California-based Glass House Brands (CBOE CA: GLAS.A.U) (OTCQX: GLASF) last year finally crossed the profitability threshold with annual net income of $721,000 on more than $200 million in revenue, the company reported in its year-end quarterly financial filing.
The turnaround is a major one, given that Glass House reported net losses of $98 million in 2023 and $32.9 million in 2022.
Glass House posted $200.9 million in revenue for the full year, up 25% year-over-year, including $53 million in revenue for the fourth quarter, which was up 31% from the same period a year ago. The company also produced operating cash flow of $28.4 million, up 18% year-over-year.
All three revenue streams improved year-over-year. Wholesale biomass accounted for the lion’s share of Glass House’s revenue by far with $139.1 million, up 32%, followed by retail revenues of $43.8 million, up 12%, and wholesale consumer packaged goods at $18 million, up 10%.
Production also increased for Glass House last year, with more than 165,000 pounds of cannabis harvested in the fourth quarter alone, a year-over-year spike of 60%. At the same time, the company has continuously reduced its cost of production, which is at $110 per pound as of the fourth quarter, down 9% year-over-year.
CEO Kyle Kazan said in a press release that Glass House is only getting started, and that 2024 was “positioning the company for its next wave of expansion.” The coming year will be about “managing costs and expenses” in the face of industry price compression.
“Looking ahead, in 2025 while we plan for pricing pressure in California to persist in the near-term, we will continue to drive operational efficiencies … and place emphasis on our leading brands to drive further growth throughout our retail, CPG and wholesale businesses,” Kazan said.
In particular, he said, Glass House has pulled the trigger on entering the hemp sector and is growing “hemp-derived cannabis” in one of its greenhouses in Santa Barbara.
“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,” Kazan said.
Glass House forecast revenues of $42 million-$44 million for the first quarter of 2025, and $220 million to $230 million for the full year. The company expects to produce 760,000-780,000 pounds of cannabis biomass, with a wholesale price of $215-$220 per pound.
As of Dec. 31, Glass House had $310.5 million in total assets, including $36.9 million in cash, against $146.4 million in total liabilities.