Greenlane Renewables Announces Second Quarter 2025 Financial Results

Executive Summary

• Greenlane Renewables reported its Second Quarter 2025 financial results, showing a return to profitability with $15.1 million in revenue and $3.4 million in Adjusted EBITDA.
• The company highlighted a significant improvement in gross margins, driven by a $3.3 million royalty revenue recognition from a Brazilian technology licensing agreement, bringing gross margin before amortization to 49%.
• Operational momentum is strong with a sales order backlog of $26.3 million (up 24% from Q1) and new orders for biogas desulfurization equipment, alongside strategic progress on next-generation landfill gas upgrading technology.

Key Details

• Revenue: $15.1 million (up 3% from Q2 2024).
• Gross Profit: $7.2 million.
• Gross Margin (before amortization): $7.4 million, representing 49% of revenue.
  • Note: This includes $3.3 million in royalty revenue from a one-time minimum volume commitment under a Brazilian technology licensing agreement.
  • Underlying Gross Margin: Excluding the royalty revenue, gross margin was 38% (up from 28% in Q2 2024).
• Adjusted EBITDA: $3.4 million (23% of revenue), compared to a loss of $(0.8) million in Q2 2024.
  • Underlying Adjusted EBITDA: Excluding the royalty revenue, Adjusted EBITDA was $0.5 million (5% of revenue).
• Net Income: $1.4 million (9% of revenue), compared to a loss of $(0.4) million in Q2 2024.
• Sales Order Backlog: $26.3 million as of June 30, 2025, an increase of 24% from Q1 2025.
• Cash Position: $16.6 million in cash and cash equivalents with no debt (other than normal course payables and letters of credit).
• New Orders: Announced over $2 million in orders for biogas desulfurization equipment from a repeat customer.
• Intellectual Property: Filed an additional patent application for new landfill gas upgrading technology, bringing the total to three since December 2024.
• Subsequent Event: Extended standby letter of credit facility to August 31, 2026, for a total of $20 million.
• Cost Control: General and Administrative (G&A) expenses are down 28% year-over-year.
• Year-to-Date Performance: Delivered $2.3 million in Adjusted EBITDA, representing 11% of sales.

Notable Quotes

• Brad Douville, CEO: "Our second quarter results reflect positive progress on all fronts of our 2025 strategic plan... This quarter's financial results indicate that overall we are trending in the right direction, but still have much to accomplish including launch of our next generation landfill gas upgrading product line and establishment of our own manufacturing."
• Brad Douville, CEO (on Brazil): "Greenlane reached the second anniversary of its technology licensing agreement with a local partner in Brazil which triggered revenue recognition of the agreement's one-time minimum volume commitment... We believe the long-term potential of sugar mill-based biomethane production in Brazil is significant, and we are well-positioned to participate meaningfully as the sector scales."
• Stephanie Mason, CFO: "We delivered $15.1 million in revenue... and generated $3.4 million in Adjusted EBITDA... This compares with losses of $0.8 million and $0.4 million, respectively, in Q2 2024, — representing a significant year-over-year improvement."
• Stephanie Mason, CFO: "Greenlane's Sales Order Backlog increased significantly, ending the quarter at $26.3 million, up 24% from Q1 2025, reflecting strong order intake momentum."