cbdMD Reports 20% Year-over-Year Revenue Growth for the Third Fiscal Quarter of 2026

Accelerating Oasis Beverage Momentum, a Full Quarter of Bluebird Botanical Contribution, and Advancing Federal Hemp Legislation Strengthen the Company's Positioning for Competing under Pending Federal Regulations

CHARLOTTE, N.C., Aug. 13, 2026 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most trusted CBD companies and operator of the cbdMD, Bluebird Botanicals, and Paw CBD brands, along with its hemp-derived THC beverage brand Oasis and functional-mushroom brand ATRx Labs, today announced financial results for the third quarter of fiscal year 2026, ended June 30, 2026.

The Company delivered 20% year-over-year revenue growth, driven by a 61% increase in wholesale net sales, increased distribution of its Oasis beverage brand, and the first full quarter of contribution from the recently acquired Bluebird Botanicals.

"The third quarter was another quarter of top-line growth and real strategic progress," said Ronan Kennedy, Chief Executive Officer and Chief Financial Officer of cbdMD. "Revenue was up 20% year-over-year, our Oasis beverage brand sales continued to grow, and Bluebird Botanicals contributed a full quarter of revenue for the first time. We were not satisfied with our bottom line this quarter but the shortfall was largely the result of deliberate choices. We absorbed one-time costs tied to M&A due diligence and other one-time legal costs, continued to invest in product development, and did the work required to resolve supply-chain and address state-level compliance issues. During July we implemented cost reduction initiatives that we expect to result in saving potential up to $150,000 per month, as we are running the business to be leaner, more flexible, and well positioned to succeed in the market following the effectiveness of pending federal regulation."

"The regulatory picture is also moving in a more constructive direction," Kennedy continued. "A Senate-driven extension has given cbdMD and the broader industry additional time ahead of the November effective date of the H.R. 5371 Sec. 781 legislation to ensure company compliance with the pending laws, and the number of bipartisan legislative proposals continues to grow, including the Beverage Regulatory Parity Act introduced this week, which would regulate hemp-derived beverages much like alcohol. We believe momentum is building toward a workable federal framework, and that well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility, such as cbdMD, will be the ones that benefit as clarity emerges."

Highlights for the Third Quarter of Fiscal 2026 and Notable Business Updates

• Revenue growth accelerated year-over-year. Net sales increased 20% to $5.6 million in the third quarter of fiscal 2026 from $4.6 million in the prior-year quarter, with wholesale net sales up 61% year-over-year. For the first nine months of fiscal 2026, net sales rose 12% to $16.2 million from $14.5 million in the prior-year period.
  
  
  
  
• Oasis momentum continued to build. The Company added distribution for Oasis in South Carolina and transitioned to a new distribution partner in Texas that more than quadrupled the number of stores with access to the brand, with continued market growth into the fourth quarter. The recently launched Oasis Mixer has been well received and is contributing to brand growth.  Distributor depletions grew 25% in the third fiscal quarter.  We had record distributor depletions in July up over 34% from the Q3 average and currently at a pace to double in August
  
  
  
  
• Oasis ingredient expansion.  As of today, the Company is introducing a zero-proof Kava beverage under its Oasis brand as a follow-on to the successful Oasis Mixer.  Kava is a natural euphoric people can feel! Immediate, functional, and free of intoxication and regulatory overhang of THC. This is the first of other natural compounds we anticipate launching before the end of the calendar year.
  
  
  
  
• Bluebird Botanicals delivered its first full quarter of revenue. Bluebird Botanicals ("Bluebird") contributed more than $0.5 million revenue in the third quarter of fiscal 2026. After creating an earnings drag during integration in the initial quarter, we expect Bluebird to contribute to both revenue and earnings in the fourth fiscal quarter.
  
  
  
  
• A federal extension creates procedural time to advance a permanent fix on Section 781. While the additional time helps cbdMD and the broader industry manage near-term compliance, its more important benefit is the procedural runway it creates for Congress to put a durable, industry-wide framework in place. A Senate stopgap appropriations proposal released in early August 2026 would, through December 11, 2026, temporarily exempt naturally occurring cannabinoids from the revised total-THC definition and the 0.4 milligram per-container limit under Section 781 of H.R. 5371, signed into law in November 2025, providing additional time ahead of the November 12, 2026 effective date both to bring products into compliance and, more significantly, to advance a permanent legislative solution for the industry. The continuing resolution, H.R. 6500, now moves to the House of Representatives for a vote by the end of September.
  
  
  
  
• Bipartisan legislative momentum is growing. A growing number of bipartisan bills would repeal, delay, modify, or replace Section 781's restrictions, including the White House-supported Lawful Hemp Protection Act (H.R. 9830) introduced in July 2026. Most recently, on August 10, 2026, Representatives Beth Van Duyne (R-TX) and Greg Landsman (D-OH) introduced the bipartisan Beverage Regulatory Parity Act, which would establish an alcohol-style regulatory framework for hemp-derived beverages, a development directly relevant to the Company's Oasis brand.
  
