Press Release: Glass House Brands Reports First Quarter 2026 Financial Results

Dow Jones05-14
   -- First quarter results include revenue of $40.5 million, average selling 
      price of $171 per pound and biomass production of 152,000 pounds 
 
   -- Company reiterates full year 2026 wholesale cannabis biomass production 
      forecast of approximately 1,000,000 pounds and $95 per pound annual 
      production cost target 
 
   -- Company has submitted applications for DEA registration to fully operate 
      medical business under Schedule III Classification 
 
   -- Conference Call to be held today May 13, 2026, at 5:00 p.m. ET 

LONG BEACH, Calif. and TORONTO, May 13, 2026 (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 first quarter ended March 31, 2026.

First Quarter 2026 Highlights

(Unaudited results, unless otherwise stated, all results and dollar references are in U.S. dollars)

   -- Revenue was $40.5 million, compared to $44.8 million in Q1 last year and 
      $38.9 million in the fourth quarter 2025. 
 
   -- Gross Profit Margin of 25%, compared to 45% in first quarter 2025 and 34% 
      in fourth quarter 2025. 
 
   -- Adjusted EBITDA1 was negative $(4.2) million, compared to positive 
      $4.4 million in first quarter 2025 and $(3.3) million in fourth quarter 
      2025. 
 
   -- Operating Cash Flow of negative $(11.8) million, compared to $2.5 million 
      in first quarter 2025 and negative $(3.7) million in fourth quarter 2025. 
 
   -- Equivalent Dry Pound Production2 was 151,531 pounds, compared to 152,568 
      in first quarter 2025 and 159,131 in fourth quarter 2025. 
 
   -- Cost per Equivalent Dry Pound of Production3 of $175 per pound, compared 
      to $108 per pound in first quarter 2025 and $129 per pound in fourth 
      quarter 2025. 
 
   -- Cash, Restricted Cash and Cash Equivalents balance was $27.9 million at 
      March 31, 2026 compared to $23.4 million at the end of fourth quarter 
      2025. 

Management Commentary

"The recent rescheduling of medical cannabis represents a landmark event within our industry," said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House. "The implications for Glass House are vast, including potential 280E tax relief and opening up interstate commerce or export to Europe, which would meaningfully increase our addressable market size and unlock greater profit and cash flow generation driven by more favorable pricing dynamics."

"Preparing for rescheduling has been a top priority for us this year and we have already made significant progress. We accelerated and completed the build-out of Greenhouse 2, and expect that this added capacity will contribute to sales in the second half of 2026. More recently, we registered with the DEA, permitting us to immediately operate medical operations under a Schedule III designation."

"Our quarterly results were in-line with previously announced preliminary results, reflecting a build-up of cultivation scale and transitory inflated cost of production. We have, and will continue to, make changes to ensure our future performance returns to the standards that we demand of ourselves."

"Importantly, we remain confident in our outlook for 2026 and have reiterated our guidance to produce approximately one million pounds of cannabis biomass this year, a record number for the Company, and anticipate an average selling price in the mid $180 per pound range. We expect quarterly cost of production to decline as the year progresses and believe our $95 cost of production target remains achievable on a quarterly basis within the second half of this year. We also continue to anticipate strong revenue growth in 2026, with revenue increasing progressively during the course of the year."

"Longer term, we retain the competitive advantages that have defined us, such as never having to pay the exorbitant energy bills of indoor peers nor having to rely on third-party water supply. It is these and other benefits of our operating model that have sustained us despite challenging California cannabis market conditions. The advantages will further separate the Company from our peers as we enter new markets and expand into new product categories with hemp."

First Quarter 2026 Operational Highlights and Subsequent Events

   -- University of California Berkeley and Glass House Collaboration Leads to 
      State-Funded Research on Cannabis Crop Yields 
 
   -- Glass House Brands Announces Accelerated 2026 Expansion Strategy 
 
   -- Glass House Brands Announces Appointment of Alison Payne, Heineken USA 
      Chief Marketing Officer, to its Board of Directors 
 
   -- Glass House Brands Board of Directors Establishes Product Expansion 
      Committee to Support New Product and Business Development 
 
   -- Glass House Brands Announces California Retail Joint Venture with Vireo 
      Growth 
 
   -- Glass House Brands Announces Warrant Redemption Notice 
 
   -- Glass House Brands Announces Application for DEA Registration of Certain 
      Medical Operations 

Q1 2026 Financial Results Discussion

Revenues for first quarter 2025 were $40.5 million, ahead of guidance of $39 million and compared to $38.9 million in fourth quarter 2025 and $44.8 million in first quarter 2025. The decline is attributed to reduced wholesale prices and lower production volume.

