Q3 2025 Greenlane Renewables Inc Earnings Call

November 13, 2025

Quarter 2025 video conference. My name is guaranteed president of insight capital markets responsible for Investor Relations agreement are joined today by Brad Deville, Greenleaf, Chief Executive Officer and Stephane.

Darren Seed: Good afternoon, ladies and gentlemen. Welcome to the Greenlane Renewables Q3 2025 Video Conference. My name is Darren Seed, President of Incite Capital Markets, responsible for investor relations at Greenlane. I'm joined today by Brad Douville, Greenlane's Chief Executive Officer, and Stephanie Mason, Greenlane's Chief Financial Officer. We'll begin with prepared remarks followed by Q&A, which I will moderate. Before beginning our formal remarks, we'd like to remind listeners that today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Greenlane Renewables does not undertake to update any forward-looking statements except as may be required by applicable laws.

<unk> Chief Financial Officer will.

We will begin with prepared remarks, followed by Q&A, which I will moderate.

Before beginning our formal remarks, we'd like to remind listeners that today's discussion.

May contain forward looking statements that reflect current views with respect to future events any such statements.

Are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward looking statements remain renewables does not undertake to update any forward looking statements, except as may be required by applicable law listeners are urged to review the full discussion of risk factors in the Companys.

<unk> annual information form.

Darren Seed: Listeners are urged to review the full discussion of risk factors in the company's annual information form, which has been filed with the Canadian securities regulators. Please feel free to submit any questions you may have through our investor email address at ir@greenlanerenewables.com. Now, over to Brad.

Which has been filed with the Canadian Securities regulators.

These feel free to submit any questions you may have through our Investor E Mail address at IR agreement renewables Dot com now over to Brad.

Good afternoon, and thank you everyone for joining us today on the update on the corner.

Been a very busy quarter to say in our leases we have accomplished many of the deliverables, we set out for ourselves at the beginning of the year and our strategic plan.

Brad Douville: Good afternoon, and thank you everyone for joining us today on the update of the quarter. It's been a very busy quarter to say the least, as we have accomplished many of the deliverables we set out for ourselves at the beginning of the year in our strategic plan. Our Q3 was highlighted by positive adjusted EBITDA and earnings, an increase in our sales order backlog, and the market launch of our next generation landfill gas upgrading technology. Let me get into each of these. At the start of the year, I said that we would have a relentless focus on profitability and maintaining healthy cash reserves. We've done that by delivering another strong quarter with positive adjusted EBITDA and positive net income, marking back-to-back quarters of profitability.

Our third quarter was highlighted by positive adjusted EBITDA and earnings and increase in our sales order backlog and the market launch of our next generation landfill gas upgrading technology, let me get into each of these.

At the start of the year I said that we would have a relentless focus on profitability and maintaining healthy cash reserves, we've done that by delivering another strong quarter with positive adjusted EBITDA and our net.

And positive net income marching back to back quarters of profitability.

Our persistence has strengthened our balance sheet with more than $19 million in cash on hand, after averaging just over $60 million at quarter end over the past three quarters.

Brad Douville: Our persistence has strengthened our balance sheet with more than CAD 19 million in cash on hand, after averaging just over CAD 16 million at quarter end over the past three quarters. Importantly, we've achieved these results while continuing to invest in our future, advancing our next generation Cascade LF upgrading technology. 2025 represents a reset year for our core upgrading business, which historically has generated the bulk of our revenue, considering that contract values are an order of magnitude larger than our other current revenue streams. Looking ahead, we've developed the Cascade LF upgrading system as our growth platform, building on the strong foundation of our biogas desulfurization, parts and service, and royalty revenue streams. Quoting customers and working through the sales cycle to secure Cascade LF orders is underway following the product reveal events we held in September in Brazil and the US.

Importantly, we've achieved these results while continuing to invest in our future advancing our next generation Cascade upgrading technology.

<unk> hundred 25 represents a reset year for our core upgrading business, which historically has generated the bulk of our revenue considering the contract values are in order of magnitude larger than our other current revenue streams.

Looking ahead, we have developed the Cascade Aleph upgrading system as our growth platform building on the strong foundation of our biogas to Salford nation parts and service and royalty revenue streams.

Quoting customers and working through the sales cycle to secure Cascade Aleph orders is underway following the product reveal events, we held in September in Brazil, and the U S.

