Greenlane Renewables (GRN) Q4 2024 earnings summary

Executive summary

• Achieved significant operational and financial progress in 2024, including improved adjusted EBITDA, strengthened cash position, and reduced G&A costs year-over-year.

• Entering 2025 with over CAD 16 million in cash, no debt, and a sales order backlog exceeding CAD 21 million.

• Focused on technological innovation, with two new patent applications for landfill gas upgrading and a next-generation product line set for 2025.

• Net income in Q4 2024 was CAD 1.9 million versus a net loss of CAD 16.8 million in Q4 2023; full-year net loss narrowed to CAD 1.3 million from CAD 28.3 million, mainly due to a $1.5 million gain from fair value changes in notes receivable and FX.

• G&A cost run rate reduced by over 25% during 2024.

Financial highlights

• Q4 2024 revenue was CAD 8.5 million, down from CAD 16.5 million in Q4 2023; full-year 2024 revenue was CAD 51.8 million, a 5% decrease from 2023.

• Gross margin (excluding amortization) in Q4 2024 rose to 45% from 20% in Q4 2023; full-year gross margin increased to 32% from 25% in 2023.

• Adjusted EBITDA loss improved 85% in Q4 2024 to CAD 0.2 million, and full-year loss improved 81% to CAD 1.7 million.

• Cash and cash equivalents at year-end were CAD 16.2 million, up 37% from the prior year.

• Sales order backlog at year-end was CAD 21.8 million, down 39% from $36.0 million a year ago, but boosted by a CAD 6.5 million landfill RNG project contract.

Outlook and guidance

• Strategy for 2025 centers on advanced products, superior project execution, and expanding parts, service, and loyalty revenue.

• Continued focus on cost discipline, improving adjusted EBITDA, and maintaining strong cash reserves.

• Plans to unveil next-generation landfill gas upgrading products in 2025, aiming for higher performance and lower costs.

• Growth expected in profitable areas: parts and service, biogas desulfurization, technology licensing, and core upgrading systems.

• Monitoring potential impacts of U.S. tariffs and regulatory changes; currently not supplying U.S. systems reliant on Canadian/Mexican components.