cbdMD Reports Sequential Revenue Growth, Improved Liquidity, and Strong Start to Fiscal 2026

CHARLOTTE, N.C., Feb. 17, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE:YCBD), one of the nation's leading and most highly trusted and recognized CBD companies, and operator of the leading CBD brands cbdMD, Bluebird Botanicals, Paw CBD, along with its THC beverage brand Oasis today announced its financial results for the first quarter of fiscal year ended December 31, 2025.

cbdMD reported 12% sequential revenue growth and improved liquidity in the first quarter of fiscal 2026, reflecting continued stabilization of the core business and early benefits from recent strategic actions.

"We are encouraged by our return to sequential revenue growth and the continued stabilization of our core business," said Ronan Kennedy, CEO and CFO of cbdMD. "This quarter reflects several consecutive months of improving trends, including our strongest December and January in the past three years. With a stronger balance sheet, disciplined cost structure, and the addition of Bluebird Botanicals, we believe we are increasingly well positioned to drive improved operating results."

"The acquisition of Bluebird Botanicals represents a meaningful step forward for cbdMD. In addition to expanding our revenue base, Bluebird brings valuable intellectual property and regulatory assets, including GRAS status for full-spectrum CBD. As we integrate operations during the second fiscal quarter, we are focused on unlocking synergies and driving incremental earnings. We believe these actions position us to continue improving operating results and attain to sustainable profitability."

In addition to announcing its financial results, the Company also recently filed a definitive proxy statement for its 2026 annual meeting, scheduled March 30, 2026. Shareholders of record as of February 2, 2026 will be eligible to vote.

Highlights for the First Quarter of Fiscal 2026 and Notable Business Updates

• In December 2025, the Company raised approximately $2.25 million in Series C preferred financing, enhancing liquidity and working capital to support ongoing operations and integration efforts.
• In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. The transaction includes Bluebird's e-commerce business and select intellectual property, including GRAS status for full-spectrum CBD formulations. Integration is underway, with a focus on operational efficiencies, cost synergies, and revenue optimization. 
• The Company continues to monitor and support bipartisan efforts to address restrictive hemp legislation introduced in November 2025. cbdMD believes that increased regulatory clarity will favor well-capitalized, compliance-focused operators with strong quality and safety standards.

Financial Highlights from our First Quarter of Fiscal Year 2026:

• Net sales totaled $5.0 million in the first quarter of fiscal 2026 or a decrease of 1.9% compared to $5.1 million in first quarter of fiscal 2025. Sequentially, revenue was up 12% from the fourth quarter of fiscal 2025.
• Our loss from operations was $286,000 in the first quarter of fiscal 2026 as compared to a loss of $86,000 in the prior year comparative period.
• Our non-GAAP adjusted EBITDA loss from operations in the first quarter of fiscal 2026 was approximately $36,000 compared to Adjusted EBITDA of $214,000 from operations in the first quarter of fiscal 2025.
• Net loss attributable to common shareholders for the first quarter of fiscal 2026 was approximately $0.32 million or a loss of $0.04 per share as compared to a net loss for the first quarter of fiscal 2025 of approximately $1.0 million, or $1.73 per share.
• At December 31, 2025, we had working capital of approximately $5.4 million and cash on hand of approximately $3.4 million as compared to working capital of approximately $3.3 million and cash on hand of approximately $2.2 million at September 30, 2025.
• We reported direct to consumer (DTC) net sales of $3.6 million or 72% of total net sales in the first quarter of fiscal 2026, a decrease of $0.35 million, or 9% from the first quarter of fiscal 2025.
• We reported wholesale net sales of $1.4 million or 21% of total wholesale net sales in the first quarter of fiscal 2026, an increase of $0.25 million, or 22% from the first quarter of fiscal 2025.

We will host a conference call at 4:20 p.m., Eastern Time, on Tuesday, February 17, 2026, to discuss our December 31, 2025, first quarter of fiscal 2026 financial results and business progress.

CONFERENCE CALL DETAILS

About cbdMD, Inc.

cbdMD, Inc. (NYSE:YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced THC-free¹ CBD products and an array of Farm Bill compliant Delta 9 products. To learn more about cbdMD as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.

¹THC-free is defined as below the level of detection using validated scientific analytical methods.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' ''proposes,'' ''will,'' ''could,'' ''would,'' ''potential,'' ''continue,'' ''seek,'' and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and stabilization of our core business; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition; our ability to unlock operational efficiencies, cost synergies, and revenue optimization; our expectations regarding regulatory clarity and its impact on our business; our belief that we are well-positioned to drive improved operating results; and our liquidity and working capital position. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of restrictive hemp legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the Securities and Exchange Commission (the "SEC") on December 18, 2025, our Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, and our other filings with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

¹ THC-free is defined as below the level of detection using validated scientific analytical methods.

No Offer or Solicitation

This press release is for informational purposes only and shall not constitute a solicitation of a proxy, consent or authorization with respect to the Company's 2026 annual meeting. This communication may be deemed to be solicitation material in respect of the annual meeting proposals. In connection with the annual meeting proposals, the Company has filed a definitive proxy statement with the SEC and commenced mailing of the definitive proxy statement to its record shareholders, and the Company may file other documents with the SEC regarding the proposals in the proxy statement. THE COMPANY'S SHAREHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY IN THEIR ENTIRETY, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSALS.

Non-GAAP Financial Measures

This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted EBITDA because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has included below with this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Contacts:

Investors:

cbdMD, Inc.

Ronan Kennedy

Chief Executive Officer and Chief Financial Officer

[email protected]

(704) 445-3064

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SOURCE cbdMD, Inc.