Adam JacksonCharlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) announced Wednesday that while its full-year revenue declined by 21.4% versus 2023, it saw sequential quarterly revenue growth throughout 2024 and reduced annual operating expenses by more than $22.4 million.
The company reported $49.7 million in annual revenue for 2024 ending Dec. 31, down from $63.2 million in 2023. Fourth-quarter revenue was $12.7 million, slightly higher than third-quarter revenue but below the $15.9 million reported in the fourth quarter of 2023.
“2024 marked a turning point for Charlotte’s Web operationally as we delivered consecutive quarterly revenue growth, strengthened operations, and positioned the Company for sustained growth in 2025,” CEO Bill Morachnick said in a statement.
The CBD wellness company reported a wider annual net loss of $29.8 million, or $0.19 per share, versus $23.8 million, or $0.16 per share, in 2023. However, the company noted its operating loss improved to $32 million from $40.6 million the previous year.
Executives highlighted positive fourth-quarter adjusted EBITDA of $300,000, a $6.8 million improvement from negative $6.5 million in the same period of 2023, which could hint at some progress from cost-cutting measures.
Charlotte’s Web thanked the revenue decline to “inflationary impacts on consumer spending, reduced retailer shelf allocations to the CBD category, and the fallout of some retailers exiting the CBD category as a result of increased state regulatory pressures,” according to filings.
The company ended 2024 with $22.6 million in cash reserves, down from $47.8 million at the end of 2023, with executives asserting this provides “runway for 2025 growth and beyond.”
Charlotte’s Web, known primarily for hemp-derived CBD products, expanded its product portfolio in 2024 to include functional mushroom gummies, CBN gummies for sleep, and entered new retail partnerships with Walmart for topicals and Chewy.com for pet products.
“We’re particularly excited to announce that we will soon be offering our functional mushroom gummies on Amazon.com, representing our first meaningful presence on Amazon and introducing the Charlotte’s Web brand to millions of potential new customers,” Morachnick said.
The company also pointed to regulatory milestone achieved through its investment in DeFloria, which received FDA clearance in February 2025 to proceed with Phase 2 clinical trials for a botanical pharmaceutical candidate targeting symptoms of autism spectrum disorder.
CFO Erika Lind emphasized improved cost structure and operational efficiency as priorities.
“Our omnichannel strategy and operational optimization have been instrumental in navigating a complex regulatory environment while improving our cost structure,” she said in the release.
Charlotte’s Web projects gross margin will return above 50% in 2025, up from 42.8% in 2024, as the company transitions to in-house manufacturing of gummies for “full commercial production” to improve margins and enhance speed-to-market, it said.
The company has positioned its expansion beyond CBD products as part of a strategic evolution into “a broader botanical wellness leader,” according to Morachnick, as it faces continued regulatory challenges in the CBD sector.
