Charles & Colvard Ltd Financials

CTHR

Source SEC Filings (10-K/10-Q) Updated Mar 31, 2025 Currency USD FYE June

This page shows Charles & Colvard Ltd (CTHR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 24/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Charles & Colvard Ltd has an operating margin of -66.5%, meaning the company retains $-67 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -46.7% the prior year.

Growth

Charles & Colvard Ltd's revenue declined 26.7% year-over-year, from $29.9M to $22.0M. This contraction results in a growth score of 0/100.

Leverage

Charles & Colvard Ltd carries a low D/E ratio of 0.60, meaning only $0.60 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 89/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Charles & Colvard Ltd's current ratio of 1.33 indicates adequate short-term liquidity, earning a score of 33/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

While Charles & Colvard Ltd generated -$7.4M in operating cash flow, capex of $954K consumed most of it, leaving -$8.3M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Piotroski F-Score Weak

3/9

Charles & Colvard Ltd passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Low Quality

0.51x

For every $1 of reported earnings, Charles & Colvard Ltd generates $0.51 in operating cash flow (-$7.4M OCF vs -$14.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-253.1x

Charles & Colvard Ltd earns $-253.1 in operating income for every $1 of interest expense (-$14.6M vs $58K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Revenue

$22.0M

YoY-26.7%

5Y CAGR-7.4%

10Y CAGR-2.6%

Charles & Colvard Ltd generated $22.0M in revenue in fiscal year 2024. This represents a decrease of 26.7% from the prior year.

EBITDA

-$13.9M

YoY-4.4%

Charles & Colvard Ltd's EBITDA was -$13.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.4% from the prior year.

Free Cash Flow

-$8.3M

YoY-63.0%

Charles & Colvard Ltd generated -$8.3M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 63.0% from the prior year.

Net Income

-$14.4M

YoY+26.6%

Charles & Colvard Ltd reported -$14.4M in net income in fiscal year 2024. This represents an increase of 26.6% from the prior year.

EPS (Diluted)

$-4.73

YoY+26.7%

Charles & Colvard Ltd earned $-4.73 per diluted share (EPS) in fiscal year 2024. This represents an increase of 26.7% from the prior year.

Cash & Debt

$4.1M

YoY-60.4%

5Y CAGR-19.8%

10Y CAGR+4.9%

Charles & Colvard Ltd held $4.1M in cash against $0 in long-term debt as of fiscal year 2024.

Dividends Per Share

N/A

Shares Outstanding

YoY+2.2%

Charles & Colvard Ltd had 3M shares outstanding in fiscal year 2024. This represents an increase of 2.2% from the prior year.

Gross Margin

23.6%

YoY+7.8pp

5Y CAGR-22.5pp

10Y CAGR-30.9pp

Charles & Colvard Ltd's gross margin was 23.6% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 7.8 percentage points from the prior year.

Operating Margin

-66.5%

YoY-19.9pp

5Y CAGR-73.6pp

10Y CAGR-61.0pp

Charles & Colvard Ltd's operating margin was -66.5% in fiscal year 2024, reflecting core business profitability. This is down 19.9 percentage points from the prior year.

Net Margin

-65.4%

YoY-0.0pp

5Y CAGR-72.5pp

10Y CAGR-60.9pp

Charles & Colvard Ltd's net profit margin was -65.4% in fiscal year 2024, showing the share of revenue converted to profit. This is down 0.0 percentage points from the prior year.

Return on Equity

N/A

R&D Spending

N/A

Share Buybacks

YoY-100.0%

Charles & Colvard Ltd spent $0 on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.

Capital Expenditures

$954K

YoY-22.4%

5Y CAGR+21.4%

10Y CAGR+1.8%

Charles & Colvard Ltd invested $954K in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 22.4% from the prior year.

