CBD Leader Posts Second Straight Quarter of Growth, Shares Jump Double Digits

2025-08-13 13:05:00 ET

When investors review a company’s quarterly results and see strong performance, it’s natural to question whether it’s a one-time event or the start of a lasting trend. As the numbers continue to improve, confidence typically grows that the momentum is real. In the case of this CBD wellness company, robust Q2 results have convinced many that a new upward trend is underway, sending its shares higher.

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTC: CWBHF) , a leader in CBD hemp extract wellness products, announced this morning its second straight year-over-year revenue increase for Q2 2025, marking steady progress in its turnaround efforts. This growth builds on the sequential quarterly gains achieved in 2024 and reflects the company’s strategy of expanding its omnichannel presence, introducing new product lines, and refining its cost structure. See AllPennyStocks.com’s article from May 14th when we initially flagged this turnaround story.

On this quarterly announcement, CEO Bill Morachnick highlighted the successful in-house launch of Brightside™ gummies and early traction in new product categories as key drivers of the quarter’s performance, expressing confidence in meeting the company’s 2025 objectives.

Cost-cutting measures initiated in 2024 continued to deliver results in Q2, with in-house gummy production fully established for Brightside™ and set to expand to additional SKUs in the second half of the year. These internalization efforts are expected to yield about $3 million in annual savings, while the company is also exploring bringing topical production in-house in 2026 to further improve efficiency.

Erika Lind, Chief Financial Officer, added, "Our revenue growth was accompanied by rigorous SG&A discipline that reduced second quarter expenses 31.7% year-over-year. Post-quarter, we've implemented additional measures to reduce our annualized run rate by more than $6 million in 2026. Combined with our transition to in-house manufacturing, which will benefit profit margins over time, this disciplined cost management and modest revenue growth positions us to approach positive cash flow."

Shares of CWEB were last up 12.12% at $0.185 while U.S. listed shares (CWBHF) were up 8.85% at $0.1257 in early-afternoon trading.

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