cbdMD (NYSEAMERICAN:YCBD) Releases 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 (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.08), FiscalAI reports. cbdMD had a negative net margin of 13.29% and a negative return on equity of 33.60%. The company had revenue of $5.55 million during the quarter, compared to analyst estimates of $5.69 million.

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 Performance

NYSEAMERICAN YCBD traded down $0.03 during trading hours on Thursday, hitting $0.56. The company had a trading volume of 219,021 shares, compared to its average volume of 1,021,396. The business has a 50 day moving average of $0.64 and a 200-day moving average of $0.74. cbdMD has a 1-year low of $0.47 and a 1-year high of $2.56.

Institutional Trading of cbdMD

An institutional investor recently bought a new position in cbdMD stock. Jane Street Group LLC purchased a new position in shares of cbdMD, Inc. (NYSEAMERICAN:YCBD) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 51,141 shares of the company’s stock, valued at approximately $69,000. Jane Street Group LLC owned about 0.49% of cbdMD as of its most recent SEC filing. 7.18% of the stock is currently owned by hedge funds and other institutional investors.

cbdMD Company Profile

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.