CTHR Income Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$22.0M-26.7%	$29.9M-30.5%	$43.1M+9.8%	$39.2M+34.4%	$29.2M-9.5%	$32.2M
Cost of Revenue	$16.8M-33.5%	$25.2M+10.4%	$22.8M+9.8%	$20.8M-1.8%	$21.2M+22.2%	$17.4M
Gross Profit	$5.2M+9.7%	$4.7M-76.6%	$20.2M+9.9%	$18.4M+130.6%	$8.0M-46.4%	$14.9M
R&D Expenses	N/A	N/A	N/A	N/A	$0-100.0%	$2K
SG&A Expenses	$5.8M+15.0%	$5.0M+1.5%	$4.9M+11.4%	$4.4M-8.6%	$4.9M+4.8%	$4.6M
Operating Income	-$14.6M-4.5%	-$14.0M-586.4%	$2.9M-47.8%	$5.5M+187.2%	-$6.3M-378.8%	$2.3M
Interest Expense	$58K	$0	$0-100.0%	$9K+912.8%	$884-59.8%	$2K
Income Tax	$0-100.0%	$5.9M+1038.2%	$519K+108.2%	-$6.3M-365502.3%	$2K+220.1%	-$1K
Net Income	-$14.4M+26.6%	-$19.6M-924.8%	$2.4M-81.5%	$12.8M+307.9%	-$6.2M-370.8%	$2.3M
EPS (Diluted)	$-4.73+26.7%	$-6.45	$0.08-81.0%	$0.42+290.9%	$-0.22-320.0%	$0.10

Metric	Q3'25	Q2'25	Q1'25	Q2'23	Q3'24	Q2'24	Q1'24	Q2'22
Revenue	$4.0M-12.5%	$4.6M+43.2%	$3.2M-76.5%	$13.8M+107.1%	$6.6M-35.9%	$10.4M+40.6%	$7.4M-39.3%	$12.1M
Cost of Revenue	$3.1M-0.2%	$3.1M+40.0%	$2.2M-68.3%	$7.0M+56.5%	$4.5M-26.0%	$6.1M+48.6%	$4.1M-33.8%	$6.2M
Gross Profit	$931K-38.1%	$1.5M+50.3%	$1.0M-85.1%	$6.7M+212.7%	$2.1M-50.0%	$4.3M+30.6%	$3.3M-45.0%	$6.0M
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$1.4M+8.1%	$1.3M+0.7%	$1.3M+6.1%	$1.2M+12.9%	$1.1M-11.3%	$1.2M-16.0%	$1.4M+44.6%	$978K
Operating Income	-$2.0M+22.5%	-$2.5M-18.7%	-$2.1M-247.4%	$1.5M+166.8%	-$2.2M-76.1%	-$1.2M0.0%	-$1.2M-148.9%	$2.5M
Interest Expense	$21K-40.8%	$36K-7.6%	$39K	$0	$0	$0	N/A	$2K
Income Tax	$0	$0	$0-100.0%	$283K-95.5%	$6.3M+4869.7%	-$132K+56.5%	-$303K-61427.1%	$494
Net Income	-$2.0M+22.2%	-$2.5M-18.9%	-$2.1M-282.7%	$1.2M+113.9%	-$8.4M-705.9%	-$1.0M-17.0%	-$890K-135.3%	$2.5M
EPS (Diluted)	$-0.63+22.2%	$-0.81-19.1%	$-0.68-1800.0%	$0.04	$-0.28-833.3%	$-0.030.0%	$-0.03-133.3%	$0.09

