Exhibit 99.1
Glass House Brands Reports Fourth Quarter and Full Year 2025 Financial Results
-Fourth quarter and full year results reflect temporary planned scale back in wholesale production
-At year-end was back to fully planted with legacy greenhouses and the most overall acreage planted in Glass House history
-Full year 2026 wholesale cannabis biomass production is forecasted to be approximately 1,000,000 pounds, up approximately 50% from 2025.
-Year-end 2025 cash and restricted cash balance was $23.4 million, forecasting year-end 2026 cash to exceed $50 million.
-Conference call to be held today March 24, 2026, at 5:00 p.m. ET
LONG BEACH, Calif and TORONTO, March 24, 2026 - 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 fourth quarter and year ended December 31, 2025.
Fourth Quarter 2025 Highlights
(Unless otherwise stated, all results and dollar references are in U.S. dollars)
•Revenue of $38.9 million, in-line with guidance and compared to $53.0 million in Q4 2024 and $38.4 million in Q3 2025.
•Gross Profit Margin was 34%, compared to 43% in Q4 2024 and 31% in Q3 2025.
•Adjusted EBITDA1 was negative $(3.3) million, compared to $9.0 million in Q4 2024 and negative $(2.3) million in Q3 2025.
•Operating Cash Flow was negative $(3.7) million, compared to $8.2 million in Q4 2024 and negative $(5.1) million in Q3 2025.
•Equivalent Dry Pound Production2 was 159,131 pounds, ahead of guidance of 140,000 and 145,000 pounds and compared to a decrease of 4% year-over-year.
•Cost per Equivalent Dry Pound of Production3 was $129 per pound, compared to $110 per pound in the same period last year.
•Cash, Restricted Cash and Cash Equivalents balance was $23.4 million at year-end versus $29.8 million at the end of Q3 2025.
Management Commentary
“Our first half of 2025 results, particularly in the second quarter, reflected strong execution across key metrics including biomass production scale, cost of production and operating cash flow yield,” said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House. “In the second half of 2025, our results were impacted by events outside of our control, and actions taken to mitigate the impacts of these and to ensure our long-term success. The resulting scaling back of new planting and production meaningfully impacted results in the second half of the year.”
“We have navigated these short-term hurdles that we faced in the second half of 2025 and we ended the year fully planted in each of our legacy greenhouses. Now, with the first 1/3 of Greenhouse 2 planted, our cultivation team has planted the most acreage in Glass House’s history. We also accelerated expansion plans with the remaining buildout of Greenhouse 2 and the light retrofit and buildout of Greenhouse 4, which will be our first commercial hemp endeavor.”
“In summary, 2025 was a year of great progress for our company. While we faced challenges, we rose to meet them. Because of that, we have built a stronger foundation for sustainable growth and profit expansion than existed before our setbacks. This will be reflected in results as we progress this
year and we anticipate progressive revenue acceleration throughout the course of the year. We expect to achieve this before factoring in the potential benefit of any sales outside of California for our cannabis plants, something that we continue to believe is achievable in the near term, or before any contributions from hemp sales,” Mr. Kazan concluded.
Fourth Quarter 2025 Operational Highlights and Subsequent Events
•Glass House Brands becomes the first U.S-based plant touching cannabis operator whose stock can be traded on the Robinhood platform
•Glass House Brands Applauds Cannabis Reform Action
•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
Q4 2025 Financial Results Discussion
Revenues for Q4 2025 were $38.9 million, in-line with guidance of $37 million to $39 million and compared to $53.0 million in fourth quarter 2024 and $38.4 million in third quarter 2025. The decline is attributed to lower wholesale revenue due to reduced production.
The wholesale biomass segment revenue was $22.6 million, accounting for 58% of total revenue. Biomass production reached 159,131 pounds, exceeding guidance of 140,000 and 145,000 pounds and 4% lower year-over-year.
Q4 2025 retail revenue was $11.9 million, versus $12.3 million in the previous quarter and up 1% compared to $11.8 million the fourth quarter last year. Retail gross profit margin was 47% in the fourth quarter, compared to 50% in the third quarter.
Wholesale CPG revenues totaled $4.3 million, representing a 13% sequential decrease and 13% year-over-year decrease.
Consolidated gross profit for the fourth quarter was $13.2 million, compared to $22.8 million for the year-ago period and $11.8 million in Q3 2025. Gross profit margin was 34%, compared to 43% in the fourth quarter of 2024 and 31% in the third quarter of 2025.
Average selling price was $146 per pound, compared to $220 in the fourth quarter of 2024 as the Company is still operating amidst challenged California pricing conditions.
General and administrative expenses were $18.5 million for the fourth quarter of 2025, compared to $14.8 million last year and $15.9 million in the third quarter of 2025.
Sales and marketing expenses were $0.48 million, down from $0.64 million during the same period last year and down from $0.70 million in the prior quarter.
Professional fees were $2.9 million in Q4, versus $2.5 million in Q3 2025 and $1.4 million in Q4 2024.
Depreciation and amortization in Q4 2025 were $4.0 million, flat with Q3 2025 and up slightly from $3.9 million in the same period last year.
