Charlotte’s Web Holdings (OTC) ( (CWBHF) ) has released its Q3 earnings. Here is a breakdown of the information Charlotte’s Web Holdings (OTC) presented to its investors.
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Charlotte’s Web Holdings, Inc., a Certified B Corp headquartered in Louisville, Colorado, operates in the wellness sector, focusing on the production and sale of high-quality hemp-derived products such as CBD oils, gummies, and topicals. The company is engaged in research and development through its CW Labs division, exploring the potential health benefits of hemp-based compounds and other botanical products.
In its latest earnings report for the quarter ended September 30, 2025, Charlotte’s Web Holdings reported a decrease in revenue to $11.5 million from $12.6 million in the same period last year. The company also recorded a net loss of $5.8 million, consistent with the previous year’s quarterly loss, reflecting ongoing challenges in the market and operational adjustments.
Key financial metrics indicate a decline in gross profit to $4.5 million from $6.7 million, with selling, general, and administrative expenses reduced to $9.7 million from $12.7 million. The company’s operating loss improved slightly to $5.3 million from $6.0 million. The balance sheet shows a decrease in cash and cash equivalents to $9.8 million from $22.6 million at the end of 2024, highlighting the need for efficient cash management.
Despite the financial challenges, Charlotte’s Web Holdings continues to focus on strategic initiatives, including the termination of its MLB Promotional Rights Agreement, which resulted in a gain of $2.3 million. The company remains committed to its R&D efforts and the development of new products, leveraging its proprietary hemp strains and expanding its market presence.
Looking ahead, Charlotte’s Web Holdings aims to navigate the evolving regulatory landscape and capitalize on growth opportunities within the wellness sector. The management remains focused on optimizing operations, enhancing product offerings, and strengthening its financial position to drive long-term value for shareholders.