Q4 2025 cbdMD Inc Earnings Call Transcript
Key Points
- cbdMD Inc (YCBD) achieved its third consecutive year of operating improvement, reducing operating losses by $1.2 million to approximately $2.1 million.
- The company improved its adjusted non-GAAP EBITDA from a $1.7 million loss in 2024 to a $900,000 loss in 2025, driven by disciplined cost control and efficient marketing.
- cbdMD Inc (YCBD) expanded its distribution network for its new beverage brand, Oasis, across nine states, with additional markets under evaluation.
- The company successfully restored its balance sheet strength, increasing net book value from under $2 million to over $7 million and eliminating over $7 million in annual accrued preferred dividend obligations.
- cbdMD Inc (YCBD) received formal confirmation from the NYSE American that all prior compliance deficiencies had been fully resolved, removing a significant overhang.
- Total net sales for fiscal 2025 decreased slightly to $19.1 million from $19.5 million in the prior year.
- The e-commerce direct-to-consumer business saw a 6% year-over-year decline in sales, attributed to a shift in consumer preference towards the hemp beverage category.
- SG&A expenses for the fourth quarter of fiscal 2025 increased to $3.4 million compared to $2.7 million in the prior year, partly due to an increase in warehouse lease costs.
- The company experienced a non-GAAP adjusted operating loss of $301,000 for the fourth quarter of fiscal 2025, up from a $131,000 loss in the fourth quarter of fiscal 2023.
- Ongoing regulatory volatility and state-level changes impacted the business, creating uncertainty in the market environment.
Good afternoon, and welcome to cbdMD, Inc.'s fiscal year 2025 earnings call and business update. Earlier today, the company issued a press release discussing results for the fiscal year ended September 30, 2025, following the filing of its annual report on Form 10-K.
Today's call is being recorded and will be available on the company's website along with the earnings release and supplemental materials. (Operator Instructions) I will now turn the call over to Brad Whitford, Chief Accounting Officer of cbdMD.
Thank you, and thank you all for joining us today. Before we begin, I'd like to remind everyone that today's remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially.
Please refer to our annual report on Form 10-K for the year ended September 30, 2025, and our other filings with the SEC
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