Glass House Brands slashes guidance after ICE raids

GLASS HOUSE
Glass House Brands slashes guidance after ICE raids 

Driving the news: In July, federal immigration authorities raided two farms operated by Glass House Brands near Camarillo and Carpinteria in California.

What happened: Glass House reported its second-quarter financial results on Wednesday.

The results were strong. The company posted an $8.7 million profit on just under $60 million of revenue, a rare, profitable quarter among its US cannabis peers. 

But we’re now seeing the financial impact of the raids. 

Glass House slashed its forward-looking guidance as a result of what it says are “temporary labor constraints,” forcing it to reduce production. The company terminated its deal with two labor contractors and will be operating with reduced staff until it’s able to ramp up. 

Here are the changes: For the next quarter, the company expects $35-$38 million of revenue, about $25-$30 million lower than earlier estimates, with production at 95,000-100,000 pounds of biomass (less than 40% of normal). 

• The company expects production to double in the fourth quarter, with revenue around $53 million, just under last year’s level.

• For the full year, the company is forecasting $190-$195 million of revenue, down from $220 million to $230 million. 

Back up for a second: The raids resulted in the death of one contractor, Jaime Alanis Garcia, and nine arrests. 

The company later said that eleven minors were detained in the raid but they weren’t employees. It also signed new labor peace agreements with the Teamsters union. 

Read more: CA cannabis industry reacts to Glass House raids: ‘Everybody is definitely scared’

-JB

“New York State’s cannabis industry is predicated on the idea that it will help bring justice to the individuals and communities harmed by the over-policing of prohibition, and this decision by the federal appeals court undermines our ability to do that,” Damien Cornwell, the president of the Cannabis Association of New York (CANY) said after a federal court ruled that elements of New York’s cannabis program may violate the Constitution.

“Once again, out-of-state actors are taking it upon themselves to attack this program and we must find a path forward that ends this cycle of confusion and puts the New York cannabis industry on track for sustainable success while continuing to lead the nation with its equity first approach.” 

WATCH: Damien joined Jay and Jeremy on Cultivated Live in July.

Ohio approaches $1 billion in sales one year after recreational market launch 💰

Ohio generated more than $702 million in non-medical cannabis sales as of August 2, according to sales data. The recreational market launched in the Buckeye State on August 6, 2024, with the state's existing medical operators having the option to sell to non-medical customers from Day 1. MJBizDaily has more.  

Missouri proposes new rules that would go after licensing scofflaws

Regulators in Missouri introduced draft regulations that would allow the state's Division of Cannabis Regulation to prevent operators from re-entering the market after they had their license revoked. Here’s the context: The state stripped Delta Extracts of its license. Despite the move, one of the company's owners was able to take over a separate cultivation license in early 2024. The rules would have allowed regulators to block that move. The Missouri Independent has more.

More cannabis earnings hot off the press today:

• Organigram reported a net loss of $6.3 million (CAD) on $110 million of revenue. The company expanded its international presence, tripling foreign sales to $7.4 million, compared to $2.4 million in the same quarter last year. The company also entered the United States market through the acquisition of Collective Project, a hemp drink company. 

• iAnthus reported a net loss of $18.7 million on $35.2 million of revenue, showing a drop from the $5.1 million in income on $38.1 million in revenue the company reported last quarter. 

• Planet 13 reported a net loss of $13.3 million on $26.9 million of revenue. In the last quarter the company opened two new dispensaries in Florida and replaced CFO Dennis Logan with an interim CFO. 

We’ve got you covered with the rest of the schedule:

August 18
Rubicon Organics - 10 AM

Uncle Arnie’s raises $7.5 million 🥂

The Los Angeles-based hemp and THC-infused drink brand Uncle Arnie’s closed a $7.5 million Series A funding round. The round was led by Mindset Capital and Delta Emerald Ventures, as well as Harry Rubin, a founding member of the Boston Beer Co. The post-round valuation wasn’t disclosed.

Snoop Dogg's hemp beverages enter NJ, GA and TN 🐕‍🦺

Snoop Dogg’s Iconic Tonics is expanding to New Jersey, Georgia and Tennessee, bringing its “Do It Fluid,” and “Doggy Spritz” brands to those markets. 

Tilray Medical partners with Italian pharmaceutical company 💊

Tilray Medical announced that it formed a partnership with Italian company Molteni to develop cannabis-based treatments for pain therapy and substance dependence for the Italian market.

Minnesota makes interim OCM director permanent 🤝

After spending all of 2025 serving as interim director of Minnesota's Office of Cannabis Management, Eric Taubel can finally drop the "interim" from his title. Gov. Tim Walz announced he named Taubel the permanent head of the agency on Wednesday

The winners of NY Small Farma’s New York Craft Cup were split between licensed and “legacy” growers. Check out who took home the prizes below:

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