The wholesale biomass segment revenue was $24.0 million, accounting for 59% of total revenue. Biomass production reached 151,531 pounds during Q1 2026, ahead of guidance of 138,000 pounds and compared to 152,568 in the prior year period.

First quarter 2025 retail segment revenue was $11.9 million, compared to $11.8 million the first quarter of last year and $11.9 million in fourth quarter 2025. Retail gross margin was 50% in the first quarter, compared to 47% in the fourth quarter.

Wholesale CPG segment revenues were $4.6 million, representing a 7% sequential increase and (2)% year-over-year decrease.

Consolidated gross profit for the first quarter was $10.0 million, compared to $20.1 million for Q1 last year and $13.2 million in fourth quarter 2025. Gross margin was 25%, compared to guidance of 29%, 45% in the prior year period and 34% in the fourth quarter of 2025. The declines stem from the lower average selling prices and higher production costs in the wholesale business.

Average selling price was $171 per pound, versus guidance of $167 and compared to $193 in the first quarter of 2025 as we are still operating amidst challenged California pricing conditions.

General and administrative expenses were $17.0 million for the first quarter of 2026, compared to $15.1 million last year and down 8% from $18.5 million in the fourth quarter.

Sales and marketing expenses were $0.5 million, compared to $0.7 million during the same period last year and $0.5 million in the prior quarter.

Professional fees were $2.9 million in Q1, compared to $2.9 million in Q4 2025 and $1.7 million in Q1 2025.

Depreciation and amortization in Q1 2026 were $4.0 million, compared to $4.0 million in Q4 2025 and $3.8 million in Q1 2025.

Adjusted EBITDA was negative $(4.2) million in Q1 2026, compared to positive $4.4 million in the first quarter 2025 and negative $(3.3) million in Q4 2025.

Operating cash flow was negative $(11.8) million, compared to positive $2.5 million in the year-ago period and negative $(3.7) million in Q4 2025.

As of March 31, 2026, the Company had $27.9 million of cash and restricted cash, compared to $23.4 million at the start of the first quarter. The Company spent $3.5 million in capex in the first quarter, which was mostly for Phase III expansion at Camarillo. The Company also paid $2.9 million in preferred stock dividend payments.

Warrant Redemption Notice

Subsequent to quarter end, 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").

There are currently 30,664,500 Warrants outstanding, each exercisable for one equity share (each, a "Share") of the Company at an exercise price of US$11.50 per Share. The outstanding Warrants will be redeemed on May 28, 2026 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.

For further information, please refer to the Company's news release dated April 28, 2026.

At-The-Market Program

The Company has entered into an equity distribution agreement (the "Equity Distribution Agreement") with ATB Cormark Capital Markets, pursuant to which, the Company may from time to time sell up to US$50 million of its subordinate voting shares, restricted voting shares and limited voting shares (collectively, the "Equity Shares") in an at-the-market distribution program (the "ATM Program"). The Company currently intends to use net proceeds of the ATM Program, if any, for cultivation expansion and/or general corporate purposes as well as potential acquisitions that may be identified in the future. The Company views its ATM programs as long term sources of potential capital to be accessed on an opportunistic basis, rather than servicing an immediate need.

Launch of the ATM Program is subject to the approval of CBOE Canada, the delivery of customary closing deliverables and the filing of a prospectus supplement to the Company's base shelf prospectus dated May 16, 2024.

Since the Equity Shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company's management and in accordance with the terms of the Equity Distribution Agreement.

Sales of Equity Shares, if any, under the ATM Program are anticipated to be made in transactions that are deemed to be "at-the-market distributions" as defined in National Instrument 44-102 Shelf Distributions, as sales made directly on CBOE Canada or any other recognized Canadian "marketplace" within the meaning of National Instrument 21-101 Marketplace Operation.

