cbdMD Reports 19% Year-over-Year and 12% Sequential Revenue Growth; Bluebird Acquisition Integration and Medicare BEI Pathway Position Company for Continued Momentum

May 14 2026 21:10 BST

CHARLOTTE, N.C. , May 14, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most trusted CBD companies and operator of the cbdMD, Bluebird Botanicals, and Paw CBD brands, along with its THC beverage brand Oasis, today announced financial results for the second quarter of fiscal year 2026, ended March 31, 2026.

The Company delivered 19% year-over-year and 12% sequential revenue growth, reflecting continued momentum in the core business and the contribution of newly acquired Bluebird Botanicals. Quarterly revenue, excluding revenue associated with the Bluebird acquisition, was the highest since our first fiscal quarter ending December 2023.

"This was a quarter of meaningful execution on multiple fronts," said Ronan Kennedy, CEO and CFO of cbdMD. "Our core business delivered another quarter of consistent growth, we successfully completed and integrated our first acquisition in years. The Bluebird Botanicals acquisition is a case study for what we can do — leveraging our infrastructure, marketing engine, and NYSE American listing to unlock value in a fragmented industry — and it sets the template for additional roll-up opportunities across hemp and adjacent health and wellness categories."

"At the same time, the regulatory backdrop has shifted more in the last few months than in any period I can recall," Kennedy continued. "Multiple bipartisan legislative proposals are advancing, cannabis has been partially rescheduled, and CMS has opened the first federal Medicare pathway for hemp-derived CBD through the BEI program. We have been preparing for this moment for years. The launch of our clinical healthcare channel, our active engagement with ACOs, and our continued investment in patient science position cbdMD to participate meaningfully as adoption develops. We believe that as regulatory clarity continues to emerge, well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility will be the ones that benefit — and that is precisely where cbdMD stands."

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

Bluebird Botanicals integration on track. In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. While acquisition and transition costs created an earnings drag during the quarter, Bluebird began generating positive income in March. Early third-quarter revenue is growing, and management expects the brand to contribute meaningfully to both top-line growth and earnings as additional products roll out and integration efficiencies are realized.
CMS BEI Medicare pathway activated. Subsequent to quarter-end, on April 1, 2026, CMS, through the Center for Medicare & Medicaid Innovation, activated the BEI for eligible participants in select Innovation Center models, including the ACO REACH Model and the Enhancing Oncology Model. The optional BEI allows approved participants, subject to CMS requirements, safeguards, and physician oversight, to furnish eligible hemp-derived products to beneficiaries at up to $500 annually per eligible beneficiary. Eligible products include non-intoxicating full-spectrum hemp-derived CBD products containing up to 3 milligrams of naturally occurring THC per serving. The FDA has issued a limited enforcement-discretion letter providing additional regulatory clarity for eligible ingestible CBD products furnished through the BEI.
cbdMD positioned as an evidence-based supplier of choice. cbdMD has launched a dedicated clinical healthcare channel to support the BEI pathway and is actively engaging ACOs, oncology practices, and health systems. The Company is continuing to invest in patient science to deepen the clinical evidence base supporting its products and to position itself as a trusted, evidence-based supplier as provider adoption develops. Management expects the early phase of the BEI to be implementation-led, with visibility into adoption developing through the second half of the calendar year. The program remains subject to ongoing legal and administrative scrutiny, including pending litigation, which the Company is actively monitoring.
Bipartisan legislative momentum building. The Company continues to monitor and support bipartisan efforts to address the restrictive hemp legislation enacted in November 2025, including delay and comprehensive-framework proposals introduced in both the House and Senate. cbdMD believes that increased regulatory clarity — combined with the partial rescheduling of cannabis to Schedule III in April 2026 — will favor well-capitalized, compliance-focused operators with strong quality, safety, and clinical standards.

