Glass House Brands Reports Q2 2026 Financial Results

LONG BEACH – Glass House Brands Inc. released its Q2 2026 financial results, reporting revenue of $47 million, nearly flat year-over-year but a 64% sequential improvement from Q1 2026. Biomass production reached a company record of 245,746 equivalent dry pounds, surpassing management’s guidance and the 230,748 pounds produced in the same quarter last year. Cost of production improved to $122 per pound, down sharply from $175 per pound in Q1, though still above the company’s $95-per-pound target.

The most significant development was structural. In June, Glass House completed the deconsolidation of its retail subsidiary, Glass House Retail LLC, and simultaneously applied for [and received] NYSE uplisting and registered its cultivation and processing licenses with the DEA following April’s federal rescheduling of medical Cannabis to Schedule III. Glass House now operates as a fully medically licensed, Schedule III-compliant wholesale biomass and consumer-packaged goods company.

CEO Kyle Kazan was direct about the strategic rationale. Rescheduling, he stated, is sufficient to support interstate commerce between DEA-registered operators and opens a path into international medical Cannabis export markets. The company also completed its first international hemp sale during the quarter – a concrete step toward diversification beyond California.

Gross profit margin came in at 34%, a recovery from 14% in Q1 2026, but well below the 55% recorded in Q2 2025. The compression was driven by a heavier proportion of trim within the production mix and higher cost of production. Adjusted EBITDA turned positive at $5.7 million, compared to negative $4.2 million in Q1 2026. Operating cash flow returned to positive territory at $200,000, a substantive turnaround from the $11.8 million outflow in Q1. The company closed the quarter with $22.1 million in cash and restricted cash, compared to $20.7 million at the start of Q2.

Capital expenditures totaled $2.1 million, directed primarily toward Phase III expansion at Camarillo. Glass House reaffirmed its full-year 2026 biomass production target of approximately one million pounds, with management projecting a run rate above 1.1 million pounds by year-end once Greenhouse Two (GH2) reaches full capacity.

Average selling price rose to $211 per pound, compared to $206 in Q2 2025, as California pricing conditions continue to show signs of improvement after a sustained period of compression.

Glass House exits the quarter with its structural repositioning largely complete and its production trajectory pointing upward. The gap between the current $122-per-pound production cost and the $95 target remains the central variable to track; closing it will determine how much margin recovery actually materializes when volumes scale. The interstate commerce and export angles are longer-dated catalysts, but the DEA registration and the retention of a former DEA compliance executive signal operational seriousness rather than promotional messaging.