Glass House Brands Reports First Quarter Revenue of $40.5 Million
The vertically integrated cannabis company reported a gross profit margin of 25%, down from 45% in the first quarter of last year.
Glass House Brands Inc. (GLAS), a vertically integrated cannabis company, reported revenue of $40.5 million for the first quarter ended March 31, 2026. The result was lower than the $44.8 million reported in the first quarter of 2025, though it rose from $38.9 million in the fourth quarter of 2025.
Wholesale biomass production drove a significant portion of the company's activity, with the segment generating $24.0 million, or 59% of total revenue. The company produced 151,531 equivalent dry pounds during the quarter. However, the wholesale business faced pricing pressure in California, with the average selling price falling to $171 per pound from $193 per pound in the first quarter of 2025.
These pricing headwinds and higher production costs reduced the consolidated gross profit to $10.0 million, compared to $20.1 million in the prior year's first quarter. The cost per equivalent dry pound of production rose to $175 per pound, up from $108 per pound in the first quarter of 2025 and $129 per pound in the fourth quarter of 2025.
Other business segments showed mixed results. Retail segment revenue was $11.9 million, compared to $11.8 million in the first quarter of last year. Retail gross margin rose to 50% from 47% in the fourth quarter of 2025. Wholesale CPG segment revenues were $4.6 million, which the company said was a 7% sequential increase but a 2% decrease year-over-year.
Profitability and cash flow declined during the period. Adjusted EBITDA was negative $4.2 million, compared to a positive $4.4 million in the first quarter of 2025 and negative $3.3 million in the fourth quarter of 2025. Operating cash flow was negative $11.8 million, compared to $2.5 million in the first quarter of 2025. The company ended the quarter with $27.9 million in cash, restricted cash, and cash equivalents.
Glass House Brands is currently seeking DEA registration to operate its medical business under Schedule III Classification. CEO Kyle Kazan said the rescheduling of medical cannabis could provide 280E tax relief and enable interstate commerce or exports to Europe.
The company reiterated its full-year 2026 forecast for wholesale cannabis biomass production of approximately 1,000,000 pounds and a production cost target of $95 per pound.