cbdMD Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas McGovern - Maxim Group - Analyst : Hey guys, thanks for taking my question. Yeah, So just firstly, on a high level, you guys see '26 as kind of return to growth for you guys after a lot of the heavy lifting on the restructuring was executed and the turnaround strategy was executed in '25. Just curious, as you look out in '26, what do you -- among your brands, what do you really think is going to be the key driver of growth from a top line perspective? Do you think it's going to be the Herbal Oasis expanding into these new states or maybe some innovation within the cbdMD core brand? Just maybe walk me through what you think will be the biggest driver of growth in '26.

Question: Thomas McGovern - Maxim Group - Analyst : Understood. And when we look at your direct-to-consumer business, we did see a year-over year decline there. Just kind of maybe if you could unpack that a little bit for us, trying to get us an understanding if that's a reflection of some of the SKU reduction you guys have executed or if it's maybe some declining KPIs in terms of returning customers or customer acquisition? Just kind of any insight you can provide on that would be helpful.

Question: Thomas McGovern - Maxim Group - Analyst : Understood. And then last question for me. Obviously, there's a lot going on in the regulatory environment. Just curious if you had any insight on a possible timeline for Medicare coverage of CBD or hemp-derived products? And then also maybe just on a higher level, how you guys have adjusted your strategy just given the dynamic environment we're facing currently?

Question: Thomas McGovern - Maxim Group - Analyst : Understood. I appreciate you taking the time to answer all my questions.

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Good day, Ronan. Thank you very much for taking our questions and happy holidays to all of you.

Question: Adam Waldo - Lismore Partners, LLC - Analyst : I just want to clarify something in the press release. The paragraph that makes reference to the executive order yesterday talks about the statements around Medicare supporting full spectrum hemp for seniors. And then the couple of sentences later, it makes reference to 60 million seniors on Medicaid. Was that a typo? Or do you expect that the executive order -- I know it's only been about 24 hours, but do you expect the executive order signed yesterday would address both Medicare and Medicaid patients that are seniors.

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Fair enough, yes. So potentially centers for Medicare and Medicaid, might extend it to Medicaid over time, but the executive order language explicitly only addresses Medicare at this time. Is that a fair statement on my part?

Question: Adam Waldo - Lismore Partners, LLC - Analyst : No, no worries. I just -- I want to clarify that because obviously, it's only 24 hours, but -- and they're both obviously big potential markets. Okay. So now obviously, you've only had 24 hours to digest this. You probably had sort of put together an operating plan for fiscal '26. Obviously, back in the September time frame that didn't contemplate any of those. You've raised Series B convertible preferred at the end of September. Now you've raised Series C. So liquidity looks pretty good near term. How are you prioritizing -- given the regulatory fluidity, how are you prioritizing growth investment for the balance of fiscal '26 as between sort of the traditional core business and Herbal Oasis, given that I think the executive order really only -- signed yesterday only pertains to the traditional business. Is that right? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 9:20PM, YCBD.A - Q4 2025 cbdMD Inc Earnings Call

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Right. And again, at a high level and very helpful. At a high level, are you prioritizing incremental working capital investment for the next few quarters more in the Herbal Oasis business, which had been your strategy for most of last year? Or will you now put more working capital in the inventory build on the CBD -- traditional CBD product side, the non-beverage side? Or is it just so fluid right now that it's a little hard to know where to prioritize incremental working capital investment in your operation?

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Yes, very fair. Okay. Last question, if you'll permit me, share count. So pro forma for the closing of the Series C preferred yesterday, can you just quickly or maybe Thomas can address this, but can you guys just quickly give us what the fully diluted share count would be? And then is there any new executive comp plan being contemplated in light of the regulatory change that might change the equity -- the common shares outstanding in a meaningful way going forward?

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Okay. And those details would be forthcoming in the proxy and/or in the Q for the quarter?

Question: Adam Waldo - Lismore Partners, LLC - Analyst : Okay. I guess we just missed that. Okay, we'll have a look. Thank you very much.