 million Series C Convertible Preferred equity financing.
- cbdMD entered into a $20 million equity line of credit to improve capital accessibility.
Key Financial Metrics for Fiscal 2025
Despite facing challenges, cbdMD has achieved notable metrics for the fiscal year:
- Net sales totaled $19.1 million, down from $19.5 million in fiscal 2024.
- Gross profit remained steady at 62% year-over-year.
- Non-GAAP adjusted EBITDA loss narrowed to approximately $0.9 million from $1.6 million.
- Net loss attributable to common shareholders improved to approximately $4.3 million or $0.51 per share.
- Direct-to-consumer (DTC) sales accounted for 77% of total net sales.
Conference Call Announcement
cbdMD will host a conference call on Friday, December 19, 2025, at 4:20 p.m. ET to discuss its financial results and business progress. Interested parties can join the call at USA/Canada: 888-880-3330 or via the webcast link.