cbdMD (YCBD) AI Stock Analysis

• Market Cap: $11.68M
• Dividend Yield: N/A
• Average Volume (3M): 7.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -1.50%
• EPS Growth: 80.17%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.78
• Shares Outstanding: 10,068,203
• 10 Day Avg. Volume: 860,286
• 30 Day Avg. Volume: 7,543,844
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.03
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.43
• Enterprise Value/Ebitda: 30.12
• 1Y Price Target: $2.00
• Price Target Upside: 20.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-39.76% Downside)

The score is primarily held down by weak financial performance—contracting revenue, persistent losses, and continued cash burn. Technicals are mixed without clear bullish momentum, and valuation support is limited due to negative earnings and no dividend. Partially offsetting these are a moderately positive earnings call focused on improving losses and balance sheet actions, plus positive corporate developments (acquisition and regained listing compliance).

Positive Factors

Balance Sheet Strengthening

materially reducing recurring cash obligations and restoring equity cushion improves solvency and liquidity. Removing heavy preferred dividend obligations lengthens runway, lowers financing pressure, and supports durable access to capital and operational stability over the next 2–6 months.

Acquisition Expands Digital & Brand Footprint

Buying Bluebird assets expands cbdMD's digital retail presence, product assortment and educational reach, which can enhance direct-to-consumer scale, cross-sell opportunities, and customer acquisition efficiency. This strategic M&A strengthens competitive positioning in online CBD retail over the medium term.

Gross Margin Improvement

Higher gross margins indicate improved pricing, product mix, or cost control in manufacturing and supply chain. Sustained margin expansion provides structural cushion for reinvesting in growth or absorbing SG&A, improving the probability of reaching operating profitability if revenue stabilizes.

Negative Factors

Chronically Weak Cash Generation

Persistent negative operating and free cash flow signal ongoing cash burn and reliance on external financing. Over 2–6 months this elevates refinancing and liquidity risk, constrains reinvestment in marketing or product development, and limits the company’s ability to fund growth organically.

Revenue Contraction & Volatility

A trend of sharply declining and inconsistent revenue undermines scale economics and predictability. Without stable top-line growth, fixed costs and SG&A become harder to cover, impairing margin recovery and making medium-term profitability and return on capital uncertain.

Balance Sheet Deterioration in Recent Years

Shrinking equity and rising leverage reduce financial flexibility and increase default or dilution risk. Over the coming months this can constrain strategic options, raise cost of capital, and limit ability to absorb shocks or pursue further M&A without dilutive funding or onerous terms.

cbdMD Business Overview & Revenue Model

Company Description

cbdMD, Inc. produces and distributes various cannabidiol (CBD) products. The company owns and operates consumer hemp-based CBD brands, such as cbdMD, Paw CBD, and cbdMD Botanicals. Its cbdMD brand products include CDB tinctures, gummies, topicals, capsules, bath bombs, bath salts, and sleep aids. It also offers veterinarian-formulated products, including tinctures, chews, and topicals under the Paw CBD brand name. The company distributes its products through its e-commerce Website, third-party e-commerce sites, wholesalers, and various brick and mortar retailers in the United States. It has a research partnership with the University of Mississippi to identify novel cannabinoids. The company was formerly known as Level Brands, Inc. and changed its name to cbdMD, Inc. in May 2019. cbdMD, Inc. was incorporated in 2015 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

cbdMD generates revenue primarily through the sale of its CBD products across various categories such as oils, capsules, gummies, topicals, and pet products. The company operates a direct-to-consumer model through its e-commerce platform, allowing it to reach customers nationwide. Additionally, cbdMD has established partnerships with various retailers, providing its products in brick-and-mortar locations, which contributes to revenue growth. The company also leverages subscription services, encouraging repeat purchases and customer loyalty. Furthermore, cbdMD's investment in marketing, including influencer partnerships and educational content, helps drive brand awareness and sales, enhancing its overall earnings.

cbdMD Financial Statement Overview

Summary

cbdMD faces significant financial challenges with negative net income, declining revenues, high leverage, and negative cash flows. These factors indicate severe financial instability and a need for strategic reorientation.

Income Statement

The income statement reveals significant challenges with negative net income and EBIT over time, signaling ongoing profitability issues. The TTM (Trailing-Twelve-Months) data shows a negative EBIT margin, indicating the company is not generating operating profits. Revenues have been declining, with the latest TTM figure substantially lower than prior periods, reflecting negative growth trends and potential market challenges.

