Monitor Q4 2026 results for cost of production trajectory toward the $95/lb target and whether ASP stabilizes. The ATM shutdown reduces dilution risk, but the California pricing environment remains a headwind. Watch for any updates on GACP certification and export progress, which management frames as a transformative catalyst.
Price Chart
Executive Summary
Glass House Brands reported preliminary Q3 2026 revenue of $56.8M (up 21% QoQ and 117% YoY) and record biomass production of ~317,000 lbs, but gross margin compressed to 26% from 34% in Q2 due to a lower average selling price ($150/lb vs $211/lb) and a trim-heavy sales mix. Operating cash flow turned slightly negative at -$0.4M vs +$0.2M in Q2. The company raised $18M via ATM and $10M from warrants during the quarter, ending with $39.7M cash. It reaffirmed FY2026 production guidance of ~1M lbs and long-term $95/lb cost target, and noted the ATM has been turned off. Director John Nichols Jr. resigned.
Key Facts
- Q3 2026 revenue of $56.8M vs $47.0M in Q2 2026 and $26.2M in Q3 2025.
- Record biomass production of ~317,000 lbs vs 246,000 lbs in Q2 2026.
- Cost of production fell ~10% QoQ to ~$110/lb from $122/lb.
- Average selling price dropped to $150/lb from $211/lb in Q2 2026.
- Gross profit of $14.9M (26% margin) vs $15.8M (34%) in Q2 2026.
- Operating cash flow of -$0.4M vs +$0.2M in Q2 2026.
- Raised $18M via ATM at avg $8.11/share and $10M from warrants in Q3.
- Period-end cash of $39.7M, up from $22.1M at end of Q2.
- ATM program turned off; FY2026 production guidance of ~1M lbs reaffirmed.
- Director John Nichols Jr. resigned from the board.
Financial Impact
Revenue grew 21% QoQ to $56.8M, but gross margin compressed 800 bps to 26% due to lower ASP. Operating cash flow turned slightly negative. Cash position strengthened by $17.6M to $39.7M.
Risk Factors
- Continued ASP compression in the California cannabis market could further pressure margins.
- Negative operating cash flow may delay the path to self-funding operations.
- Dependence on ATM and warrant proceeds for capex; future capital needs if cash flow doesn't improve.
- Regulatory and competitive risks in the California cannabis market.
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001848731-26-000033 |
| Document: glas202610196-knewsrelease.htm | 0001848731-26-000033 |
| Document: 0001848731-26-000033-index-headers.html | 0001848731-26-000033 |
| Document: 0001848731-26-000033-index.html | 0001848731-26-000033 |
| Document: 0001848731-26-000033.txt | 0001848731-26-000033 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 6-K | $2.14 | awaiting T+20 | — | $2.33 (+8.64%) |
Oct 19, 2026 7d ago | 6-K | $2.46 | awaiting T+20 | — | $2.33 (−5.49%) |
Oct 19, 2026 8d ago | Press Release | $2.46 | awaiting T+20 | — | $2.33 (−5.49%) |
Sep 29, 2026 28d ago | 6-K | $6.79 | awaiting T+20 | — | $2.33 (−65.76%) |
Sep 29, 2026 28d ago | Press Release | $6.79 | awaiting T+20 | — | $2.33 (−65.76%) |
Jul 15, 2026 14w ago | 6-K | $11.02 $10.29 | ▼ −6.62% | ▼ −8.97% | $2.33 (−78.90%) |
US Market Status
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