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)                Q1 2025       Q4 2025       Q1 2026 
                            ------------  ------------  ------------ 
Revenues, Net               $ 44,818      $ 38,855      $ 40,515 
Cost of Goods Sold            24,753        25,649        30,499 
                             -------       -------       ------- 
Gross Profit                  20,065        13,206        10,016 
                             -------       -------       ------- 
  % of Net Revenue                45%           34%           25% 
 
Operating Expenses: 
   General and 
    Administrative            15,083        18,474        16,950 
   Sales and Marketing           687           476           529 
   Professional Fees           1,668         2,912         2,865 
   Depreciation and 
    Amortization               3,837         4,028         4,022 
   Impairment                  1,900            --            -- 
                             -------       -------       ------- 
      Total Operating 
       Expenses               23,175        25,890        24,366 
                             -------       -------       ------- 
Loss from Operations          (3,110)      (12,684)      (14,350) 
                             -------       -------       ------- 
   Interest Expense            2,276         1,044         1,295 
   (Gain) Loss on Change 
    in Fair Value of 
    Contingent Liabilities 
    and Shares Payable           (95)           --            -- 
   Other (Income) Expense, 
    Net                        1,789        (1,194)       (1,697) 
                             -------       -------       ------- 
      Total Other (Income) 
       Expense, Net            3,970          (150)         (402) 
                             -------       -------       ------- 
Income Taxes                   2,928         2,966         3,058 
                             -------       -------       ------- 
Net Loss                    $(10,008)     $(15,500)     $(17,006) 
                             =======       =======       ======= 
 
 
 
                        Adjusted EBITDA 
(in thousands)                  Q1 2025    Q4 2025     Q1 2026 
                               ---------  ---------  ----------- 
Net Loss (GAAP)                $(10,008)  $(15,500)  $(17,006) 
   Depreciation and 
    Amortization                  3,837      4,028      4,022 
   Interest, Net                  1,988      1,044      1,295 
   Income Tax Expense             2,928      2,966      3,058 
                                -------    -------    ------- 
EBITDA (Non-GAAP)                (1,255)    (7,462)    (8,631) 
Adjustments: 
   Share-Based Compensation       2,105      4,274      4,523 
   Stock Appreciation Rights 
    Expense                         (37)       (22)        (5) 
   (Gain) Loss on Equity 
    Method Investments              (40)        --         -- 
   Change in Fair Value of 
    Derivative Asset and 
    Liability                     1,733        (27)      (409) 
   Impairment Expense for 
   Intangible Assets              1,900         --         -- 
   Change in Fair Value of 
    Contingent Liabilities 
    and Shares Payable              (95)        --         -- 
   Loss on Extinguishment of 
   Debt                             292         --         -- 
   Employee Retention Tax 
    Credits                        (210)    (2,365)        -- 
   Non-Recurring Asset 
   Casualty Loss                     --        939         -- 
   Non-Recurring Legal and 
    Professional Fees                --      1,357        349 
Adjusted EBITDA (Non-GAAP)     $  4,393   $ (3,306)  $ (4,173) 
                                =======    =======    ======= 
 
 
 
                  Select Cash Flow Information 
(in thousands)                  Q1 2025    Q4 2025     Q1 2026 
                               ---------  ---------  ----------- 
Net Loss                       $(10,008)  $(15,500)  $(17,006) 
Depreciation and Amortization     3,837      4,028      4,022 
Share-Based Compensation          2,105      4,274      4,523 
Impairment Expense for 
Intangibles                       1,900         --         -- 
(Gain) Loss on Change in Fair 
 Value of Contingent 
 Liabilities and Shares 
 Payable                            (95)        --         -- 
Other                             2,573      1,963     (1,911) 
                                -------    -------    ------- 
    Cash From Net Loss              312     (5,235)   (10,372) 
                                -------    -------    ------- 
  Accounts Receivable            (1,424)       410     (2,096) 
  Income Taxes Receivable            --      1,081         25 
  Prepaid Expenses and Other 
   Current Assets                 1,086       (412)     1,455 
  Inventory                      (1,430)    (6,851)    (5,310) 
  Other Assets                    2,062        134        (14) 
  Accounts Payable and 
   Accrued Liabilities             (587)     7,918      1,855 
  Income Taxes Payable               27     (2,408)        -- 
  Other                           2,425      1,662      2,702 
                                -------    -------    ------- 
    Working Capital Impact        2,159      1,534     (1,383) 
                                -------    -------    ------- 
      Operating Activities 
       Cash Flow                  2,471     (3,701)   (11,755) 
                                -------    -------    ------- 
 
Purchases of Property and 
 Equipment                       (6,695)    (2,400)    (3,546) 
Other                                --        222        800 
                                -------    -------    ------- 
      Investing Activities 
       Cash Flow                 (6,695)    (2,178)    (2,746) 
                                -------    -------    ------- 
 
