cbdMD (NYSEAMERICAN:YCBD) Issues Quarterly Earnings Results, Misses Expectations By $0.08 EPS

cbdMD (NYSEAMERICAN:YCBD) issued its earnings results on Thursday. The company reported ($0.11) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.08), FiscalAI reports. The business had revenue of $5.55 million for the quarter, compared to the consensus estimate of $5.69 million. cbdMD had a negative return on equity of 33.60% and a negative net margin of 13.29%.

Here are the key takeaways from cbdMD’s conference call:

• Net sales rose 20% year over year to $5.6 million in the fiscal third quarter, while nine-month revenue increased 12% to $16.2 million. Wholesale sales grew 61% and reached approximately 30% of total revenue, supported by Oasis distribution and Bluebird Botanicals’ contribution of more than $500,000.
• Oasis momentum accelerated, with expanded distribution in Texas and South Carolina and record July distributor depletions up 35% from the third-quarter average; August was tracking at more than double the quarterly average. The company also launched a zero-proof Kava Oasis beverage and is developing additional botanical products to diversify revenue ahead of potential THC restrictions.
• Management initiated a cost-reduction program targeting $100,000-$150,000 in monthly cash savings, or $1.2 million-$1.8 million annualized, through payroll reductions, warehouse lease changes, vendor negotiations and supply-chain savings. Management expects most savings to be captured during the fiscal fourth quarter, with some benefits extending into early fiscal 2027.
• Profitability remained under pressure, with gross margin falling to 54.7% from 61.5% due to the shift toward lower-margin wholesale sales, regulatory-related repacking costs and higher inventory reserves. The operating loss widened to approximately $1.1 million, while cash used in operations reached roughly $2 million for the first nine months.
• Regulatory uncertainty remains a material risk, including the scheduled November 12, 2026 changes to federal hemp rules and evolving state shipping, labeling and testing requirements. State restrictions already reduced direct-to-consumer revenue by approximately $150,000 during the quarter, although management is cautiously optimistic that proposed federal legislation could provide a temporary extension and eventually a durable framework.

cbdMD Stock Down 7.8%

Shares of cbdMD stock traded down $0.04 on Friday, reaching $0.52. 306,234 shares of the company were exchanged, compared to its average volume of 1,016,793. cbdMD has a fifty-two week low of $0.47 and a fifty-two week high of $2.56. The stock has a fifty day moving average price of $0.64 and a 200-day moving average price of $0.74.

Institutional Trading of cbdMD

An institutional investor recently bought a new position in cbdMD stock. Jane Street Group LLC bought a new stake in shares of cbdMD, Inc. (NYSEAMERICAN:YCBD) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund bought 51,141 shares of the company’s stock, valued at approximately $69,000. Jane Street Group LLC owned 0.49% of cbdMD as of its most recent SEC filing. Institutional investors and hedge funds own 7.18% of the company’s stock.

About cbdMD

cbdMD, Inc (NYSEAMERICAN: YCBD) is a Charlotte, North Carolina–based producer and distributor of hemp-derived cannabidiol (CBD) products. Since its founding in 2018, the company has focused on developing a diverse portfolio of wellness offerings designed for human and pet use. Its product range includes tinctures, capsules, gummies, topicals, and pet-specific formulations, each developed to comply with U.S. Food and Drug Administration (FDA) guidelines for hemp-derived substances.

The company operates a vertically integrated business model, sourcing U.S.-grown hemp and overseeing manufacturing processes in cGMP-certified facilities.