-- Third quarter results reflect temporary planned scaled back in new
planting and wholesale production
-- Company remains on track to return to full production at existing
greenhouses in the first quarter of 2026, by year-end 2025 will have the
most cannabis acreage planted in the Company's history
-- Previously announced $95 per pound of biomass full year production cost
target remains intact
-- Conference Call to be held today November 12, 2025 at 5:00 p.m. ET
LONG BEACH, Calif. and TORONTO, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Glass House Brands Inc. ("Glass House" or the "Company") (CBOE CA: GLAS.A.U) (CBOE CA: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today reported financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
(Unaudited results, unless otherwise stated, all results and dollar references are in U.S. dollars)
-- Revenue of $38.4 million, ahead of guidance of $35 million to $38 million
but down from $63.8 million last year and $59.9 million in the second
quarter 2025.
-- Gross Profit Margin was 31%, compared to 52% in third quarter 2024 and
53% in second quarter 2025.
-- Adjusted EBITDA1 was negative $(2.3) million, compared to $20.4 million
in third quarter 2024 and $18.1 million in second quarter 2025.
-- Operating Cash Flow was negative $(5.1) million, compared to
$13.2 million in third quarter 2024 and $17.7 million in second quarter
2025.
-- Equivalent Dry Pound Production2 was 123,986 pounds, exceeding guidance
of 95,000 pounds to 100,000 pounds but down from 232,295 in third quarter
2024 and 230,748 in second quarter 2025.
-- Cost per Equivalent Dry Pound of Production3 was $128 per pound, compared
to $103 per pound in third quarter 2024 and $91 per pound in second
quarter 2025.
-- Cash, Restricted Cash and Cash Equivalents balance was $29.8 million at
quarter-end compared to $44.2 million at the end of second quarter 2025.
To watch Q3 2025 Results Video, Click Here.
Management Commentary
"In light of the events of this past summer we made the hard decision to completely revamp hiring and staffing practices for both employees and third-party labor contractors," said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House. "As anticipated, these actions resulted in temporary worker shortages as well as a planned scaled back in new planting and production."
"Our quarterly results reflect the effects of these choices. Total revenue was $38.4 million, ahead of guidance but still down meaningfully year-over-year and below the mid-to-high $60 million level that we were tracking to prior to July 10(th) ."
"Retail and CPG segment results remained strong, with revenues for both segments up year-over-year and significantly outperforming those of the broader California cannabis market due to continued successful execution at retail and as our brands resonate with customers. The impact from our planned step back came in the wholesale segment and we experienced declines in wholesale revenue due to reduced production. We produced almost 124,000 pounds of biomass, exceeding guidance of between 95,000 to 100,000 pounds but down from 232,000 pounds last year and 231,000 in the second quarter. Our cost of production was $128 per pound, up from the $91 per pound achieved in the second quarter as a result of reduced production scale and labor inefficiencies related to the new labor workforce."
"We ended the third quarter with lower volumes and quality of biomass product available for sale than we had anticipated and expect this impact to continue into the fourth quarter. We have made considerable progress with the processing of legacy product and expect this will be completed prior to year-end. We are confident the impacts of our actions are temporary, and we anticipate a return to full production capacity within existing greenhouses in the first quarter of 2026."
"We have also continued to advance our growth plans and have completed the buildout and planting of the first 1/3 of Greenhouse 2. By year-end of 2025, our cultivation team will have the most acres planted in Glass House's history. We continue to expect the remainder of Greenhouse two to be fully built out and operational within 2026. Our more stringent labor controls have not materially impacted our cost of labor and our long-term production cost target of $95 per pound remains intact, demonstrating that our cost leadership remains our greatest advantage. We also continue to explore opportunities to participate in new markets, including through international export or intoxicating hemp, which should further increase our growth prospects."
Third Quarter 2025 Operational Highlights and Subsequent Events
-- Glass House Brands Announces and Completes Preferred Equity Refinancing
-- Glass House Brands Provides Updates to Recent Events
-- Glass House Brands Announces Passing of Board Member George Raveling
-- Glass House Brands becomes the first U.S-based plant touching cannabis
operator whose stock can be traded on the Robinhood platform
Q3 2025 Financial Results Discussion
Revenues for third quarter 2025 were $38.4 million, ahead of guidance of $35 million to $38 million and compared to $63.8 million in third quarter 2024 and $59.9 million in second quarter 2025. The decline is attributed to lower wholesale revenue due to reduced production.
