from Greenlane Holdings, Inc. (NASDAQ:GNLN)
Greenlane Reports Second Quarter 2025 Financial Results
BOCA RATON, FL / ACCESS Newswire / August 14, 2025 / Greenlane Holdings, Inc. ("Greenlane" or the "Company") (Nasdaq:GNLN), one of the premier global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today reported its financial results for the second quarter and six months ended June 30, 2025.
Revenue Reporting and Key Organizational Initiatives
Beginning with our second quarter 2023 financial report, we implemented a major restructuring of our industrial product lines, transitioning much of this business from gross sales to a commission structure. While this change affects how we report revenue, we believe it enables us to preserve working capital and improve gross margins.
During the second quarter, the Company initiated and has since completed a restructuring of its sales organization to better align people and responsibilities with the Company's omnichannel sales strategy, including the addition of new and highly experienced leadership across the board to ensure a return to growth and increased customer success at Greenlane. While necessary, the recent reorganization of the sales team, including new leadership and the recruitment of a stronger sales team, negatively impacted sales and new customer acquisition in the second quarter. The new structure is designed to accelerate sales, improve customer experience, and increase efficiency throughout the sales process. Subsequent to the end of the second quarter, the new sales and marketing infrastructure has delivered new customer growth, reactivation of customer accounts, and the addition of new multi-state operator accounts.
Second Quarter 2025 Results Compared to Prior Year Period
Total revenue was $0.8 million compared to $2.6 million in the prior year period.
Total operating expenses were $3.3 million, a decrease of 27% compared to $4.5 million in the prior year period.
Operating loss improved to $3.3 million compared to an operating loss of $3.5 million in the prior year period.
Net loss was $3.2 million compared to a net loss of $0.6 million in the prior year period.
New Sales and Marketing Team Supported by Leading Cannabis Digital Marketing Agency Enhancing Revenue and Customer Opportunities
Cannabis Creative Group (CCG) is leading the Company's new marketing strategy to support future growth for its B2B-focused brands, including Greenlane Wholesale and KushCo. CCG began work in Q2 and has focused on driving campaigns towards new acquisitions and retargeting wholesale customers.
An approximately 880% increase in revenue for new customers, month over month June to July; and an approximate 40% increase in revenue for new customers month over month July to August (MTD)
19 accounts reactivated.
Added 12 new multi-state operator accounts.
"The restructuring of our sales leadership and sales team during the quarter significantly impacted our revenue. While disappointing for the near term, these actions were necessary to restore more sustainable growth over the long term. With new leadership in place, a growing portfolio of products, and a large market opportunity, I have increasing confidence that the Company is positioned to accelerate growth going forward," said Barbara Sher, Chief Executive Officer for Greenlane
Sher added, "We made strides with footprint optimization, and we will continue to take costs out of the business and right-size operations, while we enhance our product offering and improve pricing architecture. We are seeing solid early indicators that our new sales leadership is setting the foundation for improved top-line performance, and we are thrilled to have added several new products in both the cannabis and wellness categories to drive new and existing customer opportunities."
Sher concluded, "While we continue to navigate a dynamic market environment, we remain committed to the initiatives implemented in recent quarters that are fueling our transformation and driving our goal to improve profitability. As we focus on improving our business and accounts receivable strategy and efficiency efforts and given our early but encouraging new customer sales activity, we currently anticipate a stronger second half of 2025 for Greenlane."
Strategic Growth and Operational Initiatives
Entered into a distribution agreement with Greentank Technologies, a leading innovator in the aerosolization technology industry, to distribute Greentank's full assortment of cartridges and vaporizers.
Renewed distribution agreement with PAX, a pioneer in the design and development of premium cannabis vaporization technologies and devices.
Announced the appointment of Mike Hinson as the Company's Executive Vice President of Sales and upgraded sales and marketing organizations.
Appointed exclusive fulfillment platform for Safety Strips direct-to-consumer e-commerce store featuring ToxiShield, Safety Strips trusted brand of harm reduction solutions designed to combat fentanyl overdoses and drink spiking.
