Charlotte-based cbdMD, Inc. posted 20% year-over-year revenue growth in its fiscal third quarter ended June 30, 2026, with the commercial story centered squarely on its Oasis hemp-derived THC beverage brand and a 61% surge in wholesale net sales — the clearest signal yet that the company's distributor-led route-to-market strategy is gaining traction in the off-premise channel.
Oasis Distribution Momentum
Oasis distributor depletions grew 25% in the fiscal third quarter, a figure that accelerated sharply into July — up more than 34% from the Q3 average — with August trending to double that pace. The brand expanded into South Carolina during the quarter and executed a distributor swap in Texas that more than quadrupled the number of retail doors with access to Oasis SKUs, a classic example of how a mid-tier distributor change can unlock meaningful shelf velocity in a high-population state. The recently launched Oasis Mixer has contributed to brand growth, and as of mid-August the company is adding a zero-proof Kava SKU under the Oasis umbrella — a move designed to diversify the portfolio beyond hemp-THC and reduce exposure to regulatory overhang ahead of the November 12, 2026 effective date of Section 781 of H.R. 5371. Kava, which carries no THC content and sits outside TTB jurisdiction, gives Oasis a functional-beverage play that can move through conventional wholesale channels without the compliance friction currently facing hemp-derived cannabinoid products.
The Numbers
Wholesale net sales reached $1.7 million in Q3, or 30% of total net sales of $5.6 million, up from $4.6 million in the prior-year quarter. DTC (direct-to-consumer) e-commerce accounted for the remaining 70%, totaling $3.9 million, a roughly 9% increase year-over-year aided by the first full quarter of contribution from the Bluebird Botanicals acquisition, which added more than $500,000 in revenue after creating an earnings drag during its initial integration period. For the nine months ended June 30, 2026, net sales rose 12% to $16.2 million from $14.5 million in the comparable prior-year period. Gross margin compressed to 54.7% from 61.5% a year earlier, reflecting the channel mix shift toward lower-margin wholesale, incremental warehouse and repacking costs tied to evolving state-level compliance requirements, and higher inventory reserves built ahead of pending federal regulatory changes. Operating loss widened to approximately $1.13 million from $900,000 in the prior-year quarter, with more than $100,000 in M&A due-diligence costs and ongoing product-development investment accounting for a significant portion of the delta. Non-GAAP Adjusted EBITDA loss improved to approximately $508,000 from approximately $624,000 in the prior-year period. The company closed the quarter with working capital of approximately $4.7 million and cash on hand of approximately $2.1 million.
Regulatory & Cost Outlook
The broader hemp beverage supply chain is watching federal legislative developments closely, and cbdMD's positioning reflects that uncertainty. A Senate stopgap appropriations proposal released in early August 2026 — H.R. 6500, now moving to the House — would temporarily exempt naturally occurring cannabinoids from Section 781's revised total-THC definition and 0.4-milligram-per-container limit through December 11, 2026, buying additional runway for compliance adjustments and a potential permanent legislative fix. Meanwhile, the bipartisan Beverage Regulatory Parity Act, introduced August 10 by Representatives Beth Van Duyne and Greg Landsman, would establish an alcohol-style regulatory framework for hemp-derived beverages — a development with direct route-to-market implications for Oasis, which could eventually move through conventional beer and spirits distribution networks if such a framework is enacted. Ronan Kennedy, Chief Executive Officer and Chief Financial Officer of cbdMD, noted that cost-reduction initiatives implemented in July are expected to generate $100,000 to $150,000 in monthly savings — roughly $1.2 million to $1.8 million annualized — as the company tightens its operating structure ahead of what it expects to be a post-regulation market favoring well-capitalized, compliance-focused suppliers. The company sees operators with documented safety data and clinical credibility as best positioned to benefit once a durable federal framework is in place, an assessment shared by most compliance-oriented players in the emerging hemp-beverage segment. Bluebird Botanicals is expected to contribute to both revenue and earnings in fiscal Q4 as integration costs normalize.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
