Q3 2025 cbdMD Inc Earnings Call Transcript
Key Points
- cbdMD Inc (YCBD) has made structural changes to reverse a multi-year revenue decline, streamline operations, and strengthen its capital structure.
- The company has expanded its Oasis distribution to 7 states, with shipments scheduled for August and in-market availability in September.
- Direct to consumer sales for the Oasis brand began to accelerate in July, supported by a more focused digital marketing approach and stronger influencer partnerships.
- cbdMD Inc (YCBD) maintains a healthy gross profit margin of 61%, which is among the strongest in its peer group.
- The company has eliminated preferred dividend obligations, simplifying its capital structure and allowing more focus on growth activities.
- Total net sales for the third quarter of fiscal 2025 were $4.6 million, representing a 10.9% decrease from the prior year comparative quarter.
- The wholesale business generated $1 million in net sales for the third quarter, down 17.1% compared to the previous year.
- State-level regulatory uncertainty impacted the core wholesale business and the momentum of the Oasis brand.
- The company reported a loss from operations of approximately $905,000 for the third quarter of fiscal 2025, compared to a loss of $382,000 in the prior year period.
- There was a 500 basis point year-over-year decline in gross margin due to increased warehousing costs and incremental packaging expenses.
Good afternoon. Welcome to cbdMDs third quarter fiscal 2025 results conference call. This afternoon, the company issued a press release that provided an overview of its third quarter results which followed the filings of its quarterly report on Form 10-Q.
Today's conference call is being recorded and will be available online along with our earning press release covering our financial results and non-GAAP presentation at cbdMD.com in accordance with cbdMD retention policies. (Operator Instructions) At this time, I would now like to turn the conference over to Brad Whitford, the company's Chief Accounting Officer. Brad, please go ahead.
Thank you, Renju, and thank you all for joining cbdMD's June 30, 2025, 3rd quarter fiscal 2025 earnings call and update. On the call today, we also have Ronan Kennedy, our CEO and Chief Financial Officer. We'd like to remind everyone the various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of safe harbor
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
