Glass House Brands Reports Second Quarter 2026 Financial Results
LONG BEACH, Calif. and TORONTO, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Glass House Brands Inc. (“Glass House” or the “Company”) (CBOE CA: GLAS.A.U) (NYSE: GLAS), one of the fastest-growing cannabis companies in the U.S., today reported financial results for the second quarter ended June 30, 2026.
As a result of the Company’s previously announced deconsolidation of Glass House Retail, LLC (“GHR”) effective June 12, 2026, the historical operating results of GHR through June 11, 2026, together with the loss recognized upon deconsolidation of GHR on June 12, 2026, are presented as discontinued operations for all periods presented. Prior-period results of operations have been retrospectively recast to conform to the current-period presentation. Beginning June 12, 2026, the Company’s share of GHR’s post-deconsolidation income or loss is recognized under the equity method and included in continuing operations. Unless otherwise noted, the results of operations discussed in this earnings release, including the non-GAAP financial measures presented herein, reflect the Company’s continuing operations and exclude amounts classified as discontinued operations.
Second Quarter 2026 Highlights
(Unaudited results, unless otherwise stated, all results and dollar references are in U.S. dollars)
Management Commentary
“In light of April’s rescheduling of medical cannabis, we made significant changes to the business, our licenses and operating structure including registering our cultivation and processing licenses with the DEA, and converting each of our cultivation and processing licenses to medical,” said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House. “We are confident that medical cannabis rescheduling is sufficient to support interstate commerce between companies with appropriately registered DEA licenses and export to international medical cannabis markets.”
“We completed a deconsolidation transaction whereby we fully separated our retail operations. Now, our remaining business is fully medically licensed and Schedule III compliant.”
“Our second quarter results reflect our retail deconsolidation and meaningful progress in returning to more fully efficient operations at our farms. We produced 246,000 pounds of biomass in the quarter, a record level and ahead of both our guidance and our production last year. Our cost of production for the quarter was $122 per pound. The cost of production reflects significant improvement from the $175 per pound we reported last quarter.”
“As we look forward, we expect to see a further scaling of production for the second half of 2026 as we start to see a full contribution from Greenhouse Two at the end of this quarter. We remain on track to produce 1 million pounds of biomass this year and to end 2026 with a production run rate of over 1.1 million pounds.”
“Longer term, our outlook remains unchanged. Our $95 cost of production target remains achievable as with our operating model, we will never have to pay the high energy bills of indoor peers, nor do we rely on third-party water supply. It is these benefits that have sustained us despite challenging California cannabis market conditions and makes us an ideal supply partner for operators in other markets which rely heavily on indoor growth. We also look forward to entering new markets and product categories, which will further expand our growth trajectory.”
Second Quarter 2026 Operational Highlights and Subsequent Events
Q2 2026 Financial Results Discussion
Revenues for second quarter 2026 were $47.0 million, compared to $28.6 million in first quarter 2026 and $47.6 million in second quarter 2025, excluding retail revenue. Retail revenue through the date of deconsolidation was $9.9 million for the second quarter of 2026.
The wholesale biomass segment revenue was $41.7 million, accounting for 89% of total revenue. Biomass production reached 245,746 pounds during Q2 2026, compared to 151,531 in the first quarter 2026 and 230,748 in the prior year period.
Wholesale CPG segment revenues were $5.3 million, representing a 14% sequential increase and (4)% year-over-year decrease.
Consolidated gross profit for the second quarter was $15.8 million, compared to $26.1 million for Q2 last year and $4.1 million in first quarter 2026. Gross margin was 34%, compared to 55% in the prior year period and 14% in the first quarter of 2026. The underperformance was attributable to the higher proportion of trim within the production mix and higher cost of production. Retail gross margin through the date of deconsolidation was approximately 50% for the quarter.
Average selling price was $211 per pound, compared to $206 in the second quarter of 2025 as California pricing conditions continue to show signs of improvement.
General and administrative expenses were $13.4 million for the second quarter of 2026, compared to $10.2 million last year and $12.2 million in the first quarter.
Sales and marketing expenses were $0.4 million, compared to $0.3 million during the same period last year and $0.1 million in the prior quarter.
Professional fees were $1.6 million in Q2, compared to $2.9 million in Q1 2026 and $2.0 million in Q2 2025.
Depreciation and amortization in Q2 2026 were $3.4 million, compared to $3.5 million in Q1 2026 and $3.4 million in Q2 2025.
Adjusted EBITDA was positive $5.7 million in Q2 2026, compared to positive $18.1 million in the second quarter 2025 and negative $(4.2) million in Q1 2026. Adjusted EBITDA results reflect the factors that impacted gross margin performance as well as a modest increase in cash operating expenses.
