Q4 2025 Greenlane Renewables Inc Earnings Call - Pre-Recorded

[President] (Incite Capital Markets): 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 remarks followed by Q&A, which I will moderate. Before beginning our 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. Listeners are urged to review the full discussion of risk factors in the company's annual information form, which has been filed with Canadian securities regulators. Please feel free to submit any questions you may have to our investor email address at ir@greenlanerenewables.com.

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 remarks followed by Q&A, which I will moderate. Before beginning our 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. Listeners are urged to review the full discussion of risk factors in the company's annual information form, which has been filed with Canadian securities regulators. Please feel free to submit any questions you may have to our investor email address at ir@greenlanerenewables.com.

Speaker #1: President of Insight 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.

Speaker #1: We'll begin with remarks followed by Q&A, which I will moderate. Before beginning our remarks, we'd like to remind listeners that today's discussion may contain forward-looking statements.

Speaker #1: That reflects current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #1: 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.

Speaker #1: Listeners are urged to review the full discussion of risk factors in the company's annual information form, which has been filed with Canadian Securities Regulators.

Speaker #1: Please feel free to submit any questions you may have through our investor email address. At IR@GreenlaneRenewables.com. Now, over to Brad.

[President] (Incite Capital Markets): Now over to Brad.

Darren Seed: Now over to Brad.

Speaker #2: Thanks for joining today. So firstly, let's take a look back. Let's look at our strategic initiatives that we had at the start of fiscal year 2025.

Brad Douville: Thanks for joining today. Firstly, let's take a look back. Let's look at our strategic initiatives that we had at the start of fiscal year 2025. We had a relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. We would do that with three key strategic initiatives. The first one being continued sales growth in our most profitable business areas, which are proprietary standard products and parts and service. Number two is to improve the profitability of our system integration and delivery business area. We would do that by executing our projects on time, on budget, delighting customers, and selling standard products versus one-off engineered solutions. Thirdly, develop Cascade LF, our compelling next-generation landfill gas upgrading product line, capturing additional IP and planning manufacturing. How did we do?

Brad Douville: Thanks for joining today. Firstly, let's take a look back. Let's look at our strategic initiatives that we had at the start of fiscal year 2025. We had a relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. We would do that with three key strategic initiatives. The first one being continued sales growth in our most profitable business areas, which are proprietary standard products and parts and service. Number two is to improve the profitability of our system integration and delivery business area. We would do that by executing our projects on time, on budget, delighting customers, and selling standard products versus one-off engineered solutions. Thirdly, develop Cascade LF, our compelling next-generation landfill gas upgrading product line, capturing additional IP and planning manufacturing. How did we do?

Speaker #2: We had a relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. And we would do that with three key strategic initiatives.

Speaker #2: The first one being continued sales growth in our most profitable business areas, which are proprietary standard products and parts and service. Number two, is our improve the profitability of our system integration and delivery business area.

Speaker #2: We would do that by executing our projects on time, on budget, delayed in in customers. And selling standard products versus one-off engineered solutions. Thirdly, develop Cascade LF, our compelling next-generation landfill gas upgrading product line, capturing additional IP and planning manufacturing.

Speaker #2: So how do we do? While we overachieved our 2025 objectives, we generated $2.3 million in adjusted EBITDA versus a loss in 2024. And we increased not just maintained, but we increased our cash balance over the same period last year.

Brad Douville: While we overachieved our 2025 objectives, we generated CAD 2.3 million in adjusted EBITDA versus a loss in 2024, and we increased, not just maintained, but we increased our cash balance over the same period last year. Let's also take a look back and just as a reminder, and maybe a recharacterization, our three business areas: proprietary standard products, system integration and delivery, and parts and service. What are those? Let's start with proprietary standard products. Our product lines, beginning on the right of this chart, Cascade H2S. This is our biogas desulfurization system. Below that, Cascade H2O. This is our long-standing water wash product line. It's the foundational technology upon which Greenlane was founded more than 35 years ago. Our new product line that's built on all the previous products that we had delivered to date.

