08:58 AM EST, 11/12/2025 (MT Newswires) -- Charlotte's Web Holdings (CWEB.TO), a provider of hemp-derived CBD wellness products, on Wednesday reported an unchanged third-quarter net loss and a lower revenue.

The company reported a third-quarter net loss of US$5.8 million, unchanged compared to the corresponding year-ago quarter.

"Q3 2025 marked continued progress in our strategic transformation as we advanced key operational and commercial initiatives that position us for improved performance in 2026," said Chief Executive Officer, Bill Morachnick.

Third-quarter revenue was reported at $11.5 million, down from $12.6 million in the year-ago quarter, which the company said primarily reflected a strategic B2B business model transformation. The consensus estimates compiled by FactSet for revenue was $13.6 million.

The company said that, during the quarter, it implemented a fundamental redesign of its B2B channel economics and added that the restructuring prioritizes high-value retail partnerships and leverages distributor relationships for broader market coverage, eliminating the cost structure associated with maintaining a field sales organization.

The company added that while this transition creates near-term revenue pressure, "it fundamentally improves" channel profitability by reducing SG&A expenses and capturing higher-margin distributor economics.

"Third quarter SG&A expenses declined 23.6% year-over-year, and the additional expense reductions implemented during Q3 position us to deliver approximately $9 million in total annualized cost savings in 2026," said Chief Financial Officer, Erika Lind.

The company said that management expects the "combination of operating expense reductions and manufacturing efficiencies to drive sequential improvement" in cash flow through Q4 2025, establishing a pathway to positive cash flow in 2026.

"While recent federal activity introduces uncertainty for the industry, Charlotte's Web has a proven track record of navigating complex regulatory environments," added the CEO. "We believe the economic impact, consumer reliance, and bipartisan support for CBD wellness will lead to a more rational and durable policy outcome."