📊 CWBHF Key Takeaways
Investment Thesis
Charlotte's Web Holdings is in severe financial distress with deteriorating fundamentals despite maintaining healthy gross margins. The company is burning cash with negative operating cash flow of -$12.2M, negative free cash flow of -$12.9M, and substantial net losses of -$18.3M on declining revenues. Operating leverage has inverted sharply with a -40.1% operating margin, indicating fundamental business model challenges that cannot be sustained.
CWBHF Strengths
- Strong gross margin of 45.7% indicates product pricing power and reasonable cost of goods control
- Solid liquidity position with current ratio of 3.89x and $9.8M in cash equivalents
- Low leverage with 0.00x debt-to-equity ratio providing financial flexibility
CWBHF Risks
- Revenue declining 21.4% YoY while losses accelerate, suggesting market share loss and demand deterioration
- Negative operating cash flow of -$12.2M and free cash flow of -$12.9M are unsustainable and will deplete cash reserves within 12 months
- Operating margin of -40.1% and net margin of -50.1% indicate fundamental profitability crisis with significant fixed cost burden that cannot be covered
- Negative ROE of -198.1% and ROA of -22.4% show value destruction and inability to generate returns on capital
- Net loss of -$18.3M on $36.6M revenue indicates severe operational inefficiencies and potential product or market viability issues
Key Metrics to Watch
- Operating cash flow trend - critical indicator of cash burn sustainability
- Revenue stabilization or turnaround - must arrest 21.4% YoY decline
- Operating margin improvement - needs to move toward breakeven to preserve cash reserves
- Cash balance depletion rate - at current burn rate, liquidity will be critical within 12 months
CWBHF Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.89x current ratio provides a solid financial cushion.
CWBHF Profitability Ratios
CWBHF vs Default Sector
How Charlotte's Web Holdings, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CWBHF Balance Sheet & Liquidity
CWBHF 5-Year Financial Trend
5-Year Trend Summary: Charlotte's Web Holdings, Inc.'s revenue has declined by 34% over the 5-year period, indicating business contraction. The most recent EPS of $-0.16 indicates the company is currently unprofitable.
CWBHF Growth Metrics (YoY)
CWBHF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $11.5M | -$5.8M | $-0.04 |
| Q2 2025 | $12.3M | -$6.2M | $-0.04 |
| Q1 2025 | $12.1M | -$6.2M | $-0.04 |
| Q3 2024 | $12.6M | $2.8M | $-0.04 |
| Q2 2024 | $12.3M | -$67.0K | $0.00 |
| Q1 2024 | $12.1M | -$2.9M | $-0.02 |
| Q3 2023 | $14.3M | $2.8M | $-0.05 |
| Q2 2023 | $16.0M | -$67.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CWBHF Capital Allocation
CWBHF SEC Filings
Access official SEC EDGAR filings for Charlotte's Web Holdings, Inc. (CIK: 0001750155)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CWBHF
What is the AI rating for CWBHF?
Charlotte's Web Holdings, Inc. (CWBHF) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWBHF's key strengths?
Strong gross margin of 45.7% indicates product pricing power and reasonable cost of goods control. Solid liquidity position with current ratio of 3.89x and $9.8M in cash equivalents.
What are the risks of investing in CWBHF?
Revenue declining 21.4% YoY while losses accelerate, suggesting market share loss and demand deterioration. Negative operating cash flow of -$12.2M and free cash flow of -$12.9M are unsustainable and will deplete cash reserves within 12 months.
What is CWBHF's revenue and growth?
Charlotte's Web Holdings, Inc. reported revenue of $36.6M.
Does CWBHF pay dividends?
Charlotte's Web Holdings, Inc. does not currently pay dividends.
Where can I find CWBHF SEC filings?
Official SEC filings for Charlotte's Web Holdings, Inc. (CIK: 0001750155) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWBHF's EPS?
Charlotte's Web Holdings, Inc. has a diluted EPS of $-0.12.
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.