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cbdMD (YCBD)
:YCBD
US Market
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cbdMD (YCBD) AI Stock Analysis

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YCBD

cbdMD

(YCBD)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
$0.48
▼(-11.11% Downside)
Action:Reiterated
Date:08/17/26
The score is held down primarily by weak financial performance—especially heavy negative operating/free cash flow and continued losses—along with bearish technicals (below major moving averages and negative MACD). The earnings call adds some support due to accelerating revenue and a defined cost-savings plan, but margin pressure, low cash levels, and significant regulatory uncertainty limit upside. Valuation provides limited signal given the negative P/E and no dividend data.
Positive Factors
Revenue and Wholesale Growth
Growing wholesale distribution broadens cbdMD’s reach beyond direct-to-consumer channels and can support more consistent volume. Continued sales expansion and a larger retail presence may improve operating leverage, although wholesale mix carries lower margins.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow indicate that the business has not been self-funding. With only about $2.1M of cash reported, cbdMD may require external financing or further cost reductions to maintain operations and execute its strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Wholesale Growth
Growing wholesale distribution broadens cbdMD’s reach beyond direct-to-consumer channels and can support more consistent volume. Continued sales expansion and a larger retail presence may improve operating leverage, although wholesale mix carries lower margins.
Read all positive factors

cbdMD (YCBD) vs. SPDR S&P 500 ETF (SPY)

cbdMD Business Overview & Revenue Model

Company Description
cbdMD, Inc. is engaged in the production and distribution of a diverse array of cannabidiol (CBD) products. The company oversees and markets several consumer-oriented, hemp-derived CBD brands, notably its primary brand cbdMD, alongside Paw CBD and...
How the Company Makes Money
cbdMD makes money primarily by selling hemp-derived CBD consumer products to end customers and retail/wholesale accounts. Its core revenue streams include: (1) Direct-to-consumer e-commerce sales through its own online channels, where the company ...

cbdMD Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Dec 18, 2026
Earnings Call Sentiment Neutral
The call presented balanced progress: clear top-line growth drivers (20% quarterly revenue growth, 61% wholesale growth, Oasis momentum, >$0.5M from Bluebird) and operational actions (cost reductions, product launches) that position the company to navigate near-term uncertainty. However, margin compression (gross margin down ~570 bps YoY in the quarter), higher operating losses and working capital build, inventory reserves, state-level restrictions, and material regulatory uncertainty are significant headwinds. Management emphasized deliberate investments and a path to improved adjusted EBITDA and lower cash burn, but tangible risks remain until regulatory clarity and cost savings are fully realized.
Positive Updates
Top-line Revenue Growth
Net sales grew 20% year-over-year to $5.6 million in the quarter; revenue for the first 9 months increased 12% to $16.2 million (from $14.5 million).
Negative Updates
Gross Margin Pressure
Gross margin declined to 54.7% in the quarter from 61.5% a year ago (9M gross margin 57.3% vs 63.5% prior year), primarily due to a mix shift toward lower-margin wholesale and higher warehouse labor / repacking costs from state regulation changes.
Read all updates
Q3-2026 Updates
Negative
Top-line Revenue Growth
Net sales grew 20% year-over-year to $5.6 million in the quarter; revenue for the first 9 months increased 12% to $16.2 million (from $14.5 million).
Read all positive updates
Company Guidance
Management guided to $100K–$150K per month of cash OpEx savings (≈$1.2M–$1.8M annualized) starting in Q4—with most savings expected by quarter end (lease savings ≈$10K/month phased in October, supply‑chain savings beginning in September)—and said the cash breakeven quarterly revenue run‑rate is now in the low‑to‑mid $6M range. That guidance accompanies Q3 net sales of $5.6M (+20% YoY; $16.2M for the first 9 months, +12%), wholesale growth of ~61% now ~30% of sales, Bluebird contributing >$0.5M, gross margin of 54.7% (vs 61.5% prior year), operating expenses of ~$4.2M (+12%), an operating loss of ~$1.1M, an improved adjusted EBITDA loss of ~$507K (vs $624K), incremental inventory reserves (~$187K), a ~$150K DTC headwind from state restrictions, cash of ~$2.1M and working capital of ~$4.7M, and management expects these actions to drive better contribution margins and adjusted EBITDA in the next quarter.

cbdMD Financial Statement Overview

Summary
Revenue is up modestly in the TTM period, but the company remains unprofitable with a negative net margin (~-13.8%). Cash flow is the primary weakness with deeply negative operating cash flow (~-$444M) and free cash flow (~-$626M), indicating heavy cash burn. Balance-sheet leverage appears low (debt-to-equity ~0.04), but large reported swings across periods reduce confidence in balance-sheet trend reliability.
Income Statement
34
Negative
Balance Sheet
44
Neutral
Cash Flow
18
Very Negative
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue20.93M19.19M19.48M24.16M35.40M44.48M
Gross Profit11.82M11.97M10.85M13.04M20.50M28.97M
EBITDA-1.62M-244.98K-1.85M-20.01M-67.11M-22.01M
Net Income-2.89M-2.04M-3.70M-22.94M-70.08M-23.39M
Balance Sheet
Total Assets13.15M10.42M10.58M16.20M40.79M124.88M
Cash, Cash Equivalents and Short-Term Investments2.12M2.26M2.45M1.80M7.72M27.44M
Total Debt2.21M778.24M1.27M3.68M4.87M6.07M
Total Liabilities4.93M3.19M8.62M7.16M9.37M21.74M
Stockholders Equity8.21M7.23M1.96M9.03M31.42M103.14M
Cash Flow
Free Cash Flow-626.00M-1.64M-642.81K-4.60M-15.66M-16.44M
Operating Cash Flow-443.93M-1.45M-352.79K-4.30M-14.97M-14.09M
Investing Cash Flow-18.18M-184.17K-290.01K702.45K-688.68K-2.55M
Financing Cash Flow-56.21M1.45M1.30M-1.32M-4.04M28.23M

cbdMD Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.54
Price Trends
50DMA
0.61
Negative
100DMA
0.70
Negative
200DMA
0.79
Negative
Market Momentum
MACD
-0.03
Positive
RSI
39.20
Neutral
STOCH
20.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YCBD, the sentiment is Negative. The current price of 0.54 is above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.61, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YCBD.

cbdMD Risk Analysis

cbdMD disclosed 37 risk factors in its most recent earnings report. cbdMD reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

cbdMD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$340.17M-19.82-1.99%-0.88%76.93%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
$659.23M-3.54-7.95%11.46%95.35%
45
Neutral
$42.71M-1.62-92.47%-100.00%54.21%
44
Neutral
$5.70M-1.59-33.59%10.01%95.01%
37
Underperform
$1.02M-1,062.50-3.03%-11.91%-285.23%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YCBD
cbdMD
0.49
-0.22
-31.27%
TLRY
Tilray
4.72
-9.78
-67.45%
SNDL
SNDL
1.36
-1.11
-44.94%
IMCC
IM Cannabis Corp
0.11
-2.13
-95.13%
IXHL
Incannex Healthcare Limited Sponsored ADR
3.62
-17.67
-83.00%

cbdMD Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
cbdMD Amends Lease, Adjusts Long-Term Facility Commitments
Neutral
May 20, 2026
cbdMD, Inc., a U.S.-based CBD wellness company, disclosed that it has entered into a Third Amendment to its lease, effective May 20, 2026, signifying a modification to a material definitive agreement governing its facilities. The amendment, refere...
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: Aug 17, 2026