In the wake of an ICE raid at its cannabis cultivation operations in California earlier this year, Glass House warned investors that it expected its third-quarter earnings to be significantly impacted.
In August, the company adjusted its third-quarter outlook for total revenue to $35 million and $38 million, roughly $25 million to $30 million below where it was previously tracking.
Glass House this week reported third-quarter earnings and while its $38.4 million in revenue did exceed guidance, it represented a significant drop from the nearly $64 million posted in the same quarter of 2024.
“In light of the events of this past summer we made the hard decision to completely revamp hiring and staffing practices for both employees and third-party labor contractors,” said Glass House CEO Kyle Kazan in a statement. “As anticipated, these actions resulted in temporary worker shortages as well as a planned scaled back in new planting and production. Our quarterly results reflect the effects of these choices."
Over the summer, Glass House decided to end its agreements with two farm labor contractors after an immigration enforcement raid in July at its southern California facilities turned deadly.
According to the Associated Press, federal authorities said they arrested more than 360 people during the raids. One employee of a third-party contractor, Jaime Alanis Garcia, died from injuries sustained during the raid.