Balance Sheet

The balance sheet shows a concerningly high debt-to-equity ratio in recent periods, indicating high leverage and potential financial risk. Stockholders' equity has decreased significantly, impacting the equity ratio adversely. Despite a substantial increase in total debt, the company has maintained some equity, though the financial stability remains questionable with high liabilities relative to equity.

Cash Flow

Cash flow analysis highlights severe issues with negative operating and free cash flows, indicating the company is not generating sufficient cash to cover its operations and capital expenditures. The TTM data shows a substantial negative free cash flow, suggesting liquidity challenges. The operating cash flow to net income ratio is unfavorable, reinforcing concerns about cash management and sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.03M	0.00	19.48M	24.16M	35.40M	44.48M
Gross Profit	11.64M	0.00	12.00M	14.98M	22.34M	29.99M
EBITDA	168.03K	0.00	-1.49M	-20.01M	-15.48M	-22.01M
Net Income	-2.51M	-4.38B	-3.70M	-22.94M	-74.09M	-23.39M
Balance Sheet
Total Assets	9.90M	0.00	10.58M	16.20M	40.79M	124.88M
Cash, Cash Equivalents and Short-Term Investments	1.06M	0.00	2.45M	1.80M	7.72M	27.44M
Total Debt	962.74K	778.24M	1.27M	3.68M	4.87M	6.07M
Total Liabilities	3.78M	3.19B	8.62M	7.16M	9.37M	21.74M
Stockholders Equity	6.11M	7.23B	1.96M	9.03M	31.42M	103.14M
Cash Flow
Free Cash Flow	-687.97M	-184.17M	-642.81K	-4.60M	-15.66M	-16.44M
Operating Cash Flow	-507.96M	0.00	-352.79K	-4.30M	-14.97M	-14.09M
Investing Cash Flow	-291.37K	-184.17M	-290.01K	702.45K	-688.68K	-2.55M
Financing Cash Flow	1.00	1.45B	1.30M	-1.32M	-4.04M	28.23M

cbdMD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.66 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 0.96, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 15.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YCBD.

cbdMD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TLRY	49 Neutral	$1.08B	-0.42	-83.42%	―	2.31%	-726.28%
SNDL	48 Neutral	$427.45M	-6.56	-7.82%	―	1.76%	18.31%
YCBD	47 Neutral	$11.68M	-0.27	-44.42%	―	-1.50%	80.17%
IXHL	46 Neutral	$135.27M	-0.35	-114.52%	―	-86.05%	24.17%
FLGC	43 Neutral	$7.49M	-0.19	-37.38%	―	-22.60%	53.82%
IMCC	40 Underperform	$7.29M	-1.78	-93.87%	―	-0.74%	81.49%

cbdMD Corporate Events

cbdMD Expands Portfolio with Bluebird Botanicals Acquisition

On January 12, 2026, cbdMD, Inc. acquired substantially all assets of Gaia Botanicals, LLC and its subsidiaries, including the Bluebird Botanicals brand, its online CBD marketplace and educational website, related trademarks, inventory and certain other assets, while assuming specified liabilities. The transaction, structured as an asset purchase, was paid for with 425,000 restricted common shares at closing and an earnout of up to 525,000 additional restricted shares subject to performance-based calculations, lock-up provisions and timing conditions, signaling cbdMD’s strategic expansion of its digital footprint, product portfolio and brand portfolio in the competitive CBD market, and potentially enhancing its market reach and positioning among online CBD retailers.

The most recent analyst rating on (YCBD) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on cbdMD stock, see the YCBD Stock Forecast page.

cbdMD Regains NYSE Compliance After Series A Conversion

On December 8, 2025, cbdMD, Inc. announced that it had regained compliance with the NYSE American’s continued listing standards, following a confirmation letter from NYSE Regulation on December 5, 2025. This achievement, marked by the removal of the “.BC” indicator, reflects the company’s efforts to strengthen its balance sheet and position itself for sustainable growth, with significant contributions from a successful Series A Preferred share conversion and a capital raise earlier in the year.

The most recent analyst rating on (YCBD) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on cbdMD stock, see the YCBD Stock Forecast page.

cbdMD Signs New Executive Employment Agreement

On November 28, 2025, cbdMD, Inc. entered into an Executive Employment Agreement with its CEO and CFO, T. Ronan Kennedy, which includes a base salary and a restricted stock award contingent on shareholder approval. Additionally, the company’s board approved a new 2025 Equity Compensation Plan to replace the expired 2015 plan, aiming to incentivize key contributors with stock-based awards, subject to shareholder approval at the 2026 annual meeting.

The most recent analyst rating on (YCBD) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on cbdMD stock, see the YCBD Stock Forecast page.