Charlotte's Web Holdings Reports 4.2% Revenue Growth in Q2 2025

Charlotte's Web Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $12.8 million, a 4.2% increase from $12.3 million in the same period last year. For the first half of 2025, the company generated $25.1 million in revenue, up 2.7% from $24.4 million in the first half of 2024. The increase in revenue was attributed to strong sales of its expanded product portfolio, including new offerings such as functional mushroom gummies and low-THC hemp products. The company reported a gross profit of $6.0 million for the quarter, significantly higher than the $2.6 million recorded in the prior year, resulting in a gross margin of 46.8%, compared to 21.0% in Q2 2024.

Charlotte's Web also noted a substantial reduction in its cost of goods sold, which decreased by 29.8% to $6.8 million for the quarter, down from $9.7 million a year earlier. This decline was primarily due to the absence of a significant inventory provision that impacted the previous year's results. Selling, general, and administrative expenses fell by 31.7% to $10.1 million, down from $14.7 million in Q2 2024, largely due to cost-cutting measures and the termination of the MLB Promotional Rights Agreement, which eliminated a $1.9 million amortization expense.

Despite the improved revenue and reduced costs, Charlotte's Web reported a net loss of $6.3 million for the second quarter, an improvement from the $11.1 million loss in the same period last year. The loss per share for the quarter was $0.04, compared to $0.07 in Q2 2024. The company’s total assets decreased to $88.0 million as of June 30, 2025, down from $113.4 million at the end of 2024, while total liabilities also decreased to $73.0 million from $86.4 million.

In terms of strategic developments, Charlotte's Web has launched new products, including Stay Asleep Cannabinol (CBN) gummies, which are positioned as a natural sleep aid. The company is also actively engaged in research and development, particularly through its collaboration with DeFloria, which has received FDA clearance to proceed with clinical trials for a botanical pharmaceutical candidate. Additionally, the termination of the MLB Promotional Rights Agreement has allowed the company to focus on its core product offerings without the burden of the associated financial obligations.

Looking ahead, Charlotte's Web aims to continue its focus on innovation and expansion within the botanical wellness market. The company plans to enhance its product offerings and improve operational efficiencies to drive customer acquisition and retention. Management believes that existing cash reserves, along with anticipated revenue growth, will provide sufficient liquidity to support operations and strategic initiatives over the next 12 months.