Glass House talks 2026 expansion plans

Executive Summary

• Glass House Brands has accelerated its 2026 expansion strategy, moving the completion of Greenhouse 2 planting from later in 2026 to the second quarter of 2026, driven by positive early results and anticipated cannabis reform.
• The company has returned to full production capacity in existing greenhouses and achieved its highest planted acreage in history, with initial contributions from the new Greenhouse 2 capacity expected in Q1 2026.
• Management is initiating a light retrofit of Greenhouse 4 to target international CBD and hemp markets, positioning the company to capitalize on potential federal rescheduling of cannabis and new Medicare reimbursement programs.

Key Details

• Greenhouse 2 Acceleration: The buildout of the first third of Greenhouse 2 (the company's fourth operational greenhouse at the SoCal Farm) is complete. The full planting schedule has been accelerated to Q2 2026 (previously planned for later in 2026).
• Production Capacity: Greenhouse 2 provides an incremental annual production capacity of approximately 300,000 pounds of biomass.
• Operational Status: The company returned to full production capacity within existing greenhouses prior to year-end 2025. The company ended 2025 with the most planted acreage in its history.
• Greenhouse 4 Retrofit: Commenced a light retrofit and buildout of Greenhouse 4 to target international CBD and hemp markets.
• Strategic Positioning: Plans to become a supplier to the reimbursable CBD market anticipated under President Trump's December executive order for rescheduling.
• Market Outlook: Management anticipates strong growth in 2026, expecting wholesale biomass prices to be meaningfully higher than those in California due to federal rescheduling (Schedule III) and potential export opportunities to Europe and other international markets.
• R&D Partnerships: Actively engaged in developing medicinal cannabinoids through a hemp research partnership with the University of California Berkeley.

Notable Quotes

• "We are very pleased with and proud of our team's ramp back efforts of the past six months for existing greenhouses along with early results from Greenhouse 2 expansion. The company is ready to put its foot fully back on the gas pedal. We anticipate strong growth in 2026 and beyond." — Kyle Kazan, Co-founder, Chairman and CEO
• "We excitedly await the final execution of President Trump's executive order by Attorney General Pam Bondi. We are planning for the associated new business opportunities that we expect to come from cannabis rescheduling and the creation of the new Medicare reimbursement program for CBD." — Kyle Kazan