Overview
Glass House Q2 revenue rises 11% yr/yr, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 beats expectations
Company achieved substantial reduction in production costs, boosting cash flow
Outlook
Company expects Q3 revenue between $35 mln and $38 mln
Glass House forecasts Q3 biomass production of 95,000 to 100,000 pounds
Company anticipates Q4 revenue to be approximately $53 mln
Glass House sees full-year revenue at $190 mln to $195 mln
Result Drivers
BIOMASS PRODUCTION - Wholesale biomass production increased by 54% year-over-year to 230,748 pounds, surpassing guidance of 210,000 to 215,000 pounds
COST EFFICIENCY - Cost of production improved to $91 per pound from $148 per pound in Q2 2024, below the company's long-term target of $100 per pound
RETAIL PERFORMANCE - Retail revenues rose 13% year-over-year, driven by strong same-store sales and increased consumer demand for branded products
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $59.90 mln | $58.10 mln (2 Analysts) |
Q2 Adjusted EBITDA | Beat | $18.10 mln | $11.60 mln (2 Analysts) |
Q2 Gross Margin |
| 53.0% |
|
Q2 Gross Profit |
| $31.90 mln |
|
Q2 Operating Cash Flow |
| $17.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the drug retailers peer group is "buy"
Wall Street's median 12-month price target for Glass House Brands Inc is $11.50, about 40.4% above its August 12 closing price of $6.85
Press Release: ID:nGNX4h1C7