Revenue from new orders is likely to begin in 2026.

We believe that the launch of this product line will help make R&D projects more accessible and scalable by enabling project owners to enhance revenue generating R&D output from their landfill gas assets, while minimizing upfront investment.

Brad Douville: Revenue from new orders is likely to begin in 2026. We believe that the launch of this product line will help make RNG projects more accessible and scalable by enabling project owners to enhance revenue generating RNG output from their landfill gas assets while minimizing upfront investment. Greenlane's consistent financial and operational progress this year underscores the momentum we're building across the organization. We are creating a more resilient, focused company that is well-positioned to drive long-term value for our shareholders and customers as we continue progressing towards achieving the 2025 strategic and financial goals outlined earlier this year. With that, I will now turn the call over to Stephanie to take you through the numbers.

He remains consistent financial and operational progress this year underscores the momentum we're building across the organization.

Creating a more resilient focused company that is well positioned to drive long term value for our shallow of shareholders and customers as we continue progressing towards achieving the 2025 strategic and financial goals goals outlined earlier this year.

With that I will now turn the call over to Stephanie to take you through the numbers.

Thanks, Brad and good afternoon, everyone.

As a reminder, all figures are in Canadian dollars, unless otherwise stated all comparisons for the third quarter of 2025 against the third quarter of 2024.

Stephanie Mason: Thanks, Brad. Good afternoon, everyone. As a reminder, all figures are in Canadian dollars unless otherwise stated, and all comparisons are for Q3 2025 against Q3 2024. Greenlane continues to demonstrate discipline and improvement across key financial metrics. Our revenue increased 10% to CAD 11.6 million, from CAD 10.5 million in Q3 2024. We generated CAD 0.5 million of adjusted EBITDA and CAD 0.1 million of net income and comprehensive income. This marks a significant turnaround from 2024's net loss and comprehensive loss of CAD 2 million and adjusted EBITDA loss of CAD 0.2 million and continues our achievements in Q2 2025. Our gross margin before amortization increased to 39% from 34% 2024, driven by stronger sales, product mix, and enhanced operational efficiency.

We then continue to demonstrate discipline and improvement across key financial metrics.

Our revenue increased 10% to $11 6 million from $10 five.

Q3 last year.

We generated <unk> 5 million of adjusted EBITDA and $1 million of net income and comprehensive income. This marks a significant turnaround from last year's net loss and comprehensive loss of $2 million and adjusted EBITDA loss of yes.

$19 million.

It continues our achievements in Q2 of this year.

Our gross margin before amortization increased to 39% from 34% last year.

Driven by stronger sales product mix and enhanced operational efficiency at the same time general and administrative expenses declined by 5% over the same quarter last year, enhancing our ability to convert top line growth into bottom line profitability.

Stephanie Mason: At the same time, general and administrative expenses declined by 5% over the same quarter last year, enhancing our ability to convert top line growth into bottom line profitability. Our sales order backlog has grown to CAD 33.5 million, up sharply from CAD 14.3 million a year ago. Sequentially, it grew by 27% from Q2 and 58% from Q1 of this year. Our CAD 19.3 million in cash increased from CAD 16.2 million in 31 December 2024, of which CAD 1.2 million was from the release of restricted cash. This strong cash balance and no debt provides us additional flexibility to invest strategically in growth initiatives such as the new Cascade LF product line. The combination of higher margins, a growing backlog, and a strong balance sheet positions Greenlane to drive long-term value creation.

Our sales order backlog has grown to $33 5 million up sharply from $14 3 million a year ago sequentially. It grew by 27% from Q2 and 58% from Q1 of this year.

Our $19 3 million in cash increased from $16 2 million in December 31.

2024.

Which $1 2 million was from the release of restricted cash is strong cash balance and no debt provides us additional flexibility to invest strategically in growth initiatives such as the new Cascade electronically.

The combination of higher margin backlog and a strong balance sheet additions, we made to drive long term value creation.

<unk> focused on operational efficiency financial discipline, and the commercialized commercialization. We'll go next generation Cascade Lf product line and we continue to execute on our strategic plan and look forward to keeping you appraised of our progress and with that let's go over to Darin for the Q&A.

Stephanie Mason: We remain focused on operational efficiency, financial discipline, and the commercialization of our next generation Cascade LF product line as we continue to execute on our strategic plan. We look forward to keeping you appraised of our progress. With that, let's go over to Darren for the Q&A.

