Charlotte's Web Holdings (CWEB) AI Stock Analysis

• Market Cap: C$103.62M
• Dividend Yield: N/A
• Average Volume (3M): 140.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -4.23%
• EPS Growth: 37.33%
• Country: CA
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$0.78 ▲(180.00% Upside)

The score is held down primarily by weak financial performance, driven by persistent losses, negative free cash flow, and a constrained balance sheet. Technicals provide a meaningful offset with a strong uptrend and positive momentum, while valuation remains unfavorable/limited due to ongoing losses and no dividend.

Positive Factors

Vertical Integration and Quality Control

Owning the supply chain from seed to shelf supports consistent product quality, traceability, and regulatory compliance. This reduces reliance on third-party suppliers, helps protect margins over time, and sustains brand trust—advantages that remain durable across business cycles.

Brand Strength and Multi‑Channel Distribution

A recognized brand plus diversified channels (e‑commerce, retail, pharmacy, distributors) creates durable market access and lowers single‑channel risk. Strong retail partnerships help scale distribution, support shelf presence, and stabilize revenue as consumer adoption of CBD grows.

Improving Gross Margin

A meaningful improvement in gross margin suggests better product mix or cost control at the production/extraction level. Higher gross margins provide structural leverage to move toward profitability if operating expenses are managed and revenue stabilizes.

Negative Factors

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow indicate the business still consumes cash, necessitating external financing or asset sales. This constrains reinvestment in growth, increases dilution or debt risk, and limits resilience to market or regulatory shocks over the medium term.

Eroded Equity and Elevated Leverage

Severe equity erosion and a high debt‑to‑equity ratio compress financial flexibility, making the firm more vulnerable to adverse shocks. A weakened capital base raises costs of capital, increases refinancing risk, and makes future capital raises likely to be dilutive or costly.

Sustained Operating Losses and Revenue Decline

Large, persistent operating and net losses coupled with a multi‑year revenue decline reduce the firm's runway to achieve scale economics. Without structural changes to distribution, cost base, or product demand, sustained losses undermine long‑term viability and investor support.

Charlotte's Web Holdings Business Overview & Revenue Model

Company Description

Charlotte's Web Holdings, Inc. engages in farming, manufacturing, marketing, and selling hemp-derived cannabidiol (CBD) wellness products. The company's products categories include hemp extract oil tinctures, such as liquid products; gummies comprising sleep, stress, immunity, and exercise recovery products; and capsules, CBD topical creams, and lotions, as well as products for pets under the Charlotte's Web, CBD Medic, CBD Clinic, and Harmony Hemp brands. Its products contain naturally occurring phytocannabinoids, including CBD, cannabichromene, cannabigerol, cannabinol, terpenes, flavonoids, and other beneficial hemp compounds. The company distributes its products through retail outlets and health care practitioners, as well as online through its website. It has a collaboration between its CW Labs science division and the University at Buffalo's Center for Integrated Global Biomedical Sciences to advance hemp cannabinoid science through a research program; and scientific collaboration with McLean Hospital. The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte's Web Holdings, Inc. in July 2018. Charlotte's Web Holdings, Inc. was founded in 2013 and is headquartered in Denver, Colorado.

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

Overall financial quality is weak: revenue is roughly flat vs. 2024 but far below prior years, profitability remains deeply negative (TTM operating margin ~-41.5%, net margin ~-43.0%), and cash generation is a major issue (TTM operating cash flow and free cash flow both negative). Balance sheet resilience is constrained by materially eroded equity and elevated leverage metrics despite lower reported debt.

Income Statement

TTM (Trailing-Twelve-Months) revenue is roughly flat versus 2024 ($49.2M vs. $49.7M), but the multi-year trajectory remains sharply negative (down from $95.2M in 2020 to $49.2M TTM). Profitability is still deeply challenged: despite a healthier gross margin in TTM (~47.7% vs. ~42.8% in 2024), operating performance remains meaningfully loss-making (TTM operating margin about -41.5%) and the company is still reporting large net losses (TTM net margin about -43.0%). The key positive is that losses have narrowed versus 2024, but the core issue is persistent inability to translate gross profit into operating and net profitability.