Brad Douville: While we overachieved our 2025 objectives, we generated CAD 2.3 million in adjusted EBITDA versus a loss in 2024, and we increased, not just maintained, but we increased our cash balance over the same period last year. Let's also take a look back and just as a reminder, and maybe a recharacterization, our three business areas: proprietary standard products, system integration and delivery, and parts and service. What are those? Let's start with proprietary standard products. Our product lines, beginning on the right of this chart, Cascade H2S. This is our biogas desulfurization system. Below that, Cascade H2O. This is our long-standing water wash product line. It's the foundational technology upon which Greenlane was founded more than 35 years ago. Our new product line that's built on all the previous products that we had delivered to date.

Speaker #2: Let's also take a look back and just as a reminder, and maybe a re-characterization, our three business areas. Proprietary standard products, system integration and delivery, parts and service.

Speaker #2: So what are those? Let's start with proprietary standard products. So our product lines beginning on the right of this chart, Cascade H2S. So this is our biogas to sulfurization system.

Speaker #2: Below that, Cascade Water. This is our long-standing water wash product line. It's the foundational technology upon which Greenlane was founded more than 35 years ago.

Speaker #2: And then our new product line, that's built on all the previous products that we had delivered to date. So that's Cascade LF, which is our next-generation landfill gas upgrading.

Brad Douville: That's Cascade LF, which is our next generation landfill gas upgrading, higher performance, lower cost. Cascade MS, which is our membrane separation. It's upgrading of anaerobic digester gas for larger flows, and it has low cost synergy with Cascade LF. In 2025, the development of our Cascade LF, including our new proprietary linear NRU, marks significant advancement in our technology portfolio. The new product line, which is engineered to improve methane recovery, methane recovery being the number one performance indicator of an upgrading system, reduce system complexity, lower operating and capital cost. That spawned four new patent application filings since December 2024. That, of course, further enhances our intellectual property portfolio. Our system integration and delivery business area. This is where we take our proprietary standard products, shown on the right, on the upper right.

Brad Douville: That's Cascade LF, which is our next generation landfill gas upgrading, higher performance, lower cost. Cascade MS, which is our membrane separation. It's upgrading of anaerobic digester gas for larger flows, and it has low cost synergy with Cascade LF. In 2025, the development of our Cascade LF, including our new proprietary linear NRU, marks significant advancement in our technology portfolio. The new product line, which is engineered to improve methane recovery, methane recovery being the number one performance indicator of an upgrading system, reduce system complexity, lower operating and capital cost. That spawned four new patent application filings since December 2024. That, of course, further enhances our intellectual property portfolio. Our system integration and delivery business area. This is where we take our proprietary standard products, shown on the right, on the upper right.

Speaker #2: Higher performance, lower cost. And then Cascade MS, which is our membrane separation. It's upgrading of anaerobic digester gas for larger flows. And it has low-cost synergy with Cascade LF.

Speaker #2: So in 2025, the development of our Cascade LF, including our new proprietary linear NRU, marked significant advancement in our technology portfolio. The new product line, which is engineered to improve methane recovery, methane recovery being the number one performance indicator of an upgrading system, reduce system complexity, lower operating and capital cost, and that spawned four new PAD application filings since December of 2024.

Speaker #2: That, of course, further enhances our intellectual property portfolio. Our system integration and delivery business area. So this is where we take our proprietary standard products, shown on the right of the upper right.

Speaker #2: So that is the proprietary portion of our Cascade LF that's before integration. And then the image below that is after integration. So that's after.

Brad Douville: That is the proprietary portion of our Cascade LF, that's before integration. Then the image below that is after integration. That's after, for those customers that require it. It's turnkey project delivery, where we integrate our proprietary standard products with third-party equipment and deliver to customers complete biogas upgrading systems. The scope of that is system engineering, third-party equipment specification, procurement, quality control, project management, installation at site, interconnect and piping, wiring, and then, of course, system integration, performance testing, and ultimately operator training and handover. In other words, full turnkey. Our third business area, parts and service. This is an attractive, growing, recurring revenue part of the business. We're adding value with an increased customer base. That increased customer base is from more than 500 systems sold into 32 countries.

