📊 CHUC Key Takeaways
Investment Thesis
Charlie's Holdings exhibits severe fundamental deterioration with revenue declining 47.7% YoY while operating margins turned deeply negative at -17.1%, indicating inability to sustain profitability at current revenue levels. The company is burning cash at an alarming rate (-$6.2M operating cash flow) despite reporting positive net income, suggesting accounting anomalies or unsustainable one-time gains masking operational distress. Negative interest coverage (-11.2x) and minimal cash reserves ($1.1M) relative to $2.6M long-term debt create acute solvency risk.
CHUC Strengths
- Positive net margin of 36.6% suggests potential for selective profitability in certain product lines or one-time gains
- Current ratio of 1.46x provides minimal short-term liquidity buffer above 1.0x threshold
- Low capital expenditure requirements ($0.00) indicate asset-light business model
CHUC Risks
- Catastrophic revenue decline of 47.7% YoY signals loss of market demand or customer base erosion
- Operating cash flow of -$6.2M vastly exceeds net income of $4.4M, indicating earnings quality crisis and potential unsustainable gains
- Negative operating margin (-17.1%) combined with negative interest coverage (-11.2x) creates imminent default risk if revenue recovery fails
- Cash position of $1.1M insufficient to cover $2.6M long-term debt obligations; liquidity crisis probable within 12-18 months at current burn rate
- Six Form 4 filings in 90 days suggest elevated insider activity during financial distress period
Key Metrics to Watch
- Quarterly revenue trend - stabilization required to assess viability; further declines are terminal
- Operating cash flow and its reconciliation to net income - must turn positive to validate earnings quality
- Cash balance trajectory - depletion below $500K would indicate critical insolvency risk
CHUC Financial Metrics
💡 AI Analyst Insight
Charlie's Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CHUC Profitability Ratios
CHUC vs Default Sector
How Charlie's Holdings, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CHUC Balance Sheet & Liquidity
CHUC 5-Year Financial Trend
5-Year Trend Summary: Charlie's Holdings, Inc.'s revenue has declined by 24% over the 5-year period, indicating business contraction. The most recent EPS of $-0.01 indicates the company is currently unprofitable.
CHUC Growth Metrics (YoY)
CHUC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6M | $624.0K | $0.00 |
| Q2 2025 | $2.0M | -$967.0K | $0.00 |
| Q1 2025 | $2.3M | -$1.0M | $0.00 |
| Q3 2024 | $1.6M | -$708.0K | $0.00 |
| Q2 2024 | $2.0M | $32.0K | $0.00 |
| Q1 2024 | $3.1M | -$1.0M | $0.00 |
| Q3 2023 | $2.7M | $241.0K | $0.00 |
| Q2 2023 | $4.0M | $32.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CHUC Capital Allocation
CHUC SEC Filings
Access official SEC EDGAR filings for Charlie's Holdings, Inc. (CIK: 0001134765)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CHUC
What is the AI rating for CHUC?
Charlie's Holdings, Inc. (CHUC) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHUC's key strengths?
Positive net margin of 36.6% suggests potential for selective profitability in certain product lines or one-time gains. Current ratio of 1.46x provides minimal short-term liquidity buffer above 1.0x threshold.
What are the risks of investing in CHUC?
Catastrophic revenue decline of 47.7% YoY signals loss of market demand or customer base erosion. Operating cash flow of -$6.2M vastly exceeds net income of $4.4M, indicating earnings quality crisis and potential unsustainable gains.
What is CHUC's revenue and growth?
Charlie's Holdings, Inc. reported revenue of $11.9M.
Does CHUC pay dividends?
Charlie's Holdings, Inc. does not currently pay dividends.
Where can I find CHUC SEC filings?
Official SEC filings for Charlie's Holdings, Inc. (CIK: 0001134765) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHUC's EPS?
Charlie's Holdings, Inc. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.