Charlotte's Web Reports 2025 Fourth Quarter and Full Year Financial Results
Rhea-AI Summary
Charlotte's Web (BTI) reported Q4 2025 and full-year results and disclosed a material strategic transaction with British American Tobacco (BAT) and participation in the CMMI Medicare pilot.
Highlights: FY revenue $49.9M, FY gross profit $21.7M (43.5%), Q4 revenue $13.3M, Q4 net loss $11.5M. BAT transaction would convert C$75.3M debenture, add US$10M equity, and leave BAT with ~40% ownership pending approvals.
Positive
- BAT transaction converts C$75.3M debenture and adds US$10M equity, strengthening equity
- FY revenue increased to $49.9M, first annual rise since 2021 (+0.5% YoY)
- Gross margin improved to 43.5% for 2025; in‑house gummy production moving to ~75% in 2026
- Net cash used in operations improved to $1.9M in Q4 2025 versus prior quarter
Negative
- Q4 net loss widened to $11.5M from $3.4M year‑ago quarter
- Adjusted EBITDA loss of $(4.4)M in Q4 versus $0.3M a year earlier
- Fair value charge of $(4.4)M in Q4 and $(7.3)M for the year pressured results
News Market Reaction – BTI
On the day this news was published, BTI gained 0.36%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BTI was up 0.8% with mixed, low-magnitude moves among peers (MO +0.19%, PM -0.53%, RLX +0.47%, TPB -0.36%, BUD +0.5%), suggesting stock-specific factors rather than a broad tobacco sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 08 | Quarterly earnings | Negative | +0.6% | Reported lower revenue vs 2023 while outlining cost and growth initiatives. |
Limited earnings history shows one prior Charlotte's Web earnings release with negative revenue commentary but a modestly positive price reaction, indicating at least one instance where the stock traded against the headline tone.
The tagged history shows a May 8, 2024 Charlotte's Web earnings release where revenue declined versus 2023 and management emphasized ‘True North’ initiatives to enhance consumer experience, expand offerings, and cut costs. Today’s full-year 2025 results highlight a return to slight annual revenue growth, significant SG&A reductions, and a strategic BAT transaction, indicating continued focus on cost discipline and portfolio evolution alongside new healthcare-channel opportunities.
Historical Comparison
Over the past year, Charlotte's Web earnings headlines produced an average move of 0.63%, suggesting historically muted stock reactions to financial updates.
Earnings history shows Charlotte's Web moving from earlier revenue declines and cost-efficiency focus toward 2025 results featuring slight revenue growth, substantial SG&A reductions, and deeper strategic links with BAT and clinical development via DeFloria.
Market Pulse Summary
This announcement details Charlotte's Web’s 2025 return to slight annual revenue growth, major SG&A reductions, and a BAT transaction that removes $3 million in yearly interest while deepening strategic ties. It also highlights participation in the CMMI Medicare pilot and BEI framework, with up to $500 per beneficiary for eligible CBD products, plus progress toward a Phase 2 trial for AJA001. Investors may track revenue mix, cash usage, and regulatory milestones around Medicare and clinical programs.
Key Terms
convertible debenture financial
private placement financial
accountable care organizations medical
Beneficiary Engagement Incentive regulatory
Phase 2 clinical trials medical
pharmacokinetic medical
Adjusted EBITDA financial
cGMP technical
AI-generated analysis. Not financial advice.
Anticipated CMMI Medicare Pilot Program Participation, Regulatory Momentum, and Cost Structure Improvements Position Company for Growth and Pathway to Profitability
SUBSEQUENT MATERIAL EVENTS
BAT Transaction
Prior to this earnings release, Charlotte's Web announced a transaction (the "Transaction") with BT DE Investments Inc. ("BAT"), a subsidiary of British American Tobacco p.l.c. (LSE: BATS and NYSE: BTI), comprised of two components: (i) the amendment and conversion of BAT's outstanding
The debenture conversion eliminates Charlotte's Web's largest outstanding balance sheet liability and significantly strengthens shareholders' equity, while removing approximately
The Transaction is subject to TSX approval and the approval of Charlotte's Web shareholders at the Annual General and Special Meeting scheduled to be held on or about May 28, 2026.
