CV Sciences, Inc. (OTCQB:CVSI), a hemp-focused wellness company, announced stable revenue in its Q3 2024 financials on Thursday. The company generated $3.9 million in revenue, a slight decline from $4.1 million in Q3 2023, yet maintained a gross margin of 46%, up from 45.1% the previous year.
Q3 2024 Financial Highlights
- Revenue: $3.9 million, a 5% decline from $4.1 million in Q3 2023 and stable compared to $4 million in Q2 2024.
- Net loss: $456,000, slightly higher than the $447,000 loss in Q3 2023.
- Adjusted EBITDA: Loss of $75,000, significantly improved from a loss of $361,000 in Q3 2023.
- Gross profit: $1.78 million, a slight decrease from $1.84 million in Q3 2023, reflecting an improved gross margin of 46%, up from 45.1% in the same period last year.
New Product Lines Boost Growth
Operating with a cash balance of $1 million, CV Sciences recorded an adjusted EBITDA loss of $75,000, inching closer to cash flow break-even.
Furthermore, the company's recent launches, including the cannabinoid-free +PlusHLTH supplement line, target cognitive health, stress relief and metabolism support. Additionally, CV Sciences expanded its pet health segment with hip, joint and calming chews, aiming to capture a broader consumer base.
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Management Commentary
CEO Joseph Dowling highlighted the steady core revenue in a challenging environment, noting new products and acquisitions as positioning factors for growth in 2025. "Our third quarter 2024 progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow," Dowling said in a press release.
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"We look forward to organically grow our business and pursue additional M&A opportunities in the near future to improve our top-line revenue, profitability and shareholder value," he added.
CV Sciences Holds Top Market Spot
In Q3, CV Sciences further solidified its market position, maintaining top-seller status in the natural products retail channel, according to SPINS data. The company also secured $0.9 million in financing from Streeterville, aimed at fueling operational and product expansion.
CVSI Price Action
CVSI's shares were trading 7.73% lower at $0.04235 per share at the time of this writing around 12:35 PM ET Thursday.
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