Greenlane Renewables (GRN) Q3 2026 earnings summary

Executive summary

• Q3 Adjusted EBITDA was CAD 2.0M, the second-highest quarterly result, supported by higher-margin parts and service and desulfurization work.

• Strategy prioritizes higher-margin parts and service, desulfurization and licensing, while transitioning upgrading systems toward Cascade products and royalty revenue.

• Cascade LF and MS target a stated CAD 1.3B annual market across Brazil, the U.S. and Canada; Brazilian production is licensed to Panasonic.

Financial highlights

• Q3 revenue rose 7% YoY to CAD 12.3M; gross profit was CAD 5.5M and net income and comprehensive income were CAD 0.4M.

• Parts and service revenue increased 55% to CAD 5.0M, partly reflecting timing of a large order from an existing U.S. customer.

• Gross margin before amortization was 46%, versus 39% in Q3 2025, reflecting favorable parts and service and desulfurization sales mix.

• Adjusted EBITDA was CAD 2.0M versus CAD 0.5M a year earlier, benefiting from higher gross profit and lower operating expenses.

• Three completed contracts released ~CAD 0.7M in project contingency as upgrading system sales declined; backlog was CAD 21.6M at September 30, 2026.

Outlook and guidance

• Brazil production readiness for Cascade LF and MS is targeted by year-end 2026, subject to Panasonic receiving permits; North American readiness is targeted for 2027.

• Panasonic nearly completed Brazilian facility upgrades, ordered manufacturing equipment and long-lead materials, and continued hiring for production ramp-up.

• Sales opportunities are advancing in Brazil and North America, including some at late stages; industry sales cycles can run one to two years.

• Management estimates a CAD 1.3B annual addressable market for Cascade products and expects to pursue a substantial share.

• Current cash resources are considered sufficient for the strategic plan; profitability can vary with order timing, contract completion, contingency releases and development-cost capitalization.