Brad Douville: That is the proprietary portion of our Cascade LF, that's before integration. Then the image below that is after integration. That's after, for those customers that require it. It's turnkey project delivery, where we integrate our proprietary standard products with third-party equipment and deliver to customers complete biogas upgrading systems. The scope of that is system engineering, third-party equipment specification, procurement, quality control, project management, installation at site, interconnect and piping, wiring, and then, of course, system integration, performance testing, and ultimately operator training and handover. In other words, full turnkey. Our third business area, parts and service. This is an attractive, growing, recurring revenue part of the business. We're adding value with an increased customer base. That increased customer base is from more than 500 systems sold into 32 countries.

Speaker #2: For those customers that require it, so it's turnkey project delivery. Where we integrate our proprietary standard products with third-party equipment and deliver to customers complete biogas upgrading systems.

Speaker #2: So the scope of that is system engineering, third-party equipment specification, procurement, quality control, project management, installation, at-site, interconnecting piping wiring, and then, of course, system integration, performance testing, and ultimately operator training and handover.

Speaker #2: So in other words, full turnkey. Our third business area, parts and service. So this is an attractive growing recurring revenue, part of the business.

Speaker #2: We're adding value with an increased customer base. That increased customer base is from more than 500 systems sold into 32 countries. That gives us a large and growing pool of customers.

Brad Douville: That gives us a large and growing pool of customers. The kinds of things that we deliver as services here, remote monitoring, 24/7 technical support, proprietary software upgrades, scheduled maintenance, priority spare parts supply, and performance optimization. Let's look at the financial performance of all three business areas, and it's easiest to do this in a bit of a build here. Let's start with parts and service as the financial foundation. Our parts and service over the last three years has provided strong, positive, adjusted EBITDA growth. In 2025, approximately 15% adjusted EBITDA was generated on CAD 14 million in revenue. If we layer on top of that, the proprietary standard products.

Brad Douville: That gives us a large and growing pool of customers. The kinds of things that we deliver as services here, remote monitoring, 24/7 technical support, proprietary software upgrades, scheduled maintenance, priority spare parts supply, and performance optimization. Let's look at the financial performance of all three business areas, and it's easiest to do this in a bit of a build here. Let's start with parts and service as the financial foundation. Our parts and service over the last three years has provided strong, positive, adjusted EBITDA growth. In 2025, approximately 15% adjusted EBITDA was generated on CAD 14 million in revenue. If we layer on top of that, the proprietary standard products.

Speaker #2: So the kinds of things that we deliver as services here: remote monitoring, 24/7 technical support, proprietary software upgrades, scheduled and unscheduled maintenance, priority spare parts, priority spare parts supply, and performance optimization.

Speaker #2: Let's look at the financial performance of all three business areas. And it's easiest to do this in a bit of a build here. So let's start with parts and services, the financial foundation.

Speaker #2: Our parts and service over the last three years has provided strong positive adjusted EBITDA growth. And in 2025, approximately 15% adjusted EBITDA was generated on 14 million in revenue.

Speaker #2: If we layer on top of that, the proprietary standard products, so you can see that takes the combined adjusted EBITDA growth. Up to 28% on 39 million in revenue in 2025.

Brad Douville: You can see that takes the combined adjusted EBITDA growth up to 28% on CAD 39 million in revenue in 2025. Very strong adjusted EBITDA growth from these two parts of the business. We layer in our third business area, the system integration and delivery. You can see in the revenue chart, we're ramping down. We're deliberately ramping down. We're completing legacy low-margin contracts to ramp back up, centered on Cascade LF with lower risk, higher margin. That on a consolidated basis is 5%. In other words, the system integration and delivery brought down our results from the 28% to the 5%. Looking forward, our 2026 strategic initiatives are aligned with what we had last year, but of course, updated because we've made substantial progress.

