Revenue declined 9% YoY and cash continues to burn — the stock will trade on the BAT transaction vote outcome (May 28) and any early adoption signals from the CMS BEI program. Without the BAT deal closing, liquidity is tight at $5.2M cash. Monitor for participating-organization adoption of the BEI in H2 2026 as the primary catalyst.
Price Chart
Executive Summary
Charlotte's Web reported Q1 2026 revenue of $11.2M, down 9.0% YoY from $12.3M, driven by a retail channel restructuring initiated in September 2025. GAAP net loss widened to $13.1M ($-0.08/share) from $6.2M ($-0.04/share) in Q1 2025, primarily due to an $8.9M non-cash fair value adjustment on the BAT convertible debenture. Adjusted EBITDA improved to a loss of $1.7M from a loss of $2.8M YoY, and the pending BAT transaction (shareholder vote May 28, 2026) would eliminate the $51.5M debenture and add $10M in equity capital.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $11.2M, down 9.0% YoY from $12.3M
- GAAP net loss $13.1M ($-0.08/share) vs $6.2M ($-0.04/share) YoY
- Adjusted EBITDA loss improved to $1.7M from $2.8M YoY
- Cash burn continues: cash fell to $5.2M from $8.0M at Dec 2025
- BAT transaction pending shareholder vote May 28, 2026 — would eliminate $51.5M debenture and add $10M
- CMS BEI pilot program activated April 1, 2026 — early stage, no revenue yet
- SGA reduced 17.7% YoY to $9.5M; management expects ~$10M/quarter normalized
- Gross margin compressed to 46.6% from 50.8% YoY due to insourcing transition costs
Financial Impact
Revenue decline of $1.1M YoY; net loss widened by $6.9M; cash burn $2.8M in quarter
Risk Factors
- BAT transaction may not receive shareholder approval on May 28
- CMS BEI program faces legal/administrative scrutiny and early adoption may be slow
- Cash burn continues; only $5.2M cash on hand without BAT proceeds
- Gross margin pressure from insourcing transition may persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001750155-26-000076 |
| Document: cweb-20260513.htm | 0001750155-26-000076 |
| Document: 0001750155-26-000076-index-headers.html | 0001750155-26-000076 |
| Document: 0001750155-26-000076-index.html | 0001750155-26-000076 |
| Document: 0001750155-26-000076.txt | 0001750155-26-000076 |
| 8-K Data (Synthetic) | 0001750155-26-000076 |
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 21w 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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