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cbdMD Reports Impressive 20% Revenue Growth in Q3 2026

In an era where the CBD market is constantly evolving, cbdMD, Inc. continues to assert its dominance with a remarkable revenue growth of 20% year-over-year for the third quarter of fiscal 2026. This recent financial announcement was made on August 13, 2026, as the company disclosed that its gross revenue climbed to $5.6 million, up from $4.6 million in the same quarter last year. The significant growth reflects both the efficiency of its wholesale segment, which jumped impressively by 61%, and the sustained popularity of its innovative product lines, including the Oasis beverage brand and the newly integrated Bluebird Botanicals.

CEO Insights and Strategic Focus

Ronan Kennedy, the CEO and CFO of cbdMD, characterized the quarter as a phase of not just growth but also vital strategic advancements. He stated, "Revenue was up 20% year-over-year... We absorbed one-time costs tied to MA due diligence and other one-time legal costs... and did the work required to resolve supply-chain issues and address state-level compliance issues."

While Kennedy acknowledged that the company faced challenges related to bottom-line performance due to one-time expenses incurred in legal and operational heads, he emphasized the importance of these investments for future growth and stability.

Cost Management and Future Positioning

In a move aimed at enhancing operational efficiencies, cbdMD has implemented cost reduction initiatives expected to save up to $150,000 per month. This proactive approach resonates well with the company's aim to be more agile and competitive in anticipation of upcoming federal regulations. Kennedy added, "We are running the business to be leaner and well-positioned to succeed in the market following the effectiveness of pending federal regulation."

Legislative Developments Favoring cbdMD

As the regulatory landscape continues to change, cbdMD finds itself at a pivotal moment. The Senate’s extension related to the H.R. 5371 Sec. 781 legislation allows cbdMD and its competitors additional time before the impending laws come into effect. This delay is crucial, providing the company further opportunities to ensure compliance while capitalizing on legislative discussions that advocate for a clearer operational framework for hemp-derived products. Recently, bipartisan efforts have been noted, including the introduction of the Beverage Regulatory Parity Act, marking a significant advancement in regulatory conditions for hemp-derived beverages.

Business Highlights

In addition to the overall revenue growth, specific highlights of the third quarter include:

• - A notable surge in Oasis brand sales, coupled with an expansion of the beverage's distribution in South Carolina and a shift to a new distribution partner in Texas, resulting in increased retail access.
• - The introduction of a zero-proof Kava beverage under the Oasis brand, which promises immediate euphoric effects without intoxication.
• - Bluebird Botanicals, having integrated into the cbdMD ecosystem, contributed significantly, generating over $0.5 million in revenue during this quarter.

These developments signify a positive trajectory for cbdMD as it continues to navigate the complexities of the CBD sector while positioning itself for future regulatory shifts.

Financial Performance Overview

Despite challenges faced, for the nine months ending June 30, 2026, cbdMD reported a total net revenue of $16.2 million, a 12% increase from the previous year.

• - Direct-to-consumer sales accounted for 70% of total net sales, highlighting the booming e-commerce trend amidst rising restrictions at the state level.
• - Notably, cbdMD achieved a gross profit margin of 54.7%, although this reflects shifts in sales mix and compliance-related costs. The net loss for the quarter was approximately $1.13 million, underscoring the impact of strategic investments.

Looking Ahead

As cbdMD moves forward, the executive team is optimistic about the potential for further growth, guided by a clear vision and robust strategies aimed at market adaptation. With the impending federal regulations and growing consumer demand for hemp-derived products, the company appears strategically positioned to leverage its strengths and emerge as a leader in the evolving market landscape.

The forthcoming conference call scheduled for August 13, 2026, will further discuss these financial results and outline cbdMD’s roadmap ahead in addressing both operational efficiencies and growth mandates.