CMMI Medicare Pilot Program and CMS Beneficiary Engagement Incentive (BEI)
On December 18, 2025, the Washington Administration announced a Center for Medicare and Medicaid Innovation ("CMMI") Medicare pilot program, the first federal initiative designed to enable federally authorized CBD access for senior patients through Medicare. Charlotte's Web is participating as a CBD launch partner for the pilot, beginning with senior oncology patients, with a broader expansion to additional Medicare beneficiary segments expected in 2027.
Subsequently, on March 20, 2026, the Centers for Medicare & Medicaid Services ("CMS") issued related guidance establishing the Beneficiary Engagement Incentive ("BEI"), the specific mechanism through which the CMMI pilot will operate. The guidance confirmed that hemp-derived CBD products, including non-intoxicating full-spectrum products containing up to 3 mg per serving of tetrahydrocannabinols, are eligible under the program. Charlotte's Web believes that its core portfolio of full-spectrum CBD wellness products qualifies under this federally authorized incentive program, with participating healthcare organizations permitted to fund up to
Under the BEI, participating healthcare organizations, primarily accountable care organizations ("ACOs") and oncology model providers, may elect to purchase eligible hemp-derived CBD products from compliant suppliers using their own funds and furnish them to aligned Medicare beneficiaries for symptom management. Costs are covered by the participating organization from its own program economics. CBD wellness products may help reduce reliance on higher-cost treatments, and participating organizations have a financial incentive to help their patients achieve better outcomes at lower cost. Participants in the ACO REACH Model and the Enhancing Oncology Model ("EOM") may begin offering the BEI effective April 1, 2026, with the Long-term Enhanced ACO Design (LEAD) Model following on January 1, 2027.
Regulatory Developments and Federal Policy Momentum
Federal policy developments during and after the fourth quarter of 2025 represented some of the most meaningful progress for hemp-derived CBD since the 2018 Farm Bill, signaling a potential turning point for the industry.
HEMP Act
Driving a federal legislative framework is the Hemp Enforcement, Modernization, and Protection Act (the "HEMP Act"), introduced by Congressman Morgan Griffith, Chairman of the House Energy and Commerce Subcommittee on Health. This congressional committee is responsible for FDA oversight. The HEMP Act presents a science-driven federal framework that preserves access to responsibly produced full-spectrum CBD products. The HEMP Act is expected to proceed through regular committee order. Some industry stakeholders also believe the legislation could advance through Congress' September Continuing Resolution.
Policy momentum has been further driven by congressional and executive actions. In November 2025, Congress passed the Agriculture, Rural Development, FDA, and Related Agencies Appropriations Act as part of a government funding agreement that included restrictions on the total THC content of hemp-derived products, with an implementation window set for late 2026. Subsequently, a December 18, 2025, Executive Order directed senior White House leadership to work with Congress to update the statutory definition of hemp-derived cannabinoid products, ensuring continued access to full-spectrum CBD while preserving Congressional intent to restrict products that may pose health risks. Simultaneously, the Administration announced a Center for Medicare and Medicaid Innovation ("CMMI") Medicare care innovation pilot program, underscoring a broader federal interest in research and evidence development to support hemp-derived wellness products.
"2025 was a defining year for Charlotte's Web," said Bill Morachnick, Chief Executive Officer. "Our participation as a launch partner for the CMMI Medicare pilot marks a landmark breakthrough, bringing physician-authorized CBD access into the healthcare system for seniors, with Charlotte's Web at the forefront. We see this as an early model for potential healthcare integration across additional segments of Medicare's approximately 67 million beneficiaries. Alongside the Presidential Executive Order and growing bipartisan momentum for a rational federal framework, we believe our industry is at a pivotal inflection point. We've built this Company for moments exactly like this."