Yes.

Thank you Stephanie.

Some great results today, and a healthy increase in our cash balance so how should investors think about the company's cash balance moving forward.

Darren Seed: Thank you, Stephanie. Some great results today and a healthy increase in our cash balance. How should investors think about the company's cash balance moving forward?

Thanks, Dan It's a good question I wanted to start by reminding everyone that we do not provide guidance.

What I will say is that we did see $1 2 million increase in our cash balance from the release of restricted cash, but even above and beyond that we've been able to maintain strong cash position.

Stephanie Mason: Thanks, Darren. That's a good question. I want to start by reminding everyone that we do not provide guidance. What I will say is that we did see CAD 1.2 million increase in our cash balance from the release of restricted cash. Even above and beyond that, we've been able to maintain a strong cash position. We've already said we've been focusing on the profitable areas of our business, having financial discipline. That is a main contributing factor. With that strong cash balance, we're going to invest in our business. We're investing in the Cascade LF product line. We're working on setting up manufacturing in the business. We also want to keep optionality open and really be able to focus on strategic growth for our business.

So we've already said, we've been focusing on the profitable areas of our business.

Financial discipline. So that is the main contributing factor and with that strong cash balance we're going to invest in our business. We're investing in the Cascade RF product line, we are working on setting up manufacturing in the business, but we also want to keep optionality open and really be able to focus on strategic growth.

Thank you Stephanie.

Looking at the new Cascade Lf system.

Reveal that we're marketing it to new and existing customers.

Darren Seed: Thank you, Stephanie. Now, looking at the new Cascade LF system, we've revealed it, we're marketing it to new and existing customers. How should investors think about its success or any purchase order reactions from customers?

So how should investors think about its success or any purchase order reactions from customers.

Yes, let me take that one.

So firstly, we set our sights on solving the most difficult problems in the industry and.

Brad Douville: Yeah, let me take that one. Firstly, we set our sights on solving the most difficult problems in the industry, and we're doing that with Cascade LF, specifically the persistent challenge of nitrogen removal, oxygen removal from methane in landfill gas applications. That's really what this new technology associated with our new Cascade LF product line is around. Our ambition was to come down the cost curve, go up the performance curve, and that's something that we've been listening to our customers, obviously, for quite some time. We knew it's something that they need to be able to do more projects, smaller projects, but also the kind of projects that they need, considering the amounts of nitrogen and oxygen in their various landfill assets. So far, so good. We've had some really positive feedback.

We're doing that with Cascade LLS specifically.

Persistent challenge.

Nitrogen removal oxygen removal from from methane and landfill gas applications. So that's really what this new technology associated with our new Cascade of light product line is around.

So our ambition was to come down the cost curve go up the performance curves and that's something that we've been listening to our customers obviously for a quite some time when you will get something that they need.

To be able to do more projects smaller projects, but also.

The kind of projects that they need.

<unk> the amount of nitrogen and oxygen in their various landfill assets. So so far so good which had some really positive feedback we've had.

Yeah.

The reaction that we were hoping to get in terms of this product being compelling.

Brad Douville: We've had the reaction that we were hoping to get in terms of this product being compelling. We're just in the early throes of that with early days on the sales pipeline. We just launched it from a marketing perspective in September, and so far so good. Really great feedback from customers so far.

And.

We're just in the early throws of that with early days on the sales pipeline, we just launched it.

From a marketing perspective in September and so far so good really great.

Back from customers so far.

Thanks, Brad you've noted that in the Cascade will have product reveal events were held in Brazil and in the U S.

Darren Seed: Thanks, Brad. You've noted that in the Cascade LF product reveal events were held in Brazil and in the US. Are there other geographies of focus, and can you say more about the Cascade LF being the growth platform going forward after a reset year in 2025 for Greenlane's core upgrading business?

Are there other geographies of focus and can you say more about the cascade in Alaska being a growth platform going forward after a reset year and 2025 with green latest core upgrading business.

Yes.

If you think about the sources of R&D.

The feedstock sources in particular, so landfill gas in the Americas.