Adjusted EBITDA was negative $(3.3) million, compared to negative $(2.3) million in the third quarter of 2025 and $9.0 million versus the same period last year. Adjusted EBITDA reflects the factors that impacted our gross margin performance as well as a modest increase in operating expenses.
Operating cash flow was negative $(3.7) million, compared to $8.2 million in the year-ago period and negative $(5.1) million in the third quarter of 2025.
At December 31, 2025, the Company had $23.4 million of cash and restricted cash, compared to $29.8 million at the start of the fourth quarter. The Company spent $2.4 million in capex in the fourth quarter, which was mostly for Phase III expansion at Camarillo. The Company also paid $2.5 million in preferred stock dividend payments and $0.2 million in principal on notes payable.
Year End 2025 Financial Results Discussion
Revenues for full year 2025 totaled $182.0 million, compared to $200.9 million in 2024 as we produced at a lower overall scale.
Wholesale biomass revenue was $114.2 million, compared to $139.1 million in 2024. The Company sold 643,000 pounds of wholesale biomass in 2025 versus 568,000 pounds in 2024, a 13% increase. Average selling price was $177 per pound during 2025, versus $245 per pound in 2024. Production grew 10% to 666,433 pounds, compared to 608,478 pounds in 2024.
Retail revenue reached $48.2 million and increased by 10% versus 2024.
Wholesale CPG revenues were $19.5 million, compared to $18.0 million in 2024.
Full year consolidated gross profit was $77.0 million, compared to $97.4 million in 2024. Full year gross profit margin was 42%, a decline of 6% compared to 48% for full year 2024.
General and administrative expenses were $64.1 million in 2025, compared to $60.1 million in 2024.
Sales and marketing expenses were $2.7 million, compared to $2.4 million in 2024.
Professional fees were $9.1 million, compared to $7.8 million in 2024.
Depreciation and amortization for the full year 2025 was $15.8 million, compared to $15.0 million for the full year 2024.
For the full year, we generated $17.0 million of Adjusted EBITDA or a 9% Adjusted EBITDA margin, compared to Adjusted EBITDA of $40.3 million in 2024.
Full year 2025 operating cash flow was $11.4 million, versus $28.4 million in 2024 due mainly to gross profit decline.
Full Year 2026 Outlook
The Company anticipates progressive revenue scaling during the course of 2026 with full year revenue to be between $235 and $245 million before factoring in the potential benefit of any sales outside of California for our cannabis plants or contributions from hemp sales.
Full year 2026 wholesale biomass production is forecasted to be approximately 1,000,000 pounds of biomass which is a 50% increase to 2025. Cost of production is anticipated to be approximately $100 per pound, down 10% from 2025 while the average selling price is expected to be in the mid $180 per pound level. The anticipated average selling price compares to $177 in 2025 as the Company
expects improved quality and mix in production compared to last year, particularly in the second half of 2026.
Full year gross margin is projected to be roughly 48% this year and full year adjusted EBITDA to is projected to be in the high $40 million range. This will result in full year ending cash exceeding $50 million inclusive of approximately $20 million capex to complete the full retrofit of Greenhouse 2 including adding new high efficiency, low energy lighting and a capex light retrofit of Greenhouse 4 for the hemp production.
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).
Unless otherwise stated, all results are in U.S. dollars.
| | | | | | | | | | | | | | | | | |
| Net Income / Loss |
| (in thousands) | FY23 | | FY24 | | FY25 |
| Revenues, Net | $ | 160,836 | | | $ | 200,898 | | | $ | 181,984 | |
| Cost of Goods Sold | 79,867 | | | 103,505 | | | 105,024 | |
| Gross Profit | 80,969 | | | 97,393 | | | 76,960 | |
| % of Net Revenue | 50 | % | | 48 | % | | 42 | % |
| | | | | |
| Operating Expenses: | | | | | |
| General and Administrative | 52,914 | | | 60,126 | | | 64,098 | |
| Sales and Marketing | 2,838 | | | 2,418 | | | 2,669 | |
