📊 CWBHF Key Takeaways
Is Charlotte's Web Holdings, Inc. (CWBHF) a Good Investment?
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.
Charlotte's Web Holdings shows materially weak fundamentals, with revenue down 21.4% year over year and deeply negative operating, net, and free cash flow margins. While the company retains decent near-term liquidity and no meaningful long-term debt burden, the combination of shrinking sales, persistent losses, and very thin equity substantially weakens financial resilience. The business needs clear evidence of revenue stabilization and materially improved cash generation before the fundamentals can be viewed more constructively.
Why Buy Charlotte's Web Holdings, Inc. Stock? CWBHF 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
- Low leverage with 0.00x debt-to-equity ratio providing financial flexibility
- Gross margin of 45.7% indicates the core product still retains some pricing power and contribution potential
- Current ratio of 3.89x and quick ratio of 1.65x suggest adequate near-term liquidity
- No significant long-term debt reduces balance-sheet financing risk
CWBHF Stock Risks: Charlotte's Web Holdings, Inc. Investment 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
- Revenue contraction of 21.4% year over year points to weak demand or competitive pressure
- Operating margin of -40.1% and net margin of -50.1% show the cost structure is not sustainable at current scale
- Negative operating cash flow and free cash flow, combined with only $9.25M of equity, raise the risk of future capital strain
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
- Year-over-year revenue growth and gross margin trend
- Operating cash flow burn relative to cash balance
Charlotte's Web Holdings, Inc. (CWBHF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.89x current ratio provides a solid financial cushion.
CWBHF Profit Margin, ROE & Profitability Analysis
CWBHF vs Market Sector: How Charlotte's Web Holdings, Inc. Compares
How Charlotte's Web Holdings, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Charlotte's Web Holdings, Inc. Stock Overvalued? CWBHF Valuation Analysis 2026
Based on fundamental analysis, Charlotte's Web Holdings, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Charlotte's Web Holdings, Inc. Balance Sheet: CWBHF Debt, Cash & Liquidity
CWBHF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Charlotte's Web Holdings, Inc.'s revenue has declined by 48% over the 5-year period, indicating business contraction. The most recent EPS of $-0.19 indicates the company is currently unprofitable.
CWBHF Revenue Growth, EPS Growth & YoY Performance
CWBHF Quarterly Earnings & 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.
Charlotte's Web Holdings, Inc. Dividends, Buybacks & Capital Allocation
CWBHF SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 91% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWBHF's key strengths?
Claude: 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. ChatGPT: Gross margin of 45.7% indicates the core product still retains some pricing power and contribution potential. Current ratio of 3.89x and quick ratio of 1.65x suggest adequate near-term liquidity.
What are the risks of investing in CWBHF?
Claude: 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. ChatGPT: Revenue contraction of 21.4% year over year points to weak demand or competitive pressure. Operating margin of -40.1% and net margin of -50.1% show the cost structure is not sustainable at current scale.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CWBHF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Charlotte's Web Holdings, Inc. has a STRONG SELL rating with 91% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CWBHF stock overvalued or undervalued?
Valuation metrics for CWBHF: ROE of -198.1% (sector avg: 15%), net margin of -50.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CWBHF stock in 2026?
Our dual AI analysis gives Charlotte's Web Holdings, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CWBHF's free cash flow?
Charlotte's Web Holdings, Inc.'s operating cash flow is $-12.2M, with capital expenditures of $650.0K. FCF margin is -35.3%.
How does CWBHF compare to other Market stocks?
Vs Default sector averages: Net margin -50.1% (avg: 12%), ROE -198.1% (avg: 15%), current ratio 3.89 (avg: 1.8).