Glass House Brands (GLASF) Q4 2025 earnings summary

Executive summary

• Achieved $181.98M in FY 2025 revenue, a 9% decrease from FY 2024, with $76.96M gross profit and $11.93M net income, reversing a net loss in FY 2024.

• Retail stores outperformed the California market, with 10% same-store sales growth versus a 5% state decline; Allswell became California's top-selling flower brand by volume.

• Faced significant challenges in the second half due to federal raids and staffing shortages, impacting production, inventory quality, and financial results.

• Achieved six consecutive quarters of same-store sales growth and reduced cultivation costs below $100/lb.

• Strategic pricing model and operational discipline supported resilience in a highly competitive market.

Financial highlights

• Q4 2025 revenue was $39 million, down from $53 million year-over-year; full year revenue was $182 million, down from $201 million in 2024.

• Q4 gross margin was 34–35%, with an adjusted EBITDA loss of $3.3 million; full year gross margin was 42% and adjusted EBITDA was $17 million.

• Q4 cost of production rose to $129/lb (from $110/lb last year); full year cost was $111/lb, above the $95/lb target.

• Ended 2025 with $23.4 million in cash and restricted cash; operating cash flow for the year was $11.4 million.

• FY 2025 net income margin: 6.6%; adjusted EBITDA margin: 9.3%.

Outlook and guidance

• 2026 revenue forecasted at $235–$245 million, with a $300 million annualized run rate expected in the second half.

• Full year gross margin projected at 48%, adjusted EBITDA in the high $40 million range.

• Wholesale biomass production expected to reach 1 million lbs (up 48–50% year-over-year); cost of production to decrease to ~$100/lb.

• Initial hemp harvest and sales expected in Q3 2026, with incremental contributions not included in current forecasts.

• Ending 2026 cash projected to exceed $50 million, with $20 million CapEx planned for greenhouse expansions.