Glass House, one of the largest vertically integrated cannabis companies in the U.S., is expecting a massive decline in revenue in the aftermath of an immigration raid at two of its California cultivation facilities last month.
In July, federal agents raided Glass House's farms in Camarillo and Carpinteria and arrested about 360 people, including nine of the company's employees. A farmworker fell from a greenhouse roof during the raid and later died from his injuries.
Following the raid, Glass House ended its agreements with two farm labor contractors, which the company said were required by agreement to ensure that each of their employees assigned to one of the its facilities must be 21 and older and have valid work authorization.
Glass House subsequently introduced stricter compliance protocols for its facilities in hopes of avoiding future enforcement actions. But it's still bracing for a major hit due to the disruption.
The company adjusted its outlook and said it now expects third quarter total revenue to be between $35 million and $38 million, roughly $25 million to $30 million below where it was previously tracking based on production levels prior to July 10, 2025.
"We will produce between 95,000 and 100,000 pounds of biomass for the quarter, less than 40% of what we would typically expect," the company said in a news release.
But with a ramp up in staffing, Glass House said fourth quarter production should be approximately double third quarter levels, though the projected $53 million in revenue during the fourth quarter would still be slightly below what the company reported last year.
Full-year revenue is anticipated to be in the range of $190 million and $195 million, down from prior guidance of $220 million to $230 million.