| Professional Fees | 7,304 | | | 7,768 | | | 9,062 | |
| Depreciation and Amortization | 14,627 | | | 15,044 | | | 15,764 | |
| Impairment | 52,815 | | | 6,300 | | | 1,900 | |
| Total Operating Expenses | 130,498 | | | 91,656 | | | 93,493 | |
| Income (Loss) from Operations | (49,529) | | | 5,737 | | | (16,533) | |
| Interest Expense | 9,819 | | | 9,184 | | | 7,058 | |
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | 24,399 | | | (13,724) | | | — | |
| Other (Income) Expense, Net | 4,371 | | | (942) | | | (6,573) | |
| Total Other (Income) Expense, Net | 38,589 | | | (5,482) | | | 485 | |
| Income Taxes | 9,943 | | | 10,498 | | | 11,934 | |
| Net Income (Loss) | $ | (98,061) | | | $ | 721 | | | $ | (28,952) | |
| | | | | | | | | | | | | | | | | |
| Adjusted EBITDA |
| (in thousands) | FY23 | | FY24 | | FY25 |
| Net Income (Loss) (GAAP) | $ | (98,061) | | | $ | 721 | | | $ | (28,952) | |
| Depreciation and Amortization | 14,627 | | | 15,044 | | | 15,764 | |
| Interest, Net | 9,819 | | | 9,184 | | | 6,770 | |
| Income Tax Expense | 9,943 | | | 10,498 | | | 11,934 | |
| EBITDA (Non-GAAP) | (63,672) | | | 35,447 | | | 5,516 | |
| Adjustments: | | | | | |
| Share-Based Compensation | 7,637 | | | 13,098 | | | 13,402 | |
| Stock Appreciation Rights Expense | 219 | | | 262 | | | 28 | |
| (Gain) Loss on Equity Method Investments | 2,102 | | | (14) | | | (84) | |
| Change in Fair Value of Derivative Asset and Liability | 28 | | | (690) | | | 2,070 | |
| Impairment Expense for Goodwill | 37,912 | | | — | | | — | |
| Impairment Expense for Intangible Assets | 14,903 | | | 6,300 | | | 1,900 | |
| Change in Fair Value of Contingent Liabilities and Shares Payable | 24,399 | | | (13,724) | | | — | |
| Loss on Extinguishment of Debt | — | | | — | | | 292 | |
| Employee Retention Tax Credit | — | | | (423) | | | (9,643) | |
| Non-Recurring Asset Casualty Loss | — | | | — | | | 939 | |
| Non-Recurring Legal and Professional Fees | — | | | — | | | 2,547 | |
| Loan Amendment Fee | 1,000 | | | — | | | — | |
| Adjusted EBITDA (Non-GAAP) | $ | 24,528 | | | $ | 40,256 | | | $ | 16,967 | |
| | | | | | | | | | | | | | | | | |
| Select Cash Flow Information |
| (in thousands) | FY23 | | FY24 | | FY25 |
| Net Income (Loss) | $ | (98,061) | | | $ | 721 | | | $ | (28,952) | |
| Depreciation and Amortization | 14,627 | | | 15,044 | | | 15,764 | |
| Share-Based Compensation | 7,637 | | | 13,098 | | | 13,402 | |
| Impairment Expense for Goodwill and Intangibles | 52,815 | | | 6,300 | | | 1,900 | |
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | 24,399 | | | (13,724) | | | — | |
| Other | 7,948 | | | 2,908 | | | 6,836 | |
| Cash From Net Income (Loss) | 9,365 | | | 24,347 | | | 8,950 | |
| Accounts Receivable | (172) | | | (1,481) | | | (547) | |
| Income Taxes Receivable | — | | | (1,929) | | | 1,138 | |
| Prepaid Expenses and Other Current Assets | 3,883 | | | (3,902) | | | (2,262) | |
| Inventory | 2,361 | | | (5,412) | | | (11,975) | |
| Other Assets | 191 | | | 215 | | | 3,442 | |
| Accounts Payable and Accrued Liabilities | 5,985 | | | 8,413 | | | 5,817 | |
| Income Taxes Payable | 278 | | | (5,471) | | | (2,408) | |
| Other | 1,333 | | | 13,612 | | | 9,292 | |
| Working Capital Impact | 13,859 | | | 4,045 | | | 2,497 | |
| Operating Activities Cash Flow | 23,224 | | | 28,392 | | | 11,447 | |
| | | | | |
| Purchases of Property and Equipment | (12,309) | | | (10,294) | | | (27,179) | |
| Other | (405) | | | — | | | (563) | |
| Investing Activities Cash Flow | (12,714) | | | (10,294) | | | (27,742) | |
| | | | | |
| Proceeds from the Issuance of At-the-Money Shares | — | | | — | | | 2,182 | |
| Proceeds from the Issuance of Notes Payable and Preferred Shares, Net of Redemption of Preferred Shares | 15,363 | | | — | | | 52,093 | |
| Payments on Notes Payable, Third Parties and Related Parties | (696) | | | (7,557) | | | (42,893) | |
| Distributions to Preferred Shareholders | (6,331) | | | (7,749) | | | (8,305) | |
| Other | (466) | | | 1,607 | | | (355) | |
| Financing Activities Cash Flow | 7,870 | | | (13,699) | | | 2,722 | |
| | | | | |