The wholesale biomass segment revenue was $21.2 million, accounting for 55% of total revenue. Biomass production reached 123,986 pounds during Q3 2025, exceeding guidance of 95,000 pounds to 100,000 pounds and roughly half of what we would normally expect based on typical seasonality.
Third quarter 2025 retail segment revenue was $12.3 million compared to $11.2 million the third quarter of last year and $12.3 million in second quarter 2025. Retail gross margin was 50% in the third quarter, compared to 48% in the second quarter.
Wholesale CPG segment revenues were $5.0 million, representing a 10% sequential decrease and 4% year-over-year increase.
Third quarter consolidated gross profit was $11.8 million, compared to $33.4 million for the year-ago period and $31.9 million in second quarter 2025. Gross margin was 31%, compared to 52% in the third quarter of 2024 and 53% in the second quarter of 2025.
Average selling price was $155 per pound, compared to $229 in the third quarter of 2024 as we are still operating amidst challenged California pricing conditions.
General and administrative expenses were $15.9 million for the third quarter of 2025, up 10% from $14.4 million last year and 9% from $14.6 million in the second quarter.
Sales and marketing expenses were $0.7 million, compared to $0.6 million during the same period last year and $0.8 million in the prior quarter.
Professional fees were $2.5 million in Q3, compared to $2.0 million in Q2 2025 and $0.9 million in Q3 2024.
Depreciation and amortization in Q3 2025 were $4.0 million, compared to $3.9 million in Q2 2025 and $3.7 million in Q3 2024.
Adjusted EBITDA was negative $(2.3) million in Q3 2025, compared to $20.4 million in the third quarter 2024 and $18.1 million in Q2 2025.
Operating cash flow was negative $(5.1) million, compared to positive $13.2 million in the year-ago period and positive $17.7 million in Q2 2025.
As of September 30, 2025, the Company had $29.8 million of cash and restricted cash, compared to $44.2 million at the start of the third quarter. The Company spent $8.6 million in capex in the third quarter, which was mostly for Phase III expansion at Camarillo. The Company also paid $1.9 million in preferred stock dividend payments.
Preferred Equity Recapitalization
During the quarter, the Company completed a recapitalization and non-brokered private placement (collectively, the "Offering") of approximately $77.5 million in Series E Convertible Preferred Stock replacing GH Group's existing Series B and Series C Preferred Stock. Holders of Series B and Series C Preferred Stock were presented the opportunity to exchange into the Series E Preferred Stock and any electing not to exchange were redeemed in full.
Investors in the Series E Preferred Stock will receive an annual 12% dividend, which will accrue and be paid quarterly. The Series E Preferred Stock is convertible into a new class of GH Group Class B common stock at a conversion price of $9.00 per share at any time, and ultimately, exchangeable into the Company's publicly-traded equity shares (the "Equity Shares") on a one-for-one basis at any time. GH Group also will have a 5-year redemption right with respect to the Series E Preferred Stock upon the occurrence of each of the following: (i) the 60-day volume weighted average price of the Equity Shares is greater than or equal to $12.00, (ii) the average daily trading volume of the Equity Shares exceeds one million shares and (iii) the Equity Shares are trading on a major United States stock exchange. If the Company exercises its redemption right, the redemption price for the Series E Preferred Stock will be equal to the original purchase price per share plus any accrued and unpaid dividends.
By comparison, Series B and C Preferred Stock which were issued in 2022, offered a 22.5% cumulative annual dividend rate inclusive of a 10% annual cash dividend and 12.5% paid-in-kind ("PIK") of additional preferred equity at the time of redemption.
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.
