Overview
US cannabis producer's preliminary Q1 net revenue was $40 mln, up slightly from prior quarter
Gross profit margin for Q1 fell to 25%, below guidance and down from 45% a year ago
Company lowered full-year 2026 gross margin and adjusted EBITDA guidance, revenue outlook unchanged
Outlook
Glass House sees 2026 net revenues between $235 mln and $245 mln, in line with prior guidance
Company lowers 2026 gross profit margin outlook to mid 40% range, down from about 48%
Glass House expects 2026 adjusted EBITDA in high $30 mln range, down from high $40 mln prior view
Result Drivers
HIGHER BIOMASS PRODUCTION - Q1 biomass production of 151,000 lbs. exceeded guidance, supporting revenue
HIGHER PRODUCTION COSTS - Company expects cost of production to be about $111 per pound, above prior guidance of roughly $100
Company press release: ID:nGNX8QsJ2M
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$40 mln
$39 mln (1 Analyst)
Q1 Gross Profit Margin
25.00%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the drug retailers peer group is "buy"
Wall Street's median 12-month price target for Glass House Brands Inc is $10.50, about 0.3% above its April 27 closing price of $10.53
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)