cbdMD Reports 19% Year-over-Year and 12% Sequential Revenue Growth; Bluebird Acquisition Integration and Medicare BEI Pathway Position Company for Continued Momentum

CHARLOTTE, N.C., May 14, 2026 — 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 THC beverage brand Oasis, today announced financial results for the second quarter of fiscal year 2026, ended March 31, 2026.

The Company delivered 19% year-over-year and 12% sequential revenue growth, reflecting continued momentum in the core business and the contribution of newly acquired Bluebird Botanicals. Quarterly revenue, excluding revenue associated with the Bluebird acquisition, was the highest since our first fiscal quarter ending December 2023.

"This was a quarter of meaningful execution on multiple fronts," said Ronan Kennedy, CEO and CFO of cbdMD. "Our core business delivered another quarter of consistent growth, we successfully completed and integrated our first acquisition in years. The Bluebird Botanicals acquisition is a case study for what we can do — leveraging our infrastructure, marketing engine, and NYSE American listing to unlock value in a fragmented industry — and it sets the template for additional roll-up opportunities across hemp and adjacent health and wellness categories."

"At the same time, the regulatory backdrop has shifted more in the last few months than in any period I can recall," Kennedy continued. "Multiple bipartisan legislative proposals are advancing, cannabis has been partially rescheduled, and CMS has opened the first federal Medicare pathway for hemp-derived CBD through the BEI program. We have been preparing for this moment for years. The launch of our clinical healthcare channel, our active engagement with ACOs, and our continued investment in patient science position cbdMD to participate meaningfully as adoption develops. We believe that as regulatory clarity continues to emerge, well-capitalized, compliance-focused operators with proven quality, safety data, and clinical credibility will be the ones that benefit — and that is precisely where cbdMD stands."

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

• Bluebird Botanicals integration on track. In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. While acquisition and transition costs created an earnings drag during the quarter, Bluebird began generating positive income in March. Early third-quarter revenue is growing, and management expects the brand to contribute meaningfully to both top-line growth and earnings as additional products roll out and integration efficiencies are realized.
• CMS BEI Medicare pathway activated. Subsequent to quarter-end, on April 1, 2026, CMS, through the Center for Medicare & Medicaid Innovation, activated the BEI for eligible participants in select Innovation Center models, including the ACO REACH Model and the Enhancing Oncology Model. The optional BEI allows approved participants, subject to CMS requirements, safeguards, and physician oversight, to furnish eligible hemp-derived products to beneficiaries at up to $500 annually per eligible beneficiary. Eligible products include non-intoxicating full-spectrum hemp-derived CBD products containing up to 3 milligrams of naturally occurring THC per serving. The FDA has issued a limited enforcement-discretion letter providing additional regulatory clarity for eligible ingestible CBD products furnished through the BEI.
• cbdMD positioned as an evidence-based supplier of choice. cbdMD has launched a dedicated clinical healthcare channel to support the BEI pathway and is actively engaging ACOs, oncology practices, and health systems. The Company is continuing to invest in patient science to deepen the clinical evidence base supporting its products and to position itself as a trusted, evidence-based supplier as provider adoption develops. Management expects the early phase of the BEI to be implementation-led, with visibility into adoption developing through the second half of the calendar year. The program remains subject to ongoing legal and administrative scrutiny, including pending litigation, which the Company is actively monitoring.
• Bipartisan legislative momentum building. The Company continues to monitor and support bipartisan efforts to address the restrictive hemp legislation enacted in November 2025, including delay and comprehensive-framework proposals introduced in both the House and Senate. cbdMD believes that increased regulatory clarity — combined with the partial rescheduling of cannabis to Schedule III in April 2026 — will favor well-capitalized, compliance-focused operators with strong quality, safety, and clinical standards.

