Charlie’s Holdings reported second-quarter revenue of $3.8 million, up 116% from $1.8 million a year earlier, driven by higher sales of nicotine-based and nicotine-alternative products. Gross profit rose 130% to $1.1 million, while gross margin increased to 29.4% from 27.6%. Operating expenses increased 63% to $2.4 million, resulting in an operating loss of $1.2 million, compared with $1 million in Q2 2025.
The company said the FDA has tentatively identified 30 PACHA SKUs with submitted premarket tobacco applications for inclusion on a public webpage covering products for which the agency generally does not intend to prioritize enforcement of PMTA requirements. Charlie’s said the development could improve the regulatory outlook for the products, although the company described the status as tentative. The company also cited the FDA’s May authorization of four flavored ENDS products from Glas as a potentially significant development for the U.S. vapor market.
Charlie’s said it remains on schedule to test-market what it describes as the first age-gated flavored disposable vape in the U.S. through hundreds of retail stores. The company also launched SBX 25K Virginia Tobacco disposables in California and said it has received California Unflavored Tobacco List authorization for four modern disposable products. Charlie’s ended the quarter with $500,000 in cash, down from $1.3 million at year-end 2025, while total assets increased to $12.8 million. Management and directors purchased 1.35 million restricted shares during the first half at $0.20 per share.
