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cbdMD (YCBD)
:YCBD
US Market
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cbdMD (YCBD) AI Stock Analysis

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YCBD

cbdMD

(YCBD)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
$0.38
▼(-27.12% Downside)
Action:Reiterated
Date:09/23/26
The score is primarily held down by weak financial performance—ongoing losses and very heavy cash burn—along with a longer-term bearish technical setup (below key moving averages and negative MACD). Earnings call and corporate-event updates provide some upside via accelerating sales, planned OpEx savings, and diversification through the Twinlab deal, but margin pressure, working-capital strain, and regulatory uncertainty keep the overall risk profile elevated.
Positive Factors
Revenue and Wholesale Growth
Broad-based sales growth, especially the faster expansion of wholesale distribution, indicates improving market reach beyond the company’s direct channel. If sustained, greater retail availability can support recurring product volume, diversify customer acquisition, and improve the platform’s ability to scale.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow shows that the business has not yet funded operations internally. Continued cash consumption can limit investment flexibility and increase reliance on financing or existing resources, making execution of growth and cost initiatives more financially sensitive.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Wholesale Growth
Broad-based sales growth, especially the faster expansion of wholesale distribution, indicates improving market reach beyond the company’s direct channel. If sustained, greater retail availability can support recurring product volume, diversify customer acquisition, and improve the platform’s ability to scale.
Read all positive factors

cbdMD (YCBD) vs. SPDR S&P 500 ETF (SPY)

cbdMD Business Overview & Revenue Model

Company Description
cbdMD, Inc. is engaged in the production and distribution of a diverse array of cannabidiol (CBD) products. The company oversees and markets several consumer-oriented, hemp-derived CBD brands, notably its primary brand cbdMD, alongside Paw CBD and...
How the Company Makes Money
cbdMD makes money primarily by selling hemp-derived CBD consumer products to end customers and retail/wholesale accounts. Its core revenue streams include: (1) Direct-to-consumer e-commerce sales through its own online channels, where the company ...

cbdMD Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q3-2026)
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% Change Since: |
Next Earnings Date:Dec 18, 2026
Earnings Call Sentiment Neutral
The call presented balanced progress: clear top-line growth drivers (20% quarterly revenue growth, 61% wholesale growth, Oasis momentum, >$0.5M from Bluebird) and operational actions (cost reductions, product launches) that position the company to navigate near-term uncertainty. However, margin compression (gross margin down ~570 bps YoY in the quarter), higher operating losses and working capital build, inventory reserves, state-level restrictions, and material regulatory uncertainty are significant headwinds. Management emphasized deliberate investments and a path to improved adjusted EBITDA and lower cash burn, but tangible risks remain until regulatory clarity and cost savings are fully realized.
Positive Updates
Top-line Revenue Growth
Net sales grew 20% year-over-year to $5.6 million in the quarter; revenue for the first 9 months increased 12% to $16.2 million (from $14.5 million).
Negative Updates
Gross Margin Pressure
Gross margin declined to 54.7% in the quarter from 61.5% a year ago (9M gross margin 57.3% vs 63.5% prior year), primarily due to a mix shift toward lower-margin wholesale and higher warehouse labor / repacking costs from state regulation changes.
Read all updates
Q3-2026 Updates
Negative
Top-line Revenue Growth
Net sales grew 20% year-over-year to $5.6 million in the quarter; revenue for the first 9 months increased 12% to $16.2 million (from $14.5 million).
Read all positive updates
Company Guidance
Management guided to $100K–$150K per month of cash OpEx savings (≈$1.2M–$1.8M annualized) starting in Q4—with most savings expected by quarter end (lease savings ≈$10K/month phased in October, supply‑chain savings beginning in September)—and said the cash breakeven quarterly revenue run‑rate is now in the low‑to‑mid $6M range. That guidance accompanies Q3 net sales of $5.6M (+20% YoY; $16.2M for the first 9 months, +12%), wholesale growth of ~61% now ~30% of sales, Bluebird contributing >$0.5M, gross margin of 54.7% (vs 61.5% prior year), operating expenses of ~$4.2M (+12%), an operating loss of ~$1.1M, an improved adjusted EBITDA loss of ~$507K (vs $624K), incremental inventory reserves (~$187K), a ~$150K DTC headwind from state restrictions, cash of ~$2.1M and working capital of ~$4.7M, and management expects these actions to drive better contribution margins and adjusted EBITDA in the next quarter.

cbdMD Financial Statement Overview

Summary
Financial profile remains pressured: the company is still unprofitable (negative operating profit and ~-13.8% net margin) and cash generation is a key weakness with deeply negative TTM operating cash flow (~-$444M) and free cash flow (~-$626M). Low reported leverage in the latest snapshot is a positive, but large year-to-year balance sheet swings and negative ROE reduce confidence in underlying stability.
Income Statement
34
Negative
Balance Sheet
44
Neutral
Cash Flow
18
Very Negative
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue20.93M19.19M19.48M24.16M35.40M44.48M
Gross Profit11.82M11.97M10.85M13.04M20.50M28.97M
EBITDA-1.18M-244.98K-1.85M-20.01M-67.11M-22.01M
Net Income-2.89M-2.04M-3.70M-22.94M-70.08M-23.39M
Balance Sheet
Total Assets13.15M10.42M10.58M16.20M40.79M124.88M
Cash, Cash Equivalents and Short-Term Investments2.12M2.26M2.45M1.80M7.72M27.44M
Total Debt2.21M778.24M1.27M3.68M4.87M6.07M
Total Liabilities4.93M3.19M8.62M7.16M9.37M21.74M
Stockholders Equity8.21M7.23M1.96M9.03M31.42M103.14M
Cash Flow
Free Cash Flow-626.00M-1.64M-642.81K-4.60M-15.66M-16.44M
Operating Cash Flow-443.93M-1.45M-352.79K-4.30M-14.97M-14.09M
Investing Cash Flow-18.18M-184.17K-290.01K702.45K-688.68K-2.55M
Financing Cash Flow-56.21M1.45M1.30M-1.32M-4.04M28.23M

cbdMD Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.52
Price Trends
50DMA
0.49
Negative
100DMA
0.59
Negative
200DMA
0.73
Negative
Market Momentum
MACD
-0.03
Positive
RSI
33.04
Neutral
STOCH
14.29
Positive
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 0.52 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.49, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$300.27M-18.31-1.99%―-0.88%76.93%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$38.89M-2.77-27.42%―-100.00%95.90%
46
Neutral
$523.17M-2.15-10.95%―15.93%93.85%
45
Neutral
$4.37M-1.27-34.25%―10.01%95.01%
40
Underperform
$2.60M-1.13-107.40%―-11.91%-285.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YCBD
cbdMD
0.39
-0.89
-69.61%
TLRY
Tilray
3.54
-13.36
-79.05%
SNDL
SNDL
1.22
-1.26
-50.81%
IMCC
IM Cannabis Corp
1.58
-56.92
-97.30%
IXHL
Incannex Healthcare Limited Sponsored ADR
3.10
-9.15
-74.70%

cbdMD Corporate Events

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
cbdMD to Acquire Twinlab Brands, Expanding Wellness Platform
Positive
Sep 2, 2026
On September 1, 2026, cbdMD entered an asset purchase agreement to acquire operating assets and brands of Twinlab through an assignment for the benefit of creditors process, subject to court approval and closing conditions. Consideration includes ...
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.Date of analysis: Sep 23, 2026