Financing ·
Charlotte’s Web Holdings reported second quarter 2026 results featuring a fundamental balance sheet restructuring
CWBHFCharlotte's Web Holdings, Inc.
Charlotte’s Web Holdings reported second quarter 2026 results featuring a fundamental balance sheet restructuring. The company completed a transaction with British American Tobacco subsidiary BAT DE Investments Inc., converting C$75.3 million of convertible debentures into common shares and receiving a $10 million private placement equity investment. This recapitalization eliminated the largest liability, reduced total liabilities by 74% to $20.3 million, and restored positive shareholders' equity to $56.1 million from a deficit. Cash reserves increased to $14.0 million. Financially, revenue declined 15.2% year-over-year to $10.9 million due to retail channel restructuring, while gross margin expanded to 47.5%. The company reported a net loss of $4.1 million, or $(0.02) per share, compared to a $6.3 million loss in the prior year period. Charlotte’s Web operates as a botanical wellness innovation company and market leader in cannabidiol (CBD) hemp extract products.