MeritValue

Charlotte's Web Holdings, Inc.

CWBHFdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Charlotte's Web Holdings, Inc. earns about -327% on invested capital, but has diluted owners by 13% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$96.1M1$74.1M2$63.2M3$49.7M4$49.9M4
Net income−$137.7M5−$59.3M6−$23.8M7−$29.8M8−$29.7M8
Operating cash flow−$29.6M9−$5.32M10−$15.4M11−$21.3M12−$14.1M12
Capital expenditure$4.92M13$265,00014$3.69M15$3.85M16$549,00016
Free cash flow (derived)−$34.5M9−$5.58M10−$19.1M11−$25.1M12−$14.7M12
Total debt—————
Cash & equivalents$19.5M17$67M18$47.8M19$22.6M20$8.04M20
Diluted shares140.8M146.6M152.9M157.6M158.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$0.13
your share of equity
Profit it earned you last year
−$1.87
Free cash flow it threw off
−$0.92
Debt you’d be carrying
—

10 shares is a claim on −$0.13 of net worth that earned you −$1.87 and generated −$0.92 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-327% avg · 5y
FY21 -98%FY22 -444%FY23 -238%FY24 -527%FY25 —

It earned an average -327% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+13% shares · 5y

Share count is up 13% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001750155-23-000021 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001750155-24-000027 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001750155-25-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001750155-26-000029 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001750155-23-000021 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001750155-24-000027 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001750155-25-000006 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001750155-26-000029 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001750155-23-000021 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001750155-24-000027 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001750155-25-000006 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001750155-26-000029 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001750155-23-000021 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0001750155-24-000027 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0001750155-25-000006 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0001750155-26-000029 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2021-12-31 · accession 0001750155-23-000021 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001750155-24-000027 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001750155-25-000006 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001750155-26-000029 (CashAndCashEquivalentsAtCarryingValue)