cbdMD (YCBD) AI Stock Analysis

• Market Cap: $9.87M
• Dividend Yield: N/A
• Average Volume (3M): 7.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• 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: 10,495,561
• 10 Day Avg. Volume: 860,286
• 30 Day Avg. Volume: 7,543,844
• PEG Ratio: 0.06
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -0.03
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: -34.23
• 1Y Price Target: $2.00
• Price Target Upside: 122.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $0.87 ▼(-3.57% Downside)

The score is held down primarily by weak financial performance (shrinking revenue, ongoing losses, and persistent cash burn). Technicals are neutral-to-mixed, while valuation offers limited support due to a negative P/E and no dividend. Offsetting these risks, the earnings call and recent corporate actions show operational improvement, balance sheet steps, and strategic expansion, but not yet enough to outweigh the core financial strain.

Positive Factors

Brand & Digital Footprint Expansion

The Bluebird Botanicals asset purchase materially broadens cbdMD’s product and online distribution footprint, adding recognized branding, inventory and educational channels. This structural expansion can improve customer acquisition, cross‑sell potential and digital scale over multiple quarters.

Improving Operating Performance

Consecutive year reductions in operating loss and a narrower adjusted EBITDA loss reflect durable cost discipline and supply‑chain gains. Sustained improvement in core profitability reduces near‑term financing needs and improves the firm’s runway and ability to invest selectively in growth.

Balance Sheet Strengthening

A meaningful rise in net book value and elimination of outsized accrued preferred obligations simplify capital structure and increase equity cushion. This reduces fixed financing burdens and supports access to capital, lowering structural funding risk over the medium term.

Negative Factors

Chronic Negative Cash Generation

Persistent operating and free cash flow deficits indicate the business has not achieved self‑funding. Continued cash burn elevates refinancing risk, limits ability to invest in marketing or distribution, and makes execution on strategic initiatives reliant on external capital.

Shrinking Revenue & Volatile Earnings

A long‑running revenue decline and repeated unprofitability constrain scale economics and margin leverage. Volatile top‑line and negative returns reduce pricing power, increase the challenge of achieving sustainable operating margins, and heighten execution risk for strategy shifts.

High DTC Concentration & Rising Marketing Intensity

Heavy dependence on e‑commerce concentrates revenue risk in one channel while recent declines and higher marketing-to‑revenue ratios imply rising customer acquisition costs. This undermines margin sustainability and makes durable growth more expensive without channel diversification.

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

Financials reflect a stressed profile: sharp revenue contraction (with 2025 showing essentially no reported revenue), persistent operating losses, and sustained negative operating cash flow and free cash flow. While leverage is not structurally high, equity durability and ongoing cash burn elevate funding and execution risk.

Income Statement

Revenue has contracted sharply over time, culminating in 2025 annual results showing essentially no reported revenue (down 100% year-over-year). While gross margin was solid in prior years (~62–67% from 2020–2024), the company has been consistently unprofitable with negative operating profitability in most years and very weak net results, including an exceptionally large loss in 2025. Overall, the earnings profile shows significant volatility and a deteriorating trajectory.

Balance Sheet

Leverage looks modest on the surface in some periods (debt-to-equity was low in 2020–2022), but the balance sheet weakens materially in later years as equity shrinks and debt-to-equity rises (notably in 2024). Returns on equity are deeply negative across most years, and 2025 shows extreme stress with very large losses. The capital structure is not heavily debt-loaded, but profitability and equity durability are key concerns.

Cash Flow

Cash generation is consistently weak: operating cash flow is negative in every year with data (2020–2024) and is shown as zero in 2025, while free cash flow is negative throughout, indicating ongoing cash burn. Free cash flow improved in 2023–2024 versus earlier periods but deteriorated sharply again in 2025, suggesting limited progress toward self-funding operations and elevated financing risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.19M	19.19M	19.48M	24.16M	35.40M	44.48M
Gross Profit	10.84M	10.84M	12.00M	14.98M	22.34M	29.99M
EBITDA	-244.98K	-244.98K	-1.49M	-20.01M	-15.48M	-22.01M
Net Income	-3.04M	-2.04M	-3.70M	-22.94M	-74.09M	-23.39M
Balance Sheet
Total Assets	10.42M	10.42M	10.58M	16.20M	40.79M	124.88M
Cash, Cash Equivalents and Short-Term Investments	2.26M	2.26M	2.45M	1.80M	7.72M	27.44M
Total Debt	778.24K	778.24M	1.27M	3.68M	4.87M	6.07M
Total Liabilities	3.19M	3.19M	8.62M	7.16M	9.37M	21.74M
Stockholders Equity	7.23M	7.23B	1.96M	9.03M	31.42M	103.14M
Cash Flow
Free Cash Flow	-688.27M	-184.17M	-642.81K	-4.60M	-15.66M	-16.44M
Operating Cash Flow	-508.37M	-1.45M	-352.79K	-4.30M	-14.97M	-14.09M
Investing Cash Flow	-184.17K	-184.17K	-290.01K	702.45K	-688.68K	-2.55M
Financing Cash Flow	1.45M	1.45M	1.30M	-1.32M	-4.04M	28.23M

cbdMD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.897 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.00, and below the 200-day MA of 0.97, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, 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%
FLGC	50 Neutral	$27.69M	-0.24	-37.38%	―	-22.60%	53.82%
YCBD	49 Neutral	$9.87M	-0.24	-44.42%	―	-1.50%	80.17%
TLRY	49 Neutral	$885.45M	-0.34	-83.42%	―	2.31%	-726.28%
SNDL	49 Neutral	$401.70M	-6.20	-7.82%	―	1.76%	18.31%
IXHL	47 Neutral	$98.67M	-0.26	-114.52%	―	-86.05%	24.17%
IMCC	40 Underperform	$6.24M	-1.51	-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.