Charlotte's Web Holdings (CWEB) AI Stock Analysis

• Market Cap: C$62.17M
• Dividend Yield: N/A
• Average Volume (3M): 140.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -4.23%
• EPS Growth: 37.33%
• Country: CA
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.06
• Shares Outstanding: 159,420,140
• 10 Day Avg. Volume: 81,567
• 30 Day Avg. Volume: 140,116
• PEG Ratio: -0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -0.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$0.28 ▼(-1.43% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and profitability issues. While technical analysis shows bullish momentum, overbought conditions suggest caution. The valuation is poor due to negative earnings and lack of dividends, further weighing down the score.

Positive Factors

Vertically Integrated Supply Chain

The vertically integrated supply chain ensures control over quality and cost, enhancing product reliability and brand trust, crucial for long-term success in the CBD market.

Strong Brand Reputation

A strong brand reputation aids in customer loyalty and market penetration, providing a competitive edge in the growing CBD wellness sector.

Diverse Product Range

A diverse product range allows for market segmentation and risk diversification, supporting revenue stability and growth in varying consumer demand scenarios.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss or reduced demand, which can undermine long-term growth prospects and financial sustainability.

Rising Leverage

Increased leverage heightens financial risk and limits flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Negative Cash Flow

Persistent negative cash flow challenges the company's ability to fund operations and growth initiatives, posing a risk to long-term viability.

Charlotte's Web Holdings Business Overview & Revenue Model

Company Description

Charlotte's Web Holdings (CWEB) is a leading hemp-derived cannabidiol (CBD) company based in the United States, specializing in the production and sale of CBD wellness products. The company operates in the health and wellness sector, offering a diverse range of products, including CBD oils, capsules, topicals, and pet products. Charlotte's Web is known for its commitment to quality and transparency, utilizing a vertically integrated supply chain that spans from seed to shelf, ensuring high standards in hemp cultivation, extraction, and product formulation.

How the Company Makes Money

Charlotte's Web generates revenue primarily through the sale of its CBD products across various channels, including direct-to-consumer sales via its e-commerce platform and retail distribution in health food stores, pharmacies, and other outlets. The company has multiple key revenue streams, including its core product lines like CBD oils, gummies, and topical creams. Additionally, Charlotte's Web has established significant partnerships with retailers and distributors to expand its market reach. Factors contributing to its earnings include the growing consumer demand for CBD products, ongoing product innovation, and a strong brand reputation in the wellness industry.

Charlotte's Web Holdings Financial Statement Overview

Summary

Charlotte's Web Holdings is experiencing significant financial challenges, marked by declining revenues, profitability issues, and increasing financial risk due to higher leverage. Continued negative cash flows and strained margins suggest potential difficulties in sustaining operations without strategic improvements.

Income Statement

The company has faced declining revenues over the years, with a significant drop in the most recent year. Gross profit margin has also deteriorated from 54% in 2021 to 43% in 2024, indicating pressure on profitability. The net profit margin remained negative, reflecting ongoing losses. Despite efforts, EBIT and EBITDA margins remain negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio increased from 0.09 in 2021 to 2.19 in 2024, suggesting a significant rise in leverage. The equity ratio dropped from 76% in 2021 to 24% in 2024, indicating reduced financial stability. Return on equity remains negative, highlighting profitability issues. The balance sheet reflects increasing financial risk due to higher debt levels.