CTHR Balance Sheet

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$41.0M-16.4%	$49.0M-29.1%	$69.2M+6.6%	$64.9M+32.8%	$48.9M-4.4%	$51.1M
Current Assets	$18.8M-23.9%	$24.7M-31.0%	$35.9M+0.3%	$35.8M+49.6%	$23.9M-14.2%	$27.9M
Cash & Equivalents	$4.1M-60.4%	$10.4M-33.3%	$15.7M-26.4%	$21.3M+52.2%	$14.0M+12.3%	$12.5M
Inventory	$7.5M+0.4%	$7.5M-32.2%	$11.0M-3.7%	$11.5M+53.8%	$7.4M-37.5%	$11.9M
Accounts Receivable	$845K+56.4%	$540K-75.5%	$2.2M+32.4%	$1.7M+147.8%	$671K-65.8%	$2.0M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$15.3M+65.4%	$9.3M-4.0%	$9.7M+4.5%	$9.2M+23.6%	$7.5M+51.2%	$4.9M
Current Liabilities	$14.1M+95.6%	$7.2M+6.1%	$6.8M+21.0%	$5.6M-13.3%	$6.5M+38.1%	$4.7M
Long-Term Debt	N/A	$0	N/A	N/A	N/A	N/A
Total Equity	$25.6M-35.5%	$39.8M-33.2%	$59.6M+6.9%	$55.7M+34.4%	$41.4M-10.3%	$46.2M
Retained Earnings	-$57.5M-33.3%	-$43.2M-83.0%	-$23.6M+9.1%	-$26.0M+33.0%	-$38.8M-18.9%	-$32.6M

Metric	Q3'25	Q2'25	Q1'25	Q2'23	Q3'24	Q2'24	Q1'24	Q2'22
Total Assets	$29.1M-20.5%	$36.6M-3.0%	$37.8M-23.0%	$49.0M-13.0%	$56.4M-15.8%	$66.9M-1.1%	$67.7M-2.2%	$69.2M
Current Assets	$9.0M-40.1%	$15.1M-5.0%	$15.9M-35.8%	$24.7M-3.7%	$25.7M-23.2%	$33.4M+5.7%	$31.6M-11.8%	$35.9M
Cash & Equivalents	$1.3M-17.3%	$1.5M-44.5%	$2.7M-73.8%	$10.4M-4.3%	$10.9M-8.7%	$12.0M+3.4%	$11.6M-26.2%	$15.7M
Inventory	$6.0M+0.8%	$5.9M-0.1%	$5.9M-20.9%	$7.5M-5.2%	$7.9M-39.7%	$13.1M+8.3%	$12.1M+9.7%	$11.0M
Accounts Receivable	$707K-44.0%	$1.3M+45.3%	$870K+61.0%	$540K-42.1%	$934K-55.3%	$2.1M+33.9%	$1.6M-29.2%	$2.2M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$10.0M-35.7%	$15.6M+9.6%	$14.2M+53.3%	$9.3M+25.5%	$7.4M-22.9%	$9.6M+2.3%	$9.4M-2.9%	$9.7M
Current Liabilities	$9.5M-36.0%	$14.8M+12.0%	$13.2M+83.2%	$7.2M+40.7%	$5.1M-28.0%	$7.1M+6.1%	$6.7M-1.3%	$6.8M
Long-Term Debt	N/A	$0	$0	$0	N/A	N/A	N/A	N/A
Total Equity	$19.1M-9.3%	$21.1M-10.6%	$23.6M-40.8%	$39.8M-18.8%	$49.0M-14.6%	$57.3M-1.7%	$58.3M-2.1%	$59.6M
Retained Earnings	-$64.2M-3.2%	-$62.2M-4.3%	-$59.7M-38.2%	-$43.2M-27.3%	-$33.9M-32.9%	-$25.5M-4.3%	-$24.5M-3.8%	-$23.6M

CTHR Cash Flow Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	-$7.4M-90.1%	-$3.9M-776.8%	$573K-91.2%	$6.5M+2497.7%	$249K-72.8%	$917K
Capital Expenditures	$954K-22.4%	$1.2M-17.8%	$1.5M+242.4%	$437K-4.7%	$459K+27.0%	$361K
Free Cash Flow	-$8.3M-63.0%	-$5.1M-452.5%	-$924K-115.3%	$6.0M+2978.8%	-$210K-137.8%	$555K
Investing Cash Flow	-$1.0M+19.1%	-$1.3M+17.8%	-$1.6M-112.8%	-$733K-36.8%	-$536K-25.9%	-$426K
Financing Cash Flow	$2.3M+609.1%	-$452K-162.7%	$720K-33.9%	$1.1M-42.6%	$1.9M-79.2%	$9.1M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$0-100.0%	$452K+1083.9%	$38K	$0	N/A	N/A

