Earnings Releases·Nov 12, 2026, 7:09 AM ET

Charlotte's Web — Q3 2026 Earnings Summary

Revenue declined 18.3% year-over-year to $9.4 million for Q3 2026 and 13.5% sequentially, while gross margin expanded to 46.9% from 38.9% in the prior-year period, driven by reduced deep discounting and product simplification.
Operating loss narrowed to $3.7 million in Q3 (vs. $5.3 million prior year) and SG&A expenses fell 16.8% year-over-year to $8.1 million, resulting in a net loss of $3.5 million ($0.01/share) compared to $5.8 million in Q3 2025.
Balance sheet strength improved significantly with total liabilities decreasing to $19.4 million from $77.3 million at year-end 2025 and shareholders' equity turning positive to $53.1 million following the May 2026 convertible debenture conversion and $10 million private placement.
Management targets a 50% gross margin and expects revenue shifts due to customer purchasing ahead of the December 11, 2026, federal THC limit deadline, though near-term demand is not viewed as indicative of ongoing trends.
Strategic progress includes California revenue recovery following broad-spectrum product reintroduction, a new partnership with Edibles.com, and DeFloria's Phase 2 program for autism spectrum disorder pending resource funding.