DeFloria: Advancing Cannabinoid Pharmaceutical Development
DeFloria, Inc., a collaboration between Charlotte's Web, Ajna BioSciences, and British American Tobacco, achieved significant clinical and regulatory milestones in 2025, advancing AJA001 Oral Solution as the most advanced cannabinoid drug program utilizing the FDA's Botanical Drug Pathway.
In 2025, the FDA completed its review of Phase 1 data and cleared DeFloria to proceed with Phase 2 clinical trials for AJA001, a treatment for irritability associated with autism spectrum disorder (ASD). The Phase 1 trial demonstrated that AJA001 was well-tolerated across a wide dosage range with favorable pharmacokinetic profiles, establishing the foundation for Phase 2 evaluation of safety, tolerability, and effectiveness in adolescents and adults with ASD.
According to the CDC, ASD affects approximately 1 in 31 children in
DeFloria's progress carries substantial strategic value for Charlotte's Web shareholders:
Validation of Botanical Science: Clinical advancement of Charlotte's Web's proprietary genetics through FDA-regulated pathways validates the therapeutic potential of the Company's hemp formulations and strengthens the scientific foundation underlying its consumer products.
Manufacturing Rights: Charlotte's Web holds exclusive commercial manufacturing rights for AJA001 upon potential FDA approval, representing a significant long-term revenue opportunity in the multi-billion-dollar ASD treatment market.
Equity Ownership: Charlotte's Web owns approximately one-third of DeFloria, providing direct participation in value creation from pharmaceutical development milestones and potential commercialization.
Phase 2 Clinical Program Update
DeFloria has been actively preparing for entry into its Phase 2 clinical program, with key elements including clinical site selection, protocol optimization, and manufacturing readiness now substantially advanced. Building on the favorable safety and pharmacokinetic data from Phase 1, which established the dosing parameters for Phase 2 evaluation, the Company expects to initiate its Phase 2 trial in mid-2026, subject to the completion of customary development activities and the alignment of required resources.
Phase 2 represents a pivotal milestone for AJA001, designed to evaluate safety, tolerability, and early signals of therapeutic effectiveness in adolescents and adults with ASD. Drawing on Charlotte's Web's extensive real-world experience within the ASD community and the consistency of outcomes observed with similar cannabinoid profiles, the Company is optimistic about AJA001's potential to address irritability associated with ASD—an area with significant unmet need and limited well-tolerated treatment options.
"Our partnership with Ajna and BAT through DeFloria demonstrates our leadership in advancing hemp-derived compounds from consumer wellness into FDA-regulated pharmaceutical development, and it reflects the same commitment to science-backed innovation that drives our core business," said Mr. Morachnick.
