Key Takeaways
Charlie’s Holdings Inc. (OTCQB: CHUC) reported first-quarter revenue surged 204% to $4.8 million, driven by strong sales of its non-nicotine disposable vapor products.
“First quarter 2026 revenue of $4.8 million represents our strongest first quarter performance since 2022 and suggests, if we follow last year’s seasonal sales performance, 2026 could be our best year ever,” Matt Montesano, Charlie’s Holdings Chief Financial Officer, said.
The vapor products company posted a net loss of $1.1 million, a 14% improvement from the $1.3 million loss in the same period last year. Gross profit rose 206% to $1.2 million, with gross margin holding steady at 24.6%. Diluted loss per share was ($0.00), compared with ($0.01) in the first quarter of 2025.
The results highlight the company's growth in the non-nicotine segment as it navigates a market impacted by illicit products. Charlie's plans to launch what it calls America’s first age-gated disposables in the third quarter, a key initiative for its compliance-focused strategy.
The significant revenue growth was primarily attributed to the expansion of the SBX non-nicotine disposable vapor product line. While revenue scaled, operating expenses also increased 70% year over year to $2.2 million, which the company said was driven by additions in headcount, higher professional fees, and increased sales commissions.
Management highlighted recent regulatory developments as beneficial for the company. Charlie's gained California UTL authorization for four of its disposable products, leading to a rollout in what the company described as America’s second-largest c-store chain. The company also pointed to the U.S. Food and Drug Administration’s recent authorization of two fruit-flavored pods from another company as a sign the agency’s stance may be softening on flavored vapes.
“As federal enforcement continues, and as an increasing number of US retailers demand compliant vapor product for their adult customers, Charlie’s will benefit handsomely,” said Ryan Stump, Charlie’s Chief Operating Officer, commenting on recent seizures of illicit Chinese vape products.
The company is also moving into technology-gated products, signing a definitive licensing agreement in January with IKE Tech LLC to commercialize AI-powered, blockchain-based age-gating disposable vapes in the United States.
The strong top-line growth and focus on regulatory compliance position Charlie's to capture market share from illicit products amid increasing enforcement. Investors will watch for the launch of its age-gated disposables in Q3 2026 to assess the adoption of its new technology.
This article is for informational purposes only and does not constitute investment advice.
