Charlotte's Web Q2 2026: BAT Conversion Cleans Balance Sheet, But Revenue Slides 15%
CWBHF has more than doubled off its 52-week low of $0.075 on elevated volume (1.8× avg).
Summary
Charlotte's Web's Q2 2026 10-Q details a 15% revenue decline but a dramatically improved balance sheet after BAT converted its debenture and invested $10 million, eliminating $50.8 million in debt and swinging equity to a $56 million surplus.
Key Events · Earnings and Guidance · CWBHF
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BAT Conversion Eliminates $50.8M Debt
On May 28, 2026, BAT converted its C$75.3 million convertible debenture plus accrued interest into 95,281,277 common shares at C$0.94 per share, extinguishing the debt and reducing total liabilities from $77.3 million to $20.3 million.
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BAT Injects Additional $10M Cash
Concurrently, BAT subscribed for 14,662,765 shares in a private placement for $10 million, bringing its total ownership to 109,944,042 shares, or 40.6% of the company.
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Revenue Declines 15.2% Year-Over-Year
Q2 2026 revenue was $10.855 million, down from $12.806 million in Q2 2025, driven by the shift to a distributor model. Gross margin improved to 47.5% from 46.8%.
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Net Loss Narrows to $4.1M
Q2 2026 net loss was $4.127 million, compared to $6.288 million a year earlier. The loss included a $4.216 million non-cash loss on debt extinguishment and a $5.557 million gain on fair value changes.
Analysis · CWBHF · Industrial Applications And Services
The 10-Q confirms the Q2 2026 results previewed in today's 8-K, adding full financial detail. Revenue fell 15.2% year-over-year to $10.9 million, but the balance sheet transformed: the $50.8 million convertible debenture was extinguished via conversion into 95.3 million shares, and BAT injected an additional $10 million in cash. Total liabilities dropped from $77.3 million to $20.3 million, and shareholders' equity swung from a $2.0 million deficit to a $56.1 million surplus. The company still lost $4.1 million in the quarter, but cash burn improved to $3.7 million for the half-year, and management states existing cash is sufficient for the next 12 months. The 40.6% BAT ownership stake is now fully reflected in the share count, which jumped from 159.4 million to 270.5 million shares.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 28.9% of the 1666 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CWBHF was trading at $0.29 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $77.2M. The 52-week trading range was $0.08 to $0.97. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.