Monitor the final Q3 filing for confirmed margins and cash flow; the sharp drop in average selling price and margin compression suggest pricing pressure despite volume growth. The ATM shutdown removes near-term dilution risk but also signals management may view current valuation as unattractive for further equity issuance.
Price Chart
Executive Summary
Glass House Brands announced preliminary Q3 2026 results: revenue of $56.8M (up 117% YoY from $26.2M), gross profit of $14.9M (26% margin), and record biomass production of 317,000 pounds. However, average selling price fell to $150/lb from $211/lb in Q2 2026, gross margin compressed from 34% to 26%, and operating cash flow turned slightly negative at -$0.4M. The company raised $28M via ATM and warrant exercises during the quarter, ended with $39.7M cash, and has turned off the ATM. Director John 'Jay' Nichols Jr. resigned.
Key Facts
- Q3 2026 preliminary revenue of $56.8M, up from $47.0M in Q2 2026 and $26.2M in Q3 2025
- Record biomass production of ~317,000 pounds, up from 246,000 in Q2 2026
- 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 during the quarter
- Period-end cash of $39.7M, up $17.6M from prior quarter
- ATM program has been turned off
- Director John 'Jay' Nichols Jr. resigned
- Results are preliminary and unaudited, subject to change
Financial Impact
Revenue grew 117% YoY to $56.8M, but gross margin compressed from 34% to 26% QoQ; operating cash flow turned negative; $28M in equity-linked capital raised during quarter
Risk Factors
- Preliminary results subject to revision
- Average selling price declined 29% QoQ, indicating pricing pressure in the cannabis market
- Gross margin compressed from 34% to 26% QoQ
- Operating cash flow turned negative despite revenue growth
- Prior-period comparisons recast due to deconsolidation of GHR, making trends less comparable
- Director resignation may signal governance concerns
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-118806 |
| Document: tm2628296d1_6k.htm | 0001104659-26-118806 |
| Document: 0001104659-26-118806-index-headers.html | 0001104659-26-118806 |
| Document: 0001104659-26-118806-index.html | 0001104659-26-118806 |
| Document: 0001104659-26-118806.txt | 0001104659-26-118806 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 6-K | $2.14 | awaiting T+20 | — | $2.34 (+9.35%) |
Oct 19, 2026 8d ago | 6-K | $2.46 | awaiting T+20 | — | $2.34 (−4.88%) |
Oct 19, 2026 8d ago | Press Release | $2.46 | awaiting T+20 | — | $2.34 (−4.88%) |
Sep 29, 2026 28d ago | 6-K | $6.79 $2.34 | ▼ −65.54% | ▼ −66.25% | $2.34 (−65.54%) |
Sep 29, 2026 28d ago | Press Release | $6.79 $2.34 | ▼ −65.54% | ▼ −66.25% | $2.34 (−65.54%) |
Jul 15, 2026 14w ago | 6-K | $11.02 $10.29 | ▼ −6.62% | ▼ −8.97% | $2.34 (−78.77%) |
US Market Status
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