Charlotte's Web Holdings, Inc.
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About the company
Charlotte's Web Holdings, Inc. specializes in the cultivation, manufacturing, marketing, and distribution of hemp-derived cannabidiol (CBD) wellness products. Their extensive product range includes liquid hemp extract tinctures, various gummies (designed for sleep, stress relief, immune support, and exercise recovery), capsules, topical CBD creams and lotions, and specific offerings for pets.
- CEO
- William Morachnick
- IPO
- 2018
- Employees
- 112
- HQ
- Louisville, CO, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $83.06M
- P/E
- -1.45
- Fwd P/E
- 30.70
- PEG
- 0.03
- P/S
- 1.77
- P/B
- 0.87
- EV/EBITDA
- -6.09
- Div Yield
- 0.00%
- Gross Margin
- 42.36%
- Op Margin
- -41.33%
- Net Margin
- -73.38%
- ROE
- -285.09%
- ROIC
- -27.81%
Latest fiscal year · YoY change
- Revenue
- $49.90M+0.5%
- Gross Profit
- $21.70M+2.1%
- Op Income
- $-20,268,000
- Net Income
- $-29,741,000+0.4%
- EPS
- $-0.19+0.0%
- OCF Growth
- +33.6%
- FCF Growth
- +41.6%
- 52W High
- $0.97
- 52W Low
- $0.07
- 50D MA
- $0.29
- 200D MA
- $0.41
- Beta
- 2.27
- RSI (14)
- 57
- Avg Volume
- 324.55K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Charlotte’s Web said Q4 improved sequentially and year over year, but the bigger story was a BAT deal that wipes out debt and funds a push into Medicare-related opportunities.· March 31, 2026
- Q4 revenue was $13.3 million, up 15.8% sequentially and 4.7% year over year.
- Gross profit was $5 million with a 37.5% margin; management said a $1.3 million inventory charge cut margin by about 10 points.
- Full-year revenue rose 0.5% to $49.9 million, the company’s first annual revenue increase since 2021.
- BAT is converting a $55 million debenture plus about $10 million of accrued interest and adding a $10 million private placement.
- Management sees CMMI Medicare pilot access, the DeFloria autism trial, and federal hemp policy momentum as key longer-term catalysts.
Q4 2025 consolidated net revenue was $13.3 million, up 15.8% sequentially and 4.7% from $12.7 million a year ago. Gross profit was $5 million and gross margin was 37.5%, pressured by a nonrecurring $1.3 million inventory charge that reduced margin by about 10 percentage points. Q4 net loss was $11.4 million, or $0.07 per share, versus a $3.4 million loss, or $0.02 per share, in Q4 2024. Full-year 2025 revenue was $49.9 million, up 0.5% year over year; full-year SG&A was $42 million, down 21.2% from $53.3 million; operating loss improved more than 36% to $20.3 million; and net loss was $29.7 million, or $0.19 per share. On liquidity, cash was $8 million and working capital was $21.7 million at year-end, before the $10 million BAT private placement. Management said quarterly SG&A for the core business should stay around $10 million to $11 million, excluding launch spend for Medicare-related programs, and gross margin should normalize toward its historical 50% range as transitional items roll off and efficiencies improve.
Bill Morachnick framed the quarter as part of a broader turnaround and said Charlotte’s Web is no longer in “business as usual” mode. He emphasized three strategic themes: the BAT transaction, which he said removes the company’s largest liability and creates a clean balance sheet; the CMS/CMMI Medicare pilot, which he called an established health care integration pathway; and DeFloria, which he described as a potentially significant long-term therapeutic and manufacturing opportunity. His tone was notably confident and upbeat, but he repeatedly stressed that the company is still early in these new opportunities and that execution and regulatory clarity still matter.
Erika Lind focused on the company’s improved operating structure and liquidity. She cited Q4 revenue of $13.3 million, gross profit of $5 million, gross margin of 37.5%, SG&A of $10.6 million, and Q4 net loss of $11.4 million; for the full year, she highlighted $49.9 million of revenue, $42 million of SG&A, a 36%+ improvement in operating loss to $20.3 million, and year-end cash of $8 million. She said the BAT transaction is transformational because it eliminates the $55 million debt principal, about $10 million of accrued interest, and avoids roughly $12 million more of interest through maturity, while the $10 million private placement adds working capital. She also said the new capital is modest dilution of about 5% of post-conversion shares and reiterated a disciplined SG&A base of roughly $10 million to $11 million per quarter for the core business.