Financial Highlights from our Second Quarter of Fiscal Year 2026:

• Net sales totaled $5.6 million in the second quarter of fiscal 2026 or an increase of 19% compared to $4.7 million in second quarter of fiscal 2025. Sequentially, revenue was up 12% from the first quarter of fiscal 2026.
• Our loss from operations was $801,000 in the second quarter of fiscal 2026 as compared to a loss of $485,000 in the prior year comparative period.
• Our non-GAAP adjusted EBITDA loss from operations in the second quarter of fiscal 2026 was approximately $220,000 compared to Adjusted EBITDA loss of $197,000 from operations in the second quarter of fiscal 2025.
• Net loss attributable to common shareholders for the second quarter of fiscal 2026 was approximately $0.88 million or a loss of $0.08 per share as compared to a net loss for the second quarter of fiscal 2025 of approximately $1.5 million, or $1.90 per share.
• At March 31, 2026 we had working capital of approximately $5.4 million and cash on hand of approximately $2.6 million as compared to working capital of approximately $3.3 million and cash on hand of approximately $2.2 million at September 30, 2025.
• We reported direct to consumer (DTC) net sales of $3.8 million or 67% of total net sales in the second quarter of fiscal 2026, an increase of $0.16 million, or 4% from the second quarter of fiscal 2025.
• We reported wholesale net sales of $1.8 million or 33% of total net sales in the second quarter of fiscal 2026, an increase of $0.73 million, or 65% from the second quarter of fiscal 2025.

We will host a conference call at 4:20 p.m., Eastern Time, on Thursday, May 14, 2026, to discuss our March 31, 2026, second quarter of fiscal 2026 financial results and business progress.

CONFERENCE CALL DETAILS

Thursday, May 14, 2026, 4:20 p.m. Eastern Time

USA/Canada:

888-880-3330

Webcast/Webcast Replay link- available through May 14, 2027: 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. To learn more about cbdMD as well as our 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. 1THC-free is defined as below the level of detection using validated scientific analytical methods.

cbdMD, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 31, 2026 AND SEPTEMBER 30, 2025

(unaudited)

March 31,

September 30,

2026

2025

Assets

Cash and cash equivalents

$ 2,635,243

$ 2,261,242

Accounts receivable, net

1,573,101

1,040,887

Inventory, net

3,321,045

2,732,127

Inventory prepaid

331,694

214,795

Prepaid expenses and other current assets

520,110

302,378

Total current assets

8,381,193

6,551,429

Other assets:

Property and equipment, net

361,119

277,377

Operating lease assets

361,558

703,934

Deposits for facilities

62,708

62,708

Intangible assets, net

2,193,271

2,124,502

Goodwill

190,000

Investment in other securities, noncurrent

700,000

700,000

Total other assets

3,868,656

3,868,521

Total assets

$ 12,249,849

$ 10,419,950

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2026 AND SEPTEMBER 30, 2025

(continued)

March 31,

September 30,

2026

2025

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

$ 1,393,402

$ 1,173,642

Accrued expenses

626,722

735,672

Accrued dividends

78,805

Deferred revenue

454,039

506,289

Operating leases - current portion

407,811

778,240

Note payable

7,321

Total current liabilities

2,968,100

3,193,843

cbdMD, Inc. shareholders' equity:

Preferred stock, authorized 50,000,000 shares, $0.001

par value, 1,591,210 and 1,700,000 shares issued and outstanding, respectively

1,591

1,700

Common stock, authorized 150,000,000 shares, $0.001

par value, 10,070,560 and 8,917,054 shares issued and outstanding, respectively

10,496

8,917

Additional paid in capital

189,909,199

186,650,640

Accumulated deficit

(180,636,537)

(179,435,150)

Total cbdMD, Inc. shareholders' equity

9,284,749

7,226,107

Total liabilities and shareholders' equity

$ 12,252,849

$ 10,419,950

cbdMD, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(unaudited)

Three months ended March 31,

Six months ended March 31,

2026

2025

2026

2025

Gross Sales

$ 5,640,059

$ 4,749,426

$ 10,656,964

$ 9,862,902

Total Net Sales

$ 5,640,059

$ 4,749,426

$ 10,656,964

$ 9,862,902

Cost of sales

$ 2,383,137

$ 1,790,062

$ 4,398,751

$ 3,502,929

Gross Profit

$ 3,256,922

$ 2,959,364

$ 6,258,213

$ 6,359,973

Operating expenses

$ 4,057,706

$ 3,445,180

$ 7,345,287

$ 6,932,061

Loss from operations

$ (800,784)

$ (485,816)

$ (1,087,074)

