Shares of cbdMD declined 3.6% after earnings, reflecting investor disappointment with margin pressures and elevated near-term costs related to the accelerated CMS substance access pathway rollout and integration expenses from the Bluebird Botanicals acquisition.

• Net sales grew 19% year-over-year to $5.6 million and 12% sequentially, with core business growth excluding Bluebird adding approximately $0.5 million vs. prior year and $0.3 million sequentially.
• Direct-to-consumer accounted for 67% of revenue while wholesale grew 65% year-over-year, reaching 33% of total sales, supported by both cbdMD and Oasis TSC beverage brands.
• The Bluebird Botanicals acquisition, closed in mid-January, negatively impacted earnings due to transition and integration costs, though it began contributing positively in March.
• The company accelerated investments in the CMS beneficiary engagement incentive program, incurring near-term costs for a clinical and healthcare channel buildout, delaying revenue benefits to the medium term.
• Ongoing state regulatory volatility increased packaging, testing costs, and constrained product sales, adding operational complexity and expense in the short term.