Glass House Brands (GLASF) Q2 2025 earnings summary

Executive summary

• Q2 2025 results exceeded expectations in revenue, gross profit, adjusted EBITDA, and cash, with all three revenue segments contributing to growth despite challenging California pricing and higher excise taxes.

• Operates the largest cannabis cultivation footprint in California, with up to 6 million sq. ft. of facilities and a vertically integrated model across 10 locations.

• Achieved sixth consecutive quarter of same-store sales retail growth in Q2 2025, with cultivation and production costs per pound dropping below $100 for the first time.

• Allswell brand achieved record sales and maintained top-three status among California flower brands.

• Strategic focus on cost efficiency, ESG leadership, and expansion into hemp-derived cannabis markets.

Financial highlights

• Q2 2025 revenue was $59.9 million, up 34% sequentially and 11%–25% year-over-year, with gross profit of $31.9 million (53% margin).

• Adjusted EBITDA reached $18.1 million, up from $4.4 million in Q1 and $12.4 million in Q2 2024.

• Net income for Q2 2025 was $8.7 million, reversing a net loss of $10 million in Q1 2025.

• Operating cash flow was $17.7 million, up from $2.5 million in Q1 and $8.9 million in Q2 2024.

• Ended the quarter with $44.2 million in cash and restricted cash, up from $37.6 million in Q1 2025.

Outlook and guidance

• Q3 2025 revenue expected between $35 million and $38 million due to labor constraints, with Q4 revenue projected to rebound but remain slightly below last year's $53 million.

• Full-year 2025 revenue now anticipated at $190–$195 million, down from $220–$230 million prior guidance.

• Full-year adjusted EBITDA expected at $23–$26 million, down from mid-$40 million prior guidance.

• Q3 biomass production forecasted at 95,000–100,000 pounds, with Q4 production expected to double Q3.

• Full capacity production target of 1.6 million pounds, with ongoing greenhouse retrofits and Phase 3 expansion to add 585,000 sq. ft. of cultivation area.