Charlotte’s Web Q4 Revenue Rises 4.7% to $13.3M, Plans BAT Debenture Conversion
Charlotte's Web generated Q4 revenue of $13.3 million, up 4.7% year-over-year, but reported a net loss of $11.5 million (-$0.07 per share) and an adjusted EBITDA loss of $4.4 million. Conversion of a C$75.3 million debenture and a $10 million equity injection by BAT will issue 110 million shares.
1. Q4 Financial Results
Charlotte’s Web reported net revenue of $13.3 million for the quarter ended December 31, 2025, up 4.7% from $12.7 million year-over-year. The company posted a net loss of $11.5 million (-$0.07 per share), with gross profit of approximately $5.0 million and an adjusted EBITDA loss of $4.4 million.
2. Strategic BAT Transaction
The company entered into agreements with British American Tobacco’s subsidiary to convert a C$75.3 million debenture and accrued interest into common shares at C$0.94 per share and to raise US$10 million through a private equity injection. This will result in the issuance of 110 million new shares, subject to shareholder and regulatory approvals expected by late May 2026.
3. Balance Sheet and Outlook
Proceeds from the transaction are expected to bolster the balance sheet and support near-term operating priorities, including participation in the CMMI Medicare Pilot Program. Management highlighted ongoing cost structure improvements, product innovation in direct-to-consumer channels, and a clear pathway to profitability through strengthened capital resources.