CV Sciences (CVSI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $3.6 million, down 9.9% year-over-year and 8% sequentially, with gross margin steady at 46.0% and an 8–11.8% decline in unit sales due to increased state regulations and product out-of-stocks.

• Net loss narrowed to $0.1 million in Q1 2025 from $0.6–0.7 million in Q1 2024, aided by a $0.5 million payroll tax reversal.

• Gross margin improved to 46% in Q1 2025 from 43.2% in Q4 2024, driven by cost savings, product mix, and acquisition synergies.

• Product innovation expanded with launches under +PlusHLTH and Lunar Fox, targeting non-cannabinoid and vegan markets.

• The company remains a top brand in the natural product retail channel, increasing market share amid industry contraction.

Financial highlights

• EBITDA for Q1 2025 was $131,000, with an Adjusted EBITDA loss of $311,000, a 41% improvement year-over-year.

• Net loss for Q1 2025 was $0.1 million, improved from $0.6–0.7 million in Q1 2024.

• SG&A expense decreased 12% year-over-year to $2.1 million and 7% sequentially.

• Cash at quarter-end was $0.8 million, up from $0.5 million at year-end, aided by $1.2 million in financing.

• Inventory reduced to $4.4 million from $4.9 million at year-end.

Outlook and guidance

• Cost savings, in-sourcing manufacturing, and new product launches are expected to drive further margin improvement and positive cash flow in the second half of 2025.

• Continued focus on M&A and organic growth to add scale, revenue, and cost efficiency.

• Management anticipates continued dependence on additional investment capital in the near term.

• Ongoing regulatory uncertainty and state-level restrictions, especially in California, are expected to negatively impact future results.