Charlotte's Web Holdings, Inc. is a leading botanical wellness company and the market leader in cannabidiol (CBD) hemp extract wellness products. The company offers a range of CBD and hemp-derived products, including tinctures, gummies, topicals, and functional innovations such as Brightside™ low-dose hemp THC gummies, sleep aids, and minor cannabinoid formulations (CBG, CBN).
On March 31, 2026, Charlotte's Web reported its fourth-quarter and full-year 2025 financial results (period ended December 31, 2025). The company posted net revenue of $13.3 million for Q4, representing a 4.7% increase from $12.7 million in the prior-year quarter. This beat analyst expectations but came alongside ongoing profitability challenges.
The company recorded a net loss of $11.5 million, or $0.07 per share, compared to a smaller net loss of $3.4 million ($0.02 per share) in Q4 2024. Gross profit for the quarter was approximately $5.0 million. Operating loss stood at roughly $5.6 million, while Adjusted EBITDA showed a loss of approximately $4.4 million (wider than the prior year). Cost of revenue was about $8.3 million, and the company reported a small income tax expense.
For the full year 2025, revenue reached $49.9 million, a modest 0.5% increase year-over-year, with operating loss improving to $20.3 million from $32.0 million in 2024.
Major Strategic Development with British American Tobacco (BAT) Subsequent to (or announced around) the earnings release, Charlotte's Web entered into a significant transaction with BT DE Investments Inc., a subsidiary of British American Tobacco plc. The deal includes:
This transaction is expected to issue approximately 110 million common shares to BAT, representing a total equity commitment of roughly US$75 million and strengthening the company's balance sheet. It will support near-term operating priorities, including anticipated participation in the CMMI Medicare Pilot Program, while improving overall capital structure. The deal is subject to shareholder and regulatory approvals (including a shareholder meeting expected around late May 2026).
Despite persistent losses and a challenging environment for the CBD/wellness sector, management highlighted progress in cost structure improvements, product innovation (particularly in direct-to-consumer channels), and regulatory momentum. The company expressed optimism about a pathway to profitability through these initiatives and the strengthened financial position from the BAT transaction.
