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CV Sciences, Inc. — Third Quarter 2026 Earnings Summary

CVSI

  • Financial Performance:

    • Reported third-quarter 2026 revenue of $3.0 million, a 7.0% decrease from $3.3 million in the third quarter of 2025 and flat compared to $3.0 million in the second quarter of 2026.
    • Gross margin improved to 50.0% in Q3 2026, up from 48.5% in Q3 2025 and 48.6% in Q2 2026.
    • Operating expenses decreased 11.6% year-over-year to $1.6 million (excluding the benefit from the gain on legal settlement), down from $1.8 million in Q3 2025, and decreased 6.6% sequentially from $1.7 million in Q2 2026.
    • Generated positive adjusted EBITDA of $32,000 for Q3 2026, compared to adjusted EBITDA losses of $118,000 in Q3 2025 and $132,000 in Q2 2026.
    • Reported operating income of $0.4 million for Q3 2026, reversing an operating loss of $0.3 million in Q3 2025; the improvement was driven by a $0.5 million gain on legal settlement and expense reductions.
    • Net loss for Q3 2026 was $93,000, compared to a net loss of $382,000 in Q3 2025.
    • Cash balance was $0.3 million at quarter-end, up from $0.278 million at year-end 2025.
    • Working capital increased to $0.7 million at quarter-end, significantly improved from $0.1 million at year-end 2025.
    • For the nine months ended September 30, 2026, net loss was $1.511 million compared to $752,000 in the prior-year period.

  • Guidance and Future Outlook:

    • Management remains focused on strengthening established brands, expanding presence in broader science-based wellness categories, maintaining disciplined capital allocation, and pursuing strategic opportunities for sustainable growth.
    • The company continues to monitor potential updates to the implementation of restrictive federal provisions for hemp-derived cannabinoid products, currently scheduled to take effect on December 11, 2026.

  • Business Segments and Product Lines:

    • Products launched since January 2023 accounted for 48% of third-quarter 2026 net revenue; 53 new products were launched during this period.
    • Expanded the +PlusHLTH™ portfolio with personalized wellness solutions designed to support healthy aging.
    • Total units sold decreased by 4.7% in Q3 2026 compared to Q3 2025, contributing to lower sales volume and average sales prices.
    • The +PlusCBD™ brand remains the top-selling hemp-extract brand in the natural products market according to SPINS data.

  • Market and Competitive Landscape:

    • Revenue decline was driven by lower sales volume resulting from restrictive regulations at the federal level and in certain states.
    • The company operates across B2B and B2C sales channels, with Cultured Foods™ products distributed primarily in the EU and other select markets.

  • Risks and Challenges:

    • Ongoing regulatory challenges and pressure on revenue due to restrictive federal and state regulations affecting hemp-derived cannabinoid products.
    • Decreases in average sales prices and sales volume.
    • Significant non-cash charges related to the change in fair value of convertible notes ($207,000 in Q3 2026) and loss on debt conversions ($263,000 in Q3 2026).

  • Management Commentary and Tone:

    • CEO Joseph Dowling stated that results demonstrate continued progress in strengthening operating performance despite regulatory headwinds.
    • Management highlighted a continued focus on cost discipline, operational efficiency, and improving underlying profitability.
    • The tone emphasized the growing contribution of newer product offerings and the advancement of product innovation and diversification strategies.

  • Other Key Points:

    • Recognized a $0.5 million gain on legal settlement from the resolution of a legal action against Procopio, the Company's long-time legal counsel.
    • Issued convertible notes with an initial fair value of $1,999,000 and recorded a $1,935,000 conversion of convertible notes during the nine-month period.
    • Stock-based compensation expense was $132,000 for Q3 2026 and $428,000 for the nine months ended September 30, 2026.
    • The Company's +PlusCBD™ brand holds self-affirmed Generally Recognized as Safe (GRAS) status, supported by human clinical research data and three published clinical case studies on PubMed.gov.