Greenlane Renewables ((TSE:GRN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Greenlane Renewables painted a largely positive picture for the company, highlighting significant achievements in profitability, revenue growth, and product innovation. The company’s strong cash position and increased sales order backlog contributed to the favorable sentiment. However, the delay in revenue realization from the new Cascade LF system was noted as a challenge, though the overall highlights of the call significantly outweighed the lowlights.
Positive Adjusted EBITDA and Earnings
Greenlane Renewables reported a positive adjusted EBITDA and net income for the third quarter, marking a significant turnaround from the previous year’s net loss. This achievement underscores the company’s successful efforts in improving its financial health and operational efficiency.
Revenue Growth
The company achieved a commendable 10% increase in revenue, reaching $11.6 million compared to $10.5 million in the third quarter of 2024. This growth reflects the company’s effective strategies in expanding its market presence and enhancing its revenue streams.
Increase in Sales Order Backlog
Greenlane Renewables saw a significant increase in its sales order backlog, which grew to $33.5 million. This represents a 27% increase from Q2 and a 58% increase from Q1 of this year, indicating strong demand for the company’s offerings.
Launch of Cascade LF Upgrading Technology
The introduction of the Cascade LF upgrading system marks a significant step forward for Greenlane. Designed to enhance revenue-generating RNG output from landfill gas assets, the system has received positive initial customer feedback, setting the stage for future growth.
Improved Gross Margin
The company’s gross margin before amortization increased to 39% from 34% last year. This improvement was driven by stronger sales and enhanced operational efficiency, reflecting the company’s focus on optimizing its operations.
Strong Cash Position
Greenlane reported a robust cash balance of $19.3 million, up from $16.2 million at the end of 2024, with no debt. This strong financial position provides the company with the flexibility to invest in growth opportunities and navigate potential challenges.
Delayed Revenue from New Orders
While the launch of the Cascade LF system is promising, revenue from new orders is not expected until 2026. This delay presents a challenge in terms of immediate financial benefits from this product line.
Forward-Looking Guidance
Looking ahead, Greenlane Renewables maintains a positive outlook with strong financial performance in the third quarter of 2025. The company anticipates continued growth, supported by a 10% increase in revenue and a positive adjusted EBITDA. The sales order backlog and strong cash position further bolster the company’s future prospects, despite the delayed revenue from the Cascade LF system.
In summary, Greenlane Renewables’ earnings call highlighted a positive trajectory for the company, with significant achievements in profitability, revenue growth, and product innovation. The strong cash position and increased sales order backlog contribute to a favorable outlook, although the delay in revenue from the Cascade LF system presents a challenge. Overall, the company’s strategic initiatives and financial health position it well for future success.