| Net Increase (Decrease) in Cash, Restricted Cash and Cash Equivalents | 18,380 | | | 4,399 | | | (13,573) | |
| Cash, Restricted Cash and Cash Equivalents, Beginning of Period | 14,144 | | | 32,524 | | | 36,923 | |
| Cash, Restricted Cash and Cash Equivalents, End of Period | $ | 32,524 | | | $ | 36,923 | | | $ | 23,350 | |
| | | | | | | | | | | | | | | | | |
| Select Balance Sheet Information |
| (in thousands) | FY23 | | FY24 | | FY25 |
| Cash and Restricted Cash | $ | 32,524 | | | $ | 36,923 | | | $ | 19,850 | |
| Accounts Receivable, Net | 3,979 | | | 5,221 | | | 4,417 | |
| Income Taxes Receivable | — | | | 1,929 | | | 791 | |
| Prepaid Expenses and Other Current Assets | 3,873 | | | 7,775 | | | 15,664 | |
| Inventory | 8,840 | | | 14,252 | | | 26,227 | |
| Notes Receivable | — | | | — | | | 800 | |
| Total Current Assets | 49,216 | | | 66,100 | | | 67,749 | |
| Operating and Finance Lease Right-of-Use Assets, Net | 10,860 | | | 10,736 | | | 5,911 | |
| Long Term Investments | 2,327 | | | 2,341 | | | — | |
| Property, Plant and Equipment, Net | 215,686 | | | 212,252 | | | 228,760 | |
| Intangible Assets, Net | 21,213 | | | 14,200 | | | 11,577 | |
| | | | | |
| | | | | |
| Restricted Cash, Net of Current Portion | — | | | — | | | 3,500 | |
| Other Assets | 4,473 | | | 4,873 | | | 1,060 | |
| TOTAL ASSETS | $ | 303,775 | | | $ | 310,502 | | | $ | 318,557 | |
| | | | | |
| Accounts Payable and Accrued Liabilities | $ | 26,932 | | | $ | 31,128 | | | $ | 35,970 | |
| Income Taxes Payable | 7,879 | | | 2,408 | | | — | |
| Contingent Shares and Earnout Liabilities | 34,589 | | | 20,265 | | | — | |
| Shares Payable | 8,570 | | | 2,579 | | | — | |
| | | | | |
| Current Portion of Operating and Finance Lease Liabilities | 1,839 | | | 2,454 | | | 1,952 | |
| Current Portion of Notes Payable | 7,550 | | | 7,644 | | | 37 | |
| | | | | |
| Total Current Liabilities | 87,359 | | | 66,478 | | | 37,959 | |
| Operating and Finance Lease Liabilities, Net of Current Portion | 9,224 | | | 8,548 | | | 3,954 | |
| Other Non-Current Liabilities | 5,443 | | | 20,869 | | | 33,413 | |
| | | | | |
| Notes Payable, Net of Current Portion | 56,513 | | | 50,552 | | | 68,629 | |
| | | | | |
| TOTAL LIABILITIES | 158,539 | | | 146,447 | | | 143,955 | |
| Preferred Equity Series B, C, D and E | 78,153 | | | 86,363 | | | 92,500 | |
| Additional Paid-In Capital, Accumulated Deficit and Non-Controlling Interest | 67,083 | | | 77,692 | | | 82,102 | |
| TOTAL MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 145,236 | | | 164,055 | | | 174,602 | |
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | $ | 303,775 | | | $ | 310,502 | | | $ | 318,557 | |
| | | | | | | | | | | | | | | | | |
| Net Income / Loss |
| (in thousands) | Q4 2024 | | Q3 2025 | | Q4 2025 |
| Revenues, Net | $ | 53,039 | | | $ | 38,444 | | | $ | 38,855 | |
| Cost of Goods Sold | 30,288 | | | 26,686 | | | 25,649 | |
| Gross Profit | 22,751 | | | 11,758 | | | 13,206 | |
| % of Net Revenue | 43 | % | | 31 | % | | 34 | % |
| | | | | |
| Operating Expenses: | | | | | |
| General and Administrative | 14,808 | | | 15,923 | | | 18,474 | |
| Sales and Marketing | 639 | | | 703 | | | 476 | |
| Professional Fees | 1,354 | | | 2,517 | | | 2,912 | |
| Depreciation and Amortization | 3,874 | | | 3,994 | | | 4,028 | |
| | | | | |
| Total Operating Expenses | 20,675 | | | 23,137 | | | 25,890 | |
| Income (Loss) from Operations | 2,076 | | | (11,379) | | | (12,684) | |
| Interest Expense | 2,130 | | | 1,819 | | | 1,044 | |
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | (12,296) | | | — | | | — | |
| Other Income, Net | (443) | | | (2,081) | | | (1,194) | |
| Total Other Income, Net | (10,609) | | | (262) | | | (150) | |
| Income Taxes | 526 | | | 1,071 | | | 2,966 | |
| Net Income (Loss) | $ | 12,159 | | | $ | (12,188) | | | $ | (15,500) | |
| | | | | | | | | | | | | | | | | |
| Adjusted EBITDA |
| (in thousands) | Q4 2024 | | Q3 2025 | | Q4 2025 |
| Net Income (Loss) (GAAP) | $ | 12,159 | | | $ | (12,188) | | | $ | (15,500) | |
| Depreciation and Amortization | 3,874 | | | 3,994 | | | 4,028 | |
| Interest Expense | 2,130 | | | 1,819 | | | 1,044 | |
