Charlotte's Web Q2 revenue falls as retail exits weigh

Charlotte's Web Holdings

13/08/2026 12:25

Overview
US botanical wellness firm's Q2 revenue fell 15% yr/yr due to retail channel restructuring
Gross margin expanded to 47.5% in Q2, supported by improved product and channel mix
Company eliminated $57 mln of liabilities, restoring positive shareholders equity in Q2

Outlook
Company expects gross margin to improve toward target range of approximately 50%
Company expects continued improvement in cash flow profile as in-house production scales
Charlotte's Web is closely monitoring federal hemp legislation; outcome remains uncertain

Result Drivers
RETAIL CHANNEL RESTRUCTURING - Co said revenue decline was primarily due to its decision to largely exit the retail landscape starting September 2025
PRODUCT AND CHANNEL MIX - Gross margin improvement attributed to improved product and channel mix following retail channel restructuring, despite lower sales volume
COST REDUCTIONS - SG&A expenses declined due to cost discipline and the termination of a prior promotional rights agreement

Company press release: ID:nNFCbLF7qw

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$10.90 mln
 
Q2 Loss Per Share
 
$0.02
 

Reuters Recommended Reads
Aug 12 - Planet 13 Q2 revenue falls on California retail exit, price pressure
Aug 13 - 22nd Century Q2 revenue falls on product shift
Aug 11 - DarioHealth Q2 revenue falls on pharma exit; gross margin improves

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)