Charlie's Holdings Reports 336.2% Revenue Growth to $7.1 Million in Latest Quarter

Charlie's Holdings, Inc. reported significant financial improvements in its latest quarterly filing, with revenues for the three months ending September 30, 2025, reaching approximately $7.1 million, a 336.2% increase from $1.6 million in the same period last year. For the nine months ended September 30, 2025, total revenue was approximately $11.9 million, up 77.6% from $6.7 million in the prior year. The company attributed this growth primarily to increased sales of nicotine and nicotine-alternative products, particularly its new SBX disposable vapor products, which are not subject to FDA review.

Despite the revenue growth, Charlie's Holdings reported a loss from operations of approximately $339,000 for the third quarter, an improvement from a loss of $876,000 in the same quarter of 2024. The company recorded a net income of $624,000 for the quarter, compared to a net loss of $1.0 million in the prior year. For the nine-month period, the company achieved a net income of $4.4 million, a substantial turnaround from a net loss of $3.0 million in the same period last year. This positive shift was bolstered by a $1.0 million gain from the sale of intellectual property and a $7.5 million gain from the sale of PMTA assets to R.J. Reynolds Vapor Company.

Operationally, Charlie's Holdings has made strategic changes, including the discontinuation of its Don Polly division, which was approved by the Board of Directors in October 2025. The company has also focused on enhancing its product offerings, launching new disposable vape products under the SBX brand, which have reportedly exceeded sales expectations. The company is also preparing to manufacture certain products in-house, aiming to meet new domestic manufacturing requirements and expand its market presence.

As of September 30, 2025, Charlie's Holdings reported total assets of approximately $10.6 million, up from $3.9 million at the end of 2024. The company’s working capital improved to $3.1 million from a deficit of $1.9 million, reflecting better cash management and operational efficiency. However, the company noted substantial doubt about its ability to continue as a going concern, emphasizing the need for additional financing to support ongoing operations and product development.

Looking ahead, Charlie's Holdings aims to capitalize on its recent successes and expand its market share, particularly through its SBX product line. The company is also focused on navigating regulatory challenges and enhancing its product portfolio to ensure compliance and meet consumer demand. The management remains optimistic about future growth, contingent on securing necessary financing and successfully launching new products in the market.