2025 Business Review
Charlotte's Web executed a transformational year in 2025, advancing strategic initiatives across product innovation, operational efficiency, and healthcare channel development. The Company extended its leadership beyond traditional CBD with the launch of Brightside™ precision low-dose hemp THC gummies, expanded minor cannabinoid and functional mushroom offerings, and established its fastest-growing category in comprehensive sleep support. On the manufacturing side, Charlotte's Web completed full internalization of Brightside™ gummy production, with approximately
Financial Review
The following table sets forth selected financial information for the periods indicated:
Three Months Ended December 31, | Twelve Months Ended December 31, | |||
2025 | 2024 | 2025 | 2024 | |
Revenue | ||||
Cost of goods sold | 8.3 | 7.6 | 28.2 | 28.4 |
Gross profit | 5.0 | 5.1 | 21.7 | 21.3 |
Selling, general, and administrative expenses | 10.6 | 10.6 | 42.0 | 53.3 |
Operating loss | (5.6) | (5.5) | (20.3) | (32.0) |
Change in fair value of financial instruments | (4.4) | (0.1) | (7.3) | 0.6 |
Other income (expense), net | (1.5) | 2.2 | (2.3) | 1.6 |
Net loss before income taxes | ||||
EPS basic and diluted | ||||
Adjusted EBITDA (1) | ||||
Assets: | ||||
Cash and cash equivalents | ||||
Total assets | ||||
Liabilities: | ||||
Long-term liabilities | ||||
Total liabilities | ||||
Consolidated net revenue for Q4 2025 was
Gross profit was
Total selling, general, and administrative ("SG&A") expenses were
Total net loss for Q4 2025 was
Net cash used in operating activities declined to
Fiscal Year 2025 Financial Review
On a year-over-year basis, consolidated net revenue for the twelve months ended December 31, 2025, was
Gross profit for the year ended December 31, 2025, was
Total SG&A expense for 2025 was
An operating loss of
Financial Position
Cash as of December 31, 2025, was
With a leaner cost structure, clinical-grade manufacturing capabilities, and strong brand equity, Charlotte's Web is well-positioned to capitalize on emerging botanical wellness opportunities as regulatory clarity advances. Management expects the combination of operating expense control and manufacturing efficiencies to continue to drive improvements in cash flow performance.
"The new BAT Transaction will be transformational for our balance sheet, eliminating material liabilities and adding
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's consolidated financial statements and accompanying notes for the twelve months ended December 31, 2025, and 2024, and related management's discussion and analysis of financial condition and results of operations ("MD&A"), are reported in the Company's 10-K filing on the Securities and Exchange Commission website at www.sec.gov and on SEDAR+ at www.sedarplus.ca and will be available on the Investor Relations section of the Company's website at https://investors.charlottesweb.com.
Analyst Conference Call
A conference call to review the results is scheduled for today at 11:00 A.M. Eastern Time.
There are three ways to join the call:
- Register your phone number at https://emportal.ink/4bD2NsY to receive an automated call back
- Dial 1-646-357-8785 or 1-800-836-8184 approximately 10 minutes before the conference call
- Listen to the live webcast online
A recording of the call will be available through April 7, 2026. To listen to a replay of the earnings call please dial 1-646-517-4150 or 1-888-660-6345 and provide conference replay ID 17777#. A webcast of the call will also be accessible through the investor relations section of the Company's website for an extended period of time.
Subscribe to Charlotte's Web investor news.
About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in
Shares of Charlotte's Web trade on the Toronto Stock Exchange (TSX) under the symbol "CWEB" and are quoted in
(1) | Non-GAAP Measures: The press release contains non-GAAP measures, including Adjusted Gross Profit, EBITDA, and Adjusted EBITDA. Please refer to the section in the tables captioned "Non-GAAP Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. |
Additional Information and Where to Find It
In connection with the proposed transaction, Charlotte's Web will file with the SEC a preliminary proxy statement and a definitive proxy statement, each on Schedule 14A and may file other documents with the SEC regarding the proposed Transaction. This release is not a substitute for the proxy statement or any other document that Charlotte's Web may file with the SEC. INVESTORS IN, AND SECURITY HOLDERS OF, CHARLOTTE'S WEB ARE URGED TO READ, WHEN AVAILABLE, THE PRELIMINARY PROXY STATEMENT, THE DEFINITIVE PROXY STATEMENT AND DOCUMENTS INCORPORATED BY REFERENCE THEREIN AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT CHARLOTTE'S WEB AND THE PROPOSED TRANSACTION AND RELATED MATTERS. When available, the definitive proxy statement and other relevant materials for the proposed transaction will be mailed or otherwise made available to stockholders of Charlotte's Web as of April 6, 2026. Investors and security holders may obtain free copies of the proxy statement (when available) and other documents filed with the SEC by Charlotte's Web through the web site maintained by the SEC at www.sec.gov or by contacting Charlotte's Web at 700 Tech Court,
Participants in the Solicitation
Charlotte's Web and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction under the rules of the SEC. Information regarding the persons who may be deemed participants in the solicitation of proxies in connection with the proposed transaction will be set forth in the proxy statement when it is filed with the SEC. You can find more information about Charlotte's Web's directors and executive officers in its Annual Report for the year ended December 31, 2025 on Form 10-K filed with the SEC on March 31, 2026 and Charlotte's Web's Definitive Annual Meeting Proxy Statement filed with the SEC on April 29, 2025. You may obtain a free copy of these documents as indicated above.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Forward-Looking Information
Certain information provided herein constitutes forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "may", "will", "should", "could", "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are not guarantees of future performance, and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions, expected future development, and other factors that it believes are appropriate and reasonable.
