8-K: cbdMD Reports Preliminary Q4 & FY25 Results

cbdMD, Inc. announced preliminary unaudited financial results for the fourth quarter and fiscal year ended September 30, 2025, showing expected flat year-over-year net sales for the fiscal year and a 3-5% increase for the fourth quarter.

Summary

• Preliminary net sales revenue for fiscal 2025 is expected to range between $19.1 million and $19.3 million, compared to $19.5 million in fiscal 2024.
• Preliminary net sales revenue for the fourth quarter of fiscal 2025 is expected to range between $4.7 million and $4.9 million, compared to $4.6 million in the fourth quarter of fiscal 2024.
• Preliminary net loss for fiscal 2025 is expected to improve from $3.7 million to a range of between $1.9 million and $2.1 million.
• The company attributes these results to decisive actions taken to strengthen the business, sharpen its operating model, and disciplined cost management.
• Management noted achieving positive sequential and year-over-year revenue growth in Q4 and essentially flat year-over-year sales for the fiscal year, contrasting with peers reporting 8-10% declines.

Sentiment

Score: 7

Explanation: The company reported preliminary results showing significant improvement in net loss and outperformance relative to industry peers in revenue trends, indicating effective cost management and strategic execution despite a challenging market.

Positives

• Net loss for fiscal 2025 is expected to improve significantly, from $3.7 million to a range of $1.9 million to $2.1 million.
• Fourth quarter fiscal 2025 net sales revenue is expected to increase between 3% and 5% year-over-year, ranging from $4.7 million to $4.9 million compared to $4.6 million in Q4 fiscal 2024.
• Achieved positive sequential and year-over-year revenue growth in the fourth quarter.
• Achieved essentially flat year-over-year sales for the full fiscal year, outperforming public peers who reported 8-10% declines.
• Disciplined cost management and a focus on profitable growth are driving expected earnings improvement.

Negatives

• Preliminary net sales revenue for fiscal 2025 is expected to be slightly lower than fiscal 2024, ranging from $19.1 million to $19.3 million compared to $19.5 million.
• The company is still reporting a net loss, albeit an improved one, for fiscal 2025, expected between $1.9 million and $2.1 million.

Risks

• The preliminary unaudited financial results presented may change, and actual results could differ materially.
• Forward-looking statements are subject to risks, uncertainties, and other factors, some of which are beyond the company's control and difficult to predict.
• Risks include expectations on the company's ability to continue as a going concern, increasing revenues, potential changes in federal laws, product development, and regaining compliance with NYSE American continued listing requirements.
• Reference is made to "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed December 17, 2024.

Future Outlook

The company expects continued earnings improvement for fiscal 2025 over 2024, driven by disciplined cost management and a focus on profitable growth. Management is confident in its ability to steer a path forward and deliver a durable, long-term business for shareholders.

Management Comments

• "While many of our public peers reported 8-10% declines in our fiscal fourth quarter and trailing twelve months, we achieved positive sequential and year over year revenue growth in the fourth quarter and essentially flat year-over-year sales, a clear sign that our strategy is taking hold."
• "We expect continued earnings improvement for fiscal 2025 over 2024, driven by disciplined cost management and a focus on profitable growth."
• "I’m proud of our team’s performance this year and the momentum we are building across the organization."
• "As we look ahead to our mid-December earnings call, we are energized by what we’ve accomplished and confident in our ability to steer a path forward."
• "Our team has a multi-year track record of improving the business, and we remain relentless in our commitment to navigating a complex environment and delivering a durable, long-term business for shareholders."

Industry Context

The CBD industry appears to be facing headwinds, with many of cbdMD's public peers reporting 8-10% declines in their fiscal fourth quarter and trailing twelve months. cbdMD's ability to achieve flat year-over-year sales and positive Q4 growth suggests it is outperforming the broader negative trend in the sector.

Comparison to Industry Standards

• cbdMD's expected essentially flat year-over-year sales for fiscal 2025 compares favorably to "many of our public peers" who reported 8-10% declines in their fiscal fourth quarter and trailing twelve months.
• The company's positive sequential and year-over-year revenue growth in the fourth quarter also contrasts with the reported declines among peers.

Stakeholder Impact

• Shareholders: Potential positive impact due to improved net loss, outperformance relative to peers, and management's confidence in long-term business durability. However, preliminary results carry inherent uncertainty.
• Employees: Positive impact from a strengthening business and stable foundation, potentially indicating job security and future growth opportunities.
• Customers: Continued availability of CBD and Delta-9 products, with the company maintaining its market position.

Next Steps

• Hold a mid-December earnings call.
• File the Annual Report on Form 10-K for the fiscal year ended September 30, 2025, with the SEC on or before December 29, 2025.

Key Dates

Recommendation

While the company shows significant improvement in net loss and outperformance compared to industry peers in revenue trends, the overall revenue for the fiscal year is still slightly down, and the company remains unprofitable. The results are preliminary and unaudited, introducing a degree of uncertainty. The "going concern" risk is also mentioned in the forward-looking statements. An investor would likely hold to see if the positive trends in cost management and Q4 revenue growth can translate into sustained profitability and stronger top-line growth in future audited reports, especially given the challenging industry environment.

Keywords

CBD, cannabidiol, YCBD, cbdMD, preliminary results, Q4 2025, fiscal year 2025, net sales, net loss, earnings, hemp, Delta-9, NYSE American, financial results