Financial Highlights from our Second Quarter of Fiscal Year 2026:

Net sales totaled $5.6 million in the second quarter of fiscal 2026 or an increase of 19% compared to $4.7 million in second quarter of fiscal 2025. Sequentially, revenue was up 12% from the first quarter of fiscal 2026.
Our loss from operations was $801,000 in the second quarter of fiscal 2026 as compared to a loss of $485,000 in the prior year comparative period.
Our non-GAAP adjusted EBITDA loss from operations in the second quarter of fiscal 2026 was approximately $220,000 compared to Adjusted EBITDA loss of $197,000 from operations in the second quarter of fiscal 2025.
Net loss attributable to common shareholders for the second quarter of fiscal 2026 was approximately $0.88 million or a loss of $0.08 per share as compared to a net loss for the second quarter of fiscal 2025 of approximately $1.5 million, or $1.90 per share.
At March 31, 2026 we had working capital of approximately $5.4 million and cash on hand of approximately $2.6 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 $3.8 million or 67% of total net sales in the second quarter of fiscal 2026, an increase of $0.16 million, or 4% from the second quarter of fiscal 2025.
We reported wholesale net sales of $1.8 million or 33% of total net sales in the second quarter of fiscal 2026, an increase of $0.73 million, or 65% from the second quarter of fiscal 2025.

We will host a conference call at 4:20 p.m., Eastern Time, on Thursday, May 14, 2026, to discuss our March 31, 2026, second quarter of fiscal 2026 financial results and business progress.

CONFERENCE CALL DETAILS

Thursday, May 14, 2026, 4:20 p.m. Eastern Time
USA/Canada:	888-880-3330
Webcast/Webcast Replay link- available through May 14, 2027: https://app.webinar.net/PGD52PJopeq

About cbdMD, Inc.

cbdMD, Inc. (NYSE American: 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, 2025and 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.

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.

cbdMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2026 AND SEPTEMBER 30, 2025

	(unaudited)
	March 31,	September 30,
	2026	2025
Assets


Cash and cash equivalents	$ 2,635,243	$ 2,261,242
Accounts receivable, net	1,573,101	1,040,887
Inventory, net	3,321,045	2,732,127
Inventory prepaid	331,694	214,795
Prepaid expenses and other current assets	520,110	302,378
Total current assets	8,381,193	6,551,429

Other assets:
Property and equipment, net	361,119	277,377
Operating lease assets	361,558	703,934
Deposits for facilities	62,708	62,708
Intangible assets, net	2,193,271	2,124,502
Goodwill	190,000	-
Investment in other securities, noncurrent	700,000	700,000
Total other assets	3,868,656	3,868,521

Total assets	$ 12,249,849	$ 10,419,950
CONSOLIDATED BALANCE SHEETS

MARCH 31, 2026 AND SEPTEMBER 30, 2025
(continued)


	March 31,	September 30,
	2026	2025
Liabilities and shareholders' equity

Current liabilities:
Accounts payable	$ 1,393,402	$ 1,173,642
Accrued expenses	626,722	735,672
Accrued dividends	78,805	-
Deferred revenue	454,039	506,289
Operating leases - current portion	407,811	778,240
Note payable	7,321	-
Total current liabilities	2,968,100	3,193,843

cbdMD, Inc. shareholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001
par value, 1,591,210 and 1,700,000 shares issued and outstanding, respectively	1,591	1,700
Common stock, authorized 150,000,000 shares, $0.001
par value, 10,070,560 and 8,917,054 shares issued and outstanding, respectively	10,496	8,917
Additional paid in capital	189,909,199	186,650,640
Accumulated deficit	(180,636,537)	(179,435,150)
Total cbdMD, Inc. shareholders' equity	9,284,749	7,226,107


Total liabilities and shareholders' equity	$ 12,252,849	$ 10,419,950

cbdMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(unaudited)
	Three months ended March 31,		Six months ended March 31,
	2026	2025	2026	2025

Gross Sales	$ 5,640,059	$ 4,749,426	$ 10,656,964	$ 9,862,902
Total Net Sales	$ 5,640,059	$ 4,749,426	$ 10,656,964	$ 9,862,902
Cost of sales	$ 2,383,137	$ 1,790,062	$ 4,398,751	$ 3,502,929
Gross Profit	$ 3,256,922	$ 2,959,364	$ 6,258,213	$ 6,359,973

