Monitor Q4 2026 results for cost of production trajectory toward the $95/lb target and whether average selling prices stabilize or recover. The ATM shutdown and $39.7M cash position suggest near-term dilution risk is reduced, but the negative operating cash flow and margin compression warrant attention on cash flow breakeven timing.
Price Chart
Executive Summary
Glass House Brands reported preliminary Q3 2026 revenue of $56.8M (up 117% YoY from $26.2M) and record biomass production of ~317,000 lbs, with cost of production falling to ~$110/lb from $122/lb in Q2. However, gross margin compressed to 26% from 34% QoQ due to lower average selling prices ($150/lb vs $211/lb) and a trim-heavy sales mix, and operating cash flow turned slightly negative at -$0.4M. The company raised $28M in the quarter via ATM and warrant exercises, ended with $39.7M cash, and has turned off the ATM, reiterating FY2026 production guidance of ~1M lbs and a long-term $95/lb cost target.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $56.8M, up 117% YoY from $26.2M and 21% QoQ from $47.0M.
- Record biomass production of ~317,000 lbs, up from 246,000 lbs in Q2 2026.
- Cost of production improved to ~$110/lb from $122/lb in Q2 2026 (10% reduction).
- Average selling price fell to $150/lb from $211/lb in Q2 2026 and $155/lb in Q3 2025.
- Gross profit of $14.9M (26% margin) vs $15.8M (34%) in Q2 2026 and $5.6M (21%) in Q3 2025.
- Operating cash flow of -$0.4M vs +$0.2M in Q2 2026 and -$5.1M in Q3 2025.
- Raised $18M via ATM at avg $8.11/share and $10M from warrants in Q3; total FY2026 ATM proceeds of $46M at avg $8.41/share.
- Cash, restricted cash, and equivalents of $39.7M, up $17.6M from Q2 2026.
- ATM program turned off; company expects to fund future improvements from cash flow.
- Reaffirms FY2026 production guidance of ~1M lbs and long-term $95/lb cost target.
- Director John 'Jay' Nichols Jr. resigned from the board.
Financial Impact
Revenue grew 117% YoY to $56.8M, but gross margin compressed to 26% from 34% QoQ. Operating cash flow slightly negative at -$0.4M. Cash position strengthened to $39.7M.
Risk Factors
- Average selling price declined 29% QoQ to $150/lb, pressuring gross margins.
- Operating cash flow turned negative at -$0.4M despite higher revenue.
- California cannabis market pricing remains challenging and could further compress margins.
- FY2026 production guidance of ~1M lbs depends on continued operational execution.
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3383338 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 6-K | — | awaiting T+20 | — | — |
Oct 19, 2026 7d ago | 6-K | $2.46 | awaiting T+20 | — | $2.14 (−13.01%) |
Oct 19, 2026 7d ago | Press Release | $2.46 | awaiting T+20 | — | $2.14 (−13.01%) |
Sep 29, 2026 27d ago | 6-K | $6.79 | awaiting T+20 | — | $2.14 (−68.48%) |
Sep 29, 2026 27d ago | Press Release | $6.79 | awaiting T+20 | — | $2.14 (−68.48%) |
Jul 15, 2026 14w ago | 6-K | $11.02 $10.29 | ▼ −6.62% | ▼ −8.97% | $2.14 (−80.58%) |
US Market Status
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