Specifically, this press release contains forward-looking statements relating to, but not limited to: completion of the Transaction with BAT, including obtaining the necessary TSX and shareholder approval of the Transaction; benefits to the Company of completing the Transaction with BAT; use of proceeds of the Transaction; the Company's beliefs regarding product eligibility under CMS programs and the Company's opportunities in connection therewith; the potential scope and impact of federal healthcare frameworks for hemp-derived products; potential impacts as a result of the HEMP Act; advancement of the Hemp Act; the Company's competitive positioning, and its ability to participate in federal healthcare programs; sales volume and gross margin expectations; anticipated timing for, and business impact of, in-house manufacturing of topical and gummy products; future expectations for SG&A expenses; regulatory developments and the impact of developments on both consumer action and the Company's opportunities and operations; activities relating to, and sponsorship of, legislation to advance regulatory framework; the impact of insourcing on operating margins, capital expenditures and R&D; anticipated future financial results the impact of certain activities on the Company's business and financial condition and anticipated trajectory; the timing and outcomes from DeFloria's clinical trials, including strategic value for the Company's shareholders and potential commercial opportunities for Charlotte's Web; and the ability of AJA001 to address irritability associated with ASD.
The material factors and assumptions used to develop the forward-looking statements herein include, but are not limited to: receipt of TSX and shareholder approval for the Transaction; successful completion of the Transaction; expectations around cost reduction, run rate, revenue growth and expectations around cash flow improvement in 2026; regulatory regime changes; anticipated product development and sales; the success of sales and marketing activities; product development and production expectations; outcomes from R&D activities; the Company's ability to deal with adverse growing conditions in a timely and cost-effective manner; the availability of qualified and cost-effective human resources; compliance with contractual and regulatory obligations and requirements; availability of adequate liquidity and capital to support operations and business plans; continued product placement on various product channels; anticipated development of new products; anticipated consumer trends and corresponding product innovation; ; the Company's ability to increase online traffic and demographic exposure through new products and marketing and omni-channel expansion; and expectations around consumer product demand. In addition, the forward-looking statements are subject to risks and uncertainties pertaining to, among other things: supply and distribution chains; the market for the Company's products; revenue fluctuations; regulatory changes; loss of customers and retail partners; retention and availability of talent; organizational changes, marketing plans and operational platform upgrades, and the impact of these initiatives on retail expansion, operational efficiencies, cash flow, revenue and e-commerce monetization; expectations relating to IT upgrades, marketing optimization and operational integrations; the impact of the Company's product innovations on product development, expansion activities and the corresponding results thereof; competing products; share price volatility; loss of proprietary information; product acceptance; internet and system infrastructure functionality; information technology security; available capital to fund operations and business plans; crop risk; economic and political considerations; failure to receive TSX