Charlotte's Web Holdings (TSE:CWEB)
TSX:CWEB
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Charlotte's Web Holdings
(TSX:CWEB)
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Rating:54Neutral
Price Target:
C$0.75
▲(166.07% Upside)
Action:ReiteratedDate:04/02/26
The score is held back mainly by weak financial performance (ongoing losses, persistent cash burn, and negative equity). Offsetting this are improving technical trends and a relatively constructive earnings-call outlook featuring liquidity/structure improvements (BAT transaction), cost reductions, and identified growth catalysts, though regulatory and execution risks remain significant.
Positive Factors
Balance-sheet restructuring (BAT transaction)
The BAT conversion and $10M placement materially simplify capital structure, convert a large liability to equity and cut annual interest expense (~$3M) for ~3.5 years. This structural liquidity and interest relief reduces refinancing risk and stretches runway versus prior cash burn.
Negative Factors
Persistent negative cash flow
Consistent negative operating and free cash flow forces reliance on external financing for working capital and investment. That structural cash deficit constrains reinvestment, heightens dilution/refinancing risk and limits the company's ability to self-fund growth or absorb shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet restructuring (BAT transaction)
The BAT conversion and $10M placement materially simplify capital structure, convert a large liability to equity and cut annual interest expense (~$3M) for ~3.5 years. This structural liquidity and interest relief reduces refinancing risk and stretches runway versus prior cash burn.
Read all positive factors
Charlotte's Web Holdings (CWEB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$117.19M
Dividend YieldN/A
Average Volume (3M)140.12K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth2.51%
EPS Growth-0.85%
CountryCA
Employees112
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.19
Shares Outstanding160,538,280
10 Day Avg. Volume81,567
30 Day Avg. Volume140,116
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)-28.04
Price to Sales (P/S)1.15
P/FCF Ratio-3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.1
Revenue Forecast (FY)C$53.84M
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 compr...
How the Company Makes Money
Charlotte's Web primarily makes money by selling hemp-derived CBD wellness products to consumers and retailers. Its core revenue stream is product sales across multiple formats (e.g., tinctures/oils, gummies, capsules, topicals, and pet products) ...
Charlotte's Web Holdings Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
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.Positive Updates
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.
Negative Updates
Continued Net Losses and Q4 Worsening of Net Loss
Q4 net loss was $11.4M ($0.07 per share) vs. a net loss of $3.4M ($0.02 per share) in Q4 2024. Full year net loss was $29.7M ($0.19) vs. $29.8M ($0.19) in 2024. Company remains loss-making despite operating loss improvement.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
The company guided that it is positioned for gradual, scalable profitability supported by specific financial and operational metrics: Q4 revenue was $13.3M (up 15.8% sequentially and 4.7% YoY from $12.7M) with $5.0M gross profit and a 37.5% gross margin (impacted by a nonrecurring $1.3M inventory charge that reduced margin by ~10 ppt; in‑house manufacturing added ~400 bps), and management expects gross margin to normalize toward the historical ~50% range; Q4 SG&A was $10.6M, full‑year SG&A was $42.0M (down 21.2% YoY and down ~$33.6M or 44.5% over two years) with normalized quarterly SG&A expected to be ~$10–11M (excluding Medicare launch spend); net loss was $11.4M ($0.07/sh) in Q4 and $29.7M ($0.19/sh) for the year while operating loss improved >36% to $20.3M (from $32M); cash used in operations improved to $1.9M in Q4 (vs. $5.5M prior