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cbdMD Reports Major Financial Improvements

cbdMD, Inc. (NYSE American: YCBD), a prominent CBD brand known across the U.S., has made significant strides, showcasing its third successive year of operational and financial enhancement. On December 19, 2025, the company announced its fiscal results for the year ending September 30, 2025, highlighting disciplined cost control practices, strategic focus, and ongoing investment in quality and science.

Operational and Financial Performance

In fiscal year 2025, cbdMD reported an improved operational loss of $2.1 million. This figure marks a noteworthy reduction from the previous operating loss of $3.3 million in 2024. The company's efforts have culminated in an impressive enhancement of its balance sheet, bolstered primarily by the conversion of Series A preferred equity. By year-end, the net book value surged from just under $2 million to approximately $7.2 million. Recently, cbdMD secured an additional $2.25 million through the sale of Series C Convertible Preferred Stock, further strengthening its financial footing.

"2025 has been a turning point for cbdMD," remarked Ronan Kennedy, CEO and CFO. "This year, we not only achieved operational improvements but also completed crucial milestones for our balance sheet and compliance, reflecting strategic changes in our sales and marketing organization."

The company reported that its core cbdMD business continues to capture market attention, with notable growth in its Herbal Oasis brand as distribution expands throughout the Southeast. The month-over-month sales at Herbal Oasis have shown a steady increase, indicating a positive trend in consumer demand.

As the regulatory landscape surrounding cannabinoids evolves, cbdMD remains steadfast in its commitment to uphold the highest standards in safety, quality, and science. Since its inception, the brand has invested significantly in Good Manufacturing Practices (GMP), product testing, and compliance systems to ensure its offerings meet and exceed regulatory expectations.

Future Prospects and Regulatory Clarity

cbdMD welcomes the White House's recent executive order regarding the decriminalization of cannabis, anticipating it will foster greater investments in cannabinoid research and applications. Furthermore, there are supportive developments anticipated surrounding Medicare's involvement with full-spectrum hemp products for seniors, indicating an expanding market potential for cbdMD's offerings.

"We foresee increased regulatory clarity which will further stimulate research and institutional investments within the category," Kennedy added. "With our specialization in THC-free and broad-spectrum CBD formulations, coupled with our track record in hemp-derived THC beverages, we are positioned to adeptly adapt to the evolving regulatory framework."

Looking ahead, cbdMD's future appears brighter. With an improved balance sheet, restored compliance with the NYSE, and disciplined growth management, the company is set to advance toward 2026 with renewed vigor. Their focus remains on responsibly driving growth, investing in scientific research, and generating long-term value for shareholders.

Key Highlights from Fiscal 2025

• - Sales Overview: cbdMD recorded net sales of $19.1 million, only slightly below the $19.5 million from 2024, demonstrating resilience despite market challenges.
• - Customer Base Growth: Direct-to-consumer (DTC) sales accounted for 77% of total net sales, though a minor decline was observed compared to the previous fiscal period.
• - Product Expansion: Herbal Oasis has expanded its distribution into Texas through a partnership with Morales Beverage Group, encompassing six key states and growing.
• - Supportive Financing: cbdMD completed a $1.7 million Series B Convertible Preferred equity financing in September, which has significantly strengthened working capital.

In summary, cbdMD’s commitment to quality, adherence to evolving regulations, and balanced financial strategies are setting the stage for a promising future in the cannabis industry. This robust approach not only positions the company for growth but also reinforces its status as a trusted leader in the CBD market.

For more details, visit cbdMD's website.