CHARLOTTE, N.C., Dec. 19, 2025 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most highly trusted and recognized CBD companies, and operator of the leading CBD brands cbdMD and Paw CBD, along with hemp derived THC beverage line Herbal Oasis today announced our financial results for the full fiscal year ended September 30, 2025.
For fiscal year 2025, cbdMD delivered its third consecutive year of operational and financial improvement, reflecting disciplined cost management, focused execution, and continued investment in quality and science.
The Company reported a loss from operations of $2.1 million, representing a $1.2 million year-over-year improvement from a $3.3 million operating loss in fiscal 2024. As a result of balance-sheet actions completed during the year, including the conversion of Series A preferred equity, net book value improved from under $2.0 million to approximately $7.2 million at year-end. The Company took further steps this week to strengthen its balance sheet and raised an additional $2.25 million in gross proceeds from the sale of Series C Convertible Preferred Stock. Management believes the current capital structure provides flexibility to support growth initiatives and opportunities ahead in 2026.
"Fiscal 2025 marked an important inflection point for cbdMD as we delivered our third straight year of operating improvement while completing several foundational balance-sheet and compliance milestones, " said Ronan Kennedy, CEO and CFO of cbdMD. "We believe our performance during the September quarter compared favorably with many of our public peers and reflects the early impact of strategic changes we made to our sales and marketing organization."
"Our core cbdMD business continues to gain traction, and our Herbal Oasis team is seeing consistent month-over-month improvement in case sell-through across key markets as distribution expands throughout the Southeast. Importantly, we have paired this commercial momentum with a disciplined approach to capital allocation and balance-sheet management."
"As federal policy discussions continue to evolve around cannabinoids and hemp-derived products, cbdMD remains focused on operating at the highest standards of safety, quality, and scientific rigor," Kennedy continued. "Since our founding, we have invested millions of dollars in GMP manufacturing, product testing, and compliance systems to ensure our products meet or exceed applicable regulatory expectations."
"We are very encouraged by the White House's executive order on Thursday. We believe decriminalization will allow significant investment to further prove the benefits of cannabinoids. Since our formation, we have invested millions to ensure we provide safe, effective cannabinoid products that meet high-GMP quality standards. What makes us most excited are the statements around Medicare supporting the reimbursement of full spectrum hemp for seniors. This gives us confidence the regulators will figure out how to rework the language in Novembers' H.R. 5371 to more palatable language. There are over 60 million seniors on Medicaid who have the potential to become regular consumers to our core market.
"We believe increasing regulatory clarity will encourage additional research and institutional investment across the category. With our long-standing emphasis on THC-free and broad-spectrum CBD formulations, as well as our experience responsibly operating in hemp-derived THC beverages, cbdMD is well positioned to adapt as regulatory frameworks mature."
"With a stronger balance sheet, restored exchange compliance, improving operations, and a disciplined approach to growth, we believe cbdMD enters calendar 2026 in a materially stronger position," Kennedy concluded. "Our focus remains on executing responsibly, investing in science and quality, and creating long-term value for shareholders."
Highlights for Fiscal 2025 and Notable Business Updates
-- Herbal Oasis expanded into Texas through a distribution partnership with
Morales Beverage Group. The brand now has established distribution in
North Carolina, Florida, Alabama, Texas, Tennessee, and Minnesota, with
the ability to ship directly to additional states where permitted.
-- At the end of September 2025, cbdMD completed $1.7 million in Series B
Convertible Preferred equity financing, generating $1.5 million in net
proceeds to support working capital and strengthen net book value.
-- The NYSE American formally notified the Company in a letter dated
December 5, 2025, confirming that cbdMD has resolved all deficiencies
related to Sections 1003(a)(i) and (ii) of the NYSE American Company
Guide.
-- On December 18, 2025 cbdMD closed a $2.25 million Series C Convertible
Preferred equity financing, generating $2.2 million in net proceeds from
the sale of 1,000,000 shares of Series C Convertible Preferred Stock
which have rights and preferences substantially the same as the Company's
outstanding Series B Preferred Stock and are initially convertible at
$2.25 per share, to further enhance equity and liquidity.
-- On December 15 2025, as amended December 18, 2025, the Company entered
into a $20 million equity line of credit, providing cbdMD with a
potential flexible and efficient mechanism to access capital under
favorable market conditions. The ELOC is subject to an S-1 registration
statement to be filed by the Company and SEC review.
