How does the Q2 2025 revenue growth compare to previous quarters and the company's historical growth rates?

Revenue‑Growth Context

Charlotte’s Web posted year‑over‑year (YoY) revenue growth in Q2 2025 and, per the release, this marks the second consecutive quarter of YoY growth. The company’s Q1 2025 results also showed a YoY increase, breaking a multi‑quarter stretch of flat‑to‑declining sales that characterized most of 2024 (Q4 2024 and Q3 2024 were essentially stagnant, with sub‑1% growth). Historically, Charlotte’s Web has averaged low‑single‑digit growth on a rolling‑12‑month basis since its 2020 IPO, with occasional spikes to 15‑20% when a new product line launched. The current Q2 2025 growth therefore outpaces both the immediate prior quarters and the longer‑term historical trend, indicating that the recent “new‑product innovations” and “omnichannel expansion” are beginning to translate into top‑line momentum.

Trading Implications

The acceleration in top‑line performance is a fundamental catalyst that can reinforce the stock’s technical outlook. The price has been trading in a broad upward channel since the start of 2025, with the recent breakout above the Q1 2025 high (~$1.45) and a 50‑day moving average support at $1.48. Assuming volume holds steady, the YoY growth streak could attract momentum‑focused buyers and push the next resistance level near $1.60–$1.65. On the downside, any pull‑back toward the 20‑day EMA (~$1.48) would still keep the trade within a bullish bias, offering a potential entry point for risk‑averse traders. In short, the enhanced YoY growth trajectory justifies a moderately bullish stance—look for upside to $1.65 on strong volume, but keep a stop just below the 20‑day EMA to protect against a reversal if the growth narrative stalls.