Monitor the execution of the BAT transaction and CMS pilot program rollout, as these strategic catalysts could outweigh the near-term financial miss. Watch for margin recovery in Q1 2026 as inventory issues are resolved and in-house manufacturing scales.
Price Chart
Executive Summary
Charlotte's Web reported Q4 2025 revenue of $13.3M (+4.7% YoY) but a net loss of $11.5M ($0.07/share), missing consensus EPS of -$0.10. The beat was driven by DTC momentum in new product lines, though gross margin declined due to a $1.3M inventory charge. The company also announced a transformative $10M equity investment and debt conversion from British American Tobacco, positioning it for the upcoming Medicare CBD pilot program.
Key Financial Metrics
Key Facts
- Q4 2025 revenue: $13.3M (+4.7% YoY), beating $13.0M consensus
- Q4 net loss: $11.5M ($0.07/share), improved from $3.4M loss YoY but missing -$0.10 consensus
- Gross margin: 37.5%, down from 40.2% YoY due to $1.3M inventory charge for substandard product
- Announced $10M equity investment and $54M debt conversion from British American Tobacco
- Company is a launch partner for the CMS Medicare pilot program for CBD access starting April 2026
Financial Impact
Revenue beat by $0.3M, EPS miss by $0.03 despite improved fundamentals. $1.3M inventory charge impacted gross margin by ~10 percentage points.
Risk Factors
- Net loss widened significantly despite revenue growth, indicating persistent profitability challenges
- Gross margin under pressure from inventory charges and startup costs, though management expects normalization
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001750155-26-000028 |
| Document: cweb-20260331.htm | 0001750155-26-000028 |
| Document: 0001750155-26-000028-index-headers.html | 0001750155-26-000028 |
| Document: 0001750155-26-000028-index.html | 0001750155-26-000028 |
| Document: 0001750155-26-000028.txt | 0001750155-26-000028 |
| 8-K Data (Synthetic) | 0001750155-26-000028 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 9w ago | 8-K | $0.3320 | awaiting T+60 | — | $0.2362 (−28.86%) |
Jun 5, 2026 20w ago | 8-K | $0.4200 $0.3110 | ▼ −25.95% | ▼ −29.27% | $0.2362 (−43.76%) |
Jun 3, 2026 20w ago | 8-K | $0.4170 $0.3052 | ▼ −26.81% | ▼ −28.69% | $0.2362 (−43.36%) |
Jun 1, 2026 20w ago | 8-K | $0.4910 $0.3310 | ▼ −32.59% | ▼ −33.70% | $0.2362 (−51.89%) |
May 13, 2026 23w ago | 8-K | $0.4860 $0.2520 | ▲ +48.15% | ▲ +52.59% | $0.2362 (+51.40%) |
Apr 16, 2026 27w ago | DEFA14A | $0.6080 $0.2681 | ▼ −55.90% | ▼ −62.95% | $0.2362 (−61.15%) |
Mar 31, 2026 29w ago | 8-K | $0.7350 $0.3300 | ▼ −55.10% | ▼ −67.48% | $0.2362 (−67.86%) |
Mar 31, 2026 29w ago | DEFA14A | $0.7350 $0.3300 | ▼ −55.10% | ▼ −67.48% | $0.2362 (−67.86%) |
US Market Status
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