Charlotte's Web Holdings (CWBHF)
OTHER OTC:CWBHF
Earnings Data
Report Date
May 20, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
―Last Year’s EPS
-0.04Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized several transformative, strategic positives — a balance-sheet‑clearing BAT transaction with fresh capital, federal Medicare pilot eligibility (Substance Access BEI) allowing full‑spectrum CBD access into accountable care channels, meaningful clinical progress via DeFloria's Phase II clearance, substantial cost reductions (SG&A down ~21% YoY and ~44.5% over two years), and improved operating loss and margin runways. These positives are tempered by ongoing regulatory uncertainty (including a potential November 2026 hemp provision that could severely constrain the market), persistent net losses (Q4 net loss $11.4M; full‑year net loss ~$29.7M), a nonrecurring $1.3M inventory charge that depressed reported margins, and liquidity dependence on shareholder approval of the BAT transaction. On balance, the call conveyed constructive momentum and multiple high‑impact catalysts that materially improve the company’s strategic position, while acknowledging meaningful near‑term risks and the gradual timing of revenue realization from Medicare pilots.Company Guidance
BAT Transaction: Balance Sheet Cleanup and Fresh Capital
British American Tobacco conversion of a $55M convertible debenture plus ~$10M accrued interest into common shares at CAD 0.94 and a new $10M private placement (total BAT commitment ~ $75M). Eliminates largest liability, removes ~5% annual interest (~$3M avoided per year for next ~3.5 years) and prevents an estimated additional ~$12M in aggregate interest to maturity; expected pro forma BAT ownership ~40% (49% cap in agreement). Adds $10M in fresh working capital and materially simplifies capital structure.
Medicare CMMI Pilot Eligibility and New Federal Pathway
CMS guidance established the Substance Access BEI allowing hemp-derived full‑spectrum CBD products (up to 3 mg THC per serving) in CMMI pilots. ACO REACH and Enhanced Oncology Model begin offering the benefit April 1; initial addressable cohort ~2 million Medicare beneficiaries. ACOs may allocate up to $500 per beneficiary annually under the BEI to purchase and furnish products (value-based funding via ACOs, not direct Medicare reimbursement). Company has a dedicated portal and physician/provider engagement plan.
DeFloria Clinical Advancement and Long-Term Pharma Upside
DeFloria (Charlotte's Web ~1/3 ownership) received FDA clearance to proceed with Phase II botanical IND trials for irritability associated with autism spectrum disorder; Phase II expected to begin midyear. Company holds exclusive commercial manufacturing rights if approved, providing a potential high-value regulated pharmaceutical pathway that validates genetics and could materially expand long-term revenue.
Sequential and Year‑Over‑Year Revenue Improvements
Q4 2025 consolidated net revenue of $13.3M, a sequential rebound of 15.8% from Q3 and a 4.7% increase versus Q4 2024 ($12.7M). Full year revenue $49.9M, up 0.5% year-over-year — the first annual revenue increase since 2021.
Gross Margin and Manufacturing Benefits
Q4 gross profit $5.0M and reported gross margin 37.5% (noting a nonrecurring $1.3M inventory disposal that reduced margin by ~10 percentage points). Excluding that charge, underlying gross margin improved meaningfully; in-house manufacturing contributed ~400 basis points of margin benefit in the quarter. Management expects gross margin to trend back toward historical ~50% as transitional items lap and efficiencies scale.
Material SG&A and Operating Expense Reductions
Full year SG&A $42.0M, down 21.2% versus $53.3M in 2024. Management reports approximately a 44.5% reduction in annualized SG&A over the past two years (~$33.6M of annualized savings). Operating loss improved by more than 36% to $20.3M from $32.0M the prior year, demonstrating cost restructuring impact.
Improved Cash Flow Dynamics and Liquidity Enhancement
Q4 net cash used in operating activities decreased to $1.9M (vs. $5.5M prior quarter and $1.8M in Q4 2024). Year-end cash $8.0M and working capital $21.7M (does not include the $10M BAT private placement). Management emphasizes that the BAT private placement materially strengthens liquidity.
Quality and Regulatory Readiness: NSF Audit Zero Findings
Completed annual NSF dietary supplement GMP audit with zero findings — described as the gold standard and supportive of qualification for federal health care programs and broader healthcare integration.
CWBHF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CWBHF Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 31, 2026 | $0.64 | $0.73 | +14.84% |
Nov 12, 2025 | $0.13 | $0.08 | -38.46% |
Aug 13, 2025 | $0.12 | $0.12 | 0.00% |
May 14, 2025 | $0.10 | $0.10 | 0.00% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Charlotte's Web Holdings (CWBHF) report earnings?
Charlotte's Web Holdings (CWBHF) is schdueled to report earning on May 20, 2026, After Close (Confirmed).
What is Charlotte's Web Holdings (CWBHF) earnings time?
Charlotte's Web Holdings (CWBHF) earnings time is at May 20, 2026, After Close (Confirmed).
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What is CWBHF EPS forecast?
Currently, no data Available