Charlotte's Web's Q3 Financials Show Improvement

Charlotte's Web Holdings Inc. (CWBHF), a constituent in the munKNEE Pure-Play Pot Stock Index, is the market share leader in full-spectrum CBD hemp extract wellness products, and reported its Q3 financial results for the period ended September 30, 2020, today as follows:

Q3 Financial Highlights (All results are presented in USD and compared to the previous quarter.)

Revenue: +17% to $25.2M
- Direct-to-Consumser: +8% to $16.7M
- Business-to-Business: +39% to $8.5M
  - Retail: +20%
  - Healthcare Practitioners: +101%
Gross Profit: +32% to $15.2M
Gross Margin: decreased to 60.3% from 64.8%
- Net Profit (Loss)/Share: improved to $(0.05) from $(0.13)
Adj. EBITDA: loss increased 17.5% to $(6.7)M
SG&A: -4% to $28.3M
- General & Admin: declined 15.6% to $17.8M
- Sales & Mktg: increased 25% to $8.5M
- Research & Development: Increased 33% to $2.0M
Cash on hand: declined 34% to $65.9M

Q3 Operational Highlights

Increased retail outlets by 1,000 stores to 22,000
completed integration of Abacus Health product acquisition contributing additional revenue of $2.5M to Q3
completed phase 2 investment in 137,000 sq. ft. facility to build out production
launched CBD liver health study with ValidCare
advanced regulatory definition of hemp derivative products to include being dietary supplements
achieved official B Corp certification indicating excellence in ESG.

Stock Performance

Charlotte's Web is DOWN 50.3% in price YTD but has shown some improvement recently, UP 60% since the end of September and UP 38% so far in November as illustrated in the chart below.

(Click on image to enlarge)