Operating cash flow was positive $0.2 million, compared to positive $17.7 million in the year-ago period and negative $(11.8) million in Q1 2026.
As of June 30, 2026, the Company had $22.1 million of cash and restricted cash, compared to $20.7 million at the start of the second quarter. The Company spent $2.1 million in capex in the second quarter, which was mostly for Phase III expansion at Camarillo. The Company also paid $2.9 million in preferred stock dividend payments.
Warrant Redemption and Acceleration
The Company delivered a notice of redemption, dated April 28, 2026, with respect to the warrants (the “Warrants”) outstanding under the warrant agency agreement, dated May 13, 2019, between the Company and Odyssey Trust Company, as amended (the “Warrant Agency Agreement”). The Warrants were redeemed on May 28, 2026 (the “Redemption Date”) in accordance with Section 3.4 (1) of the Warrant Agency Agreement at a redemption price of .011826 Shares per Warrant (the “Redemption Shares”). If the Company had not taken any action, the outstanding Warrants would have expired on June 29, 2026.
In June, the Company provided notice that it has elected to exercise its rights under the terms of a warrant indenture dated August 31, 2022 (the “2022 Warrant Indenture”) governing certain share purchase warrants of the Company (the “Series B and C Warrants”) and a warrant indenture dated August 23, 2023 (the “2023 Warrant Indenture”), governing certain share purchase warrants of the Company (the “Series D Warrants”) to accelerate the expiry date of such warrants.
For further information, please refer to the Company’s news releases dated April 28, 2026, May 29, 2026 and June 23, 2026.
Financial results and analyses will be available on the Company’s website on the ‘Investors’ and ‘News & Events’ drop-down menus ( www.glasshousebrands.com) and SEDAR+ ( www.sedarplus.ca).
Unaudited results, unless otherwise stated, all results are in U.S. dollars.
The selected cash flow information includes the cash flows of the retail business through June 11, 2026 and have not been separately presented between continuing and discontinued operations.
Equivalent Dry Pounds Average Selling Price excludes the impact of cultivation tax.
Conference Call
The Company will host a conference call to discuss the results today, August 13, 2026, at 5:00 p.m. Eastern Time.
(replay available for approximately 30 days)
In addition, content related to the earnings call including a transcript and audio recording of the call, as well as the Company’s financial statements and management’s discussion and analysis of financial condition and results of operations for the period (upon completion), will be posted to the Company’s website and can be found here. Content from previous reporting periods is also available.
Non-GAAP Financial Measures
Glass House defines EBITDA as Net Income (Loss) (GAAP) adjusted for interest and financing costs, income taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA excluding share-based compensation, stock appreciation rights expense, change in equity method investments, change in fair value of derivative instruments, impairment expense for goodwill and intangible assets, change in fair value of contingent liabilities and shares payable, loss on extinguishment of debt, employee retention tax credits, non-recurring casualty loss, non-recurring legal and professional fees and certain debt-related fees.
EBITDA and Adjusted EBITDA are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. Such supplemental non-GAAP financial measures are not standardized financial measures under U.S. GAAP used to prepare the Company's financial statements and might not be comparable to similar financial measures disclosed by other companies and, thus, should only be considered in conjunction with the GAAP financial measures presented herein.
The Company has provided tables above that provide a reconciliation of the Company's Net Income (Loss) (GAAP) to Adjusted EBITDA for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and three months ended March 31, 2026.
Footnotes and Sources:
About Glass House Brands
Glass House is one of the fastest-growing cannabis companies in the U.S., with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. Whether it be through its portfolio of brands, which includes Glass House Farms, PLUS Products, Allswell and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all. For more information and company updates, visit www.glasshousebrands.com/ and https://ir.glasshousebrands.com/contact/email-alerts/.
Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”). Forward-looking statements reflect current expectations or beliefs regarding future events or Glass House’s future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include, without limitation, statements regarding the completion of the proposed joint venture with Vireo and the anticipated benefits thereof. All forward-looking statements, including those herein, are qualified by this cautionary statement. Although Glass House believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. Accordingly, readers should not place undue reliance on forward-looking statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including those risks disclosed in the Glass House’s Annual Information Form available on SEDAR+ at www.sedarplus.ca and in Glass House’s Form 40-F available on EDGAR at www.sec.gov. For more information on Glass House, investors are encouraged to review Glass House’s public filings on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. Glass House disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
For further information, please contact:
Glass House Brands Inc.
Jon DeCourcey, Vice President, Head of Capital Markets
T: (781) 724-6869
E: ir@glasshousebrands.com
Investor Relations Contact:
KCSA Strategic Communications
Phil Carlson
T: 212-896-1233
E: GlassHouseIR@kcsa.com