Financial Highlights from our Fiscal Year 2025:
-- Net sales totaled $19.1 million in fiscal 2025 compared to $19.5 million
in fiscal 2024.
-- Our gross profit for the year was flat at 62% in fiscal 2025 compared to
62% in fiscal 2024.
-- Our loss from operations was $2.1 million in fiscal 2025 as compared to a
loss of $3.3 million in fiscal 2024.
-- Our non-GAAP adjusted EBITDA loss from operations in fiscal 2025 was
approximately $0.9 compared to our non-GAAP adjusted EBITDA from
operations in fiscal 2024 of approximately $1.6. million.
-- Net loss attributable to common shareholders for fiscal 2025 was
approximately $4.3 million or $0.51 per share as compared to a net loss
for fiscal 2024 of approximately $7.7 million, or $14.29 per share. The
improvement in fiscal 2025 was principally attributable to ongoing
management's efforts on improving profitability.
-- At September 30, 2025, we had $2.3 million in cash on hand and working
capital of approximately $3.4 million as compared to $2.4 million of cash
and approximately negative $2.2 million of working capital (which
includes $4.7 million of accrued Series A dividend payments) at September
30, 2024.
-- We reported direct to consumer (DTC) net sales of $14.7 million or 77% of
total net sales in fiscal 2025, a decrease of $0.9 million, or 6% from
fiscal 2024.
Pursuant to the disclosure requirements of the NYSE American Company Guide Section 610(b), cbdMD is reporting that its audited consolidated financial statements for the fiscal year ended September 30, 2025, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 18, 2025, contains an audit opinion from its independent registered public accounting firm that includes an explanatory paragraph related to cbdMD's ability to continue as a going concern. This announcement does not represent any change or amendment to cbdMD's financial statements or to its Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
We will host a conference call at 4:20 p.m., Eastern Time, on Friday, December 19, 2025, to discuss our September 30, 2025, fourth quarter and full fiscal year financial results and business progress.
CONFERENCE CALL DETAILS
Friday December 19, 2025, 4:20 p.m. Eastern Time USA/Canada: 888-880-3330 Webcast/Webcast Replay link- available through December 19, 2026: https://app.webinar.net/13voDmbBlxj
About cbdMD, Inc.
cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and most recognized cannabidiol $(CBD)$ brands with a comprehensive line of U.S. produced THC-free(1) CBD products and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products and our ATRx brand features functional mushroom products. In addition, we operate Herbal Oasis, a premium, award winning THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free(1) CBD and Full Spectrum products as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, ATRxlabs.com, or Herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts, " "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. You are urged to carefully review and consider any cautionary statements, including but not limited to expectations on our ability to continue as a going concern, increasing our revenues, continued cost reductions, potential need for additional working capital, evolving regulatory and legal requirements and potential changes in federal law and federal and state oversight of CBD, continued listing on the NYSE American, future profitability, development and sales of new products, and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 as filed with the Securities and Exchange Commission (the "SEC") on December 19, 2025, and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
(1) THC-free is defined as below the level of detection using validated scientific analytical methods.
Non-GAAP Financial Measures
This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted loss from operations because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The adjusted operating loss has not been prepared in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has attached to this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
cbdMD, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
SEPTEMBER 30, 2025 AND
SEPTEMBER 30, 2024
September 30, September 30,
2025 2024
---------------- ----------------
Assets
Cash and cash equivalents $ 2,261,242 $ 2,452,553
Accounts receivable, net 1,040,887 983,910
Inventory, net 2,732,127 2,365,187
Inventory prepaid 214,795 159,006
Prepaid sponsorship 25,231 21,754
Prepaid expenses and other
current assets 277,147 406,674
---------------- ----------------
Total current assets 6,551,429 6,389,084
Other assets:
Property and equipment, net 277,377 454,268
Operating lease assets 703,934 85,817
Deposits for facilities 62,708 62,708
Intangible assets, net 2,124,502 2,889,580
Investment in other
securities, noncurrent 700,000 700,000
---------------- ----------------
Total other assets 3,868,521 4,192,373
Total assets $ 10,419,950 $ 10,581,457
---------------- ----------------
CONSOLIDATED BALANCE
SHEETS
SEPTEMBER 30, 2025 AND
SEPTEMBER 30, 2024
(continued)
September 30, September 30,
2025 2024
---------------- ----------------
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable $ 1,173,642 $ 1,541,108
Accrued expenses 735,672 632,674
Accrued dividends - 4,671,000
Deferred revenue 506,289 503,254
Operating leases - current
portion 778,240 98,696
Convertible notes, at fair
value - 1,171,308
---------------- ----------------
Total current liabilities 3,193,843 8,618,040
Long term liabilities:
Operating leases - long term
portion - -
---------------- ----------------
Total long term liabilities - -
Total liabilities 3,193,843 8,618,040
---------------- ----------------
cbdMD, Inc. shareholders'
equity:
Preferred stock,
authorized 50,000,000W
shares, $0.001
par value, 1,700,000 and
5,000,000 shares issued and
outstanding, respectively 1,700 5,000
Common stock, authorized
150,000,000 shares,
$0.001
par value, 8,917,054 and
492,383 shares issued and
outstanding, respectively 8,917 492
Additional paid in capital 186,650,640 184,033,012
Comprehensive other expense - (7,189)
Accumulated deficit (179,435,150) (182,067,898)
---------------- ----------------
Total cbdMD, Inc.
