CWBHF Charlotte's Web Holdings, Inc.

Overview and Growth

Charlotte's Web Holdings, Inc. generated $49.90M of revenue in fiscal 2025, with net loss of $29.74M and an operating cash outflow of $14.12M. The $49.90M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $49.67M in fiscal 2024, revenue recorded a 0.5% year-over-year increase. The company reported diluted EPS of -$0.19, adding a shareholder-level measure to the absolute income figures considered below. The company employed $75.27M of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.66x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $21.70M as gross profit before recognizing operating expenses and other items. Gross margin was 43.5%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $20.27M, reflecting costs that exceeded gross profit. An operating margin of -40.6% reflected costs exceeding revenue-level gross profit by 40.6% of sales. The company ended the period with a net loss of $29.74M, extending the operating result through all remaining items. The net loss equaled 59.6% of revenue, showing the bottom-line deficit relative to the company’s sales base. The company reported a pretax loss of $29.81M, before the effect of income taxes. The pretax loss equaled 59.7% of revenue, measuring the pre-tax deficit against sales. The company recognized an income-tax benefit of $68.00K, increasing after-tax earnings relative to the pretax result. The net loss equaled 39.5% of period-end assets, showing the deficit relative to the asset base. The bottom-line deficit decreased from $29.85M in fiscal 2024 to $29.74M.

Liquidity and Capital Structure

The company held $75.27M of assets against $77.31M of liabilities and -$2.04M of equity, revealing how the asset base was financed. Equity was negative at -$2.04M, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. At period end, current assets of $30.36M compared with current liabilities of $8.66M, defining the company’s short-term resource position. Current assets covered current liabilities by 3.51x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $8.04M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 92.8%, excluding receivables and other current assets. Book equity represented -2.7% of total assets, quantifying the balance-sheet share supported by shareholder capital. Relative to total assets, liabilities measured 102.7%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 10.7%, comparing reported cash and equivalents with the full positive asset balance. Compared with $113.44M in fiscal 2024, the current asset base moved 33.6% and finished lower. Book equity was 107.5% lower than fiscal 2024 equity of $27.09M, showing how shareholder capital changed year over year. Cash and equivalents were 64.5% lower than fiscal 2024 cash of $22.62M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $14.12M of cash, resulting in an operating cash outflow for the year. The company spent $549.00K on capital expenditures while operations also absorbed cash, so both ongoing activity and investment drew on liquidity during the period. The company recorded a $14.67M cash deficit after capital spending for the period. Free-cash-flow margin was -29.4%, reflecting a cash deficit equal to 29.4% of revenue after capital spending. The free-cash-flow deficit equaled 19.5% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.