Glass House Brands (GLASF) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results, with revenue, gross profit, and biomass production at all-time highs, driven by strong wholesale and retail performance.

• Greenhouse 5 completed its first full quarter, outperforming expectations in yield, quality, and efficiency.

• Net income reached $10M, reversing prior losses; adjusted EBITDA was a record $12.4M, above guidance.

• Strategic pricing initiatives and Allswell brand drove significant retail traffic and sales growth, outperforming the California market.

• Announced plans for Greenhouse 2 expansion and exploring hemp-derived cannabis for national reach and regulatory optionality.

Financial highlights

• Q2 2024 net revenue was $53.9M, up 21% year-over-year and 79% sequentially, at the high end of guidance.

• Gross profit reached $28.7M (53% margin), exceeding guidance.

• Adjusted EBITDA hit a record $12.4M, up from $(1.6)M in Q1 2024.

• Net income was $10M, a turnaround from a net loss of $18.3M in Q1 2024.

• Ended Q2 with $25.9M in cash and restricted cash.

Outlook and guidance

• Q3 2024 revenue expected at $65M–$67M, up 22% sequentially and 37% year-over-year.

• Q3 biomass production guidance: 185,000–195,000 lbs, up 27% sequentially and 87% year-over-year.

• Q3 adjusted EBITDA and operating cash flow projected at $18M–$20M; cash balance to reach $38M–$40M.

• FY 2024 revenue guidance revised to $205M–$210M (29% YoY growth midpoint); adjusted EBITDA to $40M–$45M.

• FY 2024 wholesale biomass production guidance raised to 575,000–585,000 lbs, a 63% increase over 2023.