  
  
  
• Deliberate investments and one-time costs affected the bottom line. Results reflected more than $100,000 in legal and due-diligence expenses on additional M&A opportunities, continued investment in product development and clinical/regulatory initiatives, including our recent self-GRAS at 200mg per day, and incremental supply-chain and state-level compliance costs, including higher inventory reserves. The Company also identified additional supply-chain savings and, beginning in the fourth quarter of fiscal 2026, implemented cost-reduction initiatives targeting $100,000 to $150,000 in monthly savings (approximately $1.2 million to $1.8 million annualized) expected to improve future financial results and position the Company for a post-regulation market.

Financial Highlights from the Third Quarter of Fiscal Year 2026

• Net sales totaled $5.6 million in the third quarter of fiscal 2026, an increase of 20% compared to $4.6 million in the third quarter of fiscal 2025. For the nine months ended June 30, 2026, net sales were $16.2 million, an increase of 12% compared to $14.5 million in the prior-year period.
  
  
  
  
• Direct-to-consumer (e-commerce) net sales were $3.9 million, or 70% of total net sales, an increase of approximately 9% from the third quarter of fiscal 2025. The increase was attributed to addition of Bluebird, with some offsets related to increased state level restrictions.
  
  
  
  
• Wholesale net sales were $1.7 million, or 30% of total net sales, an increase of 61% from the third quarter of fiscal 2025, reflecting continued progress with the Oasis brand and core cbdMD initiatives.
  
  
  
  
• Gross profit as a percentage of net sales was 54.7% in the third quarter of fiscal 2026, compared to 61.5% in the prior-year quarter, primarily reflecting a shift in sales mix toward wholesale, incremental warehouse and repacking costs related to changing state-level requirements, and an increase in inventory reserves in anticipation of pending regulatory changes.
  
  
  
  
• Loss from operations was approximately $1.13 million in the third quarter of fiscal 2026, compared to a loss of approximately $0.90 million in the prior-year period, reflecting the one-time and investment items described above.
  
  
  
  
• Non-GAAP Adjusted EBITDA loss was approximately $508,000 in the third quarter of fiscal 2026, an improvement from an Adjusted EBITDA loss of approximately $624,000 in the third quarter of fiscal 2025.
  
  
  
  
• Net loss attributable to common shareholders for the third quarter of fiscal 2026 was approximately $1.2 million, or $0.11 per share, compared to a net loss of approximately $1.2 million, or $0.21 per share, in the prior-year quarter. For the nine months ended June 30, 2026, net loss attributable to common shareholders improved to approximately $2.4 million, or $0.24 per share, from approximately $3.7 million, or $1.56 per share, in the prior-year period.
  
  
  
  
• At June 30, 2026, the Company had working capital of approximately $4.7 million and cash on hand of approximately $2.1 million, compared to working capital of approximately $3.4 million and cash on hand of approximately $2.3 million at September 30, 2025.

Conference Call Details

The Company will host a conference call at 4:20 pm Eastern Time, on August 13, 2026, to discuss its third quarter fiscal 2026 financial results and business progress.

USA/Canada Dial-in: 888-880-3330

Webcast / Webcast Replay link: https://app.webinar.net/PGD52PJopeq

About cbdMD, Inc.

cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands, with a comprehensive line of U.S.-produced THC-free¹ CBD products and an array of Farm Bill-compliant Delta 9 products. The Company owns and operates the cbdMD, Paw CBD, and Bluebird Botanicals CBD brands, the Oasis line of hemp-derived THC beverages, the Kavari line of Kava products, and the ATRx Labs functional-mushroom brand. To learn more about cbdMD and its other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.

¹ THC-free is defined as below the level of detection using validated scientific analytical methods.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes," "will," "could," "would," "potential," "continue," "seek," and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and the performance of our core business and Oasis brand; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition and our pursuit of additional acquisitions; the anticipated benefits of our cost-reduction and supply-chain initiatives; our expectations regarding federal and state regulatory developments, including proposed legislation and the effective date of Section 781 of the Act, and their impact on our business; and our liquidity and working capital position. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of Section 781 of the Act and related legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and our other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms is not part of this press release.

Non-GAAP Financial Measures

This press release includes a financial measure, Adjusted EBITDA, that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. defines Adjusted EBITDA as GAAP loss from operations adjusted to (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) inventory reserve, (iii) regulatory and legal matters, and (iv) mergers and acquisitions and financing transaction expenses for the periods presented. cbdMD, Inc. has included Adjusted EBITDA because management uses this measure to assess operating performance and to highlight trends in the business that may not otherwise be apparent when relying on GAAP measures. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, loss from operations as an indicator of operating performance and, as presented, may not be comparable to similarly titled measures reported by other companies. A reconciliation to the most directly comparable GAAP measure is provided below.

Reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted EBITDA (Unaudited)

Contacts

Investors:

cbdMD, Inc.

Ronan Kennedy

Chief Executive Officer and Chief Financial Officer

IR@cbdmd.com

(704) 445-3064

SOURCE cbdMD, Inc.