Charlie’s Holdings, Inc. (OTCQB: CHUC) reported fiscal‑year‑2025 revenue of $20.9 million, a 169% increase from the $7.8 million reported in 2024, and net income of $4.5 million, reversing a $4.2 million loss in 2024. The company’s independent auditors issued an unqualified opinion, removing the “going‑concern” paragraph that had appeared in prior filings.
The turnaround was driven largely by the successful launch of the SBX disposable line, which accounted for the majority of sales by Q3 2025, and by the sale of 16 PMTA assets to R.J. Reynolds for $7.5 million. Gross margin fell to 27.0% from 37.1% in 2024, reflecting a shift toward lower‑margin SBX products and higher cost of goods sold as the company scaled its new platform.
Operating cash use rose to $6.3 million in 2025 from $2.0 million in 2024, indicating that while profitability improved, cash flow remains a challenge as the company invests in inventory and product development.
Management expressed satisfaction that the audit no longer includes a “going‑concern” paragraph, noting that the company is now better positioned to focus on its vapor products and to pursue a potential uplist to a national exchange in 2026. The company also highlighted the strategic pivot away from regulated nicotine products toward its Metatine‑based SBX platform.
The results signal a significant shift in Charlie’s business model: the SBX line has become the core revenue driver, the company has secured a substantial cash infusion from asset sales, and it is preparing for a higher‑profile listing. Headwinds remain in the form of ongoing regulatory scrutiny and margin compression, but the company’s strategic focus and improved financial footing provide a foundation for future growth.
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