shareholders' equity 7,226,107 1,963,417
---------------- ----------------
Total liabilities and
shareholders' equity $ 10,419,950 $ 10,581,457
----------------------------- ---------------- ----------------
cbdMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and
2024
September 30, September 30,
2025 2024
-------------------- -------------------
Gross Sales $ 19,190,678 $ 19,922,319
Allowances (210) (440,152)
-------------------- -------------------
Total Net Sales 19,190,468 19,482,167
Cost of sales 7,222,213 7,486,626
-------------------- -------------------
Gross Profit 11,968,255 11,995,541
Operating expenses 14,130,845 15,310,951
-------------------- -------------------
Loss from operations (2,162,590) (3,315,410)
Decrease of contingent
liability - 74,580
Decrease (increase) in
fair value of
convertible debt 87,380 (429,789)
Interest expense
(income) 34,308 (29,507)
-------------------- -------------------
Loss before provision
for income taxes (2,040,902) (3,700,126)
Net (loss) income (2,040,902) (3,700,126)
-------------------- -------------------
Preferred dividends 2,334,501 4,004,001
-------------------- -------------------
Net Loss attributable
to cbdMD, Inc. common
shareholders $ (4,375,403) $ (7,704,127)
-------------------- -------------------
Net Loss per share:
Basic and diluted
earnings per share $ (1.09) $ (14.29)
-------------------- -------------------
Weighted average number
of shares Basic and
Diluted: 4,022,629 539,069
-------------------- -------------------
cbdMD, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and
2024
September 30, September 30,
2025 2025
------------------- -------------------
Net (Loss) $ (2,040,902) $ (3,700,126)
------------------- -------------------
Comprehensive (Loss)
income (2,040,902) (3,700,126)
------------------- -------------------
Other Comprehensive
income (loss) $ 7,189 $ (7,189)
Preferred dividends (2,334,501) (4,004,001)
------------------- -------------------
Comprehensive Loss
attributable to cbdMD,
inc. common
shareholders $ (4,368,214) $ (7,711,316)
------------------- -------------------
cbdMD, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
September 30, September 30,
2025 2024
---------------------- ---------------------
Cash flows from
operating
activities:
Net Loss $ (2,040,902) $ (3,700,126)
Adjustments to
reconcile net loss to
net
cash used by
operating
activities:
Stock based
compensation - 5,015
Restricted stock
expense 14,121 11,885
Issuance of stock for
services 86,657 -
Inventory and materials
impairment 365,979 921,314
Intangibles
amortization 765,078 697,510
Depreciation 361,063 452,326
Credit losses 382,588 54,322
Decrease in contingent
liability - (74,580)
Increase in fair value
of convertible debt (87,380) 429,789
Gain on termination of
operating lease asset - 696,280
Amortization of
operating lease asset 669,781 670,621
Changes in operating
assets and
liabilities:
Accounts receivable (439,565) 177,858
Deposits - 76,000
Inventory (732,919) 766,472
Prepaid inventory (55,789) 23,670
Prepaid expenses and
other current assets 126,051 396,311
Accounts payable and
accrued expenses (261,883) (1,124,141)
Operating lease
liability (608,354) (1,151,326)
Deferred revenue /
customer deposits 3,099 318,008
---------------------- ---------------------
Cash flows from
operating activities (1,452,375) (352,792)
Cash flows from
investing
activities:
Purchase of intangible
assets - (100,000)
Purchase of property
and equipment (184,172) (190,015)
---------------------- ---------------------
Cash flows from
investing activities (184,172) (290,015)
---------------------- ---------------------
Cash flows from
financing
activities:
Proceeds from issuance
of common stock - 50,001
Note payable 1,247,499