and shareholder approval of the Transaction; and including but not limited to those risks and uncertainties discussed under the heading "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, and other risk factors contained in other filings with the Securities and Exchange Commission available on www.sec.gov and filings with Canadian securities regulatory authorities available www.sedarplus.ca. The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty, as these are interdependent, and the Company's future course of action depends on management's assessment of all information available at the relevant time. Any forward-looking statement in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law, the Company assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
CHARLOTTE'S WEB HOLDINGS, INC. | |||
CONSOLIDATED BALANCE SHEETS | |||
December 31, | December 31, | ||
2025 | 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 8,035 | $ 22,618 | |
Accounts receivable, net | 811 | 1,263 | |
Inventories, net | 18,022 | 18,907 | |
Prepaid expenses and other current assets | 3,491 | 4,194 | |
Total current assets | 30,350 | 46,982 | |
Property and equipment, net | 22,679 | 26,337 | |
License and media rights | — | 13,691 | |
Operating lease right-of-use assets, net | 11,297 | 12,876 | |
Investment in unconsolidated entity | 8,800 | 10,800 | |
Intangible assets, net | 785 | 1,049 | |
Derivative and other long-term assets | 1,353 | 1,707 | |
Total assets | $ 75,273 | $ 113,442 | |
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | |||
Current liabilities: | |||
Accounts payable | $ 2,186 | $ 3,426 | |
Accrued and other current liabilities | 5,053 | 5,246 | |
Lease obligations – current | 1,420 | 2,055 | |
License and media rights payable - current | — | 5,209 | |
Total current liabilities | 8,659 | 15,936 | |
Convertible debenture | 50,849 | 43,631 | |
Lease obligations | 12,186 | 13,652 | |
License and media rights payable | — | 11,809 | |
Derivatives and other long-term liabilities | 5,618 | 1,327 | |
Total liabilities | 77,312 | 86,355 | |
Commitments and contingencies | |||
Shareholders' equity (deficit): | |||
Common shares, nil par value; unlimited shares authorized; 159,420,141 and 158,009,541 shares issued and outstanding as of December 31, 2025 and December 31, 2024 | 1 | 1 | |
Additional paid-in capital | 329,270 | 328,655 | |
Accumulated deficit | (331,310) | (301,569) | |
Total shareholders' equity (deficit) | (2,039) | 27,087 | |
Total liabilities and shareholders' equity (deficit) | $ 75,273 | $ 113,442 | |
CHARLOTTE'S WEB HOLDINGS, INC. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Year Ended December 31, | |||
2025 | 2024 | ||
Revenue | $ 49,897 | $ 49,667 | |
Cost of goods sold | 28,197 | 28,407 | |
Gross profit | 21,700 | 21,260 | |
Selling, general and administrative expenses | 41,968 | 53,247 | |
Operating loss | (20,268) | (31,987) | |
Change in fair value of financial instruments | (7,269) | 615 | |
Other income (expense), net | (2,272) | 1,565 | |
Loss before provision for income taxes | (29,809) | (29,807) | |
Income tax benefit (expense) | 68 | (39) | |
Net loss | $ (29,741) | $ (29,846) | |
Per common share amounts | |||
Net loss per common share, basic and diluted | $ (0.19) | $ (0.19) | |
CHARLOTTE'S WEB HOLDINGS, INC. | |||||||||
CONDENSED CONSOLIDATED STATEMENTS CHANGES IN SHAREHOLDERS' EQUITY | |||||||||
Common Shares | Additional | Accumulated Deficit | Total | ||||||
Shares | Amount | ||||||||
Balance—December 31, 2023 | 154,332,366 | $ 1 | $ 327,280 | $ (271,723) | $ 55,558 | ||||
Common shares issued upon vesting of restricted share units, net of withholdings | 3,677,175 | — | (145) | — | (145) | ||||
Share-based compensation | — | — | 1,520 | — | 1,520 | ||||
Net loss | — | — | — | (29,846) | (29,846) | ||||
