Cannabis cultivator Glass House Brands is reporting fourth-quarter and full-year earnings while predicting more than one million pounds in annual cannabis biomass production.
The company said its full-year net revenue totaled $200.9 million, up 25% year-over-year. With total operating expenses down significantly, the company even swung to modest net income in 2024 after losing close to $100 million in 2023.
Kyle Kazan, co-founder, chairman and CEO of Glass House, said his company commenced commercial operation of Greenhouse 5 in January, completing Phase II expansion at its California farm.
"Greenhouse 5 had its first full quarter of production and sales in Q2 and since that time, production volumes, quality and yields from this facility have all substantially exceeded our original expectations," he said in a statement. "In the fourth quarter, we began Phase III expansion, including the retrofit of Greenhouse 2 along with investments in related support facilities. We expect initial revenues from this facility by year-end, with production estimated at 275,000 pounds in its first full year of operation while generating consistently high-quality cannabis flower bringing total annual capacity to more than 1 million pounds of biomass.”
In 2025, Glass House is bracing for cannabis pricing pressure in California to persist in the near-term by pushing operational efficiencies.
"We have a winning strategy and even with our outperformance in 2024, we believe we are well positioned for above market growth this year," he said.
Despite the positive outlook, Glass House is hedging its cannabis bets. The company obtained a hemp license for one of its greenhouses and it's actively growing and testing hemp-derived cannabis.
"It is clear that there is massive demand throughout the country, and we are confident that we could sell everything we grow that is 2018 Farm Bill compliant. We intend to formalize our plans here by the second quarter of this year. Further, our Phase III investment plans remain unchanged, regardless of our plans for hemp,” said Kazan.