Balance Sheet

Leverage metrics are volatile: reported total debt drops dramatically in TTM ($1.4M) versus 2024 (~$59.3M), but the reported debt-to-equity ratio in TTM is still elevated (~4.23x), indicating capital structure stress and/or large equity compression. Equity has declined materially over time (from ~$254.2M in 2020 to ~$9.2M TTM), and returns on equity are consistently very negative (TTM ROE about -0.93), reflecting ongoing losses and a weakened equity base. Total assets have also contracted meaningfully (from ~$310.9M in 2020 to ~$82.0M TTM), underscoring a smaller, less resilient balance sheet today.

Cash Flow

Cash generation remains a major weakness. TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$14.0M) and free cash flow is also negative (~-$14.9M), indicating the business is still consuming cash rather than funding itself. While cash burn is lower than 2024 (operating cash flow ~-$21.3M; free cash flow ~-$25.1M), free cash flow is still not consistently improving (TTM free cash flow growth is negative), leaving continued reliance on external liquidity or balance sheet capacity to sustain 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: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.39, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 69.15 is Neutral, 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
CURA	58 Neutral	C$2.44B	-6.48	-27.61%	―	-3.38%	-31.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CWEB	51 Neutral	C$103.62M	-3.40	-109.83%	―	-4.23%	37.33%
WEED	47 Neutral	C$583.48M	-0.58	-60.19%	―	-0.67%	58.98%
AVCN	46 Neutral	C$21.82M	-11.28	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
LEEF	39 Underperform	C$43.85M	-0.81	―	―	―	―

Charlotte's Web Holdings Corporate Events

Charlotte’s Web Backs HEMP Act as Key Step for Safe, Regulated Hemp Market

Charlotte’s Web Holdings is publicly backing U.S. Representative Morgan Griffith’s newly introduced Hemp Enforcement, Modernization, and Protection (HEMP) Act, framing the federal proposal as a critical step toward establishing clear FDA oversight, manufacturing standards, and consumer safety requirements for hemp-derived products. The company argues that a balanced federal framework should crack down on unsafe and illicit products while preserving legal access to compliant hemp-derived cannabinoids relied on by millions of Americans, and it highlights the role of advocacy group Coalition for Access Now in building bipartisan support for a science-based, transparent hemp marketplace, underscoring the potential for the legislation to strengthen industry credibility and protect both consumers and responsible operators.

The most recent analyst rating on (TSE:CWEB) stock is a Hold with a C$0.47 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

DeFloria Rides U.S. Cannabis Rescheduling to Advance Phase 2 Cannabinoid Autism Drug

DeFloria Inc., a botanical pharmaceutical developer spun out of Charlotte’s Web’s founders, is advancing its lead cannabinoid-based drug candidate AJA001, an oral solution for irritability associated with autism spectrum disorder, through the FDA’s botanical drug pathway. Positioned as one of the most advanced cannabinoid programs in this regulatory track, DeFloria has a cleared investigational new drug application, completed a Phase 1 safety and pharmacokinetic/pharmacodynamic trial, and secured authorization to initiate Phase 2 clinical studies. The company says the Presidential Executive Order reclassifying cannabis from Schedule I to Schedule III validates its long-standing strategy and places it years ahead of competitors, as federal recognition of cannabinoids’ medical use is expected to unlock expanded research funding, academic collaborations, institutional capital, and pharmaceutical partnerships—potentially accelerating development of approved cannabinoid therapies and strengthening DeFloria’s role at the forefront of this emerging drug class.

The most recent analyst rating on (TSE:CWEB) stock is a Hold with a C$0.28 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

Charlotte’s Web Tapped for Landmark Medicare and Medicaid CBD Pilot for Senior Cancer Patients

Charlotte’s Web has been selected as a premier CBD provider for a landmark pilot program run by the Center for Medicare and Medicaid Innovation that, for the first time, will reimburse science-backed CBD products for senior cancer patients under Medicare and Medicaid. Beginning in early 2026, the company will supply tailored CBD products via a secure online healthcare portal as part of its expanding medical channel, aiming to improve accessibility and affordability for oncology patients, particularly lower-income seniors, while potentially reducing downstream healthcare costs. The program is underpinned by Charlotte’s Web’s Scientific Advisory Board, which will guide product integrity, education and innovation, and by nonprofit partner Realm of Caring, which will deliver evidence-based counseling, dosing guidance and outcomes tracking, creating a patient-centered, data-rich model for integrating CBD into mainstream senior supportive care.

The most recent analyst rating on (TSE:CWEB) stock is a Hold with a C$0.13 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

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.

The most recent analyst rating on (TSE:CWEB) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

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.

The most recent analyst rating on (TSE:CWEB) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.