cbdMD (YCBD) Q3 2025 earnings summary

Executive summary

• Structural changes, including a reverse stock split and conversion of Series A Preferred Stock to common stock, eliminated $6.7M in accrued dividends, improved equity, and reversed multi-year revenue decline, streamlining operations and strengthening the capital structure.

• OASIS Social Tonic brand is central to growth, with distribution expanded to seven states and direct-to-consumer sales accelerating due to improved digital marketing and influencer partnerships.

• Regulatory disruptions at the state and federal levels impacted wholesale revenue and required increased management focus on compliance and advocacy.

• Multi-category approach across CBD wellness, pet CBD, functional mushrooms, and hemp-derived THC beverages diversifies revenue and enables resource allocation to high-growth areas.

• Liquidity concerns and ongoing losses raise substantial doubt about the ability to continue as a going concern.

Financial highlights

• Q3 FY25 net sales were $4.6 million, down 10.9%–12% year-over-year; e-commerce represented 77.7%–78% of sales.

• Gross profit margin was 61%–61.5%, flat sequentially but down year-over-year; SG&A expenses were $3.7 million, flat year-over-year.

• Q3 FY25 net loss was $895,000–$1.23 million; adjusted EBITDA loss was $624,000–$620,000.

• Year-to-date net loss nearly halved to $1.3 million from $3.5 million in FY24; cash and equivalents were $1.1 million with $2 million working capital at quarter end.

• Basic and diluted loss per share for the quarter was $(0.21), compared to $(8.93) in the prior year.

Outlook and guidance

• Priorities include driving direct-to-consumer growth, expanding wholesale in favorable regulatory states, maintaining margin discipline, and evaluating strategic opportunities such as partnerships or acquisitions.

• OASIS Social Tonic momentum expected to build as distribution matures; cross-selling opportunities anticipated across product lines.

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

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

• Ongoing regulatory pressures are anticipated to persist, requiring continued investment in compliance and advocacy.