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 market reach.

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

• Expansion of Greenhouse II and Greenhouse 4 for hemp underway, targeting increased production and entry into new markets, including Europe.

Financial highlights

• Q1 2026 revenue was $40.5 million, down from $44.8 million in Q1 2025 but up from $38.9 million in Q4 2025, and ahead of guidance.

• Gross margin declined to 25% from 45% last year and 34% in Q4 2025, with Adjusted EBITDA at -$4.2 million versus +$4.4 million last year and -$3.3 million in Q4 2025.

• Q1 operating cash flow was -$11.8 million; period-end cash was $27.9 million, up from $23.4 million at 2025 year-end.

• Cost of production rose to $175 per pound from $108 last year, driven by labor inefficiencies and expansion.

• FY 2025 revenue was $181.98M, down from $200.90M in FY 2024; gross profit for FY 2025 was $76.96M, down from $97.39M in FY 2024.

Outlook and guidance

• 2026 net revenue guidance maintained at $235–$245 million; 1 million pounds of biomass targeted for the year.

• Full-year gross margin guidance reduced to mid-40% range (from 48%), Adjusted EBITDA to high $30 million (from high $40 million), and year-end cash to low $40 million (from $50 million).

• Q2 2026 revenue expected at $55–$60 million, with gross margin in the high 40% range.

• Annual production cost target remains $95 per pound, expected to be achieved in the second half of 2026.

• Guidance excludes potential sales outside California and hemp contributions, which are expected to be incremental.