Metric	Q3'25	Q2'25	Q1'25	Q2'23	Q3'24	Q2'24	Q1'24	Q2'22
Operating Cash Flow	-$2.8M-156.2%	-$1.1M+14.2%	-$1.3M-2605.4%	-$48K+93.8%	-$773K-225.3%	$617K+116.8%	-$3.7M-592.1%	-$530K
Capital Expenditures	$44K-34.8%	$67K-30.4%	$97K-72.0%	$346K+29.5%	$267K+42.7%	$187K-56.6%	$430K+74.8%	$246K
Free Cash Flow	-$2.9M-145.2%	-$1.2M+15.3%	-$1.4M-252.3%	-$393K+62.2%	-$1.0M-341.9%	$430K+110.5%	-$4.1M-428.1%	-$777K
Investing Cash Flow	-$53K+28.6%	-$74K+30.0%	-$106K+70.0%	-$354K-25.8%	-$281K-30.7%	-$215K+50.2%	-$433K-59.3%	-$271K
Financing Cash Flow	-$2.3M	$0	$0	$0	$0	$0+100.0%	-$452K-749.4%	$70K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$0	$0	$0	$0	$0	$0-100.0%	$452K+1083.9%	$38K

CTHR Financial Ratios

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	23.6%+7.8pp	15.8%-31.2pp	47.0%+0.0pp	47.0%+19.6pp	27.4%-18.8pp	46.2%
Operating Margin	-66.5%-19.9pp	-46.7%-53.3pp	6.7%-7.4pp	14.0%+35.7pp	-21.6%-28.7pp	7.0%
Net Margin	-65.4%-0.0pp	-65.4%-70.9pp	5.5%-27.1pp	32.6%+53.8pp	-21.1%-28.2pp	7.1%
Return on Equity	N/A	N/A	4.0%-19.0pp	23.0%	N/A	4.9%
Return on Assets	-35.0%+4.9pp	-39.9%-43.4pp	3.4%-16.3pp	19.7%+32.3pp	-12.6%-17.0pp	4.5%
Current Ratio	1.33-2.1	3.43-1.8	5.27-1.1	6.36+2.7	3.69-2.2	5.93
Debt-to-Equity	0.60+0.6	0.00-0.2	0.160.0	0.17-0.0	0.18+0.1	0.11
FCF Margin	-37.9%-20.8pp	-17.1%-14.9pp	-2.1%-17.5pp	15.4%+16.1pp	-0.7%-2.4pp	1.7%

Metric	Q3'25	Q2'25	Q1'25	Q2'23	Q3'24	Q2'24	Q1'24	Q2'22
Gross Margin	23.0%-9.5pp	32.5%+1.6pp	31.0%-17.9pp	48.9%+16.5pp	32.4%-9.1pp	41.4%-3.2pp	44.6%-4.6pp	49.2%
Operating Margin	-48.6%+6.3pp	-54.9%+11.3pp	-66.1%-76.7pp	10.5%+43.3pp	-32.7%-20.8pp	-11.9%+4.8pp	-16.7%-37.5pp	20.8%
Net Margin	-48.7%+6.1pp	-54.8%+11.2pp	-66.0%-74.5pp	8.5%+134.9pp	-126.4%-116.4pp	-10.1%+2.0pp	-12.1%-32.8pp	20.7%
Return on Equity	N/A	N/A	N/A	2.0%	N/A	N/A	N/A	5.6%
Return on Assets	-6.8%+0.1pp	-6.9%-1.3pp	-5.7%-7.3pp	1.7%+16.6pp	-14.9%-13.3pp	-1.6%-0.2pp	-1.3%-6.2pp	4.9%
Current Ratio	0.95-0.1	1.02-0.2	1.20-2.2	3.43-1.6	5.00+0.3	4.69-0.0	4.71-0.6	5.27
Debt-to-Equity	0.52-0.2	0.74+0.1	0.60+0.6	0.00-0.2	0.15-0.0	0.170.0	0.160.0	0.16
FCF Margin	-71.0%-45.7pp	-25.3%+17.5pp	-42.8%-56.5pp	13.7%+29.3pp	-15.7%-19.8pp	4.2%+59.8pp	-55.6%-79.6pp	24.0%

