CV Sciences (CVSI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $3.6 million, flat sequentially but down 8–10% year-over-year due to lower sales volume and regulatory pressures.

• Gross margin improved to 50.9%, the highest since 2019, up from 46% in Q1 2025 and 47% in Q2 2024, driven by lower freight, inventory losses, and favorable product mix.

• Achieved first positive adjusted EBITDA ($59,000–$0.1 million) since 2019, reflecting cost-efficient execution.

• Cost efficiency efforts reduced SG&A by up to 20% year-over-year and 10% sequentially, narrowing operating loss to $0.1 million from $0.6 million in Q2 2024.

• Maintained leading position in the natural product retail channel and increased market share, with 39% of Q2 2025 revenue from new products launched since 2023.

Financial highlights

• Q2 2025 revenue: $3.6 million, down 8–10% year-over-year, flat sequentially.

• Gross margin: 50.9% in Q2 2025, up from 46% in Q1 2025 and 47% in Q2 2024.

• Adjusted EBITDA: $59,000–$0.1 million positive, compared to losses in prior quarters.

• Operating loss: $0.1 million, improved from $0.6 million loss in Q2 2024.

• Net loss: $0.26–$0.3 million, improved from $0.58–$0.6 million in Q2 2024.

Outlook and guidance

• Expect further cost efficiency and gross margin improvement in H2 2025 from in-sourcing manufacturing.

• Anticipate positive cash flow in the second half of 2025 as acquisition synergies are realized.

• Continued focus on M&A, new product launches, and brand building to drive scale, revenue, and cost efficiency.

• Management continues to implement cost reductions and delay certain expenses, while seeking additional capital to fund operations and growth.

• Substantial doubt remains about the ability to continue as a going concern without successful capital-raising efforts.