This week’s cannabis earnings highlighted a widening divergence between U.S. operators. LEEF Brands LEEEF saw its stock jump nearly 25% after striking a new dispensary management and supply deal with Glass House Brands GLASF. Meanwhile, Glass House rose 4.5% on solid Q1 results, Charlotte’s Web CWBHF traded flat despite its first year-over-year revenue growth in years and AFC Gamma AFCG dipped almost 2% as it worked to de-risk its lending book.
Here’s a breakdown of each company’s report and what investors need to know.
LEEF Brands
Shares of LEEF Brands surged nearly 25% Wednesday after announcing a new management services agreement with Glass House Brands to operate The LEAF El Paseo, a Palm Desert dispensary. The deal gives Glass House control over daily operations, while LEEF secures a significant biomass supply agreement to fuel its extraction lines.
“This partnership is a true win-win,” said LEEF CEO Micah Anderson. “It allows us to sharpen our focus on concentrates while strengthening production capacity.”
The agreement marks Glass House’s first formal retail management deal and offers both companies strategic upside. For Glass House, it expands retail reach without the capital requirements of building new stores. For LEEF, it enhances supply chain security while offloading operational complexity in retail.
Glass House Brands
Glass House Brands reported first-quarter 2025 revenue of $44.8 million, up 49% year-over-year. Wholesale biomass revenue grew 78%, driven by a 149% increase in production volume and a 41% drop in cost per pound, which now sits at $108. Retail revenue also rose 19%, outperforming a California market that shrank 13% during the same period, according to Headset data.
Gross margin reached 45%, and adjusted EBITDA came in at $4.4 million—above guidance. While net income remained negative at -$10 million, the company posted a positive operating cash flow of $2.5 million and ended the quarter with $37.6 million in cash and equivalents.
CEO Kyle Kazan credited the results to Glass House’s status as a low-cost, high-quality producer. “Even with ongoing pricing pressures in California, we’re positioned to emerge stronger as the market consolidates,” he said.
The company also reaffirmed its full-year guidance of $220–230 million in revenue and mid-$40 million in adjusted EBITDA while preparing for added production from Greenhouse 2 and expansion into compliant hemp operations.
Charlotte’s Web
Charlotte’s Web posted its first year-over-year revenue increase since 2021, with Q1 2025 sales of $12.3 million, up 1.1% compared to the same period last year. The modest gain builds on a streak of sequential growth throughout 2024 and is attributed to improvements in e-commerce performance, digital expansion on platforms like Amazon and TikTok Shop, and the upcoming retail rollout at Whole Foods Market.
Gross margin for the quarter was 50.8%, while the company narrowed its net loss to $6.2 million from $9.7 million in Q1 2024. Adjusted EBITDA improved to -$2.8 million from -$3.9 million year-over-year.
The company is also expanding beyond CBD into functional mushroom products and recently announced FDA clearance for a Phase 2 clinical trial of its botanical drug candidate AJA001, developed through its DeFloria joint venture with Ajna BioSciences and backed by British American Tobacco. Charlotte’s Web will highlight the project during a panel session at the upcoming Benzinga Cannabis Capital Conference in Chicago.
Despite flat movement in CWBHF shares post-earnings, management remains confident. CFO Erika Lind said the company’s cost restructuring and in-house manufacturing shift “support near-term cash flow and long-term innovation investment.”
Advanced Flower Capital (AFC Gamma)
Cannabis REIT Advanced Flower Capital reported GAAP net income of $4.1 million in Q1 2025, or $0.18 per share. Distributable earnings—a non-GAAP metric—came in at $4.5 million, or $0.21 per share.
CEO Dan Neville emphasized the firm’s focus on reducing exposure to distressed borrowers while selectively deploying capital to stronger operators. “We’re positioning AFC to capitalize on market dislocations while maintaining credit discipline,” he said.
The company paid a quarterly dividend of $0.23 per share, but AFCG shares fell nearly 2% after the results, reflecting cautious investor sentiment in the cannabis lending space.
Earnings included a reversal of $699,000 in loan loss provisions, offset by nearly $700,000 in unrealized non-cash losses. Weighted average share count for the quarter was just over 22 million.
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