cbdMD Reports 20% Year-over-Year Revenue Growth for the Third Fiscal Quarter of 2026
Accelerating Oasis Beverage Momentum, a Full Quarter of Bluebird Botanical Contribution, and Advancing Federal Hemp Legislation Strengthen the Company's Positioning for Competing under Pending Federal Regulations
CHARLOTTE, N.C., Aug. 13, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most trusted CBD companies and operator of the cbdMD, Bluebird Botanicals, and Paw CBD brands, along with its hemp-derived THC beverage brand Oasis and functional-mushroom brand ATRx Labs, today announced financial results for the third quarter of fiscal year 2026, ended June 30, 2026.
The Company delivered 20% year-over-year revenue growth, driven by a 61% increase in wholesale net sales, increased distribution of its Oasis beverage brand, and the first full quarter of contribution from the recently acquired Bluebird Botanicals.
"The third quarter was another quarter of top-line growth and real strategic progress," said Ronan Kennedy, Chief Executive Officer and Chief Financial Officer of cbdMD. "Revenue was up 20% year-over-year, our Oasis beverage brand sales continued to grow, and Bluebird Botanicals contributed a full quarter of revenue for the first time. We were not satisfied with our bottom line this quarter but the shortfall was largely the result of deliberate choices. We absorbed one-time costs tied to M&A due diligence and other one-time legal costs, continued to invest in product development, and did the work required to resolve supply-chain and address state-level compliance issues. During July we implemented cost reduction initiatives that we expect to result in saving potential up to $150,000 per month, as we are running the business to be leaner, more flexible, and well positioned to succeed in the market following the effectiveness of pending federal regulation."
"The regulatory picture is also moving in a more constructive direction," Kennedy continued. "A Senate-driven extension has given cbdMD and the broader industry additional time ahead of the November effective date of the H.R. 5371 Sec. 781 legislation to ensure company compliance with the pending laws, and the number of bipartisan legislative proposals continues to grow, including the Beverage Regulatory Parity Act introduced this week, which would regulate hemp-derived beverages much like alcohol. We believe momentum is building toward a workable federal framework, and that well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility, such as cbdMD, will be the ones that benefit as clarity emerges."
Highlights for the Third Quarter of Fiscal 2026 and Notable Business Updates
Financial Highlights from the Third Quarter of Fiscal Year 2026
Conference Call Details
The Company will host a conference call at 4:20 pm Eastern Time, on August 13, 2026, to discuss its third quarter fiscal 2026 financial results and business progress.
USA/Canada Dial-in: 888-880-3330
Webcast / Webcast Replay link: https://app.webinar.net/PGD52PJopeq
About cbdMD, Inc.
cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands, with a comprehensive line of U.S.-produced THC-free 1 CBD products and an array of Farm Bill-compliant Delta 9 products. The Company owns and operates the cbdMD, Paw CBD, and Bluebird Botanicals CBD brands, the Oasis line of hemp-derived THC beverages, the Kavari line of Kava products, and the ATRx Labs functional-mushroom brand. To learn more about cbdMD and its other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
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 by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes," "will," "could," "would," "potential," "continue," "seek," and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and the performance of our core business and Oasis brand; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition and our pursuit of additional acquisitions; the anticipated benefits of our cost-reduction and supply-chain initiatives; our expectations regarding federal and state regulatory developments, including proposed legislation and the effective date of Section 781 of the Act, and their impact on our business; and our liquidity and working capital position. 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. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of Section 781 of the Act and related legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and our other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms is not part of this press release.
cbdMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2026 AND SEPTEMBER 30, 2025
(unaudited)
June 30,
September
30,
2026
2025
Assets
Cash and cash equivalents
$ 21,18,339
$ 22,61,242
Accounts receivable, net
17,52,661
10,40,887
Inventory, net
32,78,436
27,32,127
Inventory prepaid
1,86,763
2,14,795
Prepaid sponsorship
21,161
25,231
Prepaid expenses and other current assets
3,39,162
2,77,147
Total current assets
76,96,522
65,51,429
Other assets:
Property and equipment, net
3,34,840
2,77,377
Operating lease assets
21,83,117
7,03,934
Deposits for facilities
62,708
62,708
Intangible assets, net
19,78,646
21,24,502
Goodwill
1,90,000
-
Investment in other securities, noncurrent
7,00,000
7,00,000
Total other assets
54,49,311
38,68,521
Total assets
$ 1,31,45,833
$ 1,04,19,950
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2026 AND SEPTEMBER 30, 2025
(continued)
June 30,
September 30,
2026
2025
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
$ 14,92,250
$ 11,73,642
Accrued expenses
5,87,767
7,35,672
Operating leases - current portion
3,50,949
7,78,240
Note payable
7,321
-
Total current liabilities
30,79,569
31,93,843
Long term liabilities:
Operating leases - long term portion
15,83,994
-
Total long term liabilities:
15,83,994
-
Total liabilities:
46,63,563
31,93,843
Commitments and Contingencies
cbdMD, Inc. shareholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001
par value, 1,591,210 and 1,700,000 shares issued and outstanding,
respectively
1,591
1,700
Common stock, authorized 150,000,000 shares, $0.001
par value, 11,118,820 and 8,917,054 shares issued and outstanding,
respectively
11,119
8,917
Additional paid in capital
19,00,34,330
18,66,50,640
Accumulated deficit
(18,18,34,770)
(17,94,35,150)
Total cbdMD, Inc. shareholders' equity
82,12,270
72,26,107
Total liabilities and shareholders' equity
$ 1,28,75,833
$ 1,04,19,950
cbdMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025
(unaudited)
Three months ended June 30,
Nine months ended June 30,
2026
2025
2026
2025
Gross Sales
$ 55,53,738
$ 46,06,796
$ 1,62,10,701
$ 1,44,69,698
Total Net Sales
$ 55,53,738
$ 46,06,796
$ 1,62,10,701
$ 1,44,69,698
Cost of sales
$ 25,16,204
$ 17,75,709
$ 69,14,955
$ 52,78,638
Gross Profit
$ 30,37,534
$ 28,31,087
$ 92,95,746
$ 91,91,060
Operating expenses
$ 41,68,011
$ 37,35,773
$ 1,15,13,299
$ 1,06,67,834
Loss from operations
$ (11,30,477)
$ (9,04,686)
$ (22,17,553)
$ (14,76,774)
Decrease (increase) in fair value of convertible debt
$ -
$ -
$ -
$ 87,380
Interest expense (income)
$ 3,275
$ 9,414
$ 9,238
$ 28,460
Loss before provision for income taxes
$ (11,27,202)
$ (8,95,272)
$ (22,08,315)
$ (13,60,934)
Net (loss) income
$ (11,27,202)
$ (8,95,272)
$ (22,08,315)
$ (13,60,934)
Preferred dividends
$ 71,031
$ 3,33,500
$ 1,91,307
$ 23,34,501
Net Loss attributable to cbdMD, Inc. common
shareholders
$ (11,98,233)
$ (12,28,772)
$ (23,99,622)
$ (36,95,435)
Net Loss per share:
Basic and diluted earnings per share
$ (0.11)
$ (0.21)
$ (0.24)
$ (1.56)
Weighted average number of shares Basic and Diluted:
1,06,16,617
57,83,354
1,00,16,121
23,76,157
cbdMD, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE, 2026 AND 2025
(unaudited)
June 30,
June 30,
2026
2025
Cash flows from operating activities:
Net Loss
$ (22,08,315)
$ (13,60,934)
Adjustments to reconcile net loss to net
cash used by operating activities:
Restricted stock expense
$ 3,62,109
$ 3,693
Issuance of stock for services
$ -
$ 82,250
Intangibles amortization
$ 6,12,751
$ 5,73,801
Depreciation
$ 1,43,210
$ 2,90,275
Decrease in fair value of convertible debt
$ -
$ (87,380)
Amortization of operating lease asset
$ 5,24,525
$ 4,99,309
Changes in operating assets and liabilities:
Accounts receivable
$ (6,90,727)
$ 17,351
Inventory
$ (2,83,110)
$ (4,33,495)
