CV Sciences, Inc.

What they do

CV Sciences develops, manufactures, and markets nutraceuticals and plant-based foods under four brands: +PlusCBD, +PlusHLTH, Cultured Foods, and Lunar Fox. +PlusCBD is its flagship hemp extract supplement line, sold at select U.S. retailers and online; Cultured Foods is a European plant-based protein manufacturer and distributor; Lunar Fox distributes plant-based products in the U.S.; +PlusHLTH is a newer line of cannabinoid-free supplements. It also operates a dormant drug development program for CBD-based therapeutics.

Revenue drivers

• +PlusCBD — The top-selling hemp extract brand in the natural products market per SPINS; sold via softgels, tinctures, topicals, and gummies, including pet products. Represents the core of product sales.
• B2B sales — In 2025, B2B sales were $7.7 million, 56.1% of net product sales, covering wholesale distribution to retailers and other businesses.
• B2C sales — In 2025, B2C sales were $6.0 million, 43.9% of net product sales, driven by e-commerce and direct-to-consumer platforms, including the newly launched PlusHLTH.com.
• New product launches — Since January 1, 2023, the company launched 52 new products; new products represented 44% of net revenue in Q2 2026.

Recent performance

Q2 2026 revenue was $3.0 million, down 17.5% from $3.6 million in Q2 2025, with unit volume down 14.9% and minor price decreases. Gross margin was 48.6% in Q2 2026, down from 50.9% a year earlier. Operating expenses fell 11.3% year-over-year to $1.7 million, but the company still posted an operating loss of $0.3 million. Adjusted EBITDA was negative $0.1 million, versus positive $0.1 million in Q2 2025. Cash at June 30, 2026 was $0.3 million, and total shareholder equity was $1.6 million.

Strategy

Management is focused on disciplined cost control, reducing operating expenses, and improving profitability toward positive cash flow. The company is diversifying beyond cannabinoids into broader science-backed wellness, expanding the +PlusHLTH portfolio and launching PlusHLTH.com as a dedicated e-commerce platform. It is also working with Maxim Group to evaluate merger, sale, or acquisition opportunities. The drug development program remains dormant, to be pursued only if capital becomes available.

Risks

• Regulatory restrictions on hemp-derived products — Q2 2026 revenue declined 17.5% due to restrictive federal and state regulations on hemp-derived cannabinoid products, which could continue to pressure sales and require regulatory navigation.
• Revenue decline trend — Annual revenue has fallen every year since 2021, from $20.0M to $13.8M in 2025, indicating persistent demand challenges in the core CBD market.
• Low cash and liquidity — Cash and equivalents were $266,000 at June 30, 2026, with operating cash flow negative in recent periods, raising concerns about the ability to fund operations without additional financing.
• Strategic and acquisition risk — The company is actively evaluating mergers and acquisitions; any deal could be dilutive, disruptive, or fail to deliver expected synergies.

Outlook

Management expects the regulatory environment to improve, citing a Senate-approved Continuing Resolution that delays restrictive provisions for hemp-derived cannabinoids, allowing time for a long-term regulatory framework. They believe current actions will improve profitability and generate positive cash flow as market conditions normalize. The company remains focused on disciplined capital allocation and selectively pursuing strategic opportunities.