Q3 FY2026
Filed Oct 26, 2026Glass House reports preliminary Q3 2026 revenue of $56.8 million and record biomass production of approximately 317,000 pounds, with gross margin and average selling price below Q2 2026 levels
The filing prints higher revenue and record production versus Q2 2026 and Q3 2025, and cash rose to $39.7 million. Gross margin fell from 34% to 26%, average selling price fell from $211 to $150 per pound, operating cash flow was negative, and the quarter was funded by ATM and warrant proceeds. The results are preliminary and unaudited.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026other | $56.8M | – | – |
| Biomass production, Q3 2026other | approximately 317,000 pounds | – | – |
| Cost of production, Q3 2026other | approximately $110 per pound | – | – |
| Average selling price, Q3 2026other | $150 per pound | – | – |
| Gross profit, Q3 2026other | $14.9M | – | – |
| Gross margin, Q3 2026other | 26% | – | – |
| Operating cash flow, Q3 2026other | negative $(0.4) million | – | – |
| Period-end cash, restricted cash and cash equivalents, Q3 2026other | $39.7M | $17.6 million increase | – |
| ATM offering proceeds raised during Q3 2026other | $18M | – | – |
| Warrant proceeds raised during Q3 2026other | $10M | – | – |
Full year 2026 and Q4 2026 outlook
- NoteFull year 2026 production forecast of approximately 1 million pounds (reiterated)
- NoteLong-term cost of production target of $95 per pound (reiterated)
- NoteFourth quarter 2026 cost of production expected to be in line with the third quarter
Capital returns
- No share repurchases or dividends are printed in the filing.
- The Company has turned off its at-the-market (ATM) offering program.
What drove it
- The filing describes Q3 2026 biomass production of approximately 317,000 pounds as record production, up from 246,000 pounds in Q2 2026.
- The filing reports the GHR deconsolidation on June 12, 2026, and states that prior-period results have been recast to exclude GHR. The filing does not state the effect of this on the reported figures.
Concerns
- Average selling price fell to $150 per pound from $211 per pound in Q2 2026 and from $155 per pound in Q3 2025.
- Gross margin fell to 26% from 34% in Q2 2026, and gross profit fell to $14.9 million from $15.8 million.
- Operating cash flow was negative $(0.4) million in Q3 2026.
- The quarter's cash increase was supported by $18 million of ATM proceeds and $10 million of warrant proceeds, as printed in the filing.
- The results are preliminary and unaudited and remain subject to change.
- The filing reports the resignation of director John "Jay" Nichols Jr.
What to watch
- Fourth quarter 2026 cost of production, which the Company expects to be in line with Q3 2026.
- Delivery against the full year 2026 production forecast of approximately 1 million pounds.
- Progress toward the long-term cost of production target of $95 per pound.
- Recovery or continued pressure in average selling price and gross margin.
- Final audited results and the complete financial statements, which the filing does not include.
- Cash position following the turn-off of the ATM program.
Balance sheet and cash flow
- Period-end cash, restricted cash and cash equivalents of $39.7 million, a $17.6 million increase compared to $22.1 million at the end of the previous quarter.
- ATM offering proceeds of $18 million at an average price of $8.11 per share during the quarter.
- Proceeds from warrants of $10 million during the quarter.
- Operating cash flow of negative $(0.4) million, compared to positive $0.2 million in Q2 2026 and negative $(5.1) million in Q3 2025. The Company states that the Q2 2026 and Q3 2025 amounts include the operating cash flows of GHR.
- Glass House Retail, LLC (GHR) was deconsolidated on June 12, 2026, and prior-period results are recast to exclude its historical results.
Analysis
Glass House Brands reported preliminary and unaudited results for the third quarter ended September 30, 2026, in a Form 51-102F3 material change report. Results are presented on a continuing-operations basis after the June 12, 2026 deconsolidation of Glass House Retail, LLC (GHR), and prior-period figures have been recast to exclude GHR. The filing prints revenue of $56.8 million, up from $47.0 million in Q2 2026 and $26.2 million in Q3 2025. It also reports record biomass production of approximately 317,000 pounds, compared with 246,000 pounds in Q2 2026. The filing does not print a prior-year production figure.
Unit economics moved in the opposite direction from volume. Average selling price was $150 per pound, down from $211 per pound in Q2 2026 and $155 per pound in Q3 2025. Cost of production was approximately $110 per pound, down from $122 per pound in Q2 2026. Gross profit was $14.9 million at a 26% margin, compared with $15.8 million at 34% in Q2 2026 and $5.6 million at 21% in Q3 2025. The filing does not state the cause of the change in selling price or margin, so the reader should weigh the two printed price and margin figures directly against the printed cost figure.
Cash flow and funding are the other key points. Operating cash flow was negative $(0.4) million, compared with positive $0.2 million in Q2 2026. Period-end cash, restricted cash and cash equivalents rose $17.6 million to $39.7 million. During the quarter the Company raised $18 million through its ATM program at an average price of $8.11 per share and $10 million from warrants. The Company has since turned off the ATM. The filing does not disclose the source of the remaining cash movements, the share count issued, or any repurchases or dividends.
On guidance, the Company reiterated its full year 2026 production forecast of approximately 1 million pounds and its long-term cost of production target of $95 per pound. It expects fourth quarter cost of production to be in line with the third quarter. No revenue, margin, operating expense or tax guidance is printed, and no prior outlook was supplied for comparison, so no guidance verdicts are given. The filing also reports the resignation of director John "Jay" Nichols Jr.
The filing is an abbreviated report. It does not contain a full income statement, net income, operating income, per-share earnings, GAAP or non-GAAP reconciliations, balance sheet totals, segment data or prior-year cash figures for several lines. These gaps are listed in missing_items and are not estimated.
Not in the filing
stated, not guessed- Prior-year (Q3 2025) biomass production in pounds
- Prior-year (Q3 2025) period-end cash, restricted cash and cash equivalents
- Prior-year and prior-quarter percentage changes for revenue, production, cost of production and gross profit
- Year-over-year and quarter-over-quarter percentage changes for all metrics, as the filing does not print them
- Net income, operating income, operating expenses, interest and tax for Q3 2026
- Earnings per share, GAAP or non-GAAP, for Q3 2026
- Explicit GAAP or non-GAAP basis for revenue, gross profit and gross margin
- Total assets, total liabilities and shareholders' equity
- Segment or geographic revenue breakdown
- Number of shares issued under the ATM program
- Full-year 2026 revenue, margin, operating expense or tax guidance
- Management quotes or commentary beyond the filing text
- Explanation of the causes of the changes in average selling price, gross margin and operating cash flow
- Audited financial statements (results are preliminary and unaudited)
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.