Charlotte's Web Holdings, Inc. reported a total revenue of $49.7 million for the fiscal year ending December 31, 2024, marking a 21.4% decrease from $63.2 million in 2023. The decline in revenue was primarily attributed to a reduction in average order values and inflationary pressures affecting consumer spending. The company's gross profit also fell to $21.3 million, resulting in a gross margin of 42.8%, down from 56.3% the previous year. The operating loss for the year was $32.0 million, an improvement from a loss of $40.6 million in 2023, while the net loss increased to $29.8 million compared to $23.8 million in the prior year.
In terms of operational changes, Charlotte's Web has focused on cost-cutting measures, which included workforce adjustments and improved insurance programs, leading to a 29.6% reduction in selling, general, and administrative expenses to $53.2 million. The company also launched new products, including a functional mushroom gummy line and Stay Asleep Cannabidiol (CBN) gummies, expanding its product offerings beyond traditional CBD products. Additionally, the company entered into a strategic partnership with Major League Baseball (MLB) to promote its NSF Certified for Sport® product line, extending the promotional rights agreement through December 2027 for a total fee of $23 million.
As of December 31, 2024, Charlotte's Web had total assets of $113.4 million, down from $152.5 million in 2023, with long-term liabilities of $70.4 million. The company employed 112 full-time staff, a slight decrease from the previous year. The filing also noted that the company is subject to various regulatory challenges, particularly concerning the sale and marketing of CBD products, which could impact its operations and financial performance. The company continues to assess the implications of new state regulations on its product formulations and labeling.
Looking ahead, Charlotte's Web aims to enhance its market position by driving customer acquisition and retention while exploring opportunities for geographic expansion. The company is also focused on improving its operational efficiency and product quality to navigate the competitive landscape of the hemp-derived wellness market. However, the ongoing regulatory uncertainties and market conditions present significant risks that could affect the company's future performance.
About Charlotte's Web Holdings, Inc.
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