Brad Douville: Yeah. If you think about the sources of RNG, the feedstock sources in particular. Landfill gas in the Americas, it represents about 70% of RNG derived from landfill gas. Europe's a bit of a different case. Europe is more mainly dominated with anaerobic digestion. That means our core focus area is the Americas. We did the marketing launch in Brazil, in the US, but key focus is other parts of Latin America and also Canada. When we talk about Cascade LF being the growth platform, it's really important to note that relative to the other revenue streams in the business today, if you look at our biogas desulfurization product line, for example, contract values associated with the upgrading system, Cascade LF, it's an order of magnitude greater.

It represents about 70% of.

70% of RMG is derived from landfill gas Europe is a bit of a different case Europe is more mainly dominated with anaerobic digestion.

So that means our core focus area is the Americas. So.

We launched the marketing launch in Brazil in the U S. But key focus is other parts of Latin America and also Canada.

When we talk about Cascade Lf being the growth platform.

Really important to note that relative to the other revenue streams in the business today. So if you look at our biogas to <unk> product line for example.

Contract values associated with the upgrading system Castleton Alaska.

As an order of magnitude greater.

So achieving the same kind of growth levels that we've had in our base business with a much higher revenue that's what we mean when we say.

Brad Douville: Achieving the same kind of growth levels that we've had in the base business with a much higher revenue, that's what we mean when we say, Cascade LF is really our growth engine going forward.

Cascade is really our growth engine going forward.

Yeah.

Thanks, Brad.

No I see that the Canadian government is tabled as recently table their budget for.

Darren Seed: Thanks, Brad. I see that the Canadian government has recently tabled their budget for a vote in the House of Commons. Have you seen anything in that budget that might benefit Greenlane?

For a vote in the house of Commons have you seen anything in that budget that might benefit greatly.

Yes, there's a couple of things so the feedback from industry groups to the Canadian government has been firstly.

Brad Douville: There's a couple things. The feedback from industry groups to the Canadian government has been firstly on the CFR, the Clean Fuel regulation. The feedback was pretty simple: Keep it and enhance it, make it work a little bit more efficiently and effectively. That seems to be preserved in the budget that was tabled. The next most important thing that would help the industry in Canada move forward is ITCs, Investment Tax Credits. Well, the industry had put forward to say, Well, look, as of before this budget was tabled, the ITCs had not considered RNG or biogas more generally. It appears that perhaps they've been listening. We'll see when the full regulations come out.

On the CFR.

Clean fuel regulation and the feedback was pretty simple.

EBIT and enhance it make it work a little bit more efficiently and effectively.

So that seems to be preserved and the budget that was.

Table the.

The next most important thing that would help the industry in Canada move forward as Itc's investment tax credits.

So the industry has put forward to say well look at.

As of before this budget was table.

The Itc's had not considered.

R&D or biogas more generally.

And it appears that perhaps they've been listening, we'll see when the full regulations come out but there is note in the budget that now.

Renewables derived from biomass that go to heat or electricity.

Brad Douville: There is note in the budget that now, renewables, derived from biomass that go to heat or electricity, which of course RNG goes towards both of those things, would be qualifying for the investment tax credits for building out new projects in Canada. That's really exciting. We'll see. We'll see how they actually turn that into the official language. The other piece that's also in there is around hydrogen. There's an existing ITC for hydrogen projects in Canada, built out in Canada. That's now been expanded to include hydrogen, in this case, particularly the green hydrogen generated from methane. The only way you can get green hydrogen from methane is through biomethane or renewable natural gas. Again, both of those have to be turned into the regulatory language.

Which of course R&D it goes towards both of those things.

Would be qualifying for the.

Investment tax credits for building out new projects in Canada, So that's really exciting.

We will see how they actually turn that into the official language.

Now the other piece. That's also in there is around hydrogen is an existing ITC for hydrogen projects in Canada built out in Canada.

And.

That's now been expanded to include.

Hydrogen in this case, particularly the green hydrogen generated from methane. So the only way you can get green hydrogen for methane is through biomethane or renewable natural gas. So again both of those have to be turned into the regulatory language, we'll see what happens but by at least my read of it.

Over the weekend.

It appears that there could be some some positive signals going to our industry in Canada coming out.

Brad Douville: We'll see what happens, but by at least my read of it, over the weekend, it appears that there could be some positive signals going to our industry in Canada coming up.

Well, thanks, Brad and thank you for watching today's financial report, we look forward to seeing you next quarter.

Darren Seed: Well, thanks, Brad, and thank you for watching today's financial report. We look forward to seeing you the next quarter.

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