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CV Sciences (CVSI)
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CV Sciences (CVSI) AI Stock Analysis

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CVSI

CV Sciences

(OTC:CVSI)

Rating:43Neutral
Price Target:
$0.00
▼(-100.00% Downside)
CV Sciences faces significant financial challenges with declining revenues and negative profit margins, heavily impacting its overall score. Technical indicators suggest a bearish trend, although the oversold RSI may indicate a potential rebound. Valuation metrics are weak due to negative earnings and no dividend yield. Despite some positive developments in the latest earnings call, such as improved gross margins and positive adjusted EBITDA, the overall outlook remains cautious.

CV Sciences (CVSI) vs. SPDR S&P 500 ETF (SPY)

CV Sciences Business Overview & Revenue Model

Company DescriptionCV Sciences, Inc. operates as a life science company in North America. It operates in two segments, Consumer Products and Specialty Pharmaceutical. The Consumer Products segment develops, manufactures, and markets plant-based dietary supplements and hemp-based cannabidiol (CBD) products under the PlusCBD, ProCBD, HappyLane, CV Acute, CV Defense, and PlusCBD Pet brand names in various health care sectors, including nutraceutical, beauty care, specialty foods, and pet products. It sells its products through its websites, internet sales, elect distributors, brick and mortar retailers, and select e-tailers. The Specialty Pharmaceutical segment focuses on developing and commercializing cannabinoids to treat medical indications. This segment is developing drug candidate CVSI-007 that combines CBD and nicotine in treatment of smokeless tobacco use and addiction. The company was formerly known as CannaVest Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. was incorporated in 2010 and is based in San Diego, California.
How the Company Makes MoneyCV Sciences generates revenue primarily through the sale of its consumer products, specifically a variety of CBD-infused dietary supplements and topical products. The company has established a strong presence in the health and wellness marketplace, with its products sold through various retail channels, including health food stores, pharmacies, and online platforms. Key revenue streams include direct-to-consumer sales and wholesale distribution agreements with retailers. Additionally, CV Sciences is involved in the pharmaceutical development of CBD-based products, which could represent a significant future revenue source depending on successful clinical trials and regulatory approvals. Partnerships with retailers and collaborations in research and development further enhance its revenue potential.

CV Sciences Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in gross margin, cash flow, and cost efficiency, alongside successful new product developments and strategic M&A integration. However, challenges such as revenue decline, regulatory issues, and a decrease in B2C revenue were noted. Despite these challenges, the company's positive adjusted EBITDA and improved financial metrics demonstrate progress towards profitability.
Q2-2025 Updates
Positive Updates
Improved Gross Margin
Q2 gross margin of 50.9%, a significant improvement compared to Q1 2025 gross margin of 46% and the highest since 2019.
Positive Adjusted EBITDA
Achieved a positive adjusted EBITDA of $59,000, marking the first positive adjusted EBITDA since Q2 2019.
Cost Efficiency Gains
SG&A expenses decreased by 20% year-over-year, and cost structure improvements led to significant cash savings.
New Product Development Success
New products introduced since 2023 represented 39% of revenue for Q2 2025, highlighting successful product innovation.
Increased Market Share
Maintained #1 position in natural product retail channel and increased market share.
Cash Flow Improvement
Generated positive cash from operating activities of $0.3 million in Q2 2025, significantly improved from cash used in operations in Q2 2024.
Strategic M&A Integration
Realized efficiency gains and expected further cost efficiency and gross margin improvement from the acquisition of Elevated Softgels.
Negative Updates
Revenue Decline
Year-over-year revenue declined from $4.0 million in Q2 2024 to $3.6 million in Q2 2025, driven by a 7% decrease in unit sales.
Regulatory Challenges
Increased state regulations negatively impacted unit sales and continue to pose challenges for the CBD category.
B2C Revenue Decline
B2C revenues declined by 7% sequentially due to reduced traffic to the site.
Operating Loss
Reported an operating loss of $0.1 million in Q2 2025, compared to an operating income of $11,000 in Q1 2025.
Company Guidance
During the second quarter of 2025, CV Sciences reported revenue of $3.6 million, maintaining consistency with Q1 2025. The company achieved a gross margin of 50.9%, the highest since 2019, marking an improvement from the previous quarter's 46%. This performance was bolstered by the company's M&A strategy, particularly the acquisition of Elevated Softgels, which enhanced in-house manufacturing capabilities and contributed to cost efficiencies. The second quarter also saw a positive adjusted EBITDA of $59,000, a significant recovery from the previous year's losses. CV Sciences continues to lead in the natural product retail channel and is expanding its product offerings to include non-cannabinoid items under the PlusHLTH brand. Furthermore, the investment in Cultured Foods has led to the launch of Lunar Fox, a new line of plant-based foods. The company has made strides in reducing SG&A expenses by 20% year-over-year, aligning its cost structure to support growth and profitability amidst a challenging regulatory environment.

