Despite maintaining a 53.3% gross margin in 2026Q2, the company continues to struggle with negative operating margins of -14.2%, indicating that SG&A expenses remain disproportionately high relative to its $5.6M quarterly revenue base.
| Sales/Revenue | 19.98M | 19.19M | 19.48M | 24.16M | 35.4M | 44.48M | 41.88M | 23.65M | 459.09K | 4.47M | 2.03M |
| Revenue Growth % | 2% | -1.5% | -19.35% | -31.77% | -20.41% | 6.2% | 77.09% | 5051.82% | -89.74% | 120.27% | - |
| Cost of Goods Sold | 8.37M | 7.22M | 8.64M | 11.12M | 14.9M | 15.51M | 15.51M | 9.14M | 326.56K | 1.36M | 1.62M |
| COGS % of Revenue | - | 37.63% | 44.33% | 46.03% | 42.09% | 34.87% | 37.04% | 38.63% | 71.13% | 30.29% | 79.66% |
| Gross Profit | 11.61M | 11.97M | 10.85M | 13.04M | 20.5M | 28.97M | 26.37M | 14.51M | 132.53K | 3.12M | 413.13K |
| Gross Margin % | 58.12% | 62.37% | 55.67% | 53.97% | 57.91% | 65.13% | 62.96% | 61.37% | 28.87% | 69.71% | 20.34% |
| Gross Profit Growth % | - | 10.35% | -16.81% | -36.42% | -29.22% | 9.86% | 81.67% | 10851.73% | -95.75% | 655.11% | - |
| Operating Expenses | 14.29M | 14.13M | 14.04M | 22.31M | 37.81M | 48.58M | 43.95M | 28.88M | 1.93M | 3.36M | 4.15M |
| OpEx % of Revenue | - | 73.63% | 72.04% | 92.34% | 106.81% | 109.23% | 104.94% | 122.09% | 420.31% | 75.06% | 204.1% |
| Selling, General & Admin | 12.24M | 11.43M | 14.04M | 22.31M | 37.81M | 48.58M | 43.95M | 28.88M | 1.93M | 3.36M | 4.15M |
| SG&A % of Revenue | - | 59.58% | 72.04% | 92.34% | 106.81% | 109.23% | 104.94% | 122.09% | 420.31% | 75.06% | 204.1% |
| Research & Development | 28.29K | 33.86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.18% | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.02M | 2.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.68M | -2.16M | -3.19M | -9.27M | -17.31M | -19.62M | -17.58M | -14.36M | -1.8M | -239.29K | -3.73M |
| Operating Margin % | -13.4% | -11.27% | -16.37% | -38.37% | -48.9% | -44.1% | -41.98% | -60.72% | -391.44% | -5.35% | -183.76% |
| Operating Income Growth % | - | 32.2% | 65.59% | 46.46% | 11.75% | -11.57% | -22.43% | -699.1% | -651% | 93.59% | - |
| EBITDA | -957.16K | -366.67K | -1.37M | -6.34M | -14.34M | -17.36M | -15.68M | -14.07M | -1.57M | -168.01K | -3.69M |
| EBITDA Margin % | -4.79% | -1.91% | -7.03% | -26.25% | -40.51% | -39.03% | -37.44% | -59.49% | -342.97% | -3.75% | -181.55% |
| EBITDA Growth % | -356.35% | 73.22% | 78.41% | 55.78% | 17.41% | -10.72% | -11.44% | -793.65% | -837.13% | 95.44% | - |
| D&A (Non-Cash Add-back) | 1.72M | 1.8M | 1.82M | 2.93M | 2.97M | 2.25M | 1.9M | 289.57K | 222.55K | 71.28K | 44.94K |
| EBIT | -2.68M | -2.16M | -3.19M | -9.27M | -17.31M | -19.62M | -17.58M | -14.36M | -1.8M | -239.29K | -3.73M |
| Net Interest Income | 15.38K | 0 | -29.51K | 63.7K | 16.25K | -28.93K | 39.88K | 75.07K | -955 | -500.63K | -154.98K |
| Interest Income | 15.38K | 0 | 0 | 63.7K | 16.25K | 0 | 39.88K | 75.07K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 29.51K | 0 | 0 | 28.93K | 0 | 0 | 955 | 500.63K | 154.98K |
| Other Income/Expense | 21.23K | 121.69K | -510.55K | -13.67M | -52.77M | -4.67M | 28.89M | -33.43M | 0 | -1.12M | -154.98K |
| Pretax Income | -2.66M | -2.04M | -3.7M | -22.94M | -70.08M | -24.29M | 11.31M | -47.79M | -1.8M | -1.36M | -3.89M |
| Pretax Margin % | -13.29% | -10.63% | -18.99% | -94.96% | -197.96% | -54.61% | 26.99% | -202.05% | -391.44% | -30.42% | -191.39% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | -895K | -1.35M | -2.36M | 0 | 25K | 8K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 3.68% | -11.9% | 4.94% | 0% | -1.84% | -0.21% |
| Net Income | -2.66M | -2.04M | -3.7M | -22.94M | -70.08M | -23.39M | 12.6M | -50.43M | -412.07K | -1.74M | -3.36M |
| Net Margin % | -13.29% | -10.63% | -18.99% | -94.96% | -197.96% | -52.6% | 30.09% | -213.21% | -89.76% | -38.85% | -165.22% |
| Net Income Growth % | -1573.56% | 44.84% | 83.87% | 67.27% | -199.57% | -285.64% | 124.99% | -12137.63% | 76.3% | 48.2% | - |
