cbdMD (YCBD) Q1 2026 earnings summary

Executive summary

• Achieved 12% sequential revenue growth in Q1 FY26, with net sales of $5.0 million, despite a 1.9% year-over-year decline, and the strongest December and January since 2022.

• Acquisition of Bluebird Botanicals in January 2026 expanded the wellness portfolio, customer base, and brought valuable intellectual property and regulatory assets.

• Net loss attributable to common shareholders improved to $0.32 million ($0.04/share), down from $1 million ($1.73/share) in the prior year.

• Adjusted EBITDA loss was $36,000, reflecting a focus on achieving positive EBITDA.

• Operating expenses decreased by 5.7% to $3.29 million, reflecting cost controls despite higher marketing and rent.

Financial highlights

• Gross margin was 59.8% (down from 66.5% YoY) due to higher warehouse expenses and a shift toward wholesale.

• Cash and cash equivalents increased to $3.4 million, driven by Series C Preferred equity financing.

• Working capital at quarter-end was $5.4 million, up from $3.4 million sequentially.

• Direct-to-consumer channel accounted for 72% of revenue; wholesale represented 28% and grew 17–22% year-over-year.

• Accumulated deficit stood at $179.8 million as of December 31, 2025.

Outlook and guidance

• Priorities include driving further sequential revenue growth, integrating Bluebird, maintaining cost discipline, and navigating regulatory changes.

• Bluebird acquisition expected to add $0.5 million in quarterly revenue and provide growth opportunities.

• Management aims for sustainable profitability and expects regulatory clarity to benefit compliant operators.