Balance—December 31, 2024 | 158,009,541 | $ 1 | $ 328,655 | $ (301,569) | $ 27,087 | ||||
Common shares issued upon vesting of restricted share units, net of withholding | 1,410,600 | — | (49) | — | $ (49) | ||||
Share-based compensation | — | — | 664 | — | $ 664 | ||||
Net loss | — | — | — | (29,741) | (29,741) | ||||
Balance—December 31, 2025 | 159,420,141 | 1 | 329,270 | (331,310) | (2,039) | ||||
CHARLOTTE'S WEB HOLDINGS, INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Year Ended December 31, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net loss | $ (29,741) | $ (29,846) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 6,323 | 9,979 | |
Change in fair value of financial instruments | 7,269 | (615) | |
Convertible debenture and other accrued interest | 2,979 | 3,724 | |
(Gain)/loss on foreign currency transaction | 2,141 | (3,631) | |
Changes in right-of-use assets | 1,579 | 1,771 | |
Share-based compensation | 664 | 1,520 | |
Inventory provision | 205 | 4,154 | |
Other non-cash items | (2,263) | 751 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 368 | 361 | |
Inventories, net | 108 | (1,520) | |
Prepaid expenses and other current assets | 232 | 1,332 | |
Accounts payable, accrued and other liabilities | (1,089) | (1,664) | |
Operating lease obligations | (2,100) | (2,247) | |
License and media rights | — | (5,000) | |
Other operating assets and liabilities, net | (796) | (330) | |
Net cash used in operating activities | (14,121) | (21,261) | |
Cash flows from investing activities: | |||
Purchases of property and equipment and intangible assets | (549) | (3,851) | |
Proceeds from sale of assets | 137 | 55 | |
Net cash used in investing activities | (412) | (3,796) | |
Cash flows from financing activities: | |||
Other financing activities | (50) | (145) | |
Net cash used in financing activities | (50) | (145) | |
Net decrease in cash and cash equivalents | (14,583) | (25,202) | |
Cash and cash equivalents —beginning of period | 22,618 | 47,820 | |
Cash and cash equivalents —end of period | $ 8,035 | $ 22,618 | |
Non-cash activities: | |||
Non-cash purchase of property and equipment and intangible assets | — | (3) | |
(1) Non-GAAP Measures –EBITDA and Adjusted EBITDA
Earnings before interest, taxes, depreciation, and amortization ("EBITDA") is not a recognized performance measure under
(1) | EBITDA and Adjusted EBITDA are non-GAAP financial measures with reconciliations provided in the tables below. Adjusted EBITDA for the three and twelve months ended December 31, 2025, and 2024 is as follows: |
Charlotte's Web Holdings, Inc. | ||||||
Statement of Adjusted EBITDA | ||||||
(In Thousands) | ||||||
Three months ended | Twelve months ended | |||||
December 31, | December 31, | |||||
2025 | 2024 | 2025 | 2024 | |||
Net loss | $ (11,424) | $ (3,371) | $ (29,741) | $ (29,846) | ||
Depreciation of property and equipment and amortization of intangibles | 1,673 | 2,473 | 6,323 | 9,979 | ||
Interest expense | 671 | 643 | 2,436 | 2,201 | ||
Income tax expense (benefit) | (30) | (22) | (68) | 39 | ||
EBITDA | $ (9,110) | $ (277) | $ (21,050) | $ (17,627) | ||
Stock Compensation | 152 | 223 | 664 | 1,520 | ||
Mark-to-market financial instruments | 4,400 | 86 | 7,269 | (615) | ||
Inventory Provision | 181 | 228 | 205 | 4,154 | ||
Adjusted EBITDA | $ (4,377) | $ 260 | $ (12,912) | $ (12,568) | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/charlottes-web-reports-2025-fourth-quarter-and-full-year-financial-results-302729592.html
SOURCE Charlotte's Web Holdings, Inc.
FAQ
How did Charlotte's Web (BTI) perform financially in fiscal 2025 compared with 2024?
What was the company’s quarterly cash and profitability trend for Q4 2025 for BTI?
How will participation in the CMMI Medicare pilot affect Charlotte's Web (BTI) beginning April 2026?
What clinical progress did Charlotte's Web report on AJA001 and DeFloria in 2025?
