cbdMD (YCBD)
XASE:YCBD
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cbdMD
(NYSE MKT:YCBD)
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Rating:54Neutral
Price Target:
$0.89
▼(-1.34% Downside)
Action:ReiteratedDate:04/25/26
The score is held back primarily by weak financial performance (ongoing losses, cash burn, and balance-sheet leverage risk). Technical momentum is a notable positive with the price above key moving averages and a positive MACD, but RSI near 70 suggests frothy conditions. Earnings-call commentary is moderately constructive (sequential growth, near-breakeven EBITDA, acquisition synergies) but still weighed down by margin pressure, cash use, and regulatory uncertainty; valuation remains constrained by negative earnings and no dividend support.
Positive Factors
Gross Margin Resilience
Sustained gross margins in the mid-to-high 50s provide durable contribution per unit and cushion against SG&A pressure. This margin profile supports profitability once fixed costs are reduced or volumes recover, enabling the firm to convert sales growth into improved EBITDA over months.
Negative Factors
Persistent Cash Burn
Ongoing negative operating and free cash flow indicate the business is not self-funding and depends on external capital. Persistent cash burn limits reinvestment, increases financing frequency, raises dilution risk, and constrains the company's ability to sustain investment through a multi‑quarter recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Resilience
Sustained gross margins in the mid-to-high 50s provide durable contribution per unit and cushion against SG&A pressure. This margin profile supports profitability once fixed costs are reduced or volumes recover, enabling the firm to convert sales growth into improved EBITDA over months.
Read all positive factors
cbdMD (YCBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.12M
Dividend YieldN/A
Average Volume (3M)7.54M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-0.66%
EPS Growth86.18%
CountryUS
Employees42
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.04
Shares Outstanding10,495,561
10 Day Avg. Volume860,286
30 Day Avg. Volume7,543,844
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.67
Price to Sales (P/S)0.25
P/FCF Ratio-2.97
Enterprise Value/Market Cap65.66
Enterprise Value/Revenue31.36
Enterprise Value/Gross Profit57.05
Enterprise Value/Ebitda-1.22K
Forecast
1Y Price Target
$2.00Price Target Upside122.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.22
Revenue Forecast (FY)$19.54M
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,...
How the Company Makes Money
cbdMD makes money by selling hemp-derived CBD consumer products under its brand portfolio through multiple sales channels. The core revenue model is product sales revenue: (1) Direct-to-consumer (DTC) e-commerce, where customers purchase products ...
cbdMD Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: management highlighted sequential revenue growth (12% QoQ), wholesale momentum (~17% increase), near-breakeven adjusted EBITDA (~$36K loss), a strategic acquisition (Bluebird Botanicals) expected to add revenue and IP, and improved liquidity via a ~$2.25M Series C and a $20M ELOC. Counterbalancing these positives are modest YoY revenue decline (~2%), gross margin compression (down 6 percentage points to 60%), a widened operating loss (~$286K), and ongoing regulatory headwinds that created customer confusion and added compliance costs. On balance, the operational progress, balance sheet improvements, and strategic acquisition slightly outweigh the challenges, supporting a constructive outlook while acknowledging execution and regulatory risks remain.Positive Updates
Sequential Revenue Recovery
Net sales of approximately $5.0M in Q1 FY2026, marking a 12% sequential increase versus Q4 FY2025 and the company's third consecutive quarter of sequential revenue growth. December 2025 and January 2026 produced the highest monthly revenue levels since 2022, indicating improving top-line momentum.
Negative Updates
Year‑over‑Year Revenue Slight Decline
Q1 FY2026 net sales of ~$5.0M vs $5.1M in the prior year quarter — a modest YoY decline of roughly 2%, indicating revenue remains below historical peaks despite sequential improvement.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential Revenue Recovery
Net sales of approximately $5.0M in Q1 FY2026, marking a 12% sequential increase versus Q4 FY2025 and the company's third consecutive quarter of sequential revenue growth. December 2025 and January 2026 produced the highest monthly revenue levels since 2022, indicating improving top-line momentum.
