CV Sciences (CVSI) investor relations material

Executive summary

• Q2 2025 revenue was $3.6 million, flat sequentially but down 8% year-over-year due to a 7% decline in unit sales and increased state regulations.

• Gross margin improved to 50.9%, the highest since 2019, up from 46% in Q1 2025 and 47% in Q2 2024, driven by lower freight, inventory losses, and favorable product mix.

• Achieved first positive adjusted EBITDA since 2019 at $59,000, compared to a loss of $300,000 in Q1 2025 and $6,000 in Q2 2024.

• Net loss narrowed to $261,000 from $584,000 in Q2 2024, with operating loss reduced to $100,000 from $600,000.

• Continued cost efficiency efforts, M&A strategy, and integration of Elevated Softgels and Cultured Foods, with 39% of Q2 2025 revenue from new products launched since 2023.

Financial highlights

• Revenue: $3.6 million, flat sequentially, down from $4.0 million year-over-year.

• Gross margin: 50.9%, up from 46% in Q1 2025 and 47% in Q2 2024.

• Adjusted EBITDA: $59,000 positive, first since 2019.

• Net loss: $261,000, improved from $584,000 in Q2 2024.

• SG&A expense: $1.9 million, down 20% year-over-year and 10% sequentially.

Outlook and guidance

• Expecting further cost efficiency and gross margin improvement through increased insourcing, M&A synergies, and new product development.

• Anticipate modest cash usage in near term until acquisition synergies are realized, aiming for positive cash flow in 2025.

• Substantial doubt remains about ability to continue as a going concern without successful capital-raising efforts.

• Continued focus on product innovation, brand building, and expansion in B2C and B2B channels.