Proceeds from the Issuance of 
 At-the-Money Shares                 --      2,182     22,302 
Proceeds from the Issuance of 
 Notes Payable and Preferred 
 Shares, Net of Redemption of 
 Preferred Shares                49,140         --       (250) 
Payments on Notes Payable, 
 Third Parties and Related 
 Parties                        (42,068)      (238)       (10) 
Distributions to Preferred 
 Shareholders                    (1,938)    (2,493)    (2,888) 
Other                              (218)         7        (76) 
                                -------    -------    ------- 
      Financing Activities 
       Cash Flow                  4,916       (542)    19,078 
                                -------    -------    ------- 
 
Net Increase (Decrease) in 
 Cash, Restricted Cash and 
 Cash Equivalents                   692     (6,421)     4,577 
Cash, Restricted Cash and 
 Cash Equivalents, Beginning 
 of Period                       36,923     29,771     23,350 
                                -------    -------    ------- 
      Cash, Restricted Cash 
       and Cash Equivalents, 
       End of Period           $ 37,615   $ 23,350   $ 27,927 
                                =======    =======    ======= 
 
 
 
                  Select Balance Sheet Information 
(in thousands)                          Q1 2025   Q4 2025   Q1 2026 
                                        --------  --------  -------- 
Cash and Restricted Cash                $ 34,615  $ 19,850  $ 24,427 
Accounts Receivable, Net                   6,712     4,417     6,441 
Income Taxes Receivable                    1,929       791       766 
Prepaid Expenses and Other Current 
 Assets                                    9,608    15,664    11,181 
Inventory                                 15,682    26,227    31,537 
Notes Receivable                              --       800        -- 
                                         -------   -------   ------- 
   Total Current Assets                   68,546    67,749    74,352 
Operating and Finance Lease 
 Right-of-Use Assets, Net                 10,188     5,911     5,961 
Long Term Investments                      2,381        --        -- 
Property, Plant and Equipment, Net       212,789   228,760   229,479 
Intangible Assets, Net                    12,120    11,577    11,626 
Restricted Cash, Net of Current 
 Portion                                   3,000     3,500     3,500 
Other Assets                               2,566     1,060       435 
                                         -------   -------   ------- 
   TOTAL ASSETS                         $311,590  $318,557  $325,353 
                                         =======   =======   ======= 
 
Accounts Payable and Accrued 
 Liabilities                            $ 30,708  $ 35,970  $ 38,067 
Income Taxes Payable                       2,435        --        -- 
Shares Payable                             2,485        --        -- 
Current Portion of Operating and 
 Finance Lease Liabilities                 2,344     1,952     2,102 
Current Portion of Notes Payable              --        37        38 
   Total Current Liabilities              37,972    37,959    40,207 
Operating and Finance Lease 
 Liabilities, Net of Current Portion       8,001     3,954     3,842 
Other Non-Current Liabilities             25,259    33,413    36,037 
Notes Payable, Net of Current Portion     65,797    68,629    67,819 
   TOTAL LIABILITIES                     137,029   143,955   147,905 
                                         -------   -------   ------- 
Preferred Equity Series B, C, D and E     89,002    92,500    92,500 
Additional Paid-In Capital, 
 Accumulated Deficit and 
 Non-Controlling Interest                 85,559    82,102    84,948 
                                         -------   -------   ------- 
   TOTAL MEZZANINE EQUITY AND 
    SHAREHOLDERS' EQUITY                 174,561   174,602   177,448 
                                         -------   -------   ------- 
   TOTAL LIABILITIES, MEZZANINE EQUITY 
    AND SHAREHOLDERS' EQUITY            $311,590  $318,557  $325,353 
                                         =======   =======   ======= 
 
 
               Notes Payable and Preferred Equity 
(in thousands)      Q3 2025   Q4 2025   Q1 2026      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     2,990     2,980           8/4/35 
   Greenhouse 2 
    Equipment 
    Supplier 
    Financing            --        --     1,120 
 
                                                  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    10,950          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     3,785          4/15/27 
                     ------    ------    ------ 
      Plus 
       Convertible 
       Debt          16,006    16,006    14,735 
 
                                                          Mostly 
                                                  original issue 
   Other               (153)     (330)     (978)        discount 
                     ------    ------    ------ 
      Notes 
       Payable 
       Total        $68,850   $68,666   $67,857 
                     ======    ======    ====== 
 
Preferred Equity 
                                                    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    77,500    77,500          payment 
                     ------    ------    ------ 
      Preferred 
       Equity 
       Total        $92,500   $92,500   $92,500 
                     ======    ======    ====== 
 