| Income Tax Expense | 526 | | | 1,071 | | | 2,966 | |
| EBITDA (Non-GAAP) | 18,689 | | | (5,304) | | | (7,462) | |
| Adjustments: | | | | | |
| Share-Based Compensation | 3,258 | | | 4,079 | | | 4,274 | |
| Stock Appreciation Rights Expense | (159) | | | 50 | | | (22) | |
| (Gain) Loss on Equity Method Investments | (45) | | | — | | | — | |
| Change in Fair Value of Derivative Asset | (6) | | | 36 | | | (27) | |
| | | | | |
| | | | | |
| Change in Fair Value of Contingent Liabilities and Shares Payable | (12,296) | | | — | | | — | |
| | | | | |
| Employee Retention Tax Credit | (423) | | | (2,318) | | | (2,365) | |
| Non-recurring Asset Casualty Loss | — | | | — | | | 939 | |
| Non-Recurring Legal and Professional Fees | — | | | 1,190 | | | 1,357 | |
| | | | | |
| Adjusted EBITDA (Non-GAAP) | $ | 9,018 | | | $ | (2,267) | | | $ | (3,306) | |
| | | | | | | | | | | | | | | | | |
| Select Cash Flow Information |
| (in thousands) | Q4 2024 | | Q3 2025 | | Q4 2025 |
| Net Income (Loss) | $ | 12,159 | | | $ | (12,188) | | | $ | (15,500) | |
| Depreciation and Amortization | 3,874 | | | 3,994 | | | 4,028 | |
| Share-Based Compensation | 3,258 | | | 4,079 | | | 4,274 | |
| | | | | |
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | (12,296) | | | — | | | — | |
| Other | 778 | | | 1,419 | | | 1,963 | |
| Cash From Net Income (Loss) | 7,773 | | | (2,696) | | | (5,235) | |
| Accounts Receivable | 2,653 | | | 3,715 | | | 410 | |
| Income Taxes Receivable | (618) | | | (939) | | | 1,081 | |
| Prepaid Expenses and Other Current Assets | (1,472) | | | (2,693) | | | (412) | |
| Inventory | 2,516 | | | 293 | | | (6,851) | |
| Other Assets | 42 | | | 1,342 | | | 134 | |
| Accounts Payable and Accrued Liabilities | (934) | | | (5,804) | | | 7,918 | |
| Income Taxes Payable | (1,984) | | | (1,317) | | | (2,408) | |
| Other | 216 | | | 3,039 | | | 1,662 | |
| Working Capital Impact | 419 | | | (2,364) | | | 1,534 | |
| Operating Activities Cash Flow | 8,192 | | | (5,060) | | | (3,701) | |
| | | | | |
| Purchases of Property and Equipment | (2,560) | | | (8,626) | | | (2,400) | |
| Other | — | | | (975) | | | 222 | |
| Investing Activities Cash Flow | (2,560) | | | (9,601) | | | (2,178) | |
| | | | | |
| Proceeds from the Issuance of At-the-Money Shares | — | | | — | | | 2,182 | |
| 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 | (1,891) | | | (586) | | | (238) | |
| Distributions to Preferred Shareholders | (1,938) | | | (1,937) | | | (2,493) | |
| Other | 60 | | | (199) | | | 7 | |
| Financing Activities Cash Flow | (3,769) | | | 231 | | | (542) | |
| | | | | |
| Net Increase (Decrease) in Cash, Restricted Cash and Cash Equivalents | 1,863 | | | (14,430) | | | (6,421) | |
| Cash, Restricted Cash and Cash Equivalents, Beginning of Period | 35,060 | | | 44,201 | | | 29,771 | |
| Cash, Restricted Cash and Cash Equivalents, End of Period | $ | 36,923 | | | $ | 29,771 | | | $ | 23,350 | |
| | | | | | | | | | | | | | | | | |
| Select Balance Sheet Information |
| (in thousands) | Q4 2024 | | Q3 2025 | | Q4 2025 |
| Cash and Restricted Cash | $ | 36,923 | | | $ | 26,271 | | | $ | 19,850 | |
| Accounts Receivable, Net | 5,221 | | | 6,138 | | | 4,417 | |
| Income Taxes Receivable | 1,929 | | | 1,872 | | | 791 | |
| Prepaid Expenses and Other Current Assets | 7,775 | | | 20,679 | | | 15,664 | |
| Inventory | 14,252 | | | 19,376 | | | 26,227 | |
| Notes Receivable | — | | | — | | | 800 | |
| Total Current Assets | 66,100 | | | 74,336 | | | 67,749 | |
| Operating and Finance Lease Right-of-Use Assets, Net | 10,736 | | | 6,485 | | | 5,911 | |
| Long Term Investments | 2,341 | | | — | | | — | |
| Property, Plant and Equipment, Net | 212,252 | | | 222,405 | | | 228,760 | |
| Intangible Assets, Net | 14,200 | | | 11,758 | | | 11,577 | |
| | | | | |
| | | | | |
| Restricted Cash, Net of Current Portion | — | | | 3,500 | | | 3,500 | |
| Other Assets | 4,873 | | | 1,333 | | | 1,060 | |
| TOTAL ASSETS | $ | 310,502 | | | $ | 319,817 | | | $ | 318,557 | |
| | | | | |
| Accounts Payable and Accrued Liabilities | $ | 31,128 | | | $ | 28,762 | | | $ | 35,970 | |
| Income Taxes Payable | 2,408 | | | 2,408 | | | — | |
