Glass House Brands Reports Second Quarter 2025 Financial Results

Core Insights - Glass House Brands Inc. reported strong financial results for Q2 2025, with consolidated revenue of $59.9 million, representing an 11% increase year-over-year and a 34% increase quarter-over-quarter [2][6][5] - The company achieved significant improvements in biomass production, gross profit, and Adjusted EBITDA, exceeding expectations across key metrics [4][11] Financial Performance - Consolidated revenue for Q2 2025 was $59.9 million, up from $53.9 million in Q2 2024 and $44.8 million in Q1 2025 [5][6] - Gross profit reached $31.9 million, compared to $28.7 million in Q2 2024 and $20.1 million in Q1 2025, with a gross margin of 53% [5][9] - Adjusted EBITDA was $18.1 million, significantly higher than the guidance of $11 million to $13 million and compared to $4.4 million in Q1 2025 [11][4] - Operating cash flow was positive at $17.7 million, up from $8.9 million in Q2 2024 and $2.5 million in Q1 2025 [11] Production and Cost Metrics - The company produced approximately 231,000 pounds of biomass, exceeding the guidance of 210,000 to 215,000 pounds, and representing a 54% increase year-over-year [2][7] - Cost of production was $91 per pound, a significant improvement from $148 per pound in Q2 2024 [4][5] - The average selling price for biomass was $206 per pound, higher than the guidance of $200 to $203 per pound and down from $283 in Q2 2024 [9] Segment Performance - Wholesale biomass revenue was $42.1 million, accounting for 70% of total revenue, with an 8% increase year-over-year and a 49% increase sequentially [7][8] - Retail revenue for Q2 2025 was $12.3 million, up from $10.9 million in Q2 2024 and $11.8 million in Q1 2025, with a retail gross margin of 48% [8] - Wholesale CPG revenues were $5.5 million, representing a 16% sequential increase and 38% year-over-year growth [8] Cash and Capital Structure - Cash and restricted cash balance increased to $44.2 million as of June 30, 2025, compared to $37.6 million at the end of Q1 2025 [12] - The company announced a recapitalization and private placement of approximately $74 million in Series E Convertible Preferred Stock [13][14] Future Outlook - For Q3 2025, the company expects total revenue to be between $35 million and $38 million, with biomass production anticipated to be between 95,000 and 100,000 pounds [18][19] - Full-year revenue is now projected to be in the range of $190 million to $195 million, down from previous guidance of $220 million to $230 million [19][21]