Glass House Brands Reports Wider Loss, Negative Cash Flow In Q1 2026 As Margins Compress

Glass House Brands (OTC: GLASF) reported first-quarter 2026 revenue of $40.5 million, down from $44.8 million a year earlier, as lower wholesale cannabis prices continued to pressurize results across California.

The company posted:

• Gross profit of $10 million
• Gross margin of 25%, down from 45% last year
• Net loss of $17 million
• Adjusted EBITDA loss of $4.2 million
• Negative operating cash flow of $11.8 million

Production remained relatively stable at roughly 151,500 pounds of cannabis biomass during the quarter, but the average selling price fell to $171 per pound compared to $193 in Q1 2025. Production costs also rose sharply to $175 per pound from $108 a year ago.

Management attributed the weaker performance to lower cannabis pricing and temporarily elevated cultivation costs tied to expansion efforts.

Despite the quarter, Glass House reiterated its 2026 guidance:

• approximately 1 million pounds of annual biomass production
• $95 per pound production cost target
• progressive revenue growth through the year

The company also said it submitted DEA registration applications following federal medical cannabis rescheduling, which management believes could eventually support interstate commerce and improve profitability through potential 280E tax relief.

Glass House ended the quarter with $27.9 million in cash and restricted cash.