cbdMD (YCBD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 marked the third consecutive year of operating improvement, with a focus on cost reduction, balance sheet strengthening, and repositioning toward higher-margin, science-backed categories.

• Operating loss reduced by $1.2 million to $2.1 million, and adjusted non-GAAP EBITDA loss improved to $900,000 from $1.7 million in 2024.

• Distribution expanded to nine states for the Oasis beverage brand, with growing market engagement and positioning in the functional alcohol alternative segment.

• Restored NYSE American compliance and resolved all prior deficiencies, removing a significant overhang.

Financial highlights

• Fiscal 2025 net sales were $19.1 million, down slightly from $19.5 million in 2024; Q4 net sales were $4.7 million, up 2% year-over-year.

• E-commerce sales for fiscal 2025 were $14.7 million (77% of total), down 6% year-over-year; Q4 e-commerce sales were $3.5 million, down 6%.

• Wholesale net sales grew to $4.5 million for the year, up from $3.8 million in 2024; Q4 wholesale sales rose 25% year-over-year.

• Gross margin improved to 63% for fiscal 2025 (62% in 2024); Q4 gross margin was 59% (54% prior year).

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

Outlook and guidance

• Fiscal 2026 is expected to focus on scaling Oasis, driving efficient D2C growth, preserving margins, and leveraging regulatory momentum.

• Anticipates significant demand potential from possible Medicare reimbursement for CBD, with up to $30 billion in potential spend and 60 million consumers.

• Ongoing regulatory changes and executive orders are expected to shape market opportunities and company strategy.