Greenlane Renewables (GRN) Q1 2025 earnings summary

Executive summary

• Revenue reached CAD 7 million in Q1 2025, with a gross margin of 40%, up from 26.5%–27% year-over-year.

• Adjusted EBITDA loss was CAD 1.1 million; net loss from continuing operations totaled CAD 1 million.

• Sales order backlog stood at CAD 21.2 million as of March 31, 2025, with cash reserves of CAD 16.2 million and no debt.

• Strategic focus remains on profitable segments, next-gen landfill gas upgrading, and improving core segment profitability.

• No royalty revenue in Q1; CAD 3.3 million in deferred revenue from a technology licensing agreement to be recognized in Q2.

Financial highlights

• Gross profit was CAD 2.6 million; gross margin before amortization was CAD 2.8 million (40% of revenue).

• General and administration expenses fell 31% to CAD 3.5 million from CAD 5 million year-over-year.

• Cash and cash equivalents remained stable at CAD 16.2 million, with no outstanding debt.

• Sales order backlog slightly decreased from CAD 21.8 million at year-end 2024 to CAD 21.2 million.

• System sales declined by CAD 10.7 million, while parts and service business grew 23% year-over-year.

Outlook and guidance

• Management expects to recognize CAD 3.3 million in deferred revenue in Q2 2025 at a strong gross margin.

• Focused on converting backlog into profitable revenue and achieving positive Adjusted EBITDA in 2025.

• Anticipates growth in biogas desulfurization, parts and service, and technology licensing segments.

• Plans to localize manufacturing in the U.S. and Brazil to support long-term growth.

• Optimistic outlook for the year, with expectations to improve Adjusted EBITDA results.