Cash Payments 
   Debt 
    Amortization    $   597   $   239   $    10 
                                                  8.58% interest 
                                                     rate on the 
                                                  Senior Secured 
                                                          Credit 
                                                       Facility, 
                                                    entered into 
                                                  on 2/28/25 and 
                                                   8.5% interest 
                                                     rate on the 
                                                     2025 Lompoc 
                                                      Term Loan, 
                                                    entered into 
   Cash Interest      1,222     1,226    (1,314)       on 8/4/25 
                     ------    ------    ------ 
      Debt Service    1,819     1,465    (1,304) 
 
                                                      15% annual 
                                                      rate until 
                                                    8/24/28 when 
                                                    it increases 
   Series D             563       563       563           to 20% 
                                                      12% annual 
   Series E           1,898     2,358     2,325             rate 
                     ------    ------    ------ 
      Preferred 
       Equity 
       Dividends      2,461     2,921     2,888 
 
   Total Debt 
    Service and 
    Dividends       $ 4,280   $ 4,386   $ 1,584 
                     ======    ======    ====== 
 
 
                          Equity Table 
(in thousands, 
except share 
price)              Q1 2026  Q4 2025   Change       Comments 
                    -------  -------  --------  ---------------- 
                                                Shares issued in 
                                                connection with 
                                                 At-the-Market 
                                                  program and 
Total Equity and                                  exercise of 
Exchangeable                                    RSUs, ISOs, and 
Shares               84,663   81,729   2,934        warrants 
Warrants 
                                                 Exercise price 
                                                of $6.00 with an 
                                                expiration date 
Series D             2,770    2,770      --      of August 2028 
                                                 Exercise price 
                                                of $5.00 with an 
                                                expiration date 
Series C             1,000    1,000      --      of August 2027 
                                                 Exercise price 
                                                of $5.00 with an 
                                                expiration date 
Series B             8,407    8,787     (380   ) of August 2027 
                                                 Exercise price 
                                                 of $11.50 with 
                                                 an expiration 
                                                  date of June 
SPAC                 30,665   30,665     --           2026 
                     ------   ------   ------ 
   Total Warrants    42,842   43,222     (380) 
                     ======   ======   ====== 
 
                                                Weighted average 
                                                  exercise price 
                                                  of $3.08 which 
                                                  expire in June 
Stock Options            22      179     (157)              2026 
                                                    Up to 3-year 
                                                 vesting through 
RSUs                  4,756    5,327     (571)              2028 
                     ------   ------   ------ 
   Total              4,778    5,506     (728) 
                     ======   ======   ====== 
 
Share Price at 
 Quarter End        $  8.15  $  8.75  $ (0.60) 
 
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            $10,950  $11,895  $  (945)           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              3,785    4,111     (326)           4/15/27 
                     ------   ------   ------ 
   Total 
    Convertible 
    Debentures      $14,735  $16,006  $(1,271) 
   Number of 
    Shares if 
    Converted 
    Assuming Share 
    Price at 
    Quarter End       1,981    1,829      152 
 
 
                                                                  Revenue 
(in thousands)          Q3 2024      Q4 2024      Q1 2025      Q2 2025      Q3 2025      Q4 2025      Q1 2026      FY 2024       FY 2025 
                      -----------  -----------  -----------  -----------  -----------  -----------  -----------  ------------  ------------ 
Retail (B2C)          $11,214      $11,796      $11,788      $12,262      $12,255      $11,938      $11,905      $ 43,816      $ 48,243 
Wholesale CPG (B2B)     4,777        4,987        4,747        5,483        4,958        4,320        4,637        17,996        19,508 
Wholesale Biomass 
 (B2B)                 47,830       36,256       28,283       42,122       21,231       22,597       23,973       139,086       114,233 
                       ------       ------       ------       ------       ------       ------       ------       -------       ------- 
  Total               $63,821      $53,039      $44,818      $59,867      $38,444      $38,855      $40,515      $200,898      $181,984 
                       ======       ======       ======       ======       ======       ======       ======       =======       ======= 
 
Sequential % Change 
Retail (B2C)                3   %        5 %         -- %          4   %       -- %         (3)%         -- % 
Wholesale CPG (B2B)        20   %        4 %         (5)%         16   %      (10)%        (13)%          7 % 
Wholesale Biomass 
 (B2B)                     22   %      (24)%        (22)%         49   %      (50)%          6 %          6 % 
  Total                    18   %      (17)%        (15)%         34   %      (36)%          1 %          4 % 
 