Analysts pressed for details on the CMMI pilot, including what participating centers are, who funds the $500 per beneficiary, how product orders will work, and whether revenue could be modeled for 2026-2027. Management said the participants are existing health care organizations already in CMS models like ACO REACH, EOM, and later ACO LEAD, that Medicare does not directly reimburse the products, and that ACOs fund purchases from their own value-based economics through Charlotte’s Web’s portal with drop-shipping to patients. On revenue, Bill said it is too early for specific guidance, that near-term revenue is unlikely to be “massive,” and that the build should be gradual over 12-18 months. He also said there is no exclusivity in the program, but he believes Charlotte’s Web is well positioned because of quality and compliance standards. The analyst also asked how the pilot squares with a possible hemp ban; management said they are working for a consistent federal framework and expect policy to evolve, but timing remains uncertain.
The company now has a cleaner balance sheet after eliminating its biggest debt overhang, plus $10 million of fresh capital to fund growth initiatives. Management sees several real catalysts: the Medicare pilot launching now, a possible broader Medicare Advantage opportunity later, and DeFloria moving toward Phase II clinical trials. The call also showed operational progress, including improved D2C momentum, better margin mechanics from in-house manufacturing, and zero findings in the annual NSF GMP audit.
Management acknowledged the CMMI opportunity is still early and said they do not expect a large revenue contribution in 2026, with meaningful scaling likely taking 12-18 months. The company also faces major regulatory uncertainty, including the possibility of a hemp ban in November 2026 and pending federal policy decisions that could affect product eligibility. Despite improved gross margin trends, Q4 margin was still held down by a $1.3 million inventory charge, and the company remains dependent on execution in new channels to sustain growth.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 52.8%
- Shares Outstanding
- 270.55M
- Float Shares
- 142.76M
of shares held by institutions
1 13F filers
Buy/sell ratio 1.25. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Mcilrath & Eck, LLC | 300 | ▲ 300 |
| Leo H. Evart, Inc. | 3 | ▲ 3 |
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jul 1, 26 | Morachnick William J. | other | 294,661 |
| Jul 1, 26 | Morachnick William J. | other | 71,750 |
| Jul 1, 26 | Morachnick William J. | other | 294,661 |
| Jul 1, 26 | McCarthy Matthew Evan | other | 75,000 |
| Jul 1, 26 | McCarthy Matthew Evan | other | 75,000 |
| Jul 1, 26 | McElwee Angela May | other | 85,000 |
| Jul 1, 26 | McElwee Angela May | other | 85,000 |
| Jul 1, 26 | Usifer Maureen K | other | 75,000 |
| Jul 1, 26 | Usifer Maureen K | other | 75,000 |
| Jun 30, 26 | Morachnick William J. | other | 375,000 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our CWBHF coverage
Recent articles, reports, and earnings notes.
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Generate CWBHF report →Charlotte's Web Launches Route CBD to Support Californians Who Depend on Full-Spectrum Hemp CBD
newsfilecorp.com · Aug 19
Charlotte's Web Reports Second Quarter 2026 Financial Results
newsfilecorp.com · Aug 13
Charlotte's Web Welcomes Senate Passage of Hemp Extension Marking Important Progress Toward a Long-Term Federal Hemp Framework
newsfilecorp.com · Aug 10
Charlotte's Web Provides Update on Diverging Hemp Policies: Federal Momentum Builds as California Restricts Therapeutic Hemp Product Access
newsfilecorp.com · Jun 26
Charlotte's Web Announces Board Transition as Co-Founder Jared Stanley Deepens Focus on DeFloria
newsfilecorp.com · Jun 5
Charlotte's Web Appoints Jeff Raborn to Board of Directors
newsfilecorp.com · Jun 1
Charlotte's Web Announces Closing of Transaction with British American Tobacco, Including US$10 Million Investment
newsfilecorp.com · May 28
Charlotte's Web Reports Shareholder Meeting Voting Results
newsfilecorp.com · May 28
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