Glass House Expects Hit to Revenue, Profitability Following ICE Raids | How to order Skittles Moonrock online

6 million square feet of cultivation facilities in the state, including 5.5 million square feet among six greenhouses on its 165-acre farm in Southern California.

Vendetti said the company anticipates gross margin in the second half of the year to be in the mid-30% range after it was 53% for the second quarter. Glass House also expects full-year 2025 revenue to be down roughly 15% from what was previously anticipated.

In addition, the company is slowing some components of its expansion, including its greenhouse No. 2 retrofit. Also, Glass House is delaying the construction of its greenhouse No. 4 retrofit, specifically related to its hemp expansion effort.

However, Glass House remains committed to hemp as a “fantastic opportunity to California’s agriculture industry and existing cannabis growers who have been burdened by compressed pricing and onerous taxes to pivot to selling hemp via interstate commerce,” Kazan said.

The CEO said the company is using its experience of a reduced labor force and scaled-back production in the third quarter as an opportunity to accelerate its automation efforts and refine operations to promote greater efficiencies for future growth.

Graham Farrar, the company’s co-founder, president and board director, said he anticipates Glass House to “come out of this” stronger than it went in.

“We’ve always been looking at automation and efficiency from day one,” he said. “We’ve very much been a long-term focused company. What this has done is accelerated and broadened our scope on that. … over time, we’ll lower our costs quicker.”

To help ensure the company doesn’t fall victim to—or at least minimizes the impacts of—future ICE raids, Glass House hired compliance consultants, including Julie Myers Wood, the former director of ICE and assistant secretary of Homeland Security, to assist with employee eligibility from contractors. In addition, all employees and farm labor are now E-verified with enhanced age-gating controls, and the company signed a labor peace agreement with the Teamsters.

Farrar said he wouldn’t wish the impacts from the ICE raids on anybody and that the general impacts are not cannabis-specific, but rather agricultural.

“If this is the new world that agriculture is going to be living in, I would much rather have the first-mover advantage and be at the top of the mountain first rather than last,” he said. “So, we made the decisions to do the things that we did so that we’re essentially bulletproof on everything going forward and don’t have to worry about what happens next.”

With those changes in place, the company is now focused on getting back to full operations, Kazan said.

“Like every obstacle we faced over 10 years, we will persevere and be that much more resilient as a company,” he said. “It is this grit developed as a team, more than anything else, which makes us the outlier in the cannabis industry.”