Glass House Brands (GLASF) Q1 2026 earnings summary

Executive summary

• Medical cannabis was rescheduled to Schedule III, opening new opportunities for interstate commerce and export, with further legislative progress anticipated for recreational cannabis rescheduling in June.

• Operates the largest cannabis cultivation footprint in California, with up to 6 million sq. ft. of facilities and a vertically integrated model spanning cultivation, manufacturing, and retail.

• Announced a major California retail joint venture with Vireo Growth, combining dispensary operations and delivery services for broader reach and improved pricing.

• Expansion of Greenhouse II and IV underway, targeting increased production and entry into international hemp and CBD markets.

• Achieved six consecutive quarters of same-store retail sales growth through Q2 2025 and record retail revenue in Q4 2024.

Financial highlights

• Q1 2026 revenue was $40.5 million, down from $44.8 million year-over-year but ahead of guidance.

• Gross margin declined to 25% from 45% last year, primarily due to higher production costs and labor inefficiencies.

• Adjusted EBITDA was a loss of $4.2 million, compared to a positive $4.4 million last year and negative $3.3 million in Q4 2025.

• Ended Q1 with $27.9 million in cash and restricted cash, bolstered by $22 million raised via ATM equity issuance.

• Cost of production per pound rose to $175 from $108 last year, with average selling price at $171 per pound.

Outlook and guidance

• Full-year 2026 net revenue guidance maintained at $235–$245 million.

• Gross margin guidance reduced to mid-40% range (from 48%), Adjusted EBITDA now expected in the high $30 million range.

• Cost of production target remains $95 per pound on a quarterly basis in the second half of 2026.

• Q2 2026 revenue expected at $55–$60 million, with 240,000 pounds of biomass production.

• Guidance excludes potential upside from interstate/export sales and hemp business contributions.