Prepaid inventory
$ 28,032
$ (2,21,034)
Prepaid expenses and other current assets
$ 49,023
$ 37,017
Accounts payable and accrued expenses
$ 77,762
$ (1,94,632)
Operating lease liability
$ (5,77,005)
$ (4,23,855)
Deferred revenue / customer deposits
$ (15,377)
$ 6,008
Cash flows from operating activities
$ (19,77,122)
$ (12,11,626)
Cash flows from investing activities:
Purchase of property and equipment
$ (1,88,615)
$ (1,81,368)
Purchase of Bluebird
$ 56,427
$ -
Cash flows from investing activities
$ (1,32,188)
$ (1,81,368)
Cash flows from financing activities:
Proceeds from ELOC draw
$ 61,990
Proceeds from issuance of preferred stock
$ 20,24,693
Preferred dividends distribution
$ (1,20,276)
$ -
Cash flows from financing activities
$ 19,66,407
$ -
Net increase (decrease) in cash
$ (1,42,903)
$ (13,92,994)
Cash and cash equivalents, beginning of period
$ 22,61,242
$ 24,52,553
Cash and cash equivalents, end of period
$ 21,18,339
$ 10,59,559
Supplemental Disclosures of Cash Flow Information:
2026
2025
Cash Payments for:
Interest expense
$ 19,046
Non-cash financing/investing activities:
Issuance of shares for conversion of debt and accrued interest
$ -
$ 10,79,639
Change in lease asset related to extinguishment of HQ lease and new warehouse lease
$ -
$ (17,23,544)
ROU Assets obtained in exchange for lease liabilities
$ 20,03,708
$ -
All stock purchase of Bluebird
$ 9,36,992
$ -
Conversion of accrued preferred dividends to preferred stock
$ -
$ 66,72,652
Preferred dividends accrued but not paid
$ 71,031
$ 23,34,501
Non-GAAP Financial Measures
This press release includes a financial measure, Adjusted EBITDA, 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. defines Adjusted EBITDA as GAAP loss from operations adjusted to (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) inventory reserve, (iii) regulatory and legal matters, and (iv) mergers and acquisitions and financing transaction expenses for the periods presented. cbdMD, Inc. has included Adjusted EBITDA because management uses this measure to assess operating performance and to highlight trends in the business that may not otherwise be apparent when relying on GAAP measures. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, loss from operations as an indicator of operating performance and, as presented, may not be comparable to similarly titled measures reported by other companies. A reconciliation to the most directly comparable GAAP measure is provided below.
Reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted EBITDA (Unaudited)
cbdMD, Inc.
NON GAAP ADJUSTED EBITDA
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025
(unaudited)
Three months ended June 30,
Nine months ended June 30,
2026
2025
2026
2025
GAAP (loss) from operations
$ (11,30,477)
$ (9,04,686)
$ (22,17,553)
$ (5,72,088)
Adjustments:
Depreciation and Amortization (1)
$ 2,58,969
$ 2,80,172
$ 7,55,962
$ 5,83,903
Employee and director stock compensation (2)
$ 65,159
$ 825
$ 3,66,963
$ 5,016
Inventory Reserve (3)
$ 1,20,000
$ 1,20,000
Regulatory and Legal Mattters (4)
$ 53,000
$ 53,000
Mergers and Acquisitions and financing transaction expense (5)
$ 1,26,000
$ -
$ 1,57,671
$ -
Non-GAAP adjusted EBITDA
$ (5,07,349)
$ (6,23,689)
$ (7,63,957)
$ 16,831
(1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets.
(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.
(3) Represents additional inventory reserve in preparation for pending regulatory changes.
(4) Represents regulatory costs associated with pending legislation.
(5) Represents costs associated with the Bluebird acquisition, preferred stock offerings and review of additional potential acquisition opportunities.
Contacts
Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
[email protected]
(704) 445-3064
SOURCE cbdMD, Inc.