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CTHR

Charles & Colvard, Ltd.

CTHR

Charles & Colvard, Ltd. • NASDAQ
$0.10 ▼ -9.09% (-0.01)
Market Cap $311935
52w High $1.87
52w Low $0.02
Dividend Yield 0%
P/E -0.03
Volume 794
Outstanding Shares 3.12M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.049M ▼ $2.899M ▼ $-1.973M ▲ -48.727% ▲ $-0.63 ▲ $-1.968M ▲
Q2-2025 $4.629M ▲ $4.044M ▲ $-2.537M ▼ -54.793% ▲ $-0.81 ▼ $-2.539M ▼
Q1-2025 $3.233M ▼ $3.14M ▼ $-2.134M ▲ -65.984% ▲ $-0.68 ▲ $-1.879M ▲
Q4-2024 $3.836M ▼ $4.545M ▼ $-5.325M ▼ -138.819% ▼ $-1.75 ▼ $-5.109M ▼
Q3-2024 $5.262M $4.884M $-3.633M -69.037% $-1.2 $-3.45M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.257M ▼ $29.105M ▼ $10.017M ▼ $19.089M ▼
Q2-2025 $1.519M ▼ $36.634M ▲ $15.58M ▲ $21.054M ▼
Q1-2025 $2.739M ▼ $21.892M ▼ $14.214M ▼ $23.559M ▼
Q4-2024 $4.137M ▲ $40.98M ▲ $15.331M ▲ $25.649M ▼
Q3-2024 $3.686M $40.963M $10.037M $30.925M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $2.314M ▲ $-2.833M ▼ $-53.022K ▲ $-2.3M ▼ $-5.186M ▼ $-1.514M ▼
Q2-2025 $654.845K ▲ $-1.106M ▲ $-74.285K ▲ $0 $-2.575M ▼ $-984.072K ▲
Q1-2025 $-2.134M ▲ $-1.288M ▲ $-106.122K ▲ $0 ▼ $-1.394M ▼ $-1.385M ▲
Q4-2024 $-5.325M ▼ $-1.309M ▲ $-265.348K ▼ $1.8M ▲ $225.916K ▲ $-1.574M ▲
Q3-2024 $-3.633M $-2.112M $-235.598K $500K $-1.848M $-2.348M

Five-Year Company Overview

Income Statement

Income Statement Revenue has been drifting down after a brief period of stability, and the company has swung from modest profits a few years ago to consistent losses more recently. Gross profit is still positive, but the cushion between sales and operating expenses has become very thin, so even small drops in revenue or small cost increases push results into the red. Earnings have also been volatile, reflecting a business that has not yet found a steady, profitable run-rate in its current form.

Balance Sheet

Balance Sheet The balance sheet has been shrinking, with total assets and shareholder equity gradually moving lower, which is typical when losses stack up over time. Cash has come down to a lean level, reducing the company’s financial flexibility. On the positive side, there is essentially no financial debt, so the company is not burdened by interest payments, but the combination of low cash and ongoing losses heightens the need for careful cost control and disciplined use of resources.

Cash Flow

Cash Flow Cash generation has weakened: operating cash flow has slipped from slightly positive to slightly negative, and free cash flow is also in the red. This cash burn appears driven more by operating losses than by heavy investment, since capital spending is minimal. That suggests an asset‑light model, but also raises the question of whether the business is investing enough for growth while still needing to stabilize its day‑to‑day cash usage.

Competitive Edge

Competitive Edge Charles & Colvard moved from a dominant, patent-protected moissanite pioneer to one player in a crowded field after its core patents expired. Its moat today leans on brand recognition, perceived quality, and an ethical “made, not mined” message rather than on exclusive technology. The company is trying to defend a premium niche in both moissanite and lab‑grown diamonds while facing intense price competition and commoditization. Its relatively small scale and the presence of many new and well-capitalized rivals mean it must differentiate sharply on brand, design, and service to maintain pricing power and relevance.

Innovation and R&D

Innovation and R&D Innovation here is more about product development, branding, and channel strategy than heavy lab research at this stage. The firm is leveraging its moissanite heritage (Forever One), expanding into lab-grown diamonds (Caydia) and colored lab-grown gemstones, and moving deeper into finished jewelry. It is also experimenting with new routes to market, including a B2B portal for jewelers, partnerships for lab-grown diamond supply, and social commerce collaborations. These steps show an active effort to adapt and refresh the business model, but their impact on growth and profitability is still emerging and uncertain.

Summary

Charles & Colvard is a legacy innovator in lab-grown gemstones that is now in a turnaround-like phase. The income statement shows declining sales and ongoing losses, the balance sheet is debt‑free but slimmer and more cash‑constrained, and cash flow is negative, leaving limited margin for strategic missteps. Competitively, the company has shifted from patent protection to relying on brand, quality, and ethics in a fiercely competitive, fast-evolving market. Its response—broadening into lab-grown diamonds and colored stones, emphasizing finished jewelry, and building new wholesale and social-selling channels—illustrates a clear strategic pivot. The key uncertainty is whether these initiatives can scale quickly and efficiently enough to rebuild revenue and restore sustainable profitability before financial resources become too tight.

NEWS

November 17, 2025 · 8:30 AM UTC

Charles & Colvard Partners with VideoShops to Bring Its Lab-Grown Jewelry and Customers to the Social Commerce Network with 50,000+ Influential Sellers

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October 9, 2025 · 8:30 AM UTC

CHARLES & COLVARD PARTNERS WITH ETHARA CAPITAL TO EXPAND LAB-GROWN DIAMOND OFFERINGS

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