cbdMD Reports 19% Year-over-Year and 12% Sequential Revenue Growth; Bluebird Acquisition Integration and Medicare BEI Pathway Position Company for Continued Momentum

• Bluebird Botanicals integration on track. In mid-January 2026, cbdMD completed the strategic acquisition of Bluebird Botanicals, a long-standing and respected CBD brand. While acquisition and transition costs created an earnings drag during the quarter, Bluebird began generating positive income in March. Early third-quarter revenue is growing, and management expects the brand to contribute meaningfully to both top-line growth and earnings as additional products roll out and integration efficiencies are realized.
• CMS BEI Medicare pathway activated. Subsequent to quarter-end, on April 1, 2026, CMS, through the Center for Medicare & Medicaid Innovation, activated the BEI for eligible participants in select Innovation Center models, including the ACO REACH Model and the Enhancing Oncology Model. The optional BEI allows approved participants, subject to CMS requirements, safeguards, and physician oversight, to furnish eligible hemp-derived products to beneficiaries at up to $500 annually per eligible beneficiary. Eligible products include non-intoxicating full-spectrum hemp-derived CBD products containing up to 3 milligrams of naturally occurring THC per serving. The FDA has issued a limited enforcement-discretion letter providing additional regulatory clarity for eligible ingestible CBD products furnished through the BEI.
• cbdMD positioned as an evidence-based supplier of choice. cbdMD has launched a dedicated clinical healthcare channel to support the BEI pathway and is actively engaging ACOs, oncology practices, and health systems. The Company is continuing to invest in patient science to deepen the clinical evidence base supporting its products and to position itself as a trusted, evidence-based supplier as provider adoption develops. Management expects the early phase of the BEI to be implementation-led, with visibility into adoption developing through the second half of the calendar year. The program remains subject to ongoing legal and administrative scrutiny, including pending litigation, which the Company is actively monitoring.
• Bipartisan legislative momentum building. The Company continues to monitor and support bipartisan efforts to address the restrictive hemp legislation enacted in November 2025, including delay and comprehensive-framework proposals introduced in both the House and Senate. cbdMD believes that increased regulatory clarity — combined with the partial rescheduling of cannabis to Schedule III in April 2026 — will favor well-capitalized, compliance-focused operators with strong quality, safety, and clinical standards.

Financial Highlights from our Second Quarter of Fiscal Year 2026:

• Net sales totaled $5.6 million in the second quarter of fiscal 2026 or an increase of 19% compared to $4.7 million in second quarter of fiscal 2025. Sequentially, revenue was up 12% from the first quarter of fiscal 2026.
• Our loss from operations was $801,000 in the second quarter of fiscal 2026 as compared to a loss of $485,000 in the prior year comparative period.
• Our non-GAAP adjusted EBITDA loss from operations in the second quarter of fiscal 2026 was approximately $220,000 compared to Adjusted EBITDA loss of $197,000 from operations in the second quarter of fiscal 2025.
• Net loss attributable to common shareholders for the second quarter of fiscal 2026 was approximately $0.88 million or a loss of $0.08 per share as compared to a net loss for the second quarter of fiscal 2025 of approximately $1.5 million, or $1.90 per share.
• At March 31, 2026 we had working capital of approximately $5.4 million and cash on hand of approximately $2.6 million as compared to working capital of approximately $3.3 million and cash on hand of approximately $2.2 million at September 30, 2025.
• We reported direct to consumer (DTC) net sales of $3.8 million or 67% of total net sales in the second quarter of fiscal 2026, an increase of $0.16 million, or 4% from the second quarter of fiscal 2025.
• We reported wholesale net sales of $1.8 million or 33% of total net sales in the second quarter of fiscal 2026, an increase of $0.73 million, or 65% from the second quarter of fiscal 2025.

We will host a conference call at 4:20 p.m., Eastern Time, on Thursday, May 14, 2026, to discuss our March 31, 2026, second quarter of fiscal 2026 financial results and business progress.

CONFERENCE CALL DETAILS

cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced THC-free¹ CBD products and an array of Farm Bill compliant Delta 9 products. To learn more about cbdMD as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, www.ATRxLabs.com, www.bluebirdbotanicals.com, or www.herbaloasis.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
¹THC-free is defined as below the level of detection using validated scientific analytical methods.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' ''proposes,'' ''will,'' ''could,'' ''would,'' ''potential,'' ''continue,'' ''seek,'' and similar expressions. These forward-looking statements include, but are not limited to, statements regarding: our ability to continue as a going concern; our expectations regarding revenue growth and stabilization of our core business; our ability to drive improved operating results and move closer to sustainable profitability; the expected benefits, synergies, and integration of the Bluebird Botanicals acquisition; our ability to unlock operational efficiencies, cost synergies, and revenue optimization; our expectations regarding regulatory clarity and its impact on our business; our belief that we are well-positioned to drive improved operating results; and our liquidity and working capital position. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our ability to continue as a going concern and maintain adequate liquidity; our ability to increase revenues and achieve profitability; our ability to successfully integrate Bluebird Botanicals and realize anticipated synergies and benefits; changes in consumer demand for CBD and hemp-derived products; our ability to maintain compliance with NYSE American continued listing requirements; changes in federal and state laws and regulations governing hemp, CBD, and cannabis products, including the potential impact of restrictive hemp legislation; our ability to compete effectively in a highly competitive market; our ability to maintain and expand our distribution channels; our ability to develop and successfully launch new products; disruptions in our supply chain or manufacturing operations; our ability to protect our intellectual property; cybersecurity risks and data privacy concerns; our ability to attract and retain key personnel; general economic conditions and their impact on consumer spending; and other risks and uncertainties described under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as filed with the Securities and Exchange Commission (the "SEC") on December 18, 2025and our other filings with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements except as required by applicable law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

¹ THC-free is defined as below the level of detection using validated scientific analytical methods.

Non-GAAP Financial Measures

This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted EBITDA because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has included below with this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Contacts:

Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064

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