Charlotte’s Web Stock Tumbles After 8.6% YoY Revenue Drop In Q3, Despite Improved EBITDA & Ongoing Transformation

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTC: CWBHF), a producer of cannabidiol (CBD) hemp extract wellness products, announced on Wednesday an 8.6 % year-over-year drop in third quarter consolidated revenue to $11.5 million, from $12.6 million in the same quarter of last year.

“Q3 2025 marked continued progress in our strategic transformation as we advanced key operational and commercial initiatives that position us for improved performance in 2026,” Bill Morachnick, the company’s CEO, said.

Q3 2025 Financial Highlights

• Gross profit totaled $4.5 million, down from $6.7 million in the prior year’s period.
• Net loss amounted to $5.8 million, the same as in the corresponding period last year.
• Adjusted EBITDA came in negative at $2.1 million, representing an improvement from an adjusted EBITDA loss of $3.9 million in the third quarter of last year.
• Selling, general and administrative expenses declined to $9.7 million from $12.7 million.
• Cash and working capital as of Sept. 30, were $9.8 million and $25.6 million, respectively.

During the quarter, Charlotte’s Web announced the formation of a scientific advisory board to accelerate its medical channel strategy and reinforce its legacy of science-backed innovation.

The company also strengthened its board of directors by appointing M. Borgia Walker on Nov. 1, bringing the total number of directors to six, replacing Jonathan Atwood, who has retired from the Board.

Moreover, the company has implemented a strategic restructuring of its B2B retail operations during the quarter, in response to an increasingly complex and evolving regulatory landscape across U.S. markets.

“Our disciplined cost management and channel optimization continue to reshape Charlotte’s Web’s financial profile,” Erika Lind, the company’s CFO, said.

CWBHF Price Action

Charlotte’s Web Holdings’ shares traded 39.36% lower at $0.081 per share at the time of writing on Wednesday morning.