Net Income / Loss
(in thousands) Q3 2024 Q2 2025 Q3 2025
----------- ----------- ------------
Revenues, Net $63,821 $59,867 $ 38,444
Cost of Goods Sold 30,379 27,936 26,686
------ ------ -------
Gross Profit 33,442 31,931 11,758
------ ------ -------
% of Net Revenue 52% 53% 31%
Operating Expenses:
General and
Administrative 14,424 14,618 15,923
Sales and Marketing 620 803 703
Professional Fees 891 1,965 2,517
Depreciation and
Amortization 3,731 3,905 3,994
Impairment 6,300 -- --
------ ------ -------
Total Operating
Expenses 25,966 21,291 23,137
------ ------ -------
Income (Loss) from
Operations 7,476 10,640 (11,379)
------ ------ -------
Interest Expense 2,255 1,919 1,819
Loss on Change in Fair
Value of Contingent
Liabilities and Shares
Payable 17 95 --
Other Income, Net (523) (5,087) (2,081)
------ ------ -------
Total Other (Income)
Expense, Net 1,749 (3,073) (262)
------ ------ -------
Income Taxes 8,935 4,969 1,071
------ ------ -------
Net Income (Loss) $(3,208) $ 8,744 $(12,188)
====== ====== =======
Adjusted EBITDA
(in thousands) Q3 2024 Q2 2025 Q3 2025
-------- -------- -----------
Net Income (Loss) (GAAP) $(3,208) $ 8,744 $(12,188)
Depreciation and
Amortization 3,731 3,905 3,994
Interest, Net 2,255 1,919 1,819
Income Tax Expense 8,935 4,969 1,071
------ ------ -------
EBITDA (Non-GAAP) 11,713 19,537 (5,304)
Adjustments:
Share-Based Compensation 2,947 2,944 4,079
Stock Appreciation Rights
Expense 25 37 50
(Gain) Loss on Equity Method
Investments (45) (44) --
Change in Fair Value of
Derivative Asset and
Liability (539) 328 36
Impairment Expense for
Intangible Assets 6,300 -- --
Change in Fair Value of
Contingent Liabilities and
Shares Payable 17 95 --
Employee Retention Tax
Credits -- (4,750) (2,318)
Non-Recurring Legal and
Professional Fees -- -- 1,190
Adjusted EBITDA (Non-GAAP) $20,418 $18,147 $ (2,267)
====== ====== =======
Select Cash Flow Information
(in thousands) Q3 2024 Q2 2025 Q3 2025
-------- -------- -----------
Net Income (Loss) $(3,208) $ 8,744 $(12,188)
Depreciation and Amortization 3,731 3,905 3,994
Share-Based Compensation 2,947 2,944 4,079
Impairment Expense for
Intangibles 6,300 -- --
Loss on Change in Fair Value of
Contingent Liabilities and
Shares Payable 17 95 --
Other 296 881 1,419
------ ------ -------
Cash From Net Income (Loss) 10,083 16,569 (2,696)
------ ------ -------
Accounts Receivable (251) (3,248) 3,715
Income Taxes Receivable (1,311) 996 (939)
Prepaid Expenses and Other
Current Assets (1,937) (243) (2,693)
Inventory (2,265) (3,987) 293
Other Assets (3) (96) 1,342
Accounts Payable and Accrued
Liabilities (916) 4,290 (5,804)
Income Taxes Payable (3,320) 1,290 (1,317)
Other 13,095 2,166 3,039
------ ------ -------
Working Capital Impact 3,092 1,168 (2,364)
------ ------ -------
Operating Activities Cash
Flow 13,175 17,737 (5,060)
------ ------ -------
Purchases of Property and
Equipment (1,417) (9,458) (8,626)
Other -- 190 (975)
------ ------ -------
Investing Activities Cash
Flow (1,417) (9,268) (9,601)
------ ------ -------
Proceeds from the Issuance of
Notes Payable and Preferred
Shares, Net of Redemption of
Preferred Shares -- -- 2,953
Payments on Notes Payable,
Third Parties and Related
Parties (1,888) (1) (586)
Distributions to Preferred
Shareholders (1,938) (1,937) (1,937)
Other 1,249 55 (199)
------ ------ -------
Financing Activities Cash
Flow (2,577) (1,883) 231
------ ------ -------
Net Increase (Decrease) in
Cash, Restricted Cash and Cash
Equivalents 9,181 6,586 (14,430)
Cash, Restricted Cash and Cash
Equivalents, Beginning of
Period 25,879 37,615 44,201
------ ------ -------
Cash, Restricted Cash and
Cash Equivalents, End of
Period $35,060 $44,201 $ 29,771
====== ====== =======
Select Balance Sheet Information
