Charlotte's Web Holdings, Inc. reported total revenues of $49.9 million for the fiscal year ending December 31, 2025, reflecting a modest increase of 0.5% compared to $49.7 million in 2024. The growth was primarily driven by a 1.2% rise in product revenue, which reached $49.6 million, bolstered by a 6.7% increase in direct-to-consumer (DTC) sales. This increase in DTC revenue was attributed to an 11% rise in order volume. However, the company faced challenges in its business-to-business (B2B) operations, which saw a 9.8% decline in revenue due to a strategic restructuring aimed at improving profitability and scalability. The overall gross profit for the year was $21.7 million, up from $21.3 million in the previous year, resulting in a gross margin of 43.5%.
In terms of expenses, Charlotte's Web reported a significant reduction in selling, general, and administrative expenses, which totaled $42.0 million in 2025, down 21.2% from $53.2 million in 2024. This decrease was largely due to the termination of the MLB Promotional Rights Agreement, which had previously incurred substantial costs. The company also implemented cost-cutting measures, including workforce adjustments and improved operational efficiencies. Despite these efforts, Charlotte's Web recorded an operating loss of $20.3 million, an improvement from the $32.0 million loss reported in 2024. The net loss for the year was $29.7 million, slightly better than the $29.8 million loss in the prior year.
Strategically, Charlotte's Web has focused on product diversification and innovation, launching new product lines such as Brightside™ low-dose THC gummies and CBG Focus & Attention Gummies. The company has also made significant investments in its e-commerce platform to enhance customer engagement and conversion rates. Additionally, Charlotte's Web formed a partnership with DeFloria, Inc. to develop a botanical drug for autism spectrum disorder, which has progressed to Phase 2 clinical trials. The company is also exploring opportunities to support senior oncology patients through a pilot program with the Center for Medicare and Medicaid Innovation.
Operationally, Charlotte's Web has maintained a workforce of 107 employees as of December 31, 2025, with a focus on enhancing its production capabilities and reducing reliance on third-party manufacturers. The company operates from a cGMP-compliant facility in Louisville, Colorado, which has been instrumental in its production and research activities. As of the end of 2025, the company reported total assets of $75.3 million, a decrease from $113.4 million in 2024, primarily due to a reduction in cash and cash equivalents.
Looking ahead, Charlotte's Web aims to continue its strategic transformation by expanding its product offerings and enhancing its market presence. The company is also focused on navigating regulatory challenges and optimizing its operational efficiencies to improve profitability. The management believes that the existing cash reserves, along with potential future financing options, will provide sufficient liquidity to support its operations and growth initiatives over the next 12 months.
About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc. is a leader in producing hemp-derived wellness products, including full-spectrum CBD, functional mushroom gummies, topicals, and pet products. The company cultivates proprietary hemp, controls its supply chain, and emphasizes quality, innovation, and sustainability. Its products serve health-conscious consumers through retail, healthcare, and online channels, leveraging scientific research, proprietary genetics, and a socially responsible, B Corp-certified business model.
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