Glass House Brands’ “Most Difficult Quarter Yet”: Revenue Falls, Margins Slide After DHS Raid

California cannabis powerhouse Glass House Brands this week reported financial results for the third quarter of 2025, showing revenue of $38.4 million for the three months ending September 30. Revenue topped guidance of $35 million to $38 million, Glass House reported, despite fallout from a federal immigration raid at the company’s cultivation facility in Camarillo, California, in July.

The results include an estimated $26 million in lost revenue from this summer’s raid, SFGate reported on Thursday. The raid, which led to the death of a worker who fell from a greenhouse rooftop, also impacted production, causing a reduction in third-quarter harvests totaling 100,000 pounds of dried cannabis.

Q3 2025 Financial Highlights

• Gross margin was 31%, compared to 52% in the third quarter of 2024 and 53% in the second quarter of 2025.
• 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.
• Consolidated gross profit was $11.8 million, compared to $33.4 million for the year-ago period and $31.9 million in the second quarter of 2025.
• Adjusted EBITDA was negative $2.3 million in Q3 2025, compared to $20.4 million in the third quarter of 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.

Glass House CEO on Q3 Results

CEO Kyle Kazan said on a Wednesday earnings call that the third quarter was “the company’s most difficult to date” because of the July 10 raid. Federal immigration authorities arrested hundreds of workers, and the Department of Homeland Security reported that 14 children were discovered on the site. Glass House has denied violating labor laws, and no charges have been filed against the company.

“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,” Kazan said in a statement from 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 10th.”

Immigrant Rights Group Alleges Lack of Support for Workers

SFGate reported that after the raid, Glass House pledged on social media to offer legal assistance to affected workers. But according to Hazel Davalos, co-executive director of Central Coast immigrants’ rights organization CAUSE, “we haven’t seen any further action or meaningful outreach” from the company.

“To date, we’re aware of four workers who have filed wage theft claims in the aftermath, and an additional 30 workers who were too afraid to come forward with claims out of fear of retaliation,” Davalos said. “That reality speaks volumes about the company’s values and how it has responded to what was, at the time, the largest workplace immigration raid in California.”

Glass House declined to comment on the raid for this story.