Glass House (NYSE: GLAS) revenue rises 21% as biomass sets record

Posted by Amy Steele on Oct 19th, 2026

What happened

Glass House Brands Inc. (NYSE: GLAS) said third-quarter revenue rose to $56.8 million in preliminary unaudited results released October 19, 2026.

That was up from $47.0 million in the second quarter of 2026 and $26.2 million in the third quarter of 2025.

The company said record biomass production reached approximately 317,000 pounds, up from 246,000 pounds in the second quarter of 2026. Cost of production fell to approximately $110 per pound from $122. Average selling price dropped to $150 per pound from $211. Gross profit was $14.9 million, or a 26% margin, compared with $15.8 million and 34% in the second quarter.

Operating cash flow was negative $0.4 million, compared with positive $0.2 million in the second quarter and negative $5.1 million a year earlier. Glass House also said John Jay Nichols Jr. resigned as a director. It raised $18 million through its ATM at an average $8.11 per share and $10 million from warrants during the quarter. Period-end cash, restricted cash and cash equivalents were $39.7 million, up $17.6 million from the prior quarter.

Key numbers

Metric	Latest	Change	Source
Revenue	$56.8 million	from $47.0 million, + $9.8 million	SEC 6-K
Biomass production	approximately 317,000 pounds	from 246,000 pounds, +71,000 pounds	SEC 6-K
Cost of production	approximately $110 per pound	from $122 per pound, -$12 per pound	SEC 6-K
Gross profit	$14.9 million	from $15.8 million, -$0.9 million	SEC 6-K
Operating cash flow	negative $0.4 million	from positive $0.2 million, -$0.6 million	SEC 6-K
Period ending cash, restricted cash and cash equivalents	$39.7 million	from $22.1 million, + $17.6 million	SEC 6-K

Why it matters

OptimistFi's case is that Glass House works only if California scale lowers costs faster than prices fall. This quarter supports that view because revenue rose 20.9% from the second quarter while cost of production fell to about $110 a pound.

The company said higher volume kept gross profit near the second quarter even with lower pricing and a trim-heavy sales mix. Management also said it turned off the ATM after raising $46 million for the year and said about $39 million remains to finish improvement projects.

The downside is that average selling price fell to $150 a pound from $211, gross profit slipped to $14.9 million, and operating cash flow stayed negative. Those figures show the business still leans on volume and cash management rather than pricing power.

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What's next

The next check is fourth-quarter cost of production, which management expects to be in line with the third quarter. The company also reaffirmed full-year 2026 production of approximately 1 million pounds and a long-term $95 per pound cost target.

If costs stay near the third-quarter level, the cost moat argument gets stronger. If pricing pressure or costs worsen, it weakens.

From OptimistFi Perps

Sources

SEC Form 6-K exhibit 99.1 — Preliminary unaudited third-quarter 2026 results and board resignation
SEC Form 6-K — Form 6-K cover and exhibit index

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.