Hemp-Focused Wellness Company: Revenue Jumps To $4.1M, Gross Margin Peaks At 45.1%

CV Sciences, Inc. CVSI, a consumer wellness company specializing in hemp extracts and other science-backed, natural ingredients and products, announced its financial results for the quarter ended September 30, 2023.

Third Quarter 2023 Financial Highlights

• Q3 2023 revenue increased to $4.1 million, demonstrating a 9% growth compared to Q3 2022 and a sequential improvement from $4.0 million in Q2 2023.
• Gross margin for Q3 2023 reached 45.1%, up from 41.6% in Q3 2022 and a sequential improvement from 43.3% in Q2 2023.
• Ending Q3 2023 with a cash balance of $1.6 million, a notable increase from $0.6 million at the end of 2022.
• Positive cash flow from operations of $2.4 million in the first nine months of 2023, a significant turnaround from cash used in operations of $2.1 million in the first nine months of 2022. Cash flow from operations included an employee retention credit (ERC) under the CARES Act totaling $2.5 million.

Joseph Dowling, CEO of CV Sciences, stated: "We are very pleased with our third quarter 2023 results. In a challenging environment, our revenues of $4.1 million increased both sequentially and year-over-year. Our gross margin also improved to 45.1%, again, both a sequential and year-over-year increase."

Operating Results - Q3 2023 vs. Q3 2022

• Sales for Q3 2023 amounted to $4.1 million, a 9% increase from $3.8 million in Q3 2022, driven by a higher number of units sold and increased average sales price per unit.
• Q3 2023 operating loss improved to $0.4 million, compared to an operating loss of $0.9 million in Q3 2022, attributed to higher sales, improved gross margins, and lower operating expenses.
• Negative adjusted EBITDA for Q3 2023 was $0.4 million, an improvement from negative adjusted EBITDA of $1.2 million in Q3 2022.

"Our third quarter progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow,” said Dowling.

Price Action

CVSI's shares were trading 0.82% down at $0.0302 per share at the time of writing on Tuesday afternoon.

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