's Business Segments

Charlotte's Web Holdings, Inc., headquartered in Louisville, Colorado, produces hemp extract and botanical-based wellness products in the United States. The company manufactures full-spectrum cannabidiol (CBD) products under the brands Charlotte’s Web™, CBD Medic™, and CBD Clinic™. Its products are derived from proprietary hemp genetics grown in North America and contain phytocannabinoids such as CBD, CBC, CBG, CBN, terpenes, flavonoids, and other hemp compounds. Operations take place at a cGMP-compliant facility called the LOFT, which houses production, distribution, quality control, and research and development activities. Product offerings include functional mushroom gummies, hemp extract oil tinctures, gummies, capsules, topical creams and lotions, and pet products. Sales channels comprise select distributors, healthcare practitioners, and online platforms. As of December 31, 2025, the company operates in a single segment focused on manufacturing, sales, and marketing of hemp-derived CBD and botanical wellness products. It grows proprietary hemp domestically through contract farming in multiple U.S. states and in Canada for the Canadian market. Research and development efforts are conducted through its CW Labs division, including clinical trials and exploration of therapeutic applications of hemp compounds. Charlotte's Web Holdings does not produce or sell medicinal or recreational marijuana or high-THC cannabis products. Strategic partnerships include a convertible debenture with BT DE Investments, Inc., a subsidiary of BAT Group, and a joint venture, DeFloria, Inc., with AJNA BioSciences PBC and BAT to pursue FDA approval for a botanical drug targeting a neurological condition.

The Company operates a single reportable segment focused on the production and sale of hemp-based CBD wellness products, which accounts for substantially all of its revenue. This segment aligns with the resource allocation and performance assessment conducted by the chief operating decision maker (CODM), the executive operations committee comprising the chief executive officer, chief financial officer, chief operations officer, and chief people officer. The products within this segment share similar characteristics, including the use of CBD and its derivatives as raw materials, cultivation processes, customer types, and regulatory considerations. The CODM evaluates performance and allocates resources based on pre-tax net income or loss reported on the consolidated statement of operations. Segment assets correspond to total consolidated assets reported on the balance sheet. For the years ended December 31, 2025 and 2024, the segment reported revenues of $49,897 and $49,667, and pre-tax net losses of $29,809 and $29,807, respectively. Key expenses reviewed by the CODM include cost of goods sold, which was $28,197 in 2025 and $28,407 in 2024; selling, general, and administrative expenses, which were $41,968 in 2025 and $53,247 in 2024; and a change in fair value of financial instruments amounting to $(7,269).