cbdMD (YCBD) investor relations material

Executive summary

• Net sales for Q3 2025 were $4.6M, down 10.9–12% year-over-year, with a net loss attributable to common shareholders of $1.2M and operating loss of $0.9M; nine-month net loss reduced to $1.3M from $3.5M prior year.

• Major restructuring included a reverse stock split and conversion of Series A Preferred Stock to common, eliminating $6.7M in accrued dividends and improving equity and NYSE American compliance.

• Marketing overhaul and digital team restructuring led to reduced customer acquisition costs and early signs of new customer growth since July.

• Oasis beverage brand expanded to seven states, with shipments scheduled for August and in-market availability in September, supported by new retail and distributor agreements.

• Regulatory pressures at state and federal levels created market confusion, impacted wholesale business, and required increased compliance focus.

Financial highlights

• Total net sales for Q3 were $4.6M, down 10.9–12% year-over-year; nine-month sales were $14.5M, down 3%.

• Gross margin for Q3 was 61–61.5%, down from 65.8–66% prior year, with cost of sales rising as a percentage of revenue.

• E-commerce accounted for 77.7–78% of sales, with wholesale at 22–22.3%; both channels declined year-over-year.

• Operating loss for Q3 was $0.9M, up from $0.38–0.4M prior year; adjusted EBITDA loss was $624K, compared to $84–90K prior year.

• Cash and equivalents were $1.1M, with working capital of $2M as of June 30, 2025; book value of equity increased to $6.1M post-preferred conversion.

Outlook and guidance

• Management expects revenue recovery in Q4, driven by Oasis distribution expansion and improved marketing execution.

• Priorities include direct-to-consumer growth, expanding wholesale in favorable states, operational discipline, and evaluating strategic opportunities.

• Gross margin is expected to remain in the lower 60% range near-term, with ongoing focus on improvement.

• Regulatory pressures are expected to persist, requiring continued investment in compliance and advocacy.

• The company is focused on achieving profitability and maintaining NYSE American listing compliance.