Read all positive updates
Company Guidance
Management guided to continue driving sequential revenue improvement (Q1 net sales just over $5.0M, +12% sequentially and the third consecutive quarter of growth, with December 2025 and January 2026 the highest monthly levels since 2022), to integrate the mid‑January Bluebird Botanicals acquisition to capture cost and revenue synergies, and to maintain cost discipline and margin focus with the goal of achieving positive EBITDA (Q1 adjusted non‑GAAP EBITDA loss was $36k). They reiterated the channel mix (~72% DTC / 28% wholesale, with wholesale up ~17%), noted Q1 gross margin was 60% (down from 66% YoY), reported a loss from operations of ~$286k and a net loss attributable to common shareholders of ~$325k (≈$0.04 per share) versus a prior‑year net loss of ~$1.0M (≈$1.73 per share), and said they do not expect the same working‑capital build next quarter excluding the acquisition after Q1 operating cash use of ~ $812k (including ~$200k inventory build, ~$225k higher prepaids and a ~$300k reduction in payables). They emphasized balance‑sheet flexibility to execute the plan, citing approximately $3.3–3.4M in cash, ~$5.4M in working capital, a ~$2.25M Series C preferred financing completed in December and a $20M equity line of credit.cbdMD Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
28
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.09M | 19.19M | 19.48M | 24.16M | 35.40M | 44.48M |
| Gross Profit | 10.50M | 10.84M | 10.85M | 13.04M | 20.50M | 28.97M |
| EBITDA | -489.19K | -366.67K | -1.37M | -6.34M | -14.34M | -17.36M |
| Net Income | -2.34M | -2.04M | -3.70M | -22.94M | -70.08M | -23.39M |
Balance Sheet | ||||||
| Total Assets | 11.78M | 10.42M | 10.58M | 16.20M | 40.79M | 124.88M |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 2.26M | 2.45M | 1.80M | 7.72M | 27.44M |
| Total Debt | 593.03M | 778.24M | 1.27M | 3.68M | 4.87M | 6.07M |
| Total Liabilities | 2.77M | 3.19M | 8.62M | 7.16M | 9.37M | 21.74M |
| Stockholders Equity | 9.01M | 7.23M | 1.96M | 9.03M | 31.42M | 103.14M |
Cash Flow | ||||||
| Free Cash Flow | -165.96M | -1.64M | -642.81K | -4.60M | -15.66M | -16.44M |
| Operating Cash Flow | -1.95M | -1.45M | -352.79K | -4.30M | -14.97M | -14.09M |
| Investing Cash Flow | -184.59K | -184.17K | -290.01K | 702.45K | -688.68K | -2.55M |
| Financing Cash Flow | 3.55M | 1.45M | 1.30M | -1.32M | -4.04M | 28.23M |
cbdMD Technical Analysis
Positive
0.90
Price Trends
0.77
Positive
0.89
Negative
0.88
Negative
Market Momentum
>-0.01
Negative
54.60
Neutral
91.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YCBD, the sentiment is Positive. The current price of 0.897 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.77, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 91.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $9.12M | -10.73 | -40.66% | ― | -0.66% | 86.18% | |
54 Neutral | $352.51M | -12.05 | -1.44% | ― | 1.57% | 89.16% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $746.33M | -6.11 | -92.82% | ― | 3.82% | -29.80% | |
49 Neutral | $61.34M | -4.80 | -199.09% | ― | -100.00% | 46.50% | |
43 Neutral | $1.76M | -0.71 | -93.87% | ― | -0.64% | 56.43% |
* Healthcare Sector Average
YCBD
cbdMD
0.87
-0.63
-42.00%
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IMCC
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IXHL
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14.29%
cbdMD Corporate Events
Business Operations and StrategyExecutive/Board Changes
cbdMD Updates Director Equity Awards and Compensation Structure
Positive
Apr 15, 2026
On April 14, 2026, cbdMD, Inc. granted 1,572 restricted stock units to each independent director and its non-management employee director as compensation for the term beginning March 31, 2026, with the awards vesting quarterly through March 31, 20...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingShareholder MeetingsStock Split
cbdMD Shareholders Approve Reverse Split and Capital Plans
Neutral
Apr 1, 2026
On March 30, 2026, cbdMD shareholders approved all proposals at the company’s 2026 annual meeting, including the election of seven directors and ratification of Cherry Bekaert LLP as independent auditor for the fiscal year ending September 3...
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.