Operational fragility is underscored by a 2026Q2 free cash flow margin of -12.9% and a $641.7K working capital outflow, reflecting a structural inability to generate surplus cash from core business activities.
| Cash from Operations | -2.48M | -1.45M | -352.79K | -4.3M | -14.97M | -14.09M | -10.66M | -15.38M | -5.57M | -2.33M | -2.9M |
| Operating CF Margin % | - | -7.57% | -1.81% | -17.81% | -42.28% | -31.68% | -25.46% | -65.02% | -1213.94% | -52.06% | -142.61% |
| Operating CF Growth % | -1125.82% | -311.68% | 91.8% | 71.26% | -6.2% | -32.15% | 30.65% | -175.92% | -139.21% | 19.58% | - |
| Net Income | -2.66M | -2.04B | -3.7M | -22.94M | -70.08M | -23.39M | 12.6M | -51.36M | 62.83K | -1.39M | -3.9M |
| Depreciation & Amortization | 246.75M | 1.13B | 1.82M | 2.93M | 2.97M | 2.25M | 720.75K | 289.57K | 222.55K | 71.28K | 44.94K |
| Stock-Based Compensation | 11.25K | 0 | 16.9K | 342.87K | 928.83K | 2.92M | 2.04M | 2.69M | 678.73K | 212.93K | 11.45K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -471.02K | 1.21M | 6.79M | 571.65K | 296.23K | 0 |
| Other Non-Cash Items | 38.87M | 915.28M | 2.05M | 14.8M | 53.99M | 7.42M | -27.05M | 32.28M | -2.91M | -239.45K | 268.75K |
| Working Capital Changes | -2.61M | -1.97M | -538.83K | 570.45K | -2.77M | -2.82M | -184.51K | -6.07M | -4.2M | -988.43K | 673.88K |
| Change in Receivables | -883.33K | -439.56K | 232.18K | 278.48K | 65.54K | -183.74K | 514.35K | -401.98K | -991.95K | -789.99K | -163.82K |
| Change in Inventory | -816.91K | -788.71K | 790.14K | 27.44K | -112.19K | -1.01M | -535.15K | -3.12M | 255.89K | -41.22K | -519.74K |
| Change in Payables | -105.81K | -261.88K | -1.12M | 61.18K | -1.81M | -740.07K | 1.48M | 394.32K | -666.67K | -466.99K | 785.92K |
| Cash from Investing | -118.4K | -184.17K | -290.01K | 702.45K | -688.68K | -2.55M | -1.57M | -2.13M | -683.56K | 152.31K | -127.26K |
| Capital Expenditures | -164.81M | -184.17M | -290.01K | -297.55K | -688.68K | -2.34M | -1.32M | -1.25M | -383.56K | -7.97K | -127.26K |
| CapEx % of Revenue | 824.7% | 959.71% | 1.49% | 1.23% | 1.95% | 5.27% | 3.15% | 5.28% | 83.55% | 0.18% | 6.26% |
| Acquisitions | 56.43K | 0 | 0 | 0 | 0 | 2M | 0 | -916.55K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 164.64M | 183.99M | 0 | 0 | 0 | -2M | 0 | 31.32K | -660K | -39.72K | 0 |
| Cash from Financing | 3.47M | 1.45M | 1.3M | -1.32M | -4.04M | 28.23M | 22.37M | 17.92M | 10.25M | 2.43M | 2.51M |
| Debt Issued (Net) | 0 | 0 | 1.25M | -132.6K | -33.35K | -151.55K | 1.49M | -764.3K | 0 | 1.62M | 527.56K |
| Equity Issued (Net) | 3.47M | 1.45M | 50K | 2.48M | 0 | 30.94M | 21.19M | 19.01M | 10.93M | 829.5K | 1.98M |
| Dividends Paid | 0 | 0 | 0 | -3.67M | -4M | -2.55M | -366.85K | 0 | 0 | -29.18K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -30.79M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 62.2K | -326.87K | -672.57K | 3K | 0 |
| Net Change in Cash | 873.01K | -191.31K | 654.69K | -4.92M | -19.69M | 11.59M | 10.13M | 407.41K | 4M | 249.99K | -512.2K |
| Free Cash Flow | -166.48M | -1.64M | -642.81K | -4.6M | -15.66M | -16.44M | -11.98M | -16.63M | -5.96M | -2.34M | -3.02M |
| FCF Margin % | -833.04% | -8.53% | -3.3% | -19.04% | -44.22% | -36.95% | -28.61% | -70.3% | -1297.49% | -52.24% | -148.88% |
| FCF Growth % | -53662.54% | -154.59% | 86.02% | 70.62% | 4.74% | -37.14% | 27.92% | -179.12% | -154.8% | 22.7% | - |
| FCF per Share | -15.94 | -0.41 | -0.15 | -2.27 | -11.79 | -13.46 | -11.94 | -41.83 | -34.59 | -14.04 | -32.97 |
| FCF Conversion (FCF/Net Income) | 62.67x | 0.71x | 0.10x | 0.19x | 0.21x | 0.60x | -0.85x | 0.30x | 13.52x | 1.34x | 0.86x |
| Interest Paid | -19.05K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and regulatory insolvency
As reported in recent financial filings, YCBD's operating cash flow consistently trails net income, with the 2026Q1 OCF/NI ratio reaching 2.87, suggesting that accounting losses are being exacerbated by cash-draining operational activities rather than being mitigated by non-cash adjustments or efficient working capital management.
The recurring gap between net income and operating cash flow indicates that the company's reported losses understate the actual cash burn required to sustain operations. Investors should monitor this divergence, as it suggests that the business model is not yet generating the internal cash flow necessary to cover its own operating expenses.
Based on the provided quarterly data, YCBD's free cash flow trajectory remains firmly in negative territory, with the 2026Q2 FCF margin of -12.9% highlighting a structural inability to generate surplus cash after accounting for the capital requirements of the business.
The consistent failure to achieve positive free cash flow suggests that the company's current scale is insufficient to absorb its fixed cost base. This trend warrants further investigation into whether the company can reach a cash-flow-positive state before its existing liquidity reserves are fully exhausted.
According to the company's cash flow statements, working capital changes have been a persistent drag on liquidity, with a notable outflow of $641.7K in 2026Q2, indicating that the company is struggling to optimize its cash conversion cycle amidst a challenging retail environment.
The recurring negative impact of working capital changes suggests that the company may be facing difficulties in managing inventory levels or collecting receivables efficiently. This trend appears to be a significant contributor to the overall cash burn, further straining the company's limited liquidity position.
As evidenced by the 2025Q2 data, where CapEx/Rev reached 37.8%, YCBD has historically engaged in significant capital outlays that appear disproportionate to its revenue base, suggesting that the company's asset-heavy approach may be misaligned with its current revenue-generating capacity.
While recent quarters show lower capital intensity, the historical spikes in CapEx suggest that the company has struggled to maintain a lean operational profile. This volatility in capital spending makes it difficult to forecast future cash requirements and raises questions about the efficiency of past investments.
Quick answers to the most common questions about buying YCBD stock.
cbdMD, Inc. (YCBD) generated $-1.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
cbdMD, Inc. (YCBD) reported negative free cash flow of $1.6M in 2025, indicating capital requirements exceeded cash from operations.
cbdMD, Inc. (YCBD) spent $184.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.