Glass House Brands Reports Record Cannabis Production as Wholesale Prices Fall

Glass House Brands reported record cannabis biomass production in preliminary third-quarter results released October 19, 2026, highlighting the scale of its cultivation operations and continuing pressure on wholesale prices.

The California-based cannabis producer said it generated approximately 317,000 pounds of biomass during the quarter ended September 30, 2026. That compares with approximately 246,000 pounds during the preceding quarter.

The results are preliminary and unaudited.

Higher Production, Lower Costs

Glass House reported an average production cost of approximately $110 per pound, down from $122 in the second quarter.

The reduction suggests that increased scale and operational improvements are helping the company produce cannabis more efficiently.

However, the average selling price fell to approximately $150 per pound, compared with $211 in the previous quarter.

That price decline illustrates a challenge facing large cannabis cultivators: greater output does not necessarily translate into stronger profit margins when market prices are falling.

Revenue Increased While Margins Narrowed

Preliminary revenue reached approximately $56.8 million, compared with $47 million in the second quarter.

Gross profit was approximately $14.9 million, representing a 26% margin. In the preceding quarter, the company reported gross profit of approximately $15.8 million and a 34% margin.

These figures indicate that higher sales volume helped increase revenue, but lower selling prices weighed on profitability.

Production Outlook

Glass House reaffirmed its 2026 production forecast of approximately one million pounds of biomass and its longer-term target of reducing production costs to $95 per pound.

The company also announced the resignation of board member John Nichols Jr.

What the Results Mean for the Industry

The company's results offer a snapshot of the competitive economics of large-scale cannabis cultivation.

Operators must balance production efficiency, quality and market demand while responding to changes in wholesale pricing.

Future financial reports will help determine whether Glass House can sustain production growth while improving margins.

This article is independent business reporting based on preliminary company disclosures. It is not sponsored content or investment advice.