CV Sciences Financial Statement Overview

Summary
CV Sciences is facing significant financial challenges, with declining revenues, negative profit margins, and cash flow issues. The balance sheet shows high leverage and low equity, posing potential financial stability risks. Overall, the company needs strategic improvements to return to profitability and improve cash flows.
Income Statement
35
Negative
The company has faced a declining revenue trend over the years, with a notable drop from 2019 to 2024. Gross profit margins have decreased significantly, indicating cost pressure. The EBIT and net profit margins are negative, reflecting operational inefficiencies and consistent net losses.
Balance Sheet
45
Neutral
The company exhibits a high debt-to-equity ratio, indicating potential leverage risks. The equity ratio is low, highlighting limited funding from shareholders relative to total assets. However, there has been a reduction in total liabilities over time, which is a positive sign.
Cash Flow
30
Negative
Cash flow from operations has been consistently negative, pointing to cash generation challenges. Free cash flow is also negative, indicating a lack of surplus cash after capital expenditures. The operating cash flow to net income ratio suggests operational struggles.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.97M15.71M16.00M16.20M20.05M24.43M
Gross Profit6.96M7.17M7.08M5.55M8.62M11.01M
EBITDA-898.00K-1.86M3.85M-5.66M-14.00M-21.72M
Net Income-1.55M-2.39M3.10M-8.21M-15.55M-22.28M
Balance Sheet
Total Assets7.95M7.93M9.20M12.74M18.07M30.63M
Cash, Cash Equivalents and Short-Term Investments886.00K454.00K1.32M611.00K1.38M4.02M
Total Debt1.49M779.00K442.00K1.53M922.00K7.77M
Total Liabilities6.15M6.13M6.30M13.51M14.52M19.41M
Stockholders Equity1.80M1.79M2.90M-777.00K3.54M11.21M
Cash Flow
Free Cash Flow-187.00K-879.00K2.25M-1.89M-7.52M-8.36M
Operating Cash Flow-80.00K-861.00K2.25M-1.89M-7.49M-7.30M
Investing Cash Flow-77.00K-28.00K-156.00K0.00-35.00K-1.06M
Financing Cash Flow568.00K32.00K-1.39M1.12M4.37M3.27M

CV Sciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.03
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
23.52
Positive
STOCH
30.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVSI, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.52 is Positive, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVSI.

CV Sciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$13.94M3.29%-26.17%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
44
Neutral
$6.42M-33.13%-7.80%90.17%
43
Neutral
$6.08M-72.00%-5.50%45.16%
$1.23M-216.17%
39
Underperform
$12.68M-230.73%-24.10%38.17%
$2.58M-1460.27%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVSI
CV Sciences
0.03
-0.02
-40.00%
AYTU
Aytu BioScience
2.25
-0.14
-5.86%
YCBD
cbdMD
0.73
-3.83
-83.99%
PTPI
Petros Pharmaceuticals
0.03
-8.47
-99.65%
FLGC
Flora Growth
22.50
-16.35
-42.08%
AKAN
Akanda Corp
3.45
-3.43
-49.85%

CV Sciences Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
CV Sciences Reports Q2 2025 Financial Results
Neutral
Aug 13, 2025

On August 13, 2025, CV Sciences announced its financial results for the second quarter of 2025, reporting a revenue of $3.6 million, a decrease from the previous year due to lower sales volume influenced by state regulatory pressures. Despite the revenue decline, the company achieved its highest gross margin since 2019 at 50.9% and reported its first positive adjusted EBITDA since 2019. The company is focusing on organic growth through new product development and mergers and acquisitions to improve profitability and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2025