| Net Income (Continuing) | -2.66M | -2.04M | -3.7M | -22.94M | -70.08M | -23.39M | 12.65M | -45.43M | -1.8M | -1.39M | -3.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -48.98K | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.41M | 937.06K | -656.15K |
| EPS (Diluted) | -0.25 | -1.09 | -1.79 | -13.32 | -55.80 | -19.16 | 12.19 | -114.29 | -2.39 | -10.44 | -36.58 |
| EPS Growth % | 51.04% | 39.11% | 86.56% | 76.13% | -191.23% | -257.18% | 110.67% | -4682.01% | 77.11% | 71.46% | - |
| EPS (Basic) | - | -1.09 | -1.79 | -13.32 | -55.80 | -19.16 | 12.47 | -114.29 | -2.39 | -10.44 | -36.58 |
| Diluted Shares Outstanding | 10.44M | 4.02M | 4.31M | 2.02M | 1.33M | 1.22M | 1M | 397.49K | 172.22K | 166.49K | 91.75K |
| Basic Shares Outstanding | 10.44M | 4.02M | 4.31M | 2.02M | 1.33M | 1.22M | 980.9K | 397.49K | 172.06K | 166.49K | 91.75K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and regulatory insolvency
According to the most recent quarterly data, YCBD's revenue reached $5.6M in 2026Q2, reflecting a 18.8% quarterly increase, yet the broader trend remains characterized by inconsistent performance and a lack of sustained organic expansion in a highly competitive, fragmented domestic hemp-derived wellness market.
The recent revenue uptick appears to be a recovery from previous contraction rather than a sign of durable growth. Investors should monitor whether this volatility stems from seasonal promotional activity or a genuine improvement in customer retention, as the company lacks a clear path to consistent top-line scaling.
As reported in financial statements, YCBD has maintained gross margins averaging above 50%, with a 53.3% figure in 2026Q2, suggesting that the brand retains some pricing power despite the commoditization of the broader CBD sector and intense pressure from lower-cost, full-spectrum competitors.
The ability to sustain these margins implies that the 'THC-free' and 'Paw CBD' positioning successfully insulates the company from the worst of the industry's price wars. However, these margins are insufficient to cover the current operating cost structure, indicating that premium pricing alone cannot solve the company's profitability challenges.
Based on YCBD's reported figures, the company continues to struggle with negative operating margins, which reached -14.2% in 2026Q2, demonstrating that SG&A expenses remain disproportionately high relative to the current revenue base and preventing the realization of meaningful operating leverage.
The persistent inability to scale operating income suggests that the company's customer acquisition costs are likely too high for its current business model. Without a significant reduction in overhead or a major increase in revenue velocity, the company appears trapped in a cycle of high-cost growth that fails to generate bottom-line value.
Data from recent filings indicates that YCBD faces a precarious liquidity position, with cash reserves dwindling against a high debt-to-equity ratio of 107.70%, which may force management into dilutive financing or asset divestitures to sustain basic operations in the coming quarters.
Short-sellers would likely focus on the company's inability to achieve positive net income, which, combined with limited cash, creates a high risk of insolvency. The reliance on external capital in a high-interest-rate environment warrants extreme caution, as the company's current financial structure appears increasingly unsustainable.
Quick answers to the most common questions about buying YCBD stock.
For fiscal year 2025, cbdMD, Inc. (YCBD) reported total revenue of $19.2M. This represents a 844.6% increase compared to $2.0M in 2016.
cbdMD, Inc. (YCBD) reported a net loss of $2.0M for the fiscal year ending 2025.
cbdMD, Inc. (YCBD) reported an operating income of $-2.2M, resulting in an operating profit margin of -11.3%. This margin reflects the operational efficiency of the business before interest and taxes.
cbdMD, Inc. (YCBD) generated $12.0M in gross profit for the year, representing a gross profit margin of 62.4%. This demonstrates the company's core pricing power and production efficiency.