(in thousands) Q3 2024 Q2 2025 Q3 2025
-------- -------- --------
Cash and Restricted Cash $ 35,060 $ 40,701 $ 26,271
Accounts Receivable, Net 7,892 9,842 6,138
Income Taxes Receivable 1,311 933 1,872
Prepaid Expenses and Other Current
Assets 6,303 15,355 20,679
Inventory 16,768 19,669 19,376
Total Current Assets 67,334 86,500 74,336
Operating and Finance Lease
Right-of-Use Assets, Net 10,591 6,974 6,485
Long Term Investments 2,296 172 --
Property, Plant and Equipment, Net 213,218 222,999 222,405
Intangible Assets, Net and Goodwill 14,381 11,939 11,758
Restricted Cash, Net of Current
Portion -- 3,500 3,500
Other Assets 4,909 2,477 1,333
------- ------- -------
TOTAL ASSETS $312,729 $334,561 $319,817
======= ======= =======
Accounts Payable and Accrued
Liabilities $ 32,753 $ 37,532 $ 28,762
Income Taxes Payable 4,392 3,725 2,408
Contingent Shares and Earnout
Liabilities 32,165 -- --
Shares Payable 2,975 -- --
Current Portion of Operating and
Finance Lease Liabilities 2,383 2,111 2,023
Current Portion of Notes Payable 7,553 -- 36
Total Current Liabilities 82,221 43,368 33,229
Operating and Finance Lease
Liabilities, Net of Current Portion 8,386 4,795 4,418
Other Non-Current Liabilities 20,191 28,237 31,600
Notes Payable, Net of Current Portion 52,200 65,845 68,814
TOTAL LIABILITIES 162,998 142,245 138,061
------- ------- -------
Preferred Equity Series B, C, D and E 83,773 91,790 92,500
Additional Paid-In Capital,
Accumulated Deficit and
Non-Controlling Interest 65,958 100,526 89,256
------- ------- -------
TOTAL MEZZANINE EQUITY AND
SHAREHOLDERS' EQUITY 149,731 192,316 181,756
------- ------- -------
TOTAL LIABILITIES, MEZZANINE EQUITY
AND SHAREHOLDERS' EQUITY $312,729 $334,561 $319,817
======= ======= =======
Notes Payable and Preferred Equity
(in thousands) Q1 2025 Q2 2025 Q3 2025 Comments
-------- -------- -------- --------------
Notes Payable
Secured Credit Maturity is
Facility $50,000 $50,000 $50,000 2/28/30
2025 Lompoc Maturity is
Term Loan -- -- 2,997 8/4/35
8% semi annual
interest, cash
or shares,
higher of 10
day VWAP 5
trading days
prior to pay
date or $4.08,
Maturity
Series A 11,895 11,895 11,895 4/15/27
8% semi annual
interest, cash
or shares,
lower of 10
day VWAP 5
trading days
prior to pay
date or
$10.00,
Maturity
Series B 4,111 4,111 4,111 4/15/27
------ ------ ------
Plus
Convertible
Debt 16,006 16,006 16,006
Mostly
original issue
Other (209) (161) (153) discount
------ ------ ------
Notes
Payable
Total $65,797 $65,845 $68,850
====== ====== ======
Preferred Equity
Series B $67,495 $70,042 $ --
Series C 6,507 6,748 --
Currently at
15% dividend
with 15% cash
payment until
8/24/28 when
it increases
to 20%
dividend with
20% cash
Series D 15,000 15,000 15,000 payment
12% dividend
with 12% cash
Series E -- -- 77,500 payment
------ ------ ------
Preferred
Equity
Total $89,002 $91,790 $92,500
====== ====== ======
Cash Payments
Q1 2025
Includes $40.6
million paid
on 2/28/2025
for the
Secured Credit
Agreement;
principal
payments on
the Secured
Credit
Debt Facility start
Amortization $42,022 $ 1 $ 597 in 2027
8.58% interest
rate on the
Senior Secured
Credit
Facility,
entered into
Cash Interest 876 1,203 1,222 on 2/28/25
------ ------ ------
Debt Service 42,898 1,204 1,819
Series B 1,250 1,249 --
Series C 125 125 --
15% annual
rate until
8/24/28 when
it increases
Series D 563 563 563 to 20%
12% annual
Series E -- -- 1,898 rate
------ ------ ------
Preferred
Equity
Dividends 1,938 1,937 2,461
Total Debt
Service and
Dividends $44,836 $ 3,141 $ 4,280
====== ====== ======
Equity Table
(in thousands,
except share
price) Q3 2025 Q2 2025 Change Comments
------- ------- ------ ---------------
Shares issued
in connection
with exercise
of RSUs, ISOs,
and warrants
