Glass House Brands Surpasses Expectations in Q1 2023 with Positive Cash Flow and Increased Revenue

LOS ANGELES– Glass House Brands Inc., a prominent vertically integrated cannabis company in the U.S., has reported impressive financial results for the first quarter ending March 31, 2023.

The company registered a net sales growth of 108% from the same period last year, raking in $29.0 million, up from $14.0 million in Q1 2022. This represents a 10% sequential decrease from the $32.2 million earned in Q4 2022. Glass House also reported a gross profit of $12.0 million compared to $2.3 million in Q1 2022 and $10.2 million in Q4 2022.

“In the first quarter of this year, we achieved free cash flow positive operations one quarter ahead of our guidance,” said Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House. He added that the company’s unique business model has significant competitive advantages that they are just beginning to unlock, which is expected to lead to tremendous growth in both revenues and profitability in the future.

Glass House Brands has set its sights on a positive operational cash flow and adjusted EBITDA for Q2 and the rest of 2023, with the assumption of maintained improved wholesale pricing for the balance of the year. For Q2 2023, the company expects revenue to be between $38 million and $40 million, driven by the seasonal increase in biomass production due to higher sunlight levels and an expected average selling price for wholesale biomass at $325 per pound.

“We expect consolidated gross margin percent to be in the mid-40s versus Q1’s 41% because of the higher seasonal production in cultivation which we project to be 75,000 pounds,” Kazan stated.

For the fiscal year 2023, Glass House is maintaining its revenue guidance of $160 million but is adjusting sales between its segments. As a result of the higher pricing in biomass wholesale, it is increasing its wholesale revenue projection to $100 million from $85 million.

Despite the challenges presented by the competitive marketplace and heavy discounting, Glass House is determined to continue driving significant growth and hitting key profitability milestones. The company is inviting all shareholders to attend Investor Sesh 2023 on Friday, June 23, at their SoCal Farm in Camarillo, CA, reflecting their commitment to transparency and personal engagement with their investor base.