Proceeds from issuance
of preferred stock 1,445,236 -
Cash flows from
financing activities 1,445,236 1,297,500
---------------------- ---------------------
Net increase (decrease)
in cash (191,311) 654,693
Cash and cash
equivalents, beginning
of period 2,452,553 1,797,860
Cash and cash
equivalents, end of
period $ 2,261,242 $ 2,452,553
====================== =====================
Supplemental
Disclosures of Cash
Flow Information:
2025 2024
---------------------- ---------------------
Cash paid for interest $ - $ 74,638
====================== =====================
Non-cash
financing/investing
activities:
Issuance of shares for
conversion of debt and
accrued interest $ 1,079,639 $ 515,601
Change in lease asset
related to
extinguishment of HQ
lease and new
warehouse lease $ (1,723,544) $ -
Issuance of shares for
intangible asset $ - $ 40,725
Conversion accrued
preferred dividends
to common stock $ 7,008,151 $ -
Preferred dividends
accrued but not paid $ 2,334,501 $ 4,004,001
====================== =====================
cbdMD, Inc.
SUPPLEMENTAL FINANCIAL INFORMATION
FOR THE YEARS ENDED SEPTEMBER 30, 2025 and 2024
(unaudited)
Three Months Ended September 30, Year Ended September 30,
------------------------------------- --------------------------------
2025 2024 2025 2024
------------------ ----------------- ----------------- -------------
Revenue $ 4,720,770 $ 4,556,367 $ 19,140,468 $19,482,167
Gross profit 2,777,135 $ 2,453,803 $ 11,968,255 $11,995,541
Gross margin 58.8 % 53.9 % 62.4 % 61.6 %
Operating Expenses 3,461,458 $ 2,770,356 $ 14,130,845 $15,310,951
------------------ ----------------- ----------------- -------------
Operating loss from
operations (684,323) $ (316,553) $ (2,162,590) $ (3,315,410)
Corporate overhead
operating expense
(1) 399,501 $ 462,068 $ 1,816,563 $ 1,978,953
Non-GAAP adjusted
(loss) income from
operations $ (284,822) $ 145,515 $ (346,027) $ (1,336,457)
================== ================= ================= =============
GAAP loss from
operations $ (684,323) $ (316,553) $ (2,162,590) $ (3,315,410)
Adjustments:
Depreciation &
Amortization 262,065 287,783 1,126,141 1,149,836
Employee and
director stock
compensation (2) 7,754 5,881 13,595 43,688
Inventory
adjustment (3) 113,008 588,160 113,008 588,160
Non-cash expense
incurred as a
credit (4) - - - 439,926
Non-cash
accelerated
amortization of
expense related to
terminated IT
contracts - - - 72,101
Termination of HQ
lease - (696,280) - (696,280)
Mergers and
acquisitions
expense - - - 125,838
Non-GAAP adjusted
loss from
operations $ (301,496) $ (131,009) $ (909,846) $ (1,592,141)
================== ================= ================= =============
Public Company
Costs
Staff related
expense 70,698 119,975 310,647 288,602
Accounting/legal
expense 103,532 125,874 524,352 710,188
Professional
outside services 41,496 73,843 291,455 310,448
Business insurance 176,021 136,495 676,514 626,027
Non-GAAP adjusted
income from
operations,
excluding public
company costs $ 90,251 $ 325,178 $ 893,122 $ 343,124
================== ================= ================= =============
(1) Represents
corporate overhead
operating
expenses
(2) Represents non-cash expense related to options, warrants, restricted
stock expenses that have been amortized during the period
(3) Represents an operating expense related to inventory loss related to
regulatory changes impacting labels and packaging and obsolete/expired
inventory.
(4) Represents non-cash expense
incurred as a credit provided to GNC
to replace expired product.
Contacts:
Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064
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SOURCE cbdMD, Inc.
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December 19, 2025 16:10 ET (21:10 GMT)