| Contingent Shares and Earnout Liabilities | 20,265 | | | — | | | — | |
| Shares Payable | 2,579 | | | — | | | — | |
| | | | | |
| Current Portion of Operating and Finance Lease Liabilities | 2,454 | | | 2,023 | | | 1,952 | |
| Current Portion of Notes Payable | 7,644 | | | 36 | | | 37 | |
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| Total Current Liabilities | 66,478 | | | 33,229 | | | 37,959 | |
| Operating and Finance Lease Liabilities, Net of Current Portion | 8,548 | | | 4,418 | | | 3,954 | |
| Other Non-Current Liabilities | 20,869 | | | 31,600 | | | 33,413 | |
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| Notes Payable, Net of Current Portion | 50,552 | | | 68,814 | | | 68,629 | |
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| TOTAL LIABILITIES | 146,447 | | | 138,061 | | | 143,955 | |
| Preferred Equity Series B, C, D and E | 86,363 | | | 92,500 | | | 92,500 | |
| Additional Paid-In Capital, Accumulated Deficit and Non-Controlling Interest | 77,692 | | | 89,256 | | | 82,102 | |
| TOTAL MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 164,055 | | | 181,756 | | | 174,602 | |
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | $ | 310,502 | | | $ | 319,817 | | | $ | 318,557 | |
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| Notes Payable and Preferred Equity |
| (in thousands) | Q2 2025 | | Q3 2025 | | Q4 2025 | | Comments |
| Notes Payable | | | | | | | |
| Secured Credit Facility | $ | 50,000 | | | $ | 50,000 | | | $ | 50,000 | | | Maturity is 2/28/30 |
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| 2025 Lompoc Term Loan | — | | | 2,997 | | | 2,990 | | | Maturity is 8/4/35 |
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| Series A | 11,895 | | | 11,895 | | | 11,895 | | | 8% semi annual interest, cash or shares, higher of 10 day VWAP 5 trading days prior to pay date or $4.08, Maturity 4/15/27 |
| Series B | 4,111 | | | 4,111 | | | 4,111 | | | 8% semi annual interest, cash or shares, lower of 10 day VWAP 5 trading days prior to pay date or $10.00, Maturity 4/15/27 |
| Plus Convertible Debt | 16,006 | | | 16,006 | | | 16,006 | | | |
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| Other | (161) | | | (153) | | | (330) | | | Mostly original issue discount |
| Notes Payable Total | $ | 65,845 | | | $ | 68,850 | | | $ | 68,666 | | | |
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| Preferred Equity | | | | | | | |
| Series B | $ | 70,042 | | | $ | — | | | $ | — | | | |
| Series C | 6,748 | | | — | | | — | | | |
| Series D | 15,000 | | | 15,000 | | | 15,000 | | | Currently at 15% dividend with 15% cash payment until 8/24/28 when it increases to 20% dividend with 20% cash payment |
| Series E | — | | | 77,500 | | | 77,500 | | | 12% dividend with 12% cash payment |
| Preferred Equity Total | $ | 91,790 | | | $ | 92,500 | | | $ | 92,500 | | | |
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| Cash Payments | | | | | | | |
| Debt Amortization | $ | 1 | | | $ | 597 | | | $ | 239 | | | |
| Cash Interest | 1,203 | | | 1,222 | | | 1,226 | | | 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 on 8/4/25 |
| Debt Service | 1,204 | | | 1,819 | | | 1,465 | | | |
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| Series B | 1,249 | | | — | | | — | | | |
| Series C | 125 | | | — | | | — | | | |
| Series D | 563 | | | 563 | | | 563 | | | 15% annual rate until 8/24/28 when it increases to 20% |
| Series E | — | | | 1,898 | | | 2,358 | | | 12% annual rate |
| Preferred Equity Dividends | 1,937 | | | 2,461 | | | 2,921 | | | |
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| Total Debt Service and Dividends | $ | 3,141 | | | $ | 4,280 | | | $ | 4,386 | | | |
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| Equity Table |
| (in thousands, except share price) | Q4 2025 | | Q3 2025 | | Change | | Comments |
| Total Equity and Exchangeable Shares | 81,729 | | | 79,886 | | | 1,843 | | | Shares issued in connection with At-the-Market program, exercise of RSUs, ISOs, and warrants and interest on convertible debentures |
| Warrants | | | | | | | |
