The July 10 immigration raids at Glass House Brands Inc.’s (GLASF, GHBWF) cultivation sites in California are cutting into the publicly traded company’s bottom line to the tune of $25 million to $30 million, the company announced.
The Long Beach, Calif.-based manufacturer, which released its second quarter 2025 financial results Aug. 13, bucked the trend of many cannabis companies by showing net income of $8.7 million, reversing its net loss from the first quarter. But it’s still a 12.9% drop from the $10.0 million net income in the second quarter last year.
Revenue was $59.9 million in the second quarter, an increase of 11% from the $53.9 million earned in the second quarter of 2024 and up 34% from $44.8 million in the first quarter of this year.
But its outlook for the third quarter is not so shiny, directly a result of the ICE raids that led to the arrest or detainment of nine Glass House employees, and reportedly hundreds more contract farm laborers, as well as the death of a man attempting to flee authorities.
“We expect third quarter total revenue to be between $35 million and $38 million, roughly $25 million to $30 million below where we were tracking based on production levels prior to July 10, 2025,” Glass House said in its second quarter 2025 financial report. “We will produce between 95,000 and 100,000 pounds of biomass for the quarter, less than 40% of what we would typically expect.”
After the raids at the facilities in Camarillo and Carpinteria, the company terminated its relationship with two farm-labor contractors that had been providing work at its farms and has “engaged with” new contractors, according to an Aug. 4 press release.
The company said in its financial report that coinciding the ramp-up in staffing, they expect fourth-quarter production to approximately double third-quarter levels.
“Full-year revenue is anticipated to be in the range of $190 million and $195 million, down from prior guidance of $220 million to $230 million,” the company said in its financial report.
Glass House under state investigation
Federal authorities reported that approximately 11 minors, from 14 to 17 years old, were also detained during the raid.
While children as young as 12 can work on farms under federal and California law, the state’s Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) states that adult-use licensees shall not employ or retain persons under age 21. Adults as young as 18 can be on a property licensed for medical marijuana with a physician’s recommendation. Glass House’s farm in Carpenteria is licensed for medicinal cultivation, while its Camarillo site is adult use.
Glass House said in its Aug. 4 update that if the reports were true, none of the minors were direct employees of the company.
The California Department of Cannabis Control said in an emailed statement that inspectors visited the Glass House site in May and “observed no minors on the premises.” But after receiving a subsequent complaint, the department opened an investigation.
“The employment of individuals under the age of 21 in the cannabis industry is strictly illegal, a serious matter, and is not tolerated,” the department said.
The investigation is not mentioned in the Aug. 4 update, quarterly report news release or 6-K filing.
Glass House said it has since revised its farm labor contractor agreements “to ensure that their compliance processes are best in class.” It also claimed to have made “significant changes to labor practices that are above and beyond legal requirements,” including age-gating controls.
The company has hired Guidepost Solutions, a compliance consultant led by Julie Myers Wood, a former director of ICE and assistant secretary of Homeland Security, to advise on assuring employment eligibility of employees and contract workers. They said all employees and workers are also E-verified.
However, ICE raids across the country are reportedly rounding up and detaining U.S. citizens and legal residents. In the Glass House raid, security contractor George Retes, a U.S. citizen and Army veteran, was detained.
The Glass House raids, as well as another at an allegedly illegal grow site in Coachella, were mentioned in the state’s lawsuit against the Trump Administration’s use of military troops in the state for immigration enforcement. Trial testimony started Aug. 11 in U.S. District Court for the Northern District of California.
“The Department of Cannabis Control (DCC) is not involved in federal immigration enforcement and aligns with the Governor’s sentiment that current ICE activity is chaotic, reckless, and inhumane,” DCC spokesman David Hafner said in an emailed statement. “Our nation would be better served by the federal government focusing these resources on transnational criminal organizations that undermine our national security as well as our legitimate cannabis market.”
Hafner said the DCC inspects licensees on a regular basis, and to date, none have been cited for hiring people under age 21 or having them on their property.
“Our primary focus remains on supporting lawful cannabis businesses and safeguarding public health and safety. We remain dedicated to ensuring all operators comply with age restrictions and other regulatory requirements, as these measures are essential expectations,” the DCC said.
Glass House signs labor agreement with the Teamsters
Another change Glass House made following the raids was signing a new labor peace agreement (LPA) with the International Brotherhood of Teamsters.
LPAs are required under MAUCRSA. The agreements allow “bona fide” unions to solicit workers during reasonable times on business property in exchange for promising to not picket, boycott or otherwise interfere with the licensee’s business.
Several Glass House businesses had previously signed LPAs with Professional Technical Union, Local 33 (Pro-Tech 33), which the California Agriculture Labor Relations Board ruled is not a bona fide union. Glass House also held agreements with the Seafarers Entertainment and Allied Trades Union.
Now, Glass House said its agreement with the Teamsters, the largest labor organization in the U.S., applies to its license-holding entities, including farm facilities.
“The agreement allows for the Teamsters to present to employees throughout the Company and the Company will cooperate with those efforts,” Glass House said in its Aug. 4 press release.
Spokespeople for Glass House and the Teamsters did not respond to requests for comment.