and to acquire
remaining
non-controlling
Total Equity and interest in
Exchangeable consolidated
Shares 79,886 79,081 805 subsidiary
Warrants
Exercise price
of $6.00 with
an expiration
date of August
Series D 2,980 2,980 -- 2028
Exercise price
of $5.00 with
an expiration
date of August
Series C 1,000 1,000 -- 2027
Exercise price
of $5.00 with
an expiration
date of August
Series B 9,719 9,739 (20 ) 2027
Exercise price
of $11.50 with
an expiration
date of June
SPAC 30,665 30,665 -- 2026
------ ------ ----
Total Warrants 44,364 44,384 (20)
====== ====== ====
Weighted
average
exercise price
of $3.10 with
expiration
dates from
January 2026 to
Stock Options 333 381 (48) June 2026
Up to 3-year
vesting through
RSUs 5,876 6,194 (318) 2028
------ ------ ----
Total 6,209 6,575 (366)
====== ====== ====
Share Price at
Quarter End $ 7.54 $ 6.05 $1.49
Convertible
Debentures
8% semi annual
interest, cash
or shares,
higher of 10
day VWAP 5
trading days
prior to pay
date or $4.08,
Maturity
Series A $11,895 $11,895 $ -- 4/15/27
8% semi annual
interest, cash
or shares,
lower of 10 day
VWAP 5 trading
days prior to
pay date or
$10.00,
Maturity
Series B 4,111 4,111 -- 4/15/27
------ ------ ----
Total
Convertible
Debentures $16,006 $16,006 $ --
Number of
Shares if
Converted
Assuming
Share Price
at Quarter
End 2,123 2,646 (523)
Revenue
(in thousands) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FY 2023 FY 2024
----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Retail (B2C) $ 9,921 $10,885 $11,214 $11,796 $11,788 $12,262 $12,255 $ 39,078 $ 43,816
Wholesale CPG (B2B) 4,253 3,979 4,777 4,987 4,747 5,483 4,958 16,062 17,996
Wholesale Biomass
(B2B) 15,926 39,074 47,830 36,256 28,283 42,122 21,231 105,696 139,086
------ ------ ------ ------ ------ ------ ------ ------- -------
Total $30,100 $53,938 $63,821 $53,039 $44,818 $59,867 $38,444 $160,836 $200,898
====== ====== ====== ====== ====== ====== ====== ======= =======
Sequential % Change
Retail (B2C) 4% 10% 3% 5% --% 4% --%
Wholesale CPG (B2B) 4% (6)% 20% 4% (5)% 16% (10)%
Wholesale Biomass
(B2B) (40)% 145% 22% (24)% (22)% 49% (50)%
Total (26)% 79% 18% (17)% (15)% 34% (36)%
% Change to Prior
Year
Retail (B2C) 6% 8% 11% 23% 19% 13% 9% 46% 12%
Wholesale CPG (B2B) 14% 1% 11% 22% 12% 38% 4% (4)% 12%
Wholesale Biomass
(B2B) 10% 28% 41% 36% 78% 8% (56)% 155% 32%
Total 9% 21% 32% 31% 49% 11% (40)% 89% 25%
Gross Profit
(in thousands) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FY 2023 FY 2024
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Retail (B2C) $ 5,253 $ 5,162 $ 4,952 $ 5,396 $ 5,653 $ 5,861 $ 6,166 $21,551 $20,763
Wholesale CPG
(B2B) 1,065 886 1,398 1,168 1,221 1,949 1,477 1,223 4,517
Wholesale
Biomass (B2B) 6,208 22,626 27,092 16,187 13,191 24,121 4,115 58,195 72,113
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $12,526 $28,674 $33,442 $22,751 $20,065 $31,931 $11,758 $80,969 $97,393
====== ====== ====== ====== ====== ====== ====== ====== ======
% of Revenue
Retail (B2C) 53% 47% 44% 46% 48% 48% 50% 55% 47%
Wholesale CPG
(B2B) 25% 22% 29% 23% 26% 36% 30% 8% 25%
Wholesale
Biomass (B2B) 39% 58% 57% 45% 47% 57% 19% 55% 52%
Total 42% 53% 52% 43% 45% 53% 31% 50% 48%
Wholesale Biomass Production and Cost per Pound
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FY 2023 FY 2024
----------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Equivalent
Dry Pounds
of
Production 61,392 149,717 232,295 165,074 152,568 230,748 123,986 356,722 608,478
% Change to
Prior Year 28% 45% 128% 60% 149% 54% (47)% 84% 71%
Cost per
Equivalent
Dry Pounds
of
Production $ 182 $ 148 $ 103 $ 110 $ 108 $ 91 $ 128 $ 136 $ 123
% Change to
Prior Year (7)% 6% (13)% (9)% (41)% (39)% 24% (6)% (10)%
Ending
Operational
Canopy
Licensed
(000 sq.
