Charlotte’s Web Holdings, Inc. – 2025 Fourth Quarter and Full-Year Financial Results
Charlotte’s Web Holdings, Inc. Reports 2025 Fourth Quarter and Full-Year Financial Results
Key Financial Highlights
- Fourth Quarter Revenue: \$13.3 million, up from \$12.7 million in Q4 2024.
- Full-Year Revenue: \$28.2 million, slightly down from \$28.4 million in 2024.
- Fourth Quarter Gross Profit: \$5.0 million (vs. \$5.1 million last year).
- Full-Year Gross Profit: \$8.3 million, up from \$7.6 million in 2024.
- Operating Loss: \$20.3 million for 2025, a significant improvement (36.6%) from \$32.0 million in 2024.
- Net Loss: \$29.7 million for 2025, compared to \$29.8 million in 2024.
- EPS (basic & diluted): \$(0.19) per share for both 2025 and 2024.
- Adjusted EBITDA Loss: \$12.9 million for 2025, compared to \$19.6 million in 2024.
- Cash Position: Cash and equivalents at year-end totaled \$8.0 million, down from \$22.6 million at the end of 2024.
Detailed Financial Analysis
Charlotte’s Web Holdings, Inc. showed resilience in the fourth quarter of 2025 with a year-over-year revenue increase, indicating improved sales activity. However, full-year revenues were marginally lower, suggesting ongoing challenges in scaling growth. Gross profit margins remained relatively stable, and the company’s efforts to reduce operating losses led to a substantial improvement—operating loss shrank by over \$11 million compared to the prior year.
Despite these operational improvements, the company continues to report sizable net losses. The net loss for 2025 was \$29.7 million, almost unchanged from 2024. Notably, the 2025 net loss included a \$7.3 million non-cash charge related to the fair value change of debt derivatives and its investment in DeFloria, which may be relevant for assessing underlying profitability and future cash flow risks.
Adjusted EBITDA, a key non-GAAP metric, improved to a loss of \$12.9 million from \$19.6 million last year, reflecting reduced expenses and tighter cost controls. This improvement is a positive signal for investors looking for progress toward break-even and eventual profitability.
Balance Sheet and Liquidity
The company’s cash position declined to \$8.0 million at year-end, down from \$22.6 million in 2024. This decrease is noteworthy and could be price-sensitive, as continued net losses and cash burn may impact the company’s future funding needs and ability to invest in growth initiatives. Investors should closely monitor liquidity and any forthcoming capital raising efforts or strategic transactions.
Shareholders’ equity turned negative, with a deficit of \$2.0 million at year-end, compared to a positive \$27.1 million in 2024. This shift is material and may affect share value, as it raises questions about solvency and future capital structure.
Potentially Price-Sensitive Developments
- The company is involved in a proposed transaction for which it will file a preliminary and definitive proxy statement with the SEC. Shareholders are strongly urged to review these documents carefully, as the transaction may be material and could affect share values.
- The company’s press release and SEC filings specifically note that no offer or solicitation is being made at this time, but the proposed transaction and related proxy materials may contain important information for shareholders.
- There is an ongoing focus on cost reductions, revenue growth, and improved cash flow for 2026. The company expects further improvements, but these are subject to risks including regulatory changes, market conditions, and operational execution.
- Forward-looking statements highlight expectations around product development, sales channels, and marketing expansion, but also caution about risks related to supply chain, liquidity, talent retention, and regulatory uncertainty.
Conference Call and Investor Communications
Charlotte’s Web scheduled a conference call to review results, provide updates, and answer analyst and investor questions. A replay and webcast are available through the investor relations section of the company’s website. Investors are encouraged to subscribe to news updates and monitor developments, especially those related to the proposed transaction and liquidity.
Important Shareholder Considerations
- Material non-cash charges and continued net losses may impact future capital needs and share value.
- The shift to negative shareholders’ equity is significant and may be price sensitive.
- Details regarding the proposed transaction and proxy materials should be reviewed carefully, as they could materially affect the company’s future direction and shareholder interests.
- Management’s forward-looking statements are subject to a wide range of risks—investors should not rely on them as guarantees of future performance.
Contact Information
Disclaimer
The article above is based on Charlotte’s Web Holdings, Inc.’s fourth quarter and full-year 2025 financial report and related SEC filings. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Investors should review the company’s filings and proxy materials carefully and are advised not to rely solely on forward-looking statements. This article does not constitute investment advice, a solicitation, or an offer to buy or sell securities.
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