Glass House Brands Q1 revenue falls on lower prices

Glass House Brands

13/05/2026 21:19

Overview

US cannabis producer's Q1 revenue fell 10% yr/yr, driven by lower prices and production

Company announced warrant redemption notice and launched $50 mln at-the-market equity program

Management reiterated 2026 production and cost targets, expects revenue growth in coming quarters

Outlook

Company reiterates 2026 wholesale cannabis biomass production forecast of about 1 mln pounds

Glass House targets $95 per pound annual production cost on a quarterly basis in H2 2026

Result Drivers

LOWER WHOLESALE PRICES - Co said revenue and gross margin declines were driven by lower average selling prices in the wholesale business amid challenging California market conditions

HIGHER PRODUCTION COSTS - Co said cost per pound rose due to transitory inflated production costs as it built up cultivation scale

STABLE RETAIL SEGMENT - Retail revenue and gross margin remained steady, offsetting some wholesale weakness

Company press release: ID:nGNXb1dg1W

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EBITDA
Beat
-$4.20 mln
-$4.90 mln (1 Analyst)
Q1 Gross Profit
$10 mln
Q1 Operating Cash Flow
-$11.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 13.9% above its May 12 closing price of $9.22

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)