Glass House Brands (GLASF) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $44.8M–$45M, up 49% year-over-year, with gross margin at 45% and adjusted EBITDA of $4.4M, reflecting strong operational execution despite California market challenges.

• Retail revenue grew 19% year-over-year, outperforming a 13% decline in the California retail market, and achieved record sales for four consecutive quarters.

• Wholesale biomass production hit 152,568–153,000 pounds, up 149% year-over-year, with cost per pound dropping to $108, a 41% improvement.

• The company operates the largest cannabis cultivation footprint in California, with up to 6 million sq. ft. of facilities and a vertically integrated model.

• Remained resilient despite challenging California pricing, distributor transitions, and regulatory headwinds.

Financial highlights

• Q1 gross profit was $20M–$20.1M, with a 45% gross margin, up from $12.5M and 42% in Q1 2024.

• Adjusted EBITDA was $4.4M, up from a loss of $1.6M last year, but down from $9.0M in Q4 2024.

• Net loss for Q1 2025 was $10M, compared to net income of $0.5M in Q4 2024 and a loss of $18.3M in Q1 2024.

• Operating cash flow was $2.5M, up from negative $1.9M in Q1 2024.

• Ended Q1 with $34.6M–$37.6M in cash and restricted cash, up from $24.4M a year ago.

Outlook and guidance

• Q2 2025 revenue expected between $57M–$59M, up nearly 30% sequentially and 8% year-over-year.

• Q2 biomass production projected at 210,000–215,000 pounds, up 42% year-over-year.

• Full-year 2025 revenue guidance is $220M–$230M, with adjusted EBITDA in the mid-$40M range.

• Year-end cash anticipated at $47M, assuming $33M in capex.

• No contribution from Greenhouse Two or hemp expansion included in 2025 guidance.