Charlie's Holdings (CHUC) AI Stock Analysis

• Market Cap: $84.45M
• Dividend Yield: N/A
• Average Volume (3M): 260.92K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.56
• Revenue Growth: 11.81%
• EPS Growth: N/A
• Country: US
• Employees: 30
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): <0.01
• Shares Outstanding: 270,653,230
• 10 Day Avg. Volume: 171,210
• 30 Day Avg. Volume: 260,923
• PEG Ratio: -0.04
• Price to Book (P/B): -7.42
• Price to Sales (P/S): 1.55
• P/FCF Ratio: -8.14
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 22.24
• Enterprise Value/Ebitda: 16.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $0.28 ▼(-0.71% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is held back primarily by weak financial quality—especially persistently negative operating/free cash flow and pressured operating profitability—despite a TTM rebound in revenue and net income. Technicals are supportive with an established uptrend, but momentum is approaching overbought levels. Valuation (P/E ~24.8) is acceptable but not compelling given the underlying cash-flow risk.

Positive Factors

Product Innovation

The focus on innovative, high-quality products for health-conscious consumers positions Charlie's Holdings to capture market share and drive long-term growth.

Lifestyle Branding

Lifestyle branding and marketing initiatives can strengthen brand loyalty and consumer engagement, supporting sustainable revenue growth.

Strategic Partnerships

Strategic partnerships with retailers and distributors enhance distribution capabilities, potentially increasing market reach and revenue stability.

Negative Factors

Weak Cash Flow

Weak cash flow generation limits the company's ability to invest in growth initiatives, pay down debt, and sustain operations, impacting long-term viability.

Negative Profitability

Negative profitability reflects operational inefficiencies and challenges in cost management, which can hinder reinvestment and growth opportunities.

Declining Revenues

Declining revenues indicate challenges in maintaining market share and sales volume, potentially impacting long-term financial health and growth prospects.

Charlie's Holdings Business Overview & Revenue Model

Company Description

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes nicotine-based vapor products in the United States and internationally. It sells its products through distributors, specialty retailers, and third-party online resellers to approximately 80 countries, primarily, including the United Kingdom, Italy, Spain, New Zealand, Australia, and Canada. The company was formerly known as True Drinks Holdings, Inc. and changed its name to Charlie's Holdings, Inc. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

How the Company Makes Money

Charlie's Holdings generates revenue primarily through the sale of its beverage products. The company distributes its products through various sales channels, including retail stores, online platforms, and direct sales to consumers. Key revenue streams include wholesale distribution agreements and direct-to-consumer sales, supported by strategic partnerships with retailers and distributors. Additionally, the company's focus on lifestyle branding and marketing initiatives helps drive sales growth and expand market reach.

Charlie's Holdings Financial Statement Overview

Summary

Despite a sharp TTM revenue rebound and a return to positive net income, results look fragile due to negative TTM EBIT, materially compressed gross margin versus prior years, and persistently large negative operating/free cash flow. The balance sheet has stabilized with equity back to positive, but prior swings into negative equity signal a thin capital cushion.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp rebound in sales (+66% revenue growth) and a return to positive net income (net margin ~24%), a major improvement from losses in 2022–2024. However, profitability quality looks volatile: operating results still appear pressured (negative EBIT in TTM despite positive net income), and gross margin has fallen versus prior years (TTM ~25% vs ~34–38% in 2022–2024 and ~52–55% in 2020–2021), suggesting higher costs and/or pricing pressure.

Balance Sheet

Leverage looks moderate in TTM (debt-to-equity ~0.94) with equity back to a positive ~$3.2M, which is a meaningful stabilization versus 2023–2024 when equity was negative. The key risk is balance-sheet volatility: equity has swung from positive (2021–2022) to negative (2023–2024) and back to positive (TTM), indicating a thin capital cushion and potentially elevated sensitivity to earnings/cash flow setbacks.

Cash Flow

Cash generation remains the weak spot: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are deeply negative (both about -$6.5M), and cash flow has been consistently negative across all provided years. While free cash flow growth is positive in TTM, the absolute level of cash burn is large relative to the company’s current profitability, raising funding/financing risk if losses in cash persist.

Breakdown	TTM	Dec 2024	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.71M	8.49M	16.25M	26.42M	21.50M	16.69M
Gross Profit	3.49M	2.89M	6.04M	9.98M	11.07M	9.21M
EBITDA	4.68M	-2.99M	-1.09M	-837.00K	1.22M	-6.45M
Net Income	3.24M	-4.16M	-2.09M	-1.59M	4.81M	-7.34M
Balance Sheet
Total Assets	10.56M	3.94M	5.77M	7.06M	9.25M	6.53M
Cash, Cash Equivalents and Short-Term Investments	1.15M	211.00K	367.00K	257.00K	866.00K	1.42M
Total Debt	3.05M	2.23M	2.89M	2.25M	912.00K	4.09M
Total Liabilities	7.32M	5.72M	5.88M	5.36M	6.12M	12.52M
Stockholders Equity	3.24M	-1.78M	-107.00K	1.70M	3.13M	-6.00M
Cash Flow
Free Cash Flow	-6.55M	-1.62M	-783.00K	-1.91M	-1.46M	-3.44M
Operating Cash Flow	-6.55M	-1.62M	-783.00K	-1.72M	-1.35M	-3.27M
Investing Cash Flow	7.50M	0.00	0.00	-189.00K	-110.00K	-169.00K
Financing Cash Flow	-402.00K	1.47M	893.00K	1.30M	901.00K	2.42M

Charlie's Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHUC, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.27, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHUC.

Charlie's Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPB	69 Neutral	$2.53B	46.69	22.54%	0.28%	6.71%	8.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CHUC	55 Neutral	$84.45M	27.10	328.07%	―	11.81%	―
ISPR	46 Neutral	$157.55M	-4.07	-254.99%	―	-20.13%	-88.66%
XXII	44 Neutral	$2.88M	―	-133.50%	―	-34.81%	99.30%
GNLN	42 Neutral	$4.31M	―	-240.32%	―	-78.46%	83.71%
KAVL	39 Underperform	$216.57K	-0.01	-68.63%	―	-88.85%	68.28%