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Frequently Asked Questions

What is Charles & Colvard Ltd's annual revenue?

Charles & Colvard Ltd (CTHR) reported $22.0M in total revenue for fiscal year 2024. This represents a -26.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Charles & Colvard Ltd's revenue growing?

Charles & Colvard Ltd (CTHR) revenue declined by 26.7% year-over-year, from $29.9M to $22.0M in fiscal year 2024.

Is Charles & Colvard Ltd profitable?

No, Charles & Colvard Ltd (CTHR) reported a net income of -$14.4M in fiscal year 2024, with a net profit margin of -65.4%.

What is Charles & Colvard Ltd's earnings per share (EPS)?

Charles & Colvard Ltd (CTHR) reported diluted earnings per share of $-4.73 for fiscal year 2024. This represents a 26.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is Charles & Colvard Ltd's EBITDA?

Charles & Colvard Ltd (CTHR) had EBITDA of -$13.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.

What is Charles & Colvard Ltd's gross margin?

Charles & Colvard Ltd (CTHR) had a gross margin of 23.6% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is Charles & Colvard Ltd's operating margin?

Charles & Colvard Ltd (CTHR) had an operating margin of -66.5% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is Charles & Colvard Ltd's net profit margin?

Charles & Colvard Ltd (CTHR) had a net profit margin of -65.4% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is Charles & Colvard Ltd's free cash flow?

Charles & Colvard Ltd (CTHR) generated -$8.3M in free cash flow during fiscal year 2024. This represents a -63.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Charles & Colvard Ltd's operating cash flow?

Charles & Colvard Ltd (CTHR) generated -$7.4M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are Charles & Colvard Ltd's total assets?

Charles & Colvard Ltd (CTHR) had $41.0M in total assets as of fiscal year 2024, including both current and long-term assets.

What are Charles & Colvard Ltd's capital expenditures?

Charles & Colvard Ltd (CTHR) invested $954K in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.

How many shares does Charles & Colvard Ltd have outstanding?

Charles & Colvard Ltd (CTHR) had 3M shares outstanding as of fiscal year 2024.

What is Charles & Colvard Ltd's current ratio?

Charles & Colvard Ltd (CTHR) had a current ratio of 1.33 as of fiscal year 2024, which is considered adequate.

What is Charles & Colvard Ltd's debt-to-equity ratio?

Charles & Colvard Ltd (CTHR) had a debt-to-equity ratio of 0.60 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Charles & Colvard Ltd's return on assets (ROA)?

Charles & Colvard Ltd (CTHR) had a return on assets of -35.0% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is Charles & Colvard Ltd's cash runway?

Based on fiscal year 2024 data, Charles & Colvard Ltd (CTHR) had $4.1M in cash against an annual operating cash burn of $7.4M. This gives an estimated cash runway of approximately 7 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Charles & Colvard Ltd's Piotroski F-Score?

Charles & Colvard Ltd (CTHR) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Charles & Colvard Ltd's earnings high quality?

Charles & Colvard Ltd (CTHR) has an earnings quality ratio of 0.51x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Charles & Colvard Ltd cover its interest payments?

Charles & Colvard Ltd (CTHR) has an interest coverage ratio of -253.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Charles & Colvard Ltd?

Charles & Colvard Ltd (CTHR) scores 24 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.