Operating expenses	$ 4,057,706	$ 3,445,180	$ 7,345,287	$ 6,932,061
Loss from operations	$ (800,784)	$ (485,816)	$ (1,087,074)	$ (572,088)
Decrease (increase) in fair value of convertible debt	$ -	$ (2,583)	$ -	$ 87,380
Interest expense (income)	$ 2,806	$ 7,642	$ 5,963	$ 19,046
Loss before provision for income taxes	$ (797,978)	$ (480,757)	$ (1,081,111)	$ (465,662)

Net (loss) income	$ (797,978)	$ (480,757)	$ (1,081,111)	$ (465,662)

Preferred dividends	$ 78,805	$ 1,000,500	$ 120,276	$ 2,001,001

Net Loss attributable to cbdMD, Inc. common shareholders	$ (876,783)	$ (1,481,257)	$ (1,201,387)	$ (2,466,663)

Net Loss per share:
Basic and diluted earnings per share	$ (0.08)	$ (1.90)	$ (0.12)	$ (3.67)
Weighted average number of shares Basic and Diluted:	10,443,617	778,410	9,715,873	672,558

cbdMD, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(unaudited)

	March 31,	March 31,
	2026	2025

Cash flows from operating activities:
Net Loss	$ (1,081,111)	$ (465,662)
Adjustments to reconcile net loss to net
cash used by operating activities:
Restricted stock expense	$ 296,950	$ 2,868
Issuance of stock for services	$ -	$ 82,250
Intangibles amortization	$ 398,126	$ 382,534
Depreciation	$ 98,866	$ 201,369
Decrease in fair value of convertible debt	$ -	$ (87,380)
Amortization of operating lease asset	$ 342,376	$ 330,969
Changes in operating assets and liabilities:
Accounts receivable	$ (511,168)	$ (67,408)
Inventory	$ (325,720)	$ (297,518)
Prepaid inventory	$ (116,899)	$ (62,623)
Prepaid expenses and other current assets	$ (110,764)	$ (62,361)
Accounts payable and accrued expenses	$ (121,059)	$ (277,135)
Operating lease liability	$ (370,428)	$ (241,489)
Deferred revenue / customer deposits	$ (34,133)	$ 54,160
Cash flows from operating activities	$ (1,534,964)	$ (507,426)

Cash flows from investing activities:
Purchase of property and equipment	$ (170,550)	$ (179,893)
Purchase of Bluebird	$ 56,427	$ -
Cash flows from investing activities	$ (114,123)	$ (179,893)

Cash flows from financing activities:
Proceeds from issuance of preferred stock	$ 2,026,088	$ -
Cash flows from financing activities	$ 2,026,088	$ -
Net increase (decrease) in cash	$ 377,001	$ (687,319)
Cash and cash equivalents, beginning of period	$ 2,261,242	$ 2,452,553
Cash and cash equivalents, end of period	$ 2,638,243	$ 1,765,234



Supplemental Disclosures of Cash Flow Information:
	2026	2025

Cash Payments for:
Interest expense		$ 19,046

Non-cash financing/investing activities:
Issuance of shares for conversion of debt and accrued interest	$ -	$ 1,079,639
All stock purchase of Bluebird	$ 936,992	$ -
Issuance of shares for service	$ -	$ 82,250
Preferred dividends accrued but not paid	$ 78,805	$ 2,001,000

cbdMD, Inc.
NON GAAP ADJUSTED EBITDA
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(unaudited)

	Three months ended March 31,		Six months ended March 31,
	2026	2025	2026	2025

GAAP (loss) from operations	$ (800,784)	$ (485,816)	$ (1,087,074)	$ (572,088)
Adjustments:
Depreciation and Amortization (1)	$ 251,550	$ 285,896	$ 496,992	$ 583,903
Employee and director stock compensation (2)	$ 296,872	$ 1,934	$ 301,804	$ 5,016
Mergers and Acquisitions and financing transaction expense (3)	$ 31,671	$ -	$ 53,688	$ -
Non-GAAP adjusted EBITDA	$ (220,691)	$ (197,986)	$ (234,590)	$ 16,831

(1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets.
(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.
(3) Represents costs associated with the Bluebird acquisition.

Contacts:

Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064

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SOURCE cbdMD, Inc.