Charlotte's Web Holdings Inc

Charlotte's Web Holdings Inc operates with a debt-to-equity ratio of 0.92 and a current ratio of 3.48, indicating a moderate liquidity position with sufficient short-term assets to cover liabilities. However, the company's operating cash flow is negative at -7.18 million USD, and free cash flow is also negative at -9.20 million USD, signaling potential challenges in generating positive cash from operations.

Profitability metrics show a return on equity of -20.64% and a return on assets of -6.8%, both significantly below industry norms for pharmaceutical firms, which typically exhibit positive returns. The company reported a net loss of 9.63 million USD and an operating loss of 8.37 million USD, highlighting a lack of profitability.

The company's revenue is concentrated in a single business segment focused on hemp-based pharmaceuticals and consumer products, with no disclosed geographic diversification. This concentration increases exposure to regulatory and market risks in the cannabis industry.

Looking ahead, the company is projected to see a decline in revenue, with a negative outlook for the current fiscal year. Historical revenue data shows a decrease from 12.12 million USD in the latest period, and no significant growth drivers are currently evident.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could constrain its ability to fund operations without external financing.

Recent filings and transcripts have not disclosed any major strategic shifts or new product launches. The company continues to focus on its core hemp-based product line, with no indication of diversification or expansion into new markets.

Operating income improved 36.6% year-over-year, signaling a meaningful reduction in operational losses for the fiscal year.

Free cash flow improved by 11.3% year-over-year, indicating a slight stabilization in cash burn rates.

Dilution risk is assessed as low, suggesting limited immediate threat to shareholder equity from share issuance.

Credit risk is rated low, implying manageable default probabilities despite the company's ongoing financial challenges.

Revenue remained relatively stable with only a 0.5% year-over-year change, showing some top-line resilience.

The company posted a net loss of $29.7 million in the latest fiscal year, continuing its unprofitable trajectory.

Debt-to-equity ratio of 0.92 places the company in the bottom quartile of its peer group.

Liquidity risk is assessed as medium, raising concerns about the company's ability to meet short-term obligations.

Revenue $13.3M, +5,2% YoY; Operating income −2,6% YoY.

• ▍Revenue $13.3M, +5,2% YoY
• ▍Operating income −2,6% YoY
• ▍Net income −239,2% YoY
• ▍Free cash flow −766,2% YoY
• ▍Net margin -85.7%

Revenue $12.7M; Operating income -$5.5M.

• ▍Revenue $12.7M
• ▍Operating income -$5.5M
• ▍Net margin -26.6%

Revenue $12.6M; Operating income -$6.0M.

• ▍Revenue $12.6M
• ▍Operating income -$6.0M
• ▍Net margin -46.0%

Revenue $12.3M; Operating income -$12.1M.

• ▍Revenue $12.3M
• ▍Operating income -$12.1M
• ▍Net margin -90.0%

Revenue $12.1M; Operating income -$8.4M.

• ▍Revenue $12.1M
• ▍Operating income -$8.4M
• ▍Net margin -79.5%

Revenue $49.9M, +0,5% YoY; Operating income +36,6% YoY.

• ▍Revenue $49.9M, +0,5% YoY
• ▍Operating income +36,6% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow +11,3% YoY
• ▍Net margin -59.6%

Revenue $49.7M, −21,4% YoY; Operating income +21,2% YoY.

• ▍Revenue $49.7M, −21,4% YoY
• ▍Operating income +21,2% YoY
• ▍Net income −25,4% YoY
• ▍Free cash flow −36,2% YoY
• ▍Net margin -60.1%

Revenue $63.2M, −14,8% YoY; Operating income +22,6% YoY.

• ▍Revenue $63.2M, −14,8% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +59,9% YoY
• ▍Free cash flow +58,6% YoY
• ▍Net margin -37.7%

Revenue $74.1M, −22,9% YoY; Operating income +64,3% YoY.

• ▍Revenue $74.1M, −22,9% YoY
• ▍Operating income +64,3% YoY
• ▍Net income +56,9% YoY
• ▍Free cash flow +60,4% YoY
• ▍Net margin -80.0%

Revenue $96.1M; Operating income -$147.1M.

• ▍Revenue $96.1M
• ▍Operating income -$147.1M
• ▍Net margin -143.3%