NYSE:YCBD
cbdMD, Inc.
A premium CBD manufacturer and distributor expanding its portfolio of wellness products through strategic acquisitions and organic growth.
Key Metrics
Investment Thesis
Bull Case
YCBD offers exposure to the high-growth legal cannabis and wellness sector with a differentiated product portfolio that commands consumer loyalty. The company's strategic acquisitions have expanded its distribution reach without proportionate increases in capital expenditures, creating potential for future margin expansion. If regulatory clarity improves or the company achieves a sustainable path to profitability, the current valuation could reflect significant upside potential.
Bear Case
The stock carries substantial risk due to five consecutive years of negative net income and a growing deficit in retained earnings exceeding $179M. Negative cash flow from operations combined with limited cash on hand suggests the company may struggle to fund growth without further dilution or financing. Investors should be wary of the potential for insolvency if the company fails to turn profitable within the next 12-18 months.
About cbdMD, Inc.
cbdMD, Inc. (YCBD) is a leading manufacturer and distributor of premium CBD products serving the wellness market across North America. The company focuses on high-quality supplements, topicals, and beverages designed to support consumer health and relaxation needs. Operating in a rapidly evolving regulatory environment, YCBD leverages its proprietary extraction technologies and direct-to-consumer sales channels to drive growth.
Analysis
Management Discussion
Despite revenue stabilization at approximately $19.2M in 2025, the company continues to report a net loss of $2.0M, reflecting ongoing efforts to scale operations while managing cash reserves. The reduction in losses from previous years suggests improving operational efficiency, yet the cash flow from operations remains negative at -$1.5M. Management must successfully pivot toward profitability before liquidity constraints become critical for survival.
Industry Overview
The global CBD and hemp-derived wellness industry is projected to reach multi-billion dollar valuations driven by increasing consumer adoption for pain relief and sleep aid. While the market offers vast growth opportunities, it remains highly fragmented with strict compliance requirements that can vary significantly by jurisdiction. Success in this space depends on navigating complex legal landscapes while maintaining high quality standards to build brand trust.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $24.2M | $19.5M | $19.2M |
| Cost of Revenue | $9.2M | $7.5M | $7.2M |
| Gross Profit | $15.0M | $12.0M | $12.0M |
| Operating Expenses | $37.5M | $15.3M | $14.1M |
| Operating Income | $-22.5M | $-3.3M | $-2.2M |
| Depreciation | $404.3K | $452.3K | $361.1K |
| Amortization | $1.4M | $697.5K | $765.1K |
| Non-Operating Income | $-450.7K | $-384.7K | $121.7K |
| Pre-Tax Income | $-22.9M | $-3.7M | $-2.0M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-22.9M | $-3.7M | $-2.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-22.9M | $-3.7M | $-2.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-22.9M | $-3.7M | $-2.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $8.1M | $6.4M | $6.6M |
| Cash & Equivalents | $1.8M | $2.5M | $2.3M |
| Accounts Receivable | $585.3K | $621.7K | $786.4K |
| Inventory | $4.2M | $2.5M | $2.9M |
| Prepaid Expenses | $750.4K | $406.7K | $277.1K |
| Other Current Assets | $700.8K | $384.0K | $279.7K |
| Long-Term Assets | $8.1M | $4.2M | $3.9M |
| PP&E (Net) | $716.6K | $454.3K | $277.4K |
| Intangibles | $3.2M | $2.9M | $2.1M |
| Goodwill | $0 | — | — |
| Operating Leases | $3.4M | $85.8K | $703.9K |
| Other LT Assets | $838.7K | $762.7K | $762.7K |
| Total Assets | $16.2M | $10.6M | $10.4M |
| Current Liabilities | $4.7M | $8.6M | $3.2M |
| Accounts Payable | $1.9M | $1.5M | $1.2M |
| Current Leases | $1.3M | $98.7K | $778.2K |
| Deferred Revenue | — | $503.3K | $506.3K |
| Other Current Liab | $2.5K | $1.2M | $0 |
| Long-Term Liabilities | $2.5M | $0 | $0 |
| Long-Term Debt | $9 | — | — |
| LT Operating Leases | $2.4M | $0 | $0 |
| Other LT Liab | $90.4K | $0 | $0 |
| Total Liabilities | $7.2M | $8.6M | $3.2M |
| Shareholders' Equity | $9.0M | $2.0M | $7.2M |
| Paid-In Capital | $183.4M | $184.0M | $186.7M |
| Retained Earnings | $-174.4M | $-182.1M | $-179.4M |
| AOCI | — | $-7.2K | $0 |
| Total L&E | $16.2M | $10.6M | $10.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-22.9M | $-3.7M | $-2.0M |
| Non-Cash Adjustments | $23.4M | $6.8M | $409.2K |
| Working Capital Changes | $-4.8M | $-3.4M | $179.3K |
| Cash from Operations | $-4.3M | $-352.8K | $-1.5M |
| Capital Expenditures | $297.5K | $190.0K | $184.2K |
| Cash from Investing | $702.5K | $-290.0K | $-184.2K |
| Cash from Financing | $-1.3M | $1.3M | $1.4M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-4.9M | $654.7K | $-191.3K |
| Beginning Cash | $6.7M | $1.8M | $2.5M |
| Ending Cash | $1.8M | $2.5M | $2.3M |
Frequently Asked Questions
How does cbdMD, Inc. make money?
The company derives revenue primarily from the sale of CBD-infused consumer goods including gummies, tinctures, topicals, and beverages. Additional streams come from wholesale distribution partnerships with retailers and e-commerce direct-to-consumer platforms. The business also includes revenue from acquired brands that have been integrated into its core wellness ecosystem.
What are the main risks for YCBD?
Continued regulatory uncertainty at federal and state levels poses significant threats to operational scalability and market access. Persistent operating losses and a substantial retained earnings deficit indicate ongoing profitability challenges that may deter capital providers. Intense competition from larger pharmaceutical giants and generic manufacturers could erode margins and market share. Reliance on external agricultural suppliers introduces inventory volatility and potential supply chain disruptions.
What is YCBD's competitive advantage?
Proprietary full-spectrum extraction technology ensures high potency and consistency in product quality across its extensive SKU count. Strong brand equity built on trust and transparency allows YCBD to command premium pricing in a crowded marketplace. An agile supply chain and diversified portfolio of 100+ SKUs mitigate risks associated with single-product dependency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.