Q3 2026 cbdMD Inc Earnings Call Transcript

Aug 13, 2026 / 08:20 PM GMT

Release Date Price: $0.565 (-5.52%)

Transcript 10-Q

Key Points

Positve

Net sales grew 20% year over year to $5.6 million, with wholesale channel up 61% and total nine-month revenue up 12% to $16.2 million.
Oasis brand momentum accelerated, with record distributor depletions in July (up 35% over Q3 average) and August on pace to more than double, boosted by new distribution in South Carolina and a Texas partner that quadrupled store access.
Bluebird Botanicals contributed over $500,000 in revenue in its first full quarter, validating the M&A thesis and expected to add both revenue and earnings going forward.
Implemented a cost reduction program targeting $100,000 to $150,000 in monthly savings (annualized $1.2-$1.8 million) through payroll cuts, lease renegotiations, and vendor contract exits.
Adjusted EBITDA loss narrowed year over year to approximately $507,000 from $624,000, and the company is actively diversifying with new products like the zero-proof Kava Oasis beverage to mitigate regulatory risk.
Regulatory environment shows cautious optimism with bipartisan bills (e.g., Lawful Hemp Protection Act, Beverage Regulatory Parity Act) and a Senate stopgap proposal that could provide a durable framework, favoring compliance-focused operators like cbdMD.

Negative

Operating loss widened to approximately $1.1 million from $905,000 in the prior year, driven by deliberate investments and one-time costs, including $187,000 in increased inventory reserves.
Gross margin declined to 54.7% from 61.5% year over year, pressured by the shift to lower-margin wholesale, higher warehouse labor for repacking, and regulatory-related costs.
State-level regulatory headwinds negatively impacted direct-to-consumer revenue by approximately $150,000 during the quarter, with shipping restrictions and label changes narrowing product availability.
Cash used in operating activities increased to $2 million for the first nine months, up from $1.2 million, due to higher accounts receivable and inventory as the business scaled.
Regulatory uncertainty remains a significant overhang, with Section 781 of H.R. 5371 scheduled to take effect November 12, 2026, potentially narrowing the hemp definition and imposing strict THC limits, which could disrupt current product lines.
The company incurred additional professional fees of approximately $200,000 for M&A activity, GRAS report, and legal matters, adding to quarterly costs without immediate revenue benefit.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

YCBD.A - cbdMD Inc
Q3 2026 cbdMD Inc Earnings Call
Aug 13, 2026 / 08:20PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon. Welcome to CBDMD Inc.'s June 30th, 2026, third fiscal quarter of 2026 earnings call and update.

This afternoon, the company issued a press release that provided an overview of its first quarter results, which followed the filing of its quarterly report on Form 10-Q.

Today's conference call is being recorded and will be available online, along with our earnings press release covering our financial results and non-GAAP presentation at CBDMD.com in accordance with CBDMD's retention policies.

All participants on this call will be in a listen-only mode.

The call will be followed by a question-and-answer session.

At this time, I would now like to turn the conference over to Brad Whitford, the

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