Charlotte's Web Reports Year-Over-Year Growth For Q2 2025

Core Insights - Charlotte's Web Holdings, Inc. reported its second consecutive quarter of year-over-year revenue growth, achieving $12.8 million in Q2 2025, a 4.2% increase from $12.3 million in Q2 2024, driven by new product innovations and omnichannel expansion [1][12][10]. Financial Performance - The company achieved a gross profit of $6.0 million in Q2 2025, representing 46.8% of revenue, compared to $2.6 million or 21.0% of revenue in Q2 2024 [13][10]. - Selling, general, and administrative (SG&A) expenses decreased by 31.7% year-over-year to $10.1 million, down from $14.7 million in Q2 2024, reflecting effective cost management strategies [14][3]. - The net loss for Q2 2025 was $6.3 million, or $(0.04) per share, an improvement from a net loss of $11.1 million, or $(0.07) per share, in Q2 2024 [15][10]. Operational Developments - The company successfully transitioned to in-house production of its Brightside™ THC gummies, which has led to improved margins and accelerated product timelines [5][2]. - Charlotte's Web expanded its product portfolio with the introduction of CBG Focus & Attention Gummies and functional mushroom gummies, targeting high-growth segments in the wellness market [6][7]. Strategic Initiatives - The company is focused on enhancing its omnichannel presence, with digital sales contributions from platforms like TikTok Shop, Amazon, and Walmart.com [4][10]. - Charlotte's Web is actively pursuing regulatory advancements for hemp-derived products, anticipating a favorable regulatory environment that could benefit established brands [8][10]. Clinical and Research Progress - The collaboration with DeFloria, Inc. has commenced FDA-cleared Phase 2 clinical trials for a botanical drug candidate aimed at treating irritability associated with autism spectrum disorder, representing a potential long-term revenue opportunity [9][10].