Cash Flow

Operating cash flow has remained negative, with free cash flow worsening over the period. The free cash flow to net income ratio is negative due to ongoing losses. The operating cash flow to net income ratio is also negative, reflecting cash flow challenges. The company faces difficulties in generating positive cash flow, which could impact its ability to fund operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.24M	49.67M	63.16M	74.14M	96.09M	95.23M
Gross Profit	21.79M	21.26M	35.57M	19.41M	48.59M	52.26M
EBITDA	-13.60M	-22.01M	-24.90M	-41.68M	-38.03M	-44.49M
Net Income	-21.69M	-29.85M	-23.80M	-59.31M	-137.72M	-30.68M
Balance Sheet
Total Assets	81.60M	113.44M	152.55M	187.64M	171.51M	310.88M
Cash, Cash Equivalents and Short-Term Investments	9.81M	22.62M	48.99M	69.28M	20.42M	55.55M
Total Debt	1.40M	59.34M	60.44M	57.63M	22.60M	23.36M
Total Liabilities	72.35M	86.36M	96.99M	110.14M	41.07M	56.65M
Stockholders Equity	9.25M	27.09M	55.56M	77.50M	130.45M	254.23M
Cash Flow
Free Cash Flow	-14.91M	-25.11M	-19.08M	-5.58M	-34.48M	-76.85M
Operating Cash Flow	-14.04M	-21.26M	-15.39M	-5.32M	-29.56M	-48.59M
Investing Cash Flow	-726.00K	-3.80M	-3.51M	395.00K	-11.79M	-19.44M
Financing Cash Flow	-46.00K	-145.00K	-251.00K	52.39M	8.04M	55.44M

Charlotte's Web Holdings Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CWEB, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.19, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 86.77 is Negative, neither overbought nor oversold. The STOCH value of 84.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CWEB.

Charlotte's Web Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEXT	59 Neutral	C$73.07M	-2.59	-21.73%	―	43.56%	-349.41%
ROMJ	55 Neutral	C$32.24M	10.41	7.78%	―	28.55%	―
CXXI	52 Neutral	C$104.63M	-13.68	-9.90%	―	23.29%	33.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CWEB	47 Neutral	C$62.17M	-2.04	-109.83%	―	-4.23%	37.33%
AVCN	45 Neutral	C$27.10M	-14.02	-77.67%	―	2.41%	74.61%
GWAY	44 Neutral	C$21.16M	-28.07	-7.43%	―	19.66%	84.34%

Charlotte's Web Holdings Corporate Events

ONE HEMP Urges Action Against Federal Hemp Restrictions

ONE HEMP is calling for immediate action against new federal hemp restrictions that impose a 0.4 mg total THC limit on full-spectrum CBD products, arguing this limit is unscientific and threatens consumer access to safe wellness products. The coalition is mobilizing efforts to promote science-based regulations that differentiate between legitimate CBD products and harmful synthetics, with legislative solutions being prepared by both the House and Senate to ensure consumer safety and industry innovation.

Charlotte’s Web Holdings Reports Strategic Advances in Q3 2025

Charlotte’s Web Holdings announced its Q3 2025 results, highlighting strategic transformations aimed at improving performance in 2026. The company has internalized its Brightside™ gummy production, enhancing manufacturing capacity and cost efficiency. A new Scientific Advisory Board has been formed to bolster its medical channel strategy and support its research and development efforts. Additionally, Charlotte’s Web has restructured its B2B retail operations to adapt to regulatory changes, focusing on top revenue-generating customers and building infrastructure for medical practitioners.

Charlotte’s Web Strengthens Board with New Appointment

Charlotte’s Web Holdings has appointed M. Borgia Walker to its Board of Directors, effective November 1, 2025. Walker brings three decades of experience in transformation and financial leadership from the global consumer goods and financial services industries. Her expertise in organizational transformation, finance, and regulatory compliance is expected to support Charlotte’s Web’s strategic objectives and enhance its market leadership. This appointment aligns with the company’s values of sustainability and social responsibility, and is seen as a strategic move to strengthen its board and continue its growth trajectory.

Charlotte’s Web Launches Knockout Sleep Gummies to Expand Hemp Wellness Line

Charlotte’s Web Holdings has expanded its Brightside line with the launch of Knockout Hemp THC Sleep Gummies, designed to enhance sleep quality by combining hemp-derived THC and CBN with a rapid-onset delivery system. This new product aims to capture the growing demand for natural sleep solutions, reinforcing the company’s position as a leader in the hemp wellness category and broadening its portfolio of science-backed formulations.

Charlotte’s Web Expands Sleep Product Line with New Mushroom Gummies

Charlotte’s Web Holdings has launched Quiet Sleep Mushroom Gummies, expanding its product line in the sleep and relaxation category. This new melatonin-free and CBD-free product, which combines reishi mushroom, chamomile, and magnesium, addresses consumer demand for natural sleep aids and positions the company to capitalize on the growing functional mushroom and sleep-support markets.