cbdMD (YCBD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 marked the third consecutive year of operating improvement, with a focus on cost reduction, portfolio rationalization, and balance sheet strengthening.

• The company repositioned toward higher-margin SKUs and invested in the Oasis beverage brand, expanding distribution to nine states.

• Regulatory developments, including a White House executive order on cannabis policy and Medicare reimbursement for CBD, present significant growth opportunities.

Financial highlights

• Operating loss reduced by $1.2 million to $2.1 million for fiscal 2025, the third straight year of improvement.

• Adjusted non-GAAP EBITDA loss improved from $1.7 million in 2024 to $900,000 in 2025.

• Fiscal 2025 net sales were $19.1 million, down slightly from $19.5 million in 2024.

• Gross margin for fiscal 2025 was 63%, up from 62% in 2024; Q4 gross margin was 59%, up from 54% year-over-year.

• SG&A expenses for the year dropped by $1.2 million to $14.1 million.

Outlook and guidance

• Fiscal 2026 is expected to focus on scaling Oasis, driving profitable D2C growth, and capitalizing on regulatory changes.

• The company anticipates significant demand growth if Medicare reimbursement for CBD is implemented, potentially unlocking a $30 billion market.

• Ongoing cost savings and a strong liquidity position are expected to support growth initiatives.