Charlie’s Holdings Reports First Quarter 2026 Results

Company Reports 204% Revenue Growth compared with Q1 2025.

Increased regulatory enforcement, FDA’s pivot on flavored vapor products, and plans to launch America’s first age-gated disposable, bode well for Charlie’s.

COSTA MESA, CA , May 20, 2026 (GLOBE NEWSWIRE) -- Charlie’s Holdings, Inc. (OTCQB: CHUC) (“Charlie’s” or the “Company”), an industry leader in the premium vapor products space, today reported results for the three months ended March 31, 2026, and provided an update on recent business highlights. 

Key Financial Highlights for Q1 2026 (compared with Q1 2025)

• Revenue increased 204% to $4.8 million
• Gross profit increased 206% to $1.2 million
• Operating expenses increased 70% to $2.2 million
• Net loss decreased 14% to $1.1 million

Recent Business Highlights

• The Company achieved 204% revenue growth driven by significant expansion of the SBX non-nicotine disposable vapor product line.
• In January 2026 the Company signed a definitive licensing agreement with IKE Tech LLC ("IKE") to commercialize the first-ever AI-powered blockchain-based age-gating disposable vape products in the United States.
• On May 5, 2026, for the first time in history, the U.S. Food and Drug Administration (“FDA”) authorized two of Glas Inc.’s “fruit-flavored” pods through the premarket tobacco product application (“PMTA”) pathway. Industry officials view this development – combined with the May 12, 2026 resignation of FDA Commissioner Marty Makary – as a sign that the FDA’s long-standing resistance to broader flavored vape approvals may be starting to soften.
• This week the Company announced that Charlie's is the only company to have received California Unflavored Tobacco List ("UTL") authorization for FOUR modern disposable products (Virginia Tobacco SBX, PACHA 10K, PACHA 15K, and PACHA 20K). Charlie’s products are strongly positioned – on price point, value (puff counts), and performance – versus market leaders Juul and Vuse.
• As a result of Charlie’s new UTL authorizations, the Company reported that America’s second largest c-store chain introduced Charlie’s SBX Virginia Tobacco disposables across the State of California.
  

Management Commentary

“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,” stated Matt Montesano, Charlie’s Holdings Chief Financial Officer. “We reduced net loss by 14% compared to the prior year quarter, and we remain focused on scaling revenue further while managing our cost structure to once again achieve full-year profitability.”

“Due to a lack of regulatory enforcement, the inflow of illicit Chinese products has impacted sales for all companies’ compliant products this year. And Charlie’s is no exception,” explained Ryan Stump, Charlie’s Chief Operating Officer. “That said, we are encouraged that this month, at President Trump’s urging, the U.S. Customs and Border Protection, in collaboration with the U.S. Coast Guard and the U.S. Food and Drug Administration, seized more than 18 million ENDS products (illicit Chinese vapes) valued at more than $175 million. 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.”

“Charlie’s California UTL authorizations – a massive achievement in its own right – as well as our plans to launch America’s first age-gated disposables in Q3, are tangible initiatives that highlight Charlie’s focus on achieving full compliance with FDA and state-specific regulations,” explained Henry Sicignano, Charlie’s President. “Compliance-minded retailers – as well as big tobacco suitors – are taking note. In the end, we believe Charlie’s shareholders will be extremely pleased with the fruits of our commitment to conducting business responsibly… and assuming leadership in youth access prevention.”

Financial Results for the Three Months Ended March 31, 2026:

• Revenue: For the three months ended March 31, 2026, revenue was $4.8 million, an increase of $3.2 million, or 204%, compared with $1.6 million for the three months ended March 31, 2025. The increase in revenue was primarily due to growth in both the Company’s nicotine-based products and SBX, the Company’s non-nicotine disposable vapor product line. Compared to Q1 2025, sales of SBX experienced a significant increase in the first quarter of 2026. 
  
  
• Gross Profit: For the three months ended March 31, 2026, gross profit was $1.2 million, an increase of $0.8 million, or 206%, compared with $0.4 million for the three months ended March 31, 2025. The resulting gross margin for the three months ended March 31, 2026 was 24.6%, compared with 24.5% for the three months ended March 31, 2025, reflecting consistent cost structure as the Company scaled volume.
  
  
• Total Operating Expenses: For the three months ended March 31, 2026, total operating expenses were $2.2 million, an increase of $0.9 million, or 70%, compared with $1.3 million for the three months ended March 31, 2025. General and administrative expenses increased $652,000 to $1.7 million, driven primarily by headcount additions in operations and manufacturing to support revenue growth, higher professional fees, and increased occupancy and merchant processing costs that scale with sales volume. Sales and marketing expense increased to $383,000 from $173,000, reflecting higher sales commissions on increased revenue and expanded tradeshow activity. Research and development expense was $34,000, reflecting ongoing product development initiatives.
  
  
• Operating Loss: For the three months ended March 31, 2026, operating loss was $975,000, compared with $879,000 for the three months ended March 31, 2025, due primarily to higher operating expenses to support the Company’s growth.
  
  
• Other Income (Expense): Interest expense decreased significantly to $75,000 from $241,000 in the prior year period, primarily reflecting the payoff of outstanding notes payable. Additionally, there was no debt extinguishment loss in Q1 2026, compared with $149,000 in Q1 2025.
  
  
• Net Loss: For the three months ended March 31, 2026, net loss was $1.1 million, a decrease of $0.2 million, or 14%, compared with $1.3 million for the three months ended March 31, 2025. The improvement in net loss reflects significantly reduced interest expense and the absence of debt extinguishment charges, partially offset by higher operating expenses to support the Company’s growth initiatives.
  
  
• EPS: For the three months ended March 31, 2026, diluted loss per share was ($0.00), compared with diluted loss per share of ($0.01), for the three months ended March 31, 2025.
  

About Charlie’s Holdings, Inc.

Charlie's Holdings, Inc. (OTCQB: CHUC) is an industry leader in the premium vapor products space. The Company's products are sold around the world to select distributors, specialty retailers, and third-party online resellers through subsidiary company Charlie's Chalk Dust, LLC, which has developed an extensive portfolio of brand styles, flavor profiles, and innovative product formats.

For additional information, please visit Charlie’s corporate website at: Chuc.com and the Company’s branded online websites: sbxvape.com, CharliesChalkDust.com, enjoypachamama.com, and Pacha.co.

Safe Harbor Statement 

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company's overall business, existing and anticipated markets and expectations regarding future sales and expenses. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms, and similar expressions, are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ongoing ability to quote its shares on the OTCQB; whether the Company will meet the requirements to up-list to a national securities exchange in the future; the Company’s ability to successfully increase sales and enter new markets; whether the Company’s PMTA’s for its nicotine-containing products will be authorized by the FDA, and the FDA’s decisions with respect to the Company’s future PMTA’s for nicotine products; the Company's ability to manufacture and produce products for its customers; the Company's ability to formulate new products; the acceptance of existing and future products; the complexity, expense and time associated with compliance with government rules and regulations affecting nicotine, synthetic nicotine, products containing nicotine substitutes, and products containing cannabidiol; litigation risks from the use of the Company's products; risks of government regulations; the impact of competitive products; and the Company's ability to maintain and enhance its brands, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q, annual report on Form 10-K, and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investors Contact:
IR@charliesholdings.com
Phone: 949-570-0673