$ (572,088)

Decrease (increase) in fair value of convertible debt

$ -

$ (2,583)

$ -

$ 87,380

Interest expense (income)

$ 2,806

$ 7,642

$ 5,963

$ 19,046

Loss before provision for income taxes

$ (797,978)

$ (480,757)

$ (1,081,111)

$ (465,662)

Net (loss) income

$ (797,978)

$ (480,757)

$ (1,081,111)

$ (465,662)

Preferred dividends

$ 78,805

$ 1,000,500

$ 120,276

$ 2,001,001

Net Loss attributable to cbdMD, Inc. common shareholders

$ (876,783)

$ (1,481,257)

$ (1,201,387)

$ (2,466,663)

Net Loss per share:

Basic and diluted earnings per share

$ (0.08)

$ (1.90)

$ (0.12)

$ (3.67)

Weighted average number of shares Basic and Diluted:

10,443,617

778,410

9,715,873

672,558

cbdMD, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(unaudited)

March 31,

March 31,

2026

2025

Cash flows from operating activities:

Net Loss

$ (1,081,111)

$ (465,662)

Adjustments to reconcile net loss to net

cash used by operating activities:

Restricted stock expense

$ 296,950

$ 2,868

Issuance of stock for services

$ -

$ 82,250

Intangibles amortization

$ 398,126

$ 382,534

Depreciation

$ 98,866

$ 201,369

Decrease in fair value of convertible debt

$ -

$ (87,380)

Amortization of operating lease asset

$ 342,376

$ 330,969

Changes in operating assets and liabilities:

Accounts receivable

$ (511,168)

$ (67,408)

Inventory

$ (325,720)

$ (297,518)

Prepaid inventory

$ (116,899)

$ (62,623)

Prepaid expenses and other current assets

$ (110,764)

$ (62,361)

Accounts payable and accrued expenses

$ (121,059)

$ (277,135)

Operating lease liability

$ (370,428)

$ (241,489)

Deferred revenue / customer deposits

$ (34,133)

$ 54,160

Cash flows from operating activities

$ (1,534,964)

$ (507,426)

Cash flows from investing activities:

Purchase of property and equipment

$ (170,550)

$ (179,893)

Purchase of Bluebird

$ 56,427

$ -

Cash flows from investing activities

$ (114,123)

$ (179,893)

Cash flows from financing activities:

Proceeds from issuance of preferred stock

$ 2,026,088

$ -

Cash flows from financing activities

$ 2,026,088

$ -

Net increase (decrease) in cash

$ 377,001

$ (687,319)

Cash and cash equivalents, beginning of period

$ 2,261,242

$ 2,452,553

Cash and cash equivalents, end of period

$ 2,638,243

$ 1,765,234

Supplemental Disclosures of Cash Flow Information:

2026

2025

Cash Payments for:

Interest expense

$ 19,046

Non-cash financing/investing activities:

Issuance of shares for conversion of debt and accrued interest

$ -

$ 1,079,639

All stock purchase of Bluebird

$ 936,992

$ -

Issuance of shares for service

$ -

$ 82,250

Preferred dividends accrued but not paid

$ 78,805

$ 2,001,000

cbdMD, Inc.

NON GAAP ADJUSTED EBITDA

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(unaudited)

Three months ended March 31,

Six months ended March 31,

2026

2025

2026

2025

GAAP (loss) from operations

$ (800,784)

$ (485,816)

$ (1,087,074)

$ (572,088)

Adjustments:

Depreciation and Amortization (1)

$ 251,550

$ 285,896

$ 496,992

$ 583,903

Employee and director stock compensation (2)

$ 296,872

$ 1,934

$ 301,804

$ 5,016

Mergers and Acquisitions and financing transaction expense (3)

$ 31,671

$ -

$ 53,688

$ -

Non-GAAP adjusted EBITDA

$ (220,691)

$ (197,986)

$ (234,590)

$ 16,831

(1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets.

(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.

(3) Represents costs associated with the Bluebird acquisition.

Contacts

Investors: cbdMD, Inc. Ronan Kennedy Chief Executive Officer and Chief Financial Officer [email protected] (704) 445-3064

SOURCE cbdMD, Inc.

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