| Series D | 2,770 | | | 2,980 | | | (210) | | | Exercise price of $6.00 with an expiration date of August 2028 |
| Series C | 1,000 | | | 1,000 | | | — | | | Exercise price of $5.00 with an expiration date of August 2027 |
| Series B | 8,787 | | | 9,719 | | | (932) | | | Exercise price of $5.00 with an expiration date of August 2027 |
| SPAC | 30,665 | | | 30,665 | | | — | | | Exercise price of $11.50 with an expiration date of June 2026 |
| Total Warrants | 43,222 | | | 44,364 | | | (1,142) | | | |
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| Stock Options | 179 | | | 333 | | | (154) | | | Weighted average exercise price of $3.10 with expiration dates from January 2026 to June 2026 |
| RSUs | 5,327 | | | 5,876 | | | (549) | | | Up to 3-year vesting through 2028 |
| Total | 5,506 | | | 6,209 | | | (703) | | | |
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| Share Price at Quarter End | $ | 8.75 | | | $ | 7.54 | | | $ | 1.21 | | | |
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| Convertible Debentures | | | | | | | |
| Series A | $ | 11,895 | | | $ | 11,895 | | | $ | — | | | 8% semi annual interest, cash or shares, higher of 10 day VWAP 5 trading days prior to pay date or $4.08, Maturity 4/15/27 |
| Series B | 4,111 | | | 4,111 | | | — | | | 8% semi annual interest, cash or shares, lower of 10 day VWAP 5 trading days prior to pay date or $10.00, Maturity 4/15/27 |
| Total Convertible Debentures | $ | 16,006 | | | $ | 16,006 | | | $ | — | | | |
| Number of Shares if Converted Assuming Share Price at Quarter End | 1,829 | | | 2,123 | | | (294) | | | |
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| Revenue |
| (in thousands) | Q1 2024 | | Q2 2024 | | Q3 2024 | | Q4 2024 | | Q1 2025 | | Q2 2025 | | Q3 2025 | | Q4 2025 | | FY 2023 | | FY 2024 | | FY 2025 |
| Retail (B2C) | $ | 9,921 | | | $ | 10,885 | | | $ | 11,214 | | | $ | 11,796 | | | $ | 11,788 | | | $ | 12,262 | | | $ | 12,255 | | | $ | 11,938 | | | $ | 39,078 | | | $ | 43,816 | | | $ | 48,243 | |
| Wholesale CPG (B2B) | 4,253 | | | 3,979 | | | 4,777 | | | 4,987 | | | 4,747 | | | 5,483 | | | 4,958 | | | 4,320 | | | 16,062 | | | 17,996 | | | 19,508 | |
| Wholesale Biomass (B2B) | 15,926 | | | 39,074 | | | 47,830 | | | 36,256 | | | 28,283 | | | 42,122 | | | 21,231 | | | 22,597 | | | 105,696 | | | 139,086 | | | 114,233 | |
| Total | $ | 30,100 | | | $ | 53,938 | | | $ | 63,821 | | | $ | 53,039 | | | $ | 44,818 | | | $ | 59,867 | | | $ | 38,444 | | | $ | 38,855 | | | $ | 160,836 | | | $ | 200,898 | | | $ | 181,984 | |
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| Sequential % Change | | | | | | | | | | | | | | | | | | | | | |
| Retail (B2C) | 4 | % | | 10 | % | | 3 | % | | 5 | % | | — | % | | 4 | % | | — | % | | (3) | % | | | | | | |
| Wholesale CPG (B2B) | 4 | % | | (6) | % | | 20 | % | | 4 | % | | (5) | % | | 16 | % | | (10) | % | | (13) | % | | | | | | |
| Wholesale Biomass (B2B) | (40) | % | | 145 | % | | 22 | % | | (24) | % | | (22) | % | | 49 | % | | (50) | % | | 6 | % | | | | | | |
| Total | (26) | % | | 79 | % | | 18 | % | | (17) | % | | (15) | % | | 34 | % | | (36) | % | | 1 | % | | | | | | |
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| % Change to Prior Year | | | | | | | | | | | | | | | | | | | | | |
| Retail (B2C) | 6 | % | | 8 | % | | 11 | % | | 23 | % | | 19 | % | | 13 | % | | 9 | % | | 1 | % | | 46 | % | | 12 | % | | 10 | % |
| Wholesale CPG (B2B) | 14 | % | | 1 | % | | 11 | % | | 22 | % | | 12 | % | | 38 | % | | 4 | % | | (13) | % | | (4) | % | | 12 | % | | 8 | % |
| Wholesale Biomass (B2B) | 10 | % | | 28 | % | | 41 | % | | 36 | % | | 78 | % | | 8 | % | | (56) | % | | (38) | % | | 155 | % | | 32 | % | | (18) | % |
| Total | 9 | % | | 21 | % | | 32 | % | | 31 | % | | 49 | % | | 11 | % | | (40) | % | | (27) | % | | 89 | % | | 25 | % | | (9) | % |
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| Gross Profit |
| (in thousands) | Q1 2024 | | Q2 2024 | | Q3 2024 | | Q4 2024 | | Q1 2025 | | Q2 2025 | | Q3 2025 | | Q4 2025 | | FY 2023 | | FY 2024 | | FY 2025 |
| Retail (B2C) | $ | 5,253 | | | $ | 5,162 | | | $ | 4,952 | | | $ | 5,396 | | | $ | 5,653 | | | $ | 5,861 | | | $ | 6,166 | | | $ | 5,621 | | | $ | 21,551 | | | $ | 20,763 | | | $ | 23,301 | |
