Glass House Brands Stock Earnings Reports

Glass House reported a strong Q2 2025 with revenue of $59.9M (+11% YoY, +34% QoQ) and adjusted EBITDA of $18.1M, beating guidance on production, revenue, gross profit and cash. Production was 231k pounds of biomass at a materially improved cost of production of $91/lb (vs. $148/ lb a year ago), enabling gross margin expansion and retail same-store strength—retail revenue rose 13% YoY while California retail sales declined ~15% per Headset. The Allswell brand continues to perform well (everyday $9.99 1/8 price) and management said it will absorb a recent 4% California excise tax increase to protect price-sensitive consumers. The company completed a preferred equity recapitalization (Series E) to reduce dividend burden and ended Q2 with ~$44M cash. Compliance/ICE activity in July prompted hiring of external compliance consultants, stricter farm labor contractor vetting and temporary labor reductions; management is delaying some plantings and pushing processing into Q4, which will materially reduce Q3 production and revenue but create higher harvested-but-unprocessed inventory into Q4. Updated guidance: Q3 revenue $35–$38M; full-year revenue now $190–$195M (down from $220–$230M) and full-year adjusted EBITDA $23–$26M. Management expects to return to prior run rate in Q1 2026, is accelerating automation to lower long-term costs (new cost target ~$95/lb), and is prioritizing core cannabis operations over near-term hemp expansion.