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Charles & Colvard (CTHR) investor relations material

Charles & Colvard Q4 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for Charles & Colvard Ltd
Q4 2024 earnings summary3 Aug, 2025

Executive summary

  • Net sales declined 27% year-over-year to $22.0 million, with losses of $14.4 million and negative cash flow from operations of $7.4 million for the year ended June 30, 2024.

  • The company faces substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and a $4.8 million settlement related to the Wolfspeed arbitration.

  • Strategic actions included cost reductions, supply chain consolidation, and a 1-for-10 reverse stock split to regain Nasdaq compliance.

  • The company continues to focus on e-commerce, product innovation, and expanding its lab-grown diamond and moissanite jewelry offerings.

Financial highlights

  • Net sales: $21.96 million in FY2024 vs. $29.95 million in FY2023, a 27% decrease.

  • Net loss: $14.36 million in FY2024 vs. $19.58 million in FY2023.

  • Gross margin: Product line gross profit was $10.1 million in FY2024, down from $14.8 million in FY2023.

  • Finished jewelry accounted for 92% of sales; loose jewels 8%.

  • Cash and cash equivalents at year-end: $4.1 million, with $2.3 million in short-term debt.

Outlook and guidance

  • Management is focused on stabilizing operations, disciplined spending, and cost management to address liquidity challenges.

  • The company is evaluating financing options, cost-saving actions, and potential inventory liquidation to fund operations.

  • Strategic priorities include operational efficiency, product differentiation, and expanding direct-to-consumer channels.

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Frequently asked questions

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. The company primarily focuses on producing diamond simulants and selling colored gemstones, such as rubies and sapphires, to the consumer electronics industry for use in screens and electroluminescent lamps. It also offers a variety of colored gemstone jewelry pieces and accessories through retail channels; and conducts research and development of new materials for producing fine gemstones. The firm distributes its products directly to consumers through its e-commerce website that also sells diamonds, colored gemstones, fine jewelry, and watches in the United States, as well as through retailers located in Europe, Latin America, and Asia-Pacific regions.

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