Charlie's Holdings, Inc. reported significant financial growth in its annual 10-K filing for the year ended December 31, 2025, with total revenue reaching approximately $20.9 million, a 169.4% increase from $7.8 million in 2024. The company's gross profit also rose to $5.7 million, up 96.6% from the previous year. Despite this growth, Charlie's incurred a loss from operations of $2.2 million, although this was an improvement from a loss of $3.3 million in 2024. The net income from continuing operations was approximately $4.3 million, compared to a net loss of $4.0 million in the prior year, indicating a turnaround in profitability.
The company attributed its revenue increase primarily to the successful sales of its SBX product line, a non-nicotine disposable vapor product that is not subject to FDA review. This product line has gained traction in the market, contributing significantly to the overall sales growth. Additionally, Charlie's has focused on enhancing its operational efficiency, which included the opening of a U.S. manufacturing facility in Huntington Beach, California, aimed at reducing production costs and complying with domestic manufacturing requirements.
Strategically, Charlie's has made notable advancements, including a licensing agreement with IKE Tech LLC to develop an AI-powered age-gating system for its products. This technology is expected to enhance compliance with regulatory requirements and could position Charlie's favorably in the market. The company also plans to expand its product offerings, including the introduction of a new line of 75K-puff disposable devices and the continued development of its PMTA submissions to the FDA.
Operationally, Charlie's has seen an increase in customer engagement, with its products distributed through over 3,000 specialty retailers and expanding into convenience stores and gas stations. The company reported a total of 35 full-time employees as of March 31, 2026, maintaining a stable workforce to support its growth initiatives. Looking ahead, Charlie's aims to grow its international sales to mitigate U.S. regulatory risks and plans to pursue an uplisting to a national securities exchange, which could enhance its market visibility and access to capital.
About Charlie's Holdings, Inc.
Charlie’s Holdings, Inc. develops, markets, and distributes premium vapor products containing synthetic nicotine, alternative alkaloids, and hemp-derived ingredients. Its core offerings include disposable vapes, e-liquids, and proprietary formulations sold domestically and internationally. The company emphasizes product innovation, regulatory compliance, and brand development in a highly competitive, heavily regulated industry focused on adult consumers seeking alternative nicotine and vapor solutions.
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