% Change to Prior 
Year 
Retail (B2C)               11   %       23 %         19 %         13   %        9 %          1 %          1 %          12   %        10 % 
Wholesale CPG (B2B)        11   %       22 %         12 %         38   %        4 %        (13)%         (2)%          12   %         8 % 
Wholesale Biomass 
 (B2B)                     41   %       36 %         78 %          8   %      (56)%        (38)%        (15)%          32   %       (18)% 
  Total                    32   %       31 %         49 %         11   %      (40)%        (27)%        (10)%          25   %        (9)% 
 
 
                                                            Gross Profit 
(in thousands)     Q3 2024      Q4 2024      Q1 2025      Q2 2025      Q3 2025      Q4 2025      Q1 2026      FY 2024      FY 2025 
                 -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------- 
Retail (B2C)     $ 4,952      $ 5,396      $ 5,653      $ 5,861      $ 6,166      $ 5,621      $ 5,965      $20,763      $23,301 
Wholesale CPG 
 (B2B)             1,398        1,168        1,221        1,949        1,477          818        1,449        4,517        5,465 
Wholesale 
 Biomass (B2B)    27,092       16,187       13,191       24,121        4,115        6,767        2,602       72,113       48,194 
                  ------       ------       ------       ------       ------       ------       ------       ------       ------ 
  Total          $33,442      $22,751      $20,065      $31,931      $11,758      $13,206      $10,016      $97,393      $76,960 
                  ======       ======       ======       ======       ======       ======       ======       ======       ====== 
 
% of Revenue 
Retail (B2C)          44%          46%          48%          48%          50%          47%          50%          47%          48% 
Wholesale CPG 
 (B2B)                29%          23%          26%          36%          30%          19%          31%          25%          28% 
Wholesale 
 Biomass (B2B)        57%          45%          47%          57%          19%          30%          11%          52%          42% 
  Total               52%          43%          45%          53%          31%          34%          25%          48%          42% 
 
 
                                                  Wholesale Biomass Production and Cost per Pound 
                 Q3 2024        Q4 2024        Q1 2025        Q2 2025        Q3 2025        Q4 2025        Q1 2026        FY 2024        FY 2025 
              -------------  -------------  -------------  -------------  -------------  -------------  -------------  -------------  ------------- 
Equivalent 
 Dry Pounds 
 of 
 Production     232,295        165,074        152,568        230,748        123,986        159,131        151,531        608,478        666,433 
% Change to 
 Prior Year         128 %           60 %          149 %           54 %          (47)%           (4)%           (1)%           71 %           10 % 
 
Cost per 
 Equivalent 
 Dry Pounds 
 of 
 Production    $    103       $    110       $    108       $     91       $    128       $    129       $    175       $    123       $    111 
% Change to 
 Prior Year         (13)%           (9)%          (41)%          (39)%           24 %           17 %           62 %          (10)%          (10)% 
 
Ending 
 Operational 
 Canopy 
 Licensed 
 (000 sq. 
 ft)              1,525          1,525          1,525          1,525          1,525          1,708          1,708          1,525          1,708 
 
 
                                               Wholesale Biomass Sold and Average Selling Price per 
                                                                       Pound 
                Q3 2024        Q4 2024        Q1 2025        Q2 2025          Q3 2025        Q4 2025        Q1 2026      FY 2024        FY 2025 
             -------------  -------------  -------------  -------------      ---------      ---------      ---------  -------------  ------------- 
Equivalent 
 Dry Pounds 
 Sold          209,175        164,660        146,555        204,015        137,026        154,972        140,421        568,133        642,568 
% Change to 
 Prior 
 Year              108 %           68 %          160 %           48 %          (34)%           (6)%           (4)%           68 %           13 % 
Equivalent 
 Dry Pounds 
 Sold 
 Average 
 Selling 
 Price        $    229       $    220       $    193       $    206       $    155       $    146       $    171       $    245       $    177 
% Change to 
 Prior 
 Year              (32)%          (19)%          (32)%          (27)%          (32)%          (34)%          (11)%          (21)%          (28)% 
 
 

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, May 13, 2026, at 5:00 p.m. Eastern Time.

 
Webcast and Replay:  Register Here 
Dial-In Number:      1-800-715-9871 or 1-646-307-1963 
Conference ID:       1950615# 
 

(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 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 Loss (GAAP) to Adjusted EBITDA for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 and three months ended December 31, 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 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 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

May 13, 2026 17:49 ET (21:49 GMT)

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