Glass House Brands Reports Q2 2025 Financial Results

LONG BEACH and TORONTO – Glass House Brands Inc., a leading vertically integrated Cannabis operator in the US, unveiled its second-quarter 2025 financial statements, showing impressive growth in key areas despite ongoing market pressures and recent labor disruptions.

The company reported revenue of $59.9 million for the quarter ended June 30, marking an 11% rise from $53.9 million in the same period last year and a 34% sequential increase from $44.8 million in the first quarter. This performance exceeded analyst expectations by about $1.8 million, with earnings per share coming in at $0.09, surpassing forecasts by $0.15.

Wholesale biomass, the firm’s core segment, generated $42.1 million in sales, up 8% year-over-year, fueled by a 54% production increase to 230,748 pounds. Retail operations contributed $12.3 million, a 13% annual gain that outperformed the state’s overall 15% retail sales decline. Consumer packaged goods added $5.5 million, reflecting 38% growth from the prior year.

Gross profit reached $31.9 million, maintaining a 53% margin consistent with last year’s figure and up from 45% in the first quarter. Adjusted EBITDA climbed to $18.1 million, far outpacing the $11 million to $13 million guidance and quadrupling the $4.4 million from the previous quarter. Production costs dropped 39% to $91 per pound, below the targeted $100 threshold. Cash flow from operations hit $17.7 million, and the cash position strengthened to $44.2 million.

In July, Glass House completed a $74 million preferred equity recapitalization, issuing Series E shares with a 12% dividend rate to replace higher-cost prior series, enhancing financial flexibility.

However, the company revised its full-year outlook downward following a July 10 immigration enforcement action at its farms, which led to detentions and temporary staffing shortages. Third-quarter revenue is now expected at $35 million to $38 million, with biomass production halved to 95,000-100,000 pounds and costs rising to $160 per pound. Annual revenue guidance was cut to $190 million-$195 million, and adjusted EBITDA to $23 million-$26 million. Management anticipates a fourth-quarter recovery as hiring ramps up.

Financially, these results highlight Glass House’s ability to drive profitability in a tough environment, with cost controls and cash generation offering stability. Yet the labor issues expose risks in the supply chain, potentially affecting near-term output.