Greenlane (GNLN) investor relations material

Executive summary

• Q2 2025 net sales were $0.8M, down 70% year-over-year, with a net loss of $3.2M and operating loss of $3.3M; sales team restructuring and a shift to a commission structure impacted results.

• The company executed significant cost reductions, restructured its sales team, and launched new marketing and distribution partnerships, including with Cannabis Creative Group, to drive future growth.

• February 2025 private placement raised $25M, used to repay all outstanding debt and improve liquidity.

• Early signs of recovery post-quarter include significant new customer revenue growth and account reactivations.

• Management believes current cash and recent fundraising will fund operations for the next 12 months, but continued losses and negative cash flow raise going concern risks.

Financial highlights

• Q2 2025 net sales: $0.8M (down from $2.6M–$2.7M in Q2 2024); six-month sales: $2.3M (down from $7.6M year-over-year).

• Gross margin for Q2 2025 was 0–0.3% (down from 38% in Q2 2024); six-month gross margin was 32% (down from 33%).

• Net loss for Q2 2025 was $3.2M, compared to $0.6M in Q2 2024; net loss per share for Q2 2025 was $(3.18) (post-reverse split adjustment).

• Cash as of June 30, 2025: $5.7M; working capital: $16.3M.

• Operating cash flow for six months ended June 30, 2025: $(7.9)M; financing activities provided $12.8M.

Outlook and guidance

• Management expects current liquidity, including proceeds from the February 2025 private placement, to be sufficient for the next 12 months.

• Anticipates a stronger second half of 2025, supported by new sales leadership, product launches, and improved customer acquisition.

• Plans include further cost reductions, new product launches, strategic partnerships, and potential additional capital raises.

• Ongoing focus on profitability and working capital preservation amid challenging market conditions.