Charlotte's Web Holdings, Inc.

What they do

The company grows proprietary hemp through contract farming in Arizona, Colorado, Kentucky, New Mexico, and Canada, and produces hemp extract tinctures, gummies, capsules, topicals, and pet products at its cGMP-compliant Louisville facility. Products are sold under the Charlotte's Web, CBD Medic, and CBD Clinic brands through distributors, healthcare practitioners, its own website, and third-party e-commerce sites. As of December 31, 2025 and June 30, 2026 it reported a single operating and reportable segment: hemp-derived CBD wellness products.

Revenue drivers

• Hemp-derived CBD wellness products — The only reportable segment and the majority of revenue, spanning tinctures, gummies, capsules, topicals, and pet products.
• Charlotte's Web brand — Flagship full-spectrum hemp extract brand sold via distributors, healthcare practitioners, and online channels.
• CBD Medic and CBD Clinic — Topical-focused brands in the same portfolio, sold alongside the core line through the same distribution.
• Functional mushroom and hemp-derived THC gummies — Newer extensions, including Quiet Sleep functional mushroom gummies and Brightside low-dose hemp THC gummies, positioned as diversification beyond CBD.

Recent performance

Second quarter 2026 revenue was $10.9M, down from $13.3M in Q4 2025 and $11.2M in Q1 2026, reflecting the September 2025 decision to largely exit the retail landscape. Gross margin expanded to 47.5% in Q2 2026, and operating cash use narrowed to $0.9M for the quarter. Full-year 2025 revenue was $49.9M with a net loss of $29.7M, versus $49.7M revenue and a $29.8M net loss in 2024. As of June 30, 2026, the company reported total assets of $76.4M, total liabilities of $20.3M, shareholders' equity of $56.1M, and cash and equivalents of $14.0M.

Strategy

Management describes a transformation beyond core CBD into functional mushroom, minor cannabinoid, and hemp-derived THC categories. It upgraded its eCommerce platform and expanded omnichannel distribution, and launched Brightside precision low-dose hemp THC gummies using proprietary TiME INFUSION rapid-onset technology. The company completed a recapitalization that converted a debenture, which it says eliminated its largest liability and restored positive shareholders' equity. It is also advancing DeFloria through the FDA Botanical Drug Pathway. Regulatory engagement on federal hemp policy is framed as a priority alongside the healthcare strategy.

Risks

• Federal hemp regulatory uncertainty — Section 781 of Public Law 119-37 would ban hemp products as of November 12, 2026, though the Senate CR package would extend enactment to December 11, 2026 for naturally-occurring hemp products.
• State-level regulatory fragmentation — The 2018 Farm Bill lets states and tribes run USDA-approved hemp programs, so rules vary by jurisdiction across the states the company operates in.
• Persistent losses and cash use — Charlotte's Web has posted annual net losses every year from 2021 through 2025 and operating cash outflows each year, including $14.1M in 2025.
• Revenue decline — Annual revenue fell from $96.1M in 2021 to $49.9M in 2025, and Q2 2026 revenue of $10.9M was below the prior two quarters.

Outlook

Management says the second-quarter recapitalization strengthened the balance sheet and positions the company to pursue its healthcare strategy and federal regulatory priorities. It expects near-term revenue to reflect the September 2025 decision to largely exit retail, while margin and cash flow improvements continue. The company intends to keep advocating for treating naturally occurring full-spectrum hemp separately from synthetic intoxicants, and to continue advancing DeFloria through the FDA Botanical Drug Pathway.