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cbdMD
(YCBD)
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Rating:45Neutral
Price Target:
$0.56
▲(2.78% Upside)
Action:Reiterated
Date:07/28/26
The score is held down primarily by weak financial performance (persistent losses and negative cash flow, plus balance-sheet volatility) and a clear technical downtrend (price below all key moving averages). The earnings call provides a partial offset via improving sales trends and expectations for Bluebird to turn accretive with lower cash burn, but near-term margin pressure and regulatory/execution risks remain material. Valuation is only modestly supportive because a negative P/E is driven by ongoing losses and there is no dividend yield.
Positive Factors
Revenue Growth
Sustained top-line growth across quarters shows recovering demand and improved commercial traction. A 19% YoY and 12% sequential increase indicates scalable revenue momentum that supports better absorption of fixed costs, greater bargaining power with suppliers, and a clearer path to operational leverage over the next several quarters.
Negative Factors
Persistent Negative Cash Flow
Consistent operating and free cash flow deficits mean the business is not self-funding and must rely on external capital. That constrains reinvestment, increases dilution or refinancing risk, and limits flexibility to scale marketing, inventory or channel investments without durable financing support.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth across quarters shows recovering demand and improved commercial traction. A 19% YoY and 12% sequential increase indicates scalable revenue momentum that supports better absorption of fixed costs, greater bargaining power with suppliers, and a clearer path to operational leverage over the next several quarters.
Read all positive factors
cbdMD (YCBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.32M
Dividend YieldN/A
Average Volume (3M)7.54M
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth2.00%
EPS Growth94.31%
CountryUS
Employees42
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.41
Shares Outstanding10,497,919
10 Day Avg. Volume860,286
30 Day Avg. Volume7,543,844
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.67
Price to Sales (P/S)0.25
P/FCF Ratio-2.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.00Price Target Upside270.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$22.15M
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:May 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress: sequential and year-over-year revenue growth, strong wholesale expansion, positive early momentum from the Bluebird acquisition, improved per-share results, and proactive investments to pursue a new CMS BEI medical channel. Offsetting these positives are near-term margin compression, acquisition and strategic investment costs that produced operating and EBITDA losses, cash burn driven by working capital builds, and ongoing state-level regulatory volatility that raises compliance costs and market uncertainty. Management communicated plans and tools to improve margins and liquidity and expects Bluebird to be accretive in Q3 and the CMS opportunity to develop over 12–18 months.Positive Updates
Sequential and Year-over-Year Revenue Growth
Net sales of $5.6 million, up 19% year-over-year and 12% sequentially from Q1 FY2026.
Negative Updates
Gross Margin Compression
Gross margin declined to 58% from 62% in the prior year quarter (a 4 percentage-point decrease), primarily due to a shift to higher wholesale mix and incremental state-level costs (repacking and new testing requirements).
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential and Year-over-Year Revenue Growth
Net sales of $5.6 million, up 19% year-over-year and 12% sequentially from Q1 FY2026.
Read all positive updates
Company Guidance
Guidance highlighted that Bluebird (acquired mid‑January) should flip from a Q2 drag into a positive contributor in Q3, while the core business momentum should continue—Q2 net sales were $5.6M (+19% YoY, +12% sequential), core excl. Bluebird grew roughly $0.5M year‑over‑year and $0.3M sequentially, direct‑to‑consumer is ~67% of revenue and wholesale is 33% (vs 23% prior year; wholesale +65% YoY). Management said it will work to lift margins (Q2 gross margin 58% vs 62% prior) and improve profitability (Q2 loss from operations ~$801k, ~$405k excluding a one‑time noncash vesting; adjusted EBITDA loss $220k; net loss ~$876k or $0.08/sh vs ~$1.4M or $1.90/sh prior). They expect lower cash burn going forward after a Q2 operating cash use of ~$723k (prior quarter just under $1M), with ~$2.6M cash on hand, AR build of ~$435k and incremental inventory build of ~$240k, believe breakeven quarterly revenue is well below $7M, and will continue to invest in the CMS BEI pathway (accelerated spending now, with provider adoption expected over 12–18 months) and in regulatory contingency planning through the back half of 2026 while preserving balance‑sheet flexibility via an ELOC and equity/equity facility.cbdMD Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.98M | 19.19M | 19.48M | 24.16M | 35.40M | 44.48M |
| Gross Profit | 11.61M | 11.97M | 10.85M | 13.04M | 20.50M | 28.97M |
| EBITDA | -935.93K | -244.98K | -1.85M | -20.01M | -67.11M | -22.01M |
| Net Income | -2.66M | -2.04M | -3.70M | -22.94M | -70.08M | -23.39M |
Balance Sheet | ||||||
| Total Assets | 12.25M | 10.42M | 10.58M | 16.20M | 40.79M | 124.88M |
| Cash, Cash Equivalents and Short-Term Investments | 2.64M | 2.26M | 2.45M | 1.80M | 7.72M | 27.44M |
| Total Debt | 415.13K | 778.24M | 1.27M | 3.68M | 4.87M | 6.07M |
| Total Liabilities | 2.97M | 3.19M | 8.62M | 7.16M | 9.37M | 21.74M |
| Stockholders Equity | 9.28M | 7.23M | 1.96M | 9.03M | 31.42M | 103.14M |
Cash Flow | ||||||
| Free Cash Flow | -166.48M | -1.64M | -642.81K | -4.60M | -15.66M | -16.44M |
| Operating Cash Flow | -2.48M | -1.45M | -352.79K | -4.30M | -14.97M | -14.09M |
| Investing Cash Flow | -118.40K | -184.17K | -290.01K | 702.45K | -688.68K | -2.55M |
| Financing Cash Flow | 3.47M | 1.45M | 1.30M | -1.32M | -4.04M | 28.23M |
cbdMD Technical Analysis
Negative
0.54
Price Trends
0.67
Negative
0.73
Negative
0.83
Negative
Market Momentum
-0.05
Negative
43.41
Neutral
65.86
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 below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.67, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 65.86 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $305.41M | -18.15 | -1.99% | ― | -0.88% | 76.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $618.36M | -3.40 | -7.95% | ― | 11.46% | 95.35% | |
45 Neutral | $5.32M | -1.25 | -33.59% | ― | 2.00% | 94.31% | |
45 Neutral | $35.18M | -1.31 | -92.47% | ― | -100.00% | 54.21% | |
41 Neutral | $1.04M | -1,062.50 | -3.03% | ― | -6.14% | -24.22% |
* Healthcare Sector Average
YCBD
cbdMD
0.56
-0.32
-36.59%
TLRY
Tilray
4.64
-1.72
-27.02%
SNDL
SNDL
1.21
-0.45
-27.11%
IMCC
IM Cannabis Corp
0.13
-2.29
-94.75%
IXHL
Incannex Healthcare Limited Sponsored ADR
2.97
-9.23
-75.65%
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.