CV Sciences, Inc. CVSI, a consumer wellness company specializing in hemp extracts and other science-backed, natural ingredients and products, unveiled its financial results for the quarter ended September 30, 2023.
Noteworthy Financial Highlights in Third Quarter of 2023
- In Q3 2023, revenue shot up to $4.1 million, indicating a 9% growth compared to Q3 2022 and an uptick from $4.0 million in Q2 2023.
- Gross margin for Q3 2023 peaked at 45.1%, up from 41.6% in Q3 2022 and an increase from 43.3% in Q2 2023.
- At the conclusion of Q3 2023, the company boasted a cash balance of $1.6 million, a substantial rise from $0.6 million at the close of 2022.
- Notably, the first nine months of 2023 witnessed positive cash flow from operations, totaling $2.4 million, signifying a significant turnaround from cash used in operations of $2.1 million in the first nine months of 2022. This positive cash flow included an employee retention credit (ERC) under the CARES Act, amounting to $2.5 million.
Joseph Dowling, CEO of CV Sciences, expressed, “We are ecstatic about our third quarter 2023 results. Despite a challenging environment, our revenues of $4.1 million rose both sequentially and year-over-year. Our gross margin also soared to 45.1%, reflecting growth both sequentially and year-over-year.”
Q3 2023 Operating Results vs. Q3 2022
- Sales in Q3 2023 amounted to $4.1 million, marking a 9% increase from $3.8 million in Q3 2022, propelled by a higher number of units sold and an augmented average sales price per unit.
- The operating loss in Q3 2023 improved to $0.4 million, in contrast to an operating loss of $0.9 million in Q3 2022, credited to heightened sales, improved gross margins, and reduced operating expenses.
- Negative adjusted EBITDA for Q3 2023 stood at $0.4 million, an enhancement from negative adjusted EBITDA of $1.2 million in Q3 2022.
Dowling added, “Our progress in the third quarter underscores our continuous commitment to innovation and cost-efficient execution as we progress toward profitability and positive cash flow.”
At the time of writing on Tuesday afternoon, CVSI’s shares experienced a 0.82% decline, trading at $0.0302 per share.
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