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Charlotte's Web Holdings Inc
TSX:CWEB

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Charlotte's Web Holdings Inc
TSX:CWEB
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Price: 1.02 CAD Market Closed
Market Cap: CA$162.6m

Charlotte's Web Holdings Inc
Investor Relations

Charlotte's Web Holdings, Inc. engages in the production and distribution of hemp-based, cannabinoid wellness products. The company is headquartered in Denver, Colorado. The company went IPO on 2018-08-29. Charlotte's Web branded products start with its own hemp genetics, which are 100 % American farm grown and manufactured into hemp extracts containing naturally occurring phytocannabinoids, including cannabidiol (CBD), CBC, cannabigerol (CBG), terpenes, flavonoids and other beneficial hemp compounds. Charlotte's Web product categories include full spectrum hemp extract oil tinctures, including liquid products; gummies, including sleep, stress, immunity, exercise recovery; capsules, CBD topical creams and lotions, as well as products for dogs. Charlotte's Web products are distributed to approximately 14,000 retail doors and 8,000 healthcare practitioners and online through the Company's Website at www.CharlottesWeb.com.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Mar 31, 2026
AI Summary
Q4 2025

BAT deal: Charlotte's Web said it struck a transaction with British American Tobacco that converts BAT's $55 million convertible debenture plus about $10 million of accrued interest into shares and adds a new $10 million equity investment.

Balance sheet: Management said the deal eliminates the company's largest debt burden, avoids about $3 million of annual interest for the next 3.5 years, and removes the risk of more than $12 million of future interest through maturity.

Medicare pilot: The company highlighted a new CMS-backed CBD pilot for seniors and said its core full-spectrum products qualify under the program, but it expects revenue to build gradually rather than meaningfully in the near term.

Regulatory backdrop: Management said federal hemp policy remains unsettled, with both a potential hemp ban and separate reform efforts in play, but argued the CMS guidance and legislative momentum point toward a more favorable framework.

Quarterly growth: Q4 revenue rose 15.8% sequentially and 4.7% year over year, helped by stronger direct-to-consumer sales, improved product mix, and a B2B restructuring that removed weaker accounts.

Cost discipline: Full-year SG&A fell 21.2% and operating loss improved more than 36%, showing the company is still tightening costs while preparing for new launch spending tied to Medicare.

Strategic pipeline: Management also emphasized DeFloria, its cannabis-derived drug program with BAT and Aragen, saying Phase II work is expected to start midyear subject to development and resource readiness.

Key Financials
Consolidated net revenue
$13.3 million
Gross profit
$5 million
Gross margin
37.5%
SG&A expenses
$10.6 million
Net loss
$11.4 million
Net loss per share
$0.07
Full-year revenue
$49.9 million
Full-year SG&A expenses
$42 million
Annualized SG&A reduction
$33.6 million
Full-year net loss
$29.7 million
Full-year net loss per share
$0.19
Operating loss
$20.3 million
Cash used in operating activities
$1.9 million
Cash
$8 million
Working capital
$21.7 million
BAT convertible debenture
$55 million
Accrued interest converted
about $10 million
New BAT equity investment
$10 million
Future annual interest avoided
about $3 million
Future interest avoided through maturity
$12 million or more
BAT ownership after transaction
approximately 40%
Program annual limit per beneficiary
up to $500
Initial Medicare addressable population
approximately 2 million Medicare beneficiaries
Total Medicare beneficiaries
approximately 67 million
Medicare Advantage share of Medicare
roughly half
DeFloria ownership
approximately 1/3
Private placement dilution
approximately 5% of post-conversion shares
Other Earnings Calls

Management

Mr. William J. Morachnick
CEO & Non-Independent Director
No Bio Available
Mr. Jared Stanley
Co-Founder & Director
No Bio Available
Ms. Erika Lind
Chief Financial Officer
No Bio Available
Mr. Raymond Kunkel
Chief Operating Officer
No Bio Available
Ms. Sarah Cambridge
Corporate Controller & Chief Accounting Officer
No Bio Available
Dr. Marcel Bonn-Miller Ph.D.
Chief Scientific Officer
No Bio Available
Mr. Greg Gould
Chief Administration Officer
No Bio Available
Mr. Cory Pala
Director of Investor Relations
No Bio Available
Ms. Kelly Shea
Senior VP of Government Affairs & Corporate Communications
No Bio Available
Mr. Andrew Shafer
Chief Marketing Officer
No Bio Available

Contacts

Address
COLORADO
Denver
1801 California Street, Suite 4800
Contacts
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