quarter), cash and working capital were $8.0M and $21.7M at year‑end (not reflecting a $10M BAT private placement), and the BAT transaction converts a $55M debenture plus ~$10M accrued interest at CAD $0.94/sh, eliminates ~ $3M/year interest for ~3.5 years (avoiding up to ~$12M to maturity), adds $10M fresh capital (≈5% post‑conversion dilution), brings BAT’s commitment to ≈$75M and ~40% ownership (with a 49% cap), while strategic program guidance includes CMMI pilot eligibility (products with up to 3 mg THC/serving) with an initial ~2M beneficiary cohort and up to $500/beneficiary/year available to ACOs, and DeFloria (≈1/3 owned) expected to begin Phase II midyear.Charlotte's Web Holdings Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
20
Very Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 49.90M | 49.67M | 63.16M | 74.14M | 96.09M |
| Gross Profit | 21.70M | 21.26M | 35.57M | 19.41M | 48.59M |
| EBITDA | -13.95M | -22.01M | -24.90M | -41.68M | -38.03M |
| Net Income | -29.74M | -29.85M | -23.80M | -59.31M | -137.72M |
Balance Sheet | |||||
| Total Assets | 75.27M | 113.44M | 152.55M | 187.64M | 171.51M |
| Cash, Cash Equivalents and Short-Term Investments | 8.04M | 22.62M | 48.99M | 69.28M | 20.42M |
| Total Debt | 64.45M | 59.34M | 60.44M | 57.63M | 22.60M |
| Total Liabilities | 77.31M | 86.36M | 96.99M | 110.14M | 41.07M |
| Stockholders Equity | -2.04M | 27.09M | 55.56M | 77.50M | 130.45M |
Cash Flow | |||||
| Free Cash Flow | -14.67M | -25.11M | -19.08M | -5.58M | -34.48M |
| Operating Cash Flow | -14.12M | -21.26M | -15.39M | -5.32M | -29.56M |
| Investing Cash Flow | -412.00K | -3.80M | -3.51M | 395.00K | -11.79M |
| Financing Cash Flow | -50.00K | -145.00K | -251.00K | 52.39M | 8.04M |
Charlotte's Web Holdings Technical Analysis
Negative
0.28
Price Trends
0.94
Negative
0.67
Positive
0.42
Positive
Market Momentum
-0.03
Positive
44.57
Neutral
29.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CWEB, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.94, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CWEB.
Charlotte's Web Holdings Risk Analysis
Charlotte's Web Holdings disclosed 84 risk factors in its most recent earnings report. Charlotte's Web Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charlotte's Web Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | C$3.45B | -7.89 | -28.58% | ― | -2.90% | -4.82% | |
59 Neutral | C$36.11M | -3.47 | -19.10% | ― | 7.54% | 24.81% | |
54 Neutral | C$117.19M | -1.25 | -275.39% | ― | 2.51% | -0.85% | |
53 Neutral | C$687.19M | -2.15 | -52.88% | ― | 0.59% | 64.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$17.61M | -7.21 | -68.32% | ― | 0.08% | 30.81% | |
45 Neutral | C$58.57M | -0.85 | 136.59% | ― | ― | ― |
* Healthcare Sector Average
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Charlotte's Web Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Charlotte’s Web Strengthens Balance Sheet and Targets Medicare CBD Pilot for Growth
Positive
Mar 31, 2026
Charlotte’s Web Holdings reported its fourth quarter and full-year 2025 results while underscoring moves to strengthen its balance sheet and position for profitability. The company highlighted its leadership in hemp-derived CBD wellness prod...
Business Operations and StrategyPrivate Placements and Financing
Charlotte’s Web to Wipe Out Debt in US$75 Million Equity Deal With BAT
Positive
Mar 31, 2026
Charlotte’s Web Holdings has agreed a two-part transaction with British American Tobacco subsidiary BT DE Investments that will convert BAT’s C$75.3 million debenture, plus accrued interest, into common shares at C$0.94 and add a furth...
Financial Disclosures
Charlotte’s Web Sets Date for 2025 Q4 and Full-Year Earnings Release and Call
Neutral
Mar 24, 2026
Charlotte’s Web Holdings, Inc. plans to release its 2025 fourth-quarter and full-year financial results before the market opens on March 31, 2026. Management will host a same-day conference call and live webcast at 11:00 a.m. Eastern Time, w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.