| Wholesale CPG (B2B) | 1,065 | | | 886 | | | 1,398 | | | 1,168 | | | 1,221 | | | 1,949 | | | 1,477 | | | 818 | | | 1,223 | | | 4,517 | | | 5,465 | |
| Wholesale Biomass (B2B) | 6,208 | | | 22,626 | | | 27,092 | | | 16,187 | | | 13,191 | | | 24,121 | | | 4,115 | | | 6,767 | | | 58,195 | | | 72,113 | | | 48,194 | |
| Total | $ | 12,526 | | | $ | 28,674 | | | $ | 33,442 | | | $ | 22,751 | | | $ | 20,065 | | | $ | 31,931 | | | $ | 11,758 | | | $ | 13,206 | | | $ | 80,969 | | | $ | 97,393 | | | $ | 76,960 | |
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| % of Revenue | | | | | | | | | | | | | | | | | | | | | |
| Retail (B2C) | 53 | % | | 47 | % | | 44 | % | | 46 | % | | 48 | % | | 48 | % | | 50 | % | | 47 | % | | 55 | % | | 47 | % | | 48 | % |
| Wholesale CPG (B2B) | 25 | % | | 22 | % | | 29 | % | | 23 | % | | 26 | % | | 36 | % | | 30 | % | | 19 | % | | 8 | % | | 25 | % | | 28 | % |
| Wholesale Biomass (B2B) | 39 | % | | 58 | % | | 57 | % | | 45 | % | | 47 | % | | 57 | % | | 19 | % | | 30 | % | | 55 | % | | 52 | % | | 42 | % |
| Total | 42 | % | | 53 | % | | 52 | % | | 43 | % | | 45 | % | | 53 | % | | 31 | % | | 34 | % | | 50 | % | | 48 | % | | 42 | % |
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| Wholesale Biomass Production and Cost per Pound |
| Q1 2024 | | Q2 2024 | | Q3 2024 | | Q4 2024 | | Q1 2025 | | Q2 2025 | | Q3 2025 | | Q4 2025 | | FY 2023 | | FY 2024 | | FY 2025 |
| Equivalent Dry Pounds of Production | 61,392 | | | 149,717 | | | 232,295 | | | 165,074 | | | 152,568 | | | 230,748 | | | 123,986 | | | 159,131 | | | 356,722 | | | 608,478 | | | 666,433 | |
| % Change to Prior Year | 28 | % | | 45 | % | | 128 | % | | 60 | % | | 149 | % | | 54 | % | | (47) | % | | (4) | % | | 84 | % | | 71 | % | | 10 | % |
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| Cost per Equivalent Dry Pounds of Production | $ | 182 | | | $ | 148 | | | $ | 103 | | | $ | 110 | | | $ | 108 | | | $ | 91 | | | $ | 128 | | | $ | 129 | | | $ | 136 | | | $ | 123 | | | $ | 111 | |
| % Change to Prior Year | (7) | % | | 6 | % | | (13) | % | | (9) | % | | (41) | % | | (39) | % | | 24 | % | | 17 | % | | (6) | % | | (10) | % | | (10) | % |
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| Ending Operational Canopy (000 sq. ft) | 959 | | | 1,525 | | | 1,525 | | | 1,525 | | | 1,525 | | | 1,525 | | | 1,525 | | | 1,708 | | | 959 | | | 1,525 | | | 1,708 | |
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| Wholesale Biomass Sold and Average Selling Price per Pound |
| Q1 2024 | | Q2 2024 | | Q3 2024 | | Q4 2024 | | Q1 2025 | | Q2 2025 | | Q3 2025 | | Q4 2025 | | FY 2023 | | FY 2024 | | FY 2025 |
| Equivalent Dry Pounds Sold | 56,432 | | | 137,866 | | | 209,175 | | | 164,660 | | | 146,555 | | | 204,015 | | | 137,026 | | | 154,972 | | | 338,957 | | | 568,133 | | | 642,568 | |
| % Change to Prior Year | 13 | % | | 53 | % | | 108 | % | | 68 | % | | 160 | % | | 48 | % | | (34) | % | | (6) | % | | 97 | % | | 68 | % | | 13 | % |
| Equivalent Dry Pounds Sold Average Selling Price | $ | 282 | | | $ | 283 | | | $ | 229 | | | $ | 220 | | | $ | 193 | | | $ | 206 | | | $ | 155 | | | $ | 146 | | | $ | 312 | | | $ | 245 | | | $ | 177 | |
| % Change to Prior Year | (3) | % | | (17) | % | | (32) | % | | (19) | % | | (32) | % | | (27) | % | | (32) | % | | (34) | % | | 43 | % | | (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, March 24, 2026, at 5:00 p.m. Eastern Time.
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| Webcast and Replay: | Register Here |
| Dial-In Number: | 1.800.715.9871 or 1.646.307.1963 |
| Conference ID: | 8792999# |
(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 provides a reconciliation of the Company’s Net Income (Loss) (GAAP) to Adjusted EBITDA for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 and three months ended September 30, 2025 and Net Income (Loss) (GAAP) to Adjusted EBITDA for the year ended December 31, 2025 compared to the year ended December 31 2024, and the year ended December 31, 2023.
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.
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
