Charles & Colvard ( (CTHR) ) has released a notification of late filing.
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Charles & Colvard, Ltd. has filed a Form 12b-25 to notify investors that it will delay its Quarterly Report on Form 10-Q (Quarter Report) for the quarter ended December 31, 2025. The late filing concerns its Q2 FY2026 Form 10-Q (Quarter Report), which covers the company’s second fiscal quarter of 2026.
The company cites the need for more time to complete procedures and compile information for several delinquent annual and quarterly financial statements as the primary reason for the delay. Recent management and board changes, ongoing litigation, and internal resource constraints have all contributed to the filing backlog.
Charles & Colvard states that it is working diligently to finish its financial reporting, but it does not expect to file the Q2 FY2026 Form 10-Q (Quarter Report) within the standard five-day grace period. The company plans to submit this report as soon as practicable after it files its outstanding Annual Report on Form 10-K (Yearly Report) for the year ended June 30, 2025, and the Quarterly Report on Form 10-Q (Quarter Report) for the quarter ended September 30, 2025.
The company expects to disclose that material weaknesses remain in its internal control over financial reporting and that substantial doubt persists about its ability to continue as a going concern. In response, management is pursuing a cost-cutting program that includes headcount reductions, executive pay cuts, supplier reevaluation, and inventory repurposing across fiscal 2025 and into the September and December 2025 quarters.
Financially, Charles & Colvard anticipates that net sales for the quarter ended December 31, 2025 will decline compared with the same quarter a year earlier. It also expects to report a net loss for the period, but cannot yet provide a reasonable quantitative estimate until the quarter-end review is completed.
The company emphasizes that these figures are preliminary, unaudited, and subject to change, and it includes standard forward-looking statement cautions for investors. Charles & Colvard affirms it is working to regain timely filing status, and the notification is signed on behalf of the company by Chief Financial Officer Clint J. Pete on February 17, 2026.
The most recent analyst rating on (CTHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Charles & Colvard stock, see the CTHR Stock Forecast page.
Spark’s Take on CTHR Stock
According to Spark, TipRanks’ AI Analyst, CTHR is a Neutral.
Charles & Colvard’s stock score is significantly impacted by its poor financial performance and valuation. The company’s strategic move to secure a convertible note agreement provides some positive outlook. However, technical indicators suggest a bearish trend, and the lack of earnings call data prevents a more comprehensive analysis.
To see Spark’s full report on CTHR stock, click here.
More about Charles & Colvard
Average Trading Volume: 5,374
Technical Sentiment Signal: Sell
Current Market Cap: $894.3K
For detailed information about CTHR stock, go to TipRanks’ Stock Analysis page.