Earnings per share (EPS) of -$1.90 missed the estimated -$1.60, indicating substantial losses.
Revenue increased to $4.75 million from $4.3 million year-over-year, showing growth despite missing estimates.
Negative price-to-earnings (P/E) ratio and low price-to-sales ratio highlight the market’s modest valuation of the company’s sales.
cbdMD, Inc. (AMEX:YCBD) is a prominent player in the CBD industry, known for its wide range of CBD products. Despite its reputation, the company faces financial challenges, as evidenced by its recent earnings report. On May 15, 2025, YCBD reported an earnings per share (EPS) of -$1.90, which was lower than the estimated EPS of -$1.60. This indicates that the company is currently experiencing losses.
The company’s actual revenue for the second quarter of fiscal 2025 was approximately $4.75 million, falling short of the estimated $5.14 million. However, as highlighted by Seeking Alpha, cbdMD did report a revenue increase to $4.75 million, up from $4.3 million in the same period last year. This growth suggests that while the company is struggling to meet expectations, it is still managing to increase its sales year-over-year.
cbdMD’s financial difficulties are further underscored by its negative price-to-earnings (P/E) ratio of approximately -0.0052. This ratio indicates that the company is currently experiencing losses, as it reflects the relationship between the company’s stock price and its earnings per share. Additionally, the company’s price-to-sales ratio is extremely low at 0.00016, suggesting that the market values its sales very modestly.
The enterprise value to sales ratio stands at 0.157, reflecting a relatively low valuation compared to its sales. This metric is used to assess a company’s total value in relation to its sales, and a low ratio can indicate that the market does not have high expectations for the company’s future growth. Furthermore, the enterprise value to operating cash flow ratio is negative at -1.471, highlighting challenges in generating positive cash flow from operations.
Despite these challenges, cbdMD has made efforts to improve its financial position. The company has significantly reduced its operating loss from $1.5 million to $480,000, showcasing effective expense management and positive outcomes from recent strategic initiatives. Additionally, cbdMD completed a major restructuring of its capital structure, including a Series A Preferred Conversion, which is expected to further support its trend towards profitability.
