cbdMD Reports Q3 Revenue Decline, Completes Preferred Stock Conversion, and Expands Herbal Oasis Brand

cbdMD reported Q3 2025 revenue of $4.6 million, down 10.9% YoY, amid broader market challenges and regulatory headwinds. The company completed a significant Series A Preferred Stock conversion, enhancing its book value to $6.1 million. The Herbal Oasis brand expanded into 7 states, marking a strategic growth effort. Direct-to-consumer sales accounted for 78% of total revenue, while wholesale revenue contributed 22%.

Title: cbdMD Reports Q3 2025 Revenue of $4.6 Million, Down 10.9% YoY

Charlotte, North Carolina—cbdMD, Inc. (NYSE American: YCBD), a leading CBD company, reported its third quarter (Q3) 2025 financial results, showing a revenue of $4.6 million, a 10.9% decrease year-over-year (YoY). Despite broader market challenges and regulatory headwinds, the company completed a significant Series A Preferred Stock conversion, enhancing its book value to $6.1 million.

The company's direct-to-consumer (DTC) sales accounted for 78% of total revenue, totaling $3.6 million, while wholesale sales contributed 22%, amounting to $1.0 million. The Q3 2025 gross profit margin remained at 61%, essentially flat from the previous quarter. The loss from operations for the quarter was approximately $905,000, compared to a loss of $382,000 in the prior year.

cbdMD's Herbal Oasis brand expanded into 7 states, marking a strategic growth effort. The company's CEO, T. Ronan Kennedy, highlighted that the brand's digital marketing approach and influencer partnerships have accelerated sales. However, regulatory uncertainty in several states has impacted the core wholesale business and the momentum of the Oasis brand.

The company's working capital improved to approximately $2.0 million, up from a deficit of $2.2 million as of September 30, 2024. The increase was primarily due to the elimination of the accrued Series A Preferred dividends. The company also reported a cash on hand of approximately $1.1 million as of June 30, 2025.

cbdMD continues to collaborate with industry associations, engage directly with state legislators, and mobilize customers to ensure elected officials understand the economic and consumer implications of proposed legislation. The company expects heightened regulatory scrutiny to favor brands with compliance expertise and quality systems, positioning cbdMD for long-term success.

The company will host a conference call on Thursday, August 14, 2025, at 4:20 p.m. Eastern Time to discuss its Q3 2025 financial results and business progress.

# References:
[1] https://finance.yahoo.com/news/cbdmd-inc-ycbd-q3-2025-072155325.html
[2] https://www.marketscreener.com/news/cbdmd-generates-4-6-million-of-revenue-for-the-3rd-quarter-ce7c51d9df88f721