CBDMD (YCBD) Fiscal Q3 2026 Earnings Call: Revenue Up 20%, Cost Cuts Targeted
Source Tradingkey
Key Takeaways
- Fiscal Q3 2026 net sales rose 20% year over year to $5.6 million. Nine-month revenue increased 12% to $16.2 million.
- Wholesale sales grew 61% and accounted for approximately 30% of quarterly revenue, up from 22% a year earlier. Bluebird Botanicals contributed more than $500,000.
- Gross margin declined to 54.7% from 61.5%, reflecting a greater wholesale mix, regulatory-related repacking costs and a $187,000 increase in inventory reserves.
- Operating loss widened to approximately $1.1 million, but adjusted EBITDA loss narrowed to approximately $507,000 from $624,000.
- Management is targeting $100,000 to $150,000 in monthly cash cost savings, equivalent to $1.2 million to $1.8 million annually. The company currently models quarterly cash break-even revenue in the low-to-mid $6 million range.
- OASIS distributor depletions reached a record in July, up 35% from the fiscal Q3 average, while August was on pace to more than double. Management cautioned that federal and state regulatory changes remain a material source of uncertainty.
Key Financial Data
| Metric | Fiscal Q3 2026 | Year-over-year comparison | Commentary |
|---|---|---|---|
| Net sales | $5.6 million | +20% | Wholesale growth and Bluebird contribution supported revenue |
| Nine-month net sales | $16.2 million | +12% | Compared with $14.5 million a year earlier |
| Wholesale sales growth | — | +61% | Wholesale represented approximately 30% of sales versus 22% |
| Gross margin | 54.7% | 61.5% previously | Lower-margin wholesale mix, repacking labor and inventory reserves weighed on margin |
| Operating expenses | Approximately $4.2 million | +12% | Included product development, warehouse staffing and professional fees |
| Operating loss | Approximately $1.1 million | Approximately $905,000 loss previously | Higher investments and regulatory-related costs widened the loss |
| Adjusted EBITDA loss | Approximately $507,000 | Approximately $624,000 loss previously | Loss narrowed year over year |
| Net loss attributable to common shareholders | Approximately $1.2 million | Approximately unchanged | Loss per share improved to $0.11 from $0.21 due to a higher weighted-average share count |
| Cash used in operating activities, nine months | Approximately $2.0 million | $1.2 million previously | Accounts receivable and inventory were the main working-capital uses |
| Cash at June 30, 2026 | Approximately $2.1 million | $2.3 million at September 30, 2025 | — |
| Working capital at June 30, 2026 | $4.7 million | $3.4 million at September 30, 2025 | Financing cash included preferred stock issuance proceeds |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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