CV Sciences (CVSI) Q2 2024 earnings summary

Executive summary

• Revenue held steady at $4.0 million for Q2 2024, matching both Q2 2023 and Q1 2024, despite a competitive market.

• Gross margin improved to 47.0%, the highest in 13 quarters, up from 43.3% year-over-year and 46.3% sequentially, driven by favorable product mix and cost efficiencies.

• Strategic M&A activity included the acquisitions of Elevated Softgels (May 2024) and Cultured Foods (Dec 2023), expanding into plant-based foods and supplement manufacturing.

• Operating loss narrowed to $0.6 million from $1.1 million in Q2 2023, with adjusted EBITDA loss approaching break-even.

• Management continues to implement cost reductions and seek additional capital to fund operations and growth.

Financial highlights

• Q2 2024 revenue: $4.0 million, unchanged year-over-year and sequentially.

• Gross margin: 47.0% in Q2 2024, up from 43.3% in Q2 2023 and 46.3% in Q1 2024.

• Operating loss reduced to $0.6 million from $1.1 million in Q2 2023.

• Adjusted EBITDA loss narrowed to $6,000 from $0.9 million in Q2 2023.

• Net loss for Q2 2024 was $0.6 million, or $0.00 per share, compared to $1.3 million loss, or $0.01 per share, in Q2 2023.

Outlook and guidance

• Anticipates modest cash usage in Q3 2024 for integration of acquisitions, with positive cash flow expected by year-end.

• Plans to launch new plant-based protein and wellness products in the second half of 2024.

• Strategic focus on M&A, new product innovation, and brand building, with Maxim Group retained as advisor.