Glass House Cannabis Reports 62% YoY Increase In Q2 2021 Revenue, Ends Quarter With $134.3M On Hand

Vertically integrated cannabis company Glass House Brands Inc. GLAS GLAS reported Monday that its net sales spiked 62% year-over-year to $18.7 million in the second quarter of fiscal 2021.

Based in Long Beach, California, the company also said that it has ended the quarter with $134.3 million of cash on hand.

"With our strong balance sheet, a team of proven operators, and significant growth projects ahead of us, we remain confident that we are exceptionally well-positioned to take on the significant opportunities ahead of us in the world's largest cannabis market," said Kyle Kaza, Glass Houses chairman and CEO.

Q2 2021 Financial Highlights

• Gross profit increased 56% to $8.6 million from $5.5 million in the same quarter of last year.
• Gross margin was 46% compared to 48% in the prior year's period.
• Adjusted EBITDA increased 100% to $2.2 million from $1.1 million in the corresponding quarter of last year.
• Adjusted EBITDA margin was 12% compared to 9% in the second quarter of last year.
• Net loss totaled $4.71 million, compared to $3.65 million in the same quarter of 2020.
• Total operating expenses amounted to $9.6 million, an increase of $3.4 million, or 56%, compared to total costs of $6.2 million in the same quarter of 2020.
• General and administrative expenses totaled $5.9 million, which compares to $4.6 million, in the second quarter of last year, representing an increase of $1.3 million, or 28%.
• Cash and cash equivalents were $134.3 million as of June 30 compared to $4.5 million a year ago.
• During the quarter, the company eliminated $38.3 million of debt.

Q2 2021 Operational Highlights

• Completed de-SPAC transaction with Mercer Park Brand Acquisition Corp., creating the largest cannabis brand-building platform in California
• Forbidden Flowers, Bella Thorne's cannabis lifestyle brand, which includes a line of curated cannabis products in collaboration with Glass House Group, signed an exclusive distribution partnership with HERBL.
• Commenced installation of state-of-the-art, sustainable DYNAGLAS roof panel system at Padaro cultivation facility.
• Awarded two additional Santa Barbara retail licenses increasing retail dispensary footprint to six stores.

Photo: Courtesy Diyahna Lewis on Unsplash