ft) 959 1,525 1,525 1,525 1,525 1,525 1,525 959 1,525
Wholesale Biomass Sold and Average Selling Price per
Pound
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FY 2023 FY 2024
----------- ------------ ------------ ------------ ------------ ------------ -------- ------------ ------------
Equivalent
Dry Pounds
Sold 56,432 137,866 209,175 164,660 146,555 204,015 137,026 338,957 568,133
% Change to
Prior
Year 13% 53% 108% 68% 160% 48% (34)% 97% 68%
Equivalent
Dry Pounds
Sold
Average
Selling
Price $ 282 $ 283 $ 229 $ 220 $ 193 $ 206 $ 155 $ 312 $ 245
% Change to
Prior
Year (3)% (17)% (32)% (19)% (32)% (27)% (32)% 43% (21)%
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, November 12, 2025 at 5:00 p.m. Eastern Time.
Webcast and Replay: Register Here Dial-In Number: 1-800-715-9871 Conference ID: 2131917#
(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, loss (gain) on equity method investments, impairment expense for goodwill and intangible assets, change in fair value of derivative liabilities, change in fair value of contingent liabilities and shares payable, certain debt-related fees, acquisition related professional fees, non-operational start-up costs, employee retention tax credits and non-recurring legal and professional 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 a table above that provides a reconciliation of the Company's Net Income (Loss) (GAAP) to Adjusted EBITDA for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and three months ended June 30, 2025.
Footnotes and Sources:
1. EBITDA and Adjusted EBITDA are non-GAAP financial measures that are not
defined by U.S. GAAP and may not be comparable to similar measures
presented by other companies. Please see "Non-GAAP Financial Measures"
herein for further information and for a reconciliation of such non-GAAP
measures to the closest GAAP measure.
2. Equivalent Dry Pound Production includes all dry production (flower,
smalls and trim) plus equivalent dry weight for wet weight and fresh
frozen not converted into dry weight by the Company.
3. Cost per Equivalent Dry Pound of Production, is the application of a
subset of Costs of Goods Sold for cannabis biomass production (including
all expenses from nursery and cultivation to curing and trimming - the
point at which product is ready for sales as wholesale cannabis or to be
transferred to CPG) applied to the Company's metric of dry production
which includes all dry production (flower, smalls and trim) plus
equivalent dry weight for wet weight and fresh frozen that is not
converted into dry goods by the Company.
About Glass House Brands
Glass House is one of the fastest-growing, vertically integrated 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 or its network of retail dispensaries throughout the state of California, which includes The Farmacy, Natural Healing Center and The Pottery, 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 the Company'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, the Company's: ability to further deliver strong operational and financial results; ability to continue growing high quality cannabis at the lowest cost; statement that California, the most competitive cannabis market in the world, is experiencing pricing at levels which the Company would describe as destructive, meaning many cultivators in the state are likely having "going concern" issues; statement that we are pursuing additional MSA opportunities for both retail as well as cultivation and production; statement while we are confident the impacts of our actions are temporary, we saw lower volumes and quality of biomass product available for sale than we had anticipated and expect this to continue into the fourth quarter; statement that we have made considerable progress with the processing of legacy product, and expect this will be completed prior to year-end; statement that based on our progress to date, we continue to anticipate being back to full production capacity within existing greenhouses in the first quarter of 2026; statement that we have continued to advance our growth plans and have completed the buildout and planting of the first 1/3 of Greenhouse 2; statement by the end of 2025, our cultivation team will have the most acres planted in Glass House's history; statement that we continue to expect the remainder of Greenhouse 2 as well as Greenhouse 4 to be fully built out and operational within 2026; statement that our more stringent labor controls have not materially impacted our cost of labor and our long-term cost structure is unchanged; statement that looking ahead, we remain optimistic about favorable industry trends, including prospects for cannabis reform, international expansion into Europe and pursuing a commercial hemp strategy; statement that we know our company will move past these near-term hurdles and come of out of it even stronger; statement that our future prospects remain strong as we continue to pursue our plans to increase our growth trajectory; statement the Company completed a preferred equity refinancing that has eliminated burdensome Payment-in-Kind terms related to the former Series B and Series C Preferred Stock in turn reducing cumulative interest.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements do not guarantee future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. 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. The Company 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 of Investor Relations
T: (781) 724-6869
E: ir@glasshousebrands.com
Investor Relations Contact:
KCSA Strategic Communications
Phil Carlson
T: 212-896-1233
E: GlassHouseIR@kcsa.com
(END) Dow Jones Newswires
November 12, 2025 19:04 ET (00:04 GMT)
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