cbdMD (YCBD) AI Stock Analysis

• Market Cap: $9.80M
• Dividend Yield: N/A
• Average Volume (3M): 7.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -1.50%
• EPS Growth: 80.17%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.04
• 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): 0.67
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -2.97
• Enterprise Value/Market Cap: 61.23
• Enterprise Value/Revenue: 31.42
• Enterprise Value/Gross Profit: 57.16
• Enterprise Value/Ebitda: -1.23K
• 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: 48 Neutral
• Price Target: $0.94 ▲(4.79% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by weak financial performance (ongoing losses, cash burn, and elevated leverage risk). The latest earnings call adds some support due to sequential revenue improvement, near-breakeven EBITDA, and added liquidity plus an acquisition-driven growth plan, while technicals and valuation remain mixed and provide limited additional support.

Positive Factors

Direct-to-consumer channel strength

A 72% DTC mix gives cbdMD higher gross margin capture, stronger customer data and repeat purchase levers (subscriptions/bundles), and more control over pricing and promotions. Structurally this supports revenue predictability, higher lifetime value, and margin recovery if customer retention improves.

Acquisition expands brand, IP and digital footprint

The Bluebird acquisition broadens cbdMD's portfolio, adds proprietary IP and a separate loyal online customer base, and increases cross-sell opportunities. The earnout and stock-based structure limit upfront cash strain, making this a strategic, scalable way to lift top-line and digital reach over the medium term.

Improved liquidity and financing optionality

Recent financing and a $20M ELOC materially reduce near-term refinancing pressure and support the Bluebird integration. Improved cash and access to capital provide runway to execute cost initiatives and invest in growth, lowering immediate solvency risk and giving management time to reach positive EBITDA.

Negative Factors

Extremely high leverage on latest balance sheet

A debt-to-equity ratio near 108x is a structural constraint: it elevates interest and covenant risk, limits strategic flexibility, and increases the cost of incremental capital. In adverse revenue scenarios this leverage can force dilutive financings or asset sales and hampers ability to invest for growth.

Consistent negative operating cash flow

Persistent negative operating and free cash flow means the business requires ongoing external financing to fund operations. This structural cash burn reduces resilience, risks repeated dilution or debt reliance, and constrains marketing, inventory and R&D investments needed to scale revenue sustainably.

Multi-year revenue decline and persistent operating losses

Despite solid gross margins, repeated top-line declines and ongoing operating losses show fixed costs and SG&A are outpacing sales. Without durable revenue recovery or meaningful cost restructuring, profitability will remain elusive and the company stays dependent on financing for survival and growth.

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 remain weak: multi-year revenue decline, persistent operating/net losses, and consistently negative operating cash flow/free cash flow. Gross margins are relatively solid and losses/cash burn show some improvement, but the latest annual balance sheet indicates very high leverage risk (debt-to-equity ~108x), limiting flexibility.

Income Statement

Revenue trends look weak on the annual record, with sales declining from 2021 through 2024 and only a slight dip again in 2025. Profitability remains the key issue: despite consistently solid gross margins (~56–67%), the company continues to post operating losses and net losses in every annual period shown, indicating overhead and operating costs are still too high relative to revenue. The TTM (Trailing-Twelve-Months) revenue figure and growth rate appear inconsistent with the annual history, so the score leans more heavily on the multi-year annual pattern of shrinking revenue and persistent losses.

Balance Sheet

Leverage and equity quality are mixed. The latest annual period (2025) shows extremely high debt relative to equity (debt-to-equity ~108x), which is a major balance-sheet risk and suggests limited financial flexibility. Earlier years showed much lower leverage, but returns on equity are consistently negative across all periods, reflecting ongoing losses and weak value creation for shareholders. TTM (Trailing-Twelve-Months) shows low debt-to-equity, but given the sharp conflict versus the latest annual snapshot, the balance sheet is scored conservatively.

Cash Flow

Cash generation is consistently negative: operating cash flow and free cash flow are below zero across all annual periods shown, indicating the business is not self-funding. While free cash flow is less negative in 2025 versus prior years (modest improvement trend), cash burn remains material and ongoing, and cash flow is not being supported by profitability (net income remains negative). The TTM (Trailing-Twelve-Months) cash flow figures are also negative, reinforcing the cash-burn profile.

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.85, below the 50-day MA of 1.07, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 92.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$922.73M	-0.36	-83.42%	―	2.31%	-726.28%
SNDL	49 Neutral	$399.13M	―	-7.82%	―	1.76%	18.31%
YCBD	48 Neutral	$9.80M	-0.42	-44.42%	―	-1.50%	80.17%
IXHL	47 Neutral	$98.18M	-0.36	-114.52%	―	-86.05%	24.17%
IMCC	40 Underperform	$4.20M	-1.02	-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.