Successfully renegotiated many vendor and supplier partnership terms and continuing to improve working capital arrangements with vendors and suppliers.
Continued progress consolidating and streamlining office, warehouse, and distribution operations footprint.
Consolidated digital ecommerce presence to one platform resulting in improved efficiencies and reduced cost.
Balance Sheet
As of June 30, 2025, the Company had cash and cash equivalents of approximately $5.7 million.
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
June 30, 2025 | December 31, 2024 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 5,724 | $ | 899 | ||||
Accounts receivable, net of allowance of $3,289 and $2,616 at June 30, 2025 and December 31, 2024, respectively | 3,795 | 4,262 | ||||||
Inventories, net | 14,352 | 14,215 | ||||||
Vendor deposits | 2,527 | 3,091 | ||||||
Other current assets | 1,719 | 1,305 | ||||||
Total current assets | 28,117 | 23,772 | ||||||
Property and equipment, net | 1,181 | 1,420 | ||||||
Operating lease right-of-use assets | 587 | 1,043 | ||||||
Other assets | 1,892 | 2,396 | ||||||
Total assets | $ | 31,777 | $ | 28,631 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 8,710 | $ | 9,787 | ||||
Accrued expenses and other current liabilities | 1,102 | 1,218 | ||||||
Customer deposits | 1,466 | 2,661 | ||||||
Current portion of notes payable | - | 7,674 | ||||||
Current portion of operating leases | 548 | 926 | ||||||
Total current liabilities | 11,826 | 22,266 | ||||||
Operating leases, less current portion | 5 | 83 | ||||||
Total liabilities | 11,831 | 22,349 | ||||||
Commitments and contingencies (Note 7) | - | - | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding | - | - | ||||||
Class A common stock, $0.01 par value per share, 600,000,000 shares authorized, 1,386,551 and 3,023 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively* | - | - | ||||||
Class B common stock, $0.0001 par value per share, 30,000,000 shares authorized, and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024* | - | - | ||||||
Common stock, value | - | - | ||||||
Additional paid-in capital* | 301,841 | 281,095 | ||||||
Accumulated deficit | (282,011 | ) | (274,929 | ) | ||||
Accumulated other comprehensive income | 265 | 265 | ||||||
Total stockholders' equity attributable to Greenlane Holdings, Inc. | 20,095 | 6,431 | ||||||
Non-controlling interest | (149 | ) | (149 | ) | ||||
Total stockholders' equity | 19,946 | 6,282 | ||||||
Total liabilities and stockholders' equity | $ | 31,777 | $ | 28,631 | ||||
* | After giving effect to the Reverse Stock Splits |
GREENLANE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except share and per share amounts)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales | $ | 788 | $ | 2,652 | $ | 2,257 | $ | 7,578 | ||||||||
Cost of sales | 786 | 1,641 | 1,534 | 5,055 | ||||||||||||
Gross profit | 2 | 1,011 | 723 | 2,523 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries, benefits and payroll taxes | 1,119 | 1,509 | 2,386 | 4,455 | ||||||||||||
General and administrative | 1,938 | 2,801 | 4,762 | 5,093 | ||||||||||||
Depreciation and amortization | 201 | 196 | 307 | 450 | ||||||||||||
Total operating expenses | 3,258 | 4,506 | 7,455 | 9,998 | ||||||||||||
Loss from operations | (3,256 | ) | (3,495 | ) | (6,732 | ) | (7,475 | ) | ||||||||
Other income (expense), net: | ||||||||||||||||
Interest expense | - | (289 | ) | (391 | ) | (811 | ) | |||||||||
Change in fair value of contingent consideration | - | 1,000 | - | 1,000 | ||||||||||||
Gain on extinguishment of debt | - | 2,166 | - | 2,166 | ||||||||||||
Other income (expense), net | 41 | (14 | ) | 41 | (3 | ) | ||||||||||
Total other income (expense), net | 41 | 2,863 | 350 | 2,352 | ||||||||||||
Loss before income taxes | (3,215 | ) | (632 | ) | (7,082 | ) | (5,123 | ) | ||||||||
Provision for (benefit from) income taxes | - | |||||||||||||||