Brad Douville: You can see that takes the combined adjusted EBITDA growth up to 28% on CAD 39 million in revenue in 2025. Very strong adjusted EBITDA growth from these two parts of the business. We layer in our third business area, the system integration and delivery. You can see in the revenue chart, we're ramping down. We're deliberately ramping down. We're completing legacy low-margin contracts to ramp back up, centered on Cascade LF with lower risk, higher margin. That on a consolidated basis is 5%. In other words, the system integration and delivery brought down our results from the 28% to the 5%. Looking forward, our 2026 strategic initiatives are aligned with what we had last year, but of course, updated because we've made substantial progress.

Speaker #2: Very strong adjusted EBITDA growth from these two parts of the business. And then we layer in our third business area, the system integration and delivery.

Speaker #2: You can see in the revenue chart we're ramping down. We're deliberately ramping down. We're completing legacy low-margin contracts to ramp back up centered on Cascade LF with lower risk, higher margin.

Speaker #2: So that, on a consolidated basis, is 5%. So in other words, the system integration and delivery brought down our results from the 28% to the 5%.

Speaker #2: Looking forward, our 2026 strategic initiatives are aligned with what we had last year. But of course, updated because we've made substantial progress. They continue to be underpinned by financial discipline.

Brad Douville: They continue to be underpinned by continuing financial discipline that's foundational to our objectives for 2026. Strategic initiative number 1 remains unchanged from last year. It's working, so let's keep doing that, which is continue sales growth within our most profitable business areas, proprietary standard products, and parts and service. Reconfigure the second one, our system integration and delivery business area. Complete the ramp down of legacy low-margin contracts and ramp back up centered on Cascade LF. We'll enter into new contracts that are structured for lower risk, higher margin, and lower overall cost for customers. Thirdly, add step change profitable growth potential with Cascade LF.

Brad Douville: They continue to be underpinned by continuing financial discipline that's foundational to our objectives for 2026. Strategic initiative number 1 remains unchanged from last year. It's working, so let's keep doing that, which is continue sales growth within our most profitable business areas, proprietary standard products, and parts and service. Reconfigure the second one, our system integration and delivery business area. Complete the ramp down of legacy low-margin contracts and ramp back up centered on Cascade LF. We'll enter into new contracts that are structured for lower risk, higher margin, and lower overall cost for customers. Thirdly, add step change profitable growth potential with Cascade LF.

Speaker #2: That's foundational to our objectives for 2026. Strategic initiative number one remains unchanged from last year. It's working. So let's keep doing that, which is continue sales growth in our most profitable business areas, proprietary standard products, and parts and service.

Speaker #2: Reconfigure the second one, reconfigure our system integration and delivery business area. So complete the ramp down of legacy low-margin contracts and ramp back up centered on Cascade LF.

Speaker #2: We'll enter into new contracts that are structured for lower risk, higher margin, and lower overall cost for customers. And then thirdly, add step-change profitable growth potential with Cascade LF.

Speaker #2: So complete the final development, commence manufacturing in Brazil with the aim of being ready to ship of the first unit by the end of this year.

Brad Douville: Complete the final development, commence manufacturing in Brazil with the aim of being ready to ship the first unit by the end of this year, and also this year, establish our manufacturing plan to serve the North American market. Now over to Steph for the financial results.

Brad Douville: Complete the final development, commence manufacturing in Brazil with the aim of being ready to ship the first unit by the end of this year, and also this year, establish our manufacturing plan to serve the North American market. Now over to Steph for the financial results.

Speaker #2: And also this year, establish our manufacturing plan to serve the North American market. And now over to Steph for the financial results.

Speaker #1: Thanks, Brad. I'm going to talk through our highlights of 2025. As a reminder, all amounts are in Canadian dollars unless otherwise stated. 2025 saw Greenlane back to a positive adjusted EBITDA and new year at 2.3 million which was an improvement of 4 million up from a loss of 1.7 million in 2024.

Stephanie Mason: Thanks, Brad. I'm gonna talk through our highlights of 2025. As a reminder, all amounts are in Canadian dollars unless otherwise stated. 2025 saw Greenlane back to a positive adjusted EBITDA and new year at CAD 2.3 million, which was an improvement of CAD 4 million, up from a loss of CAD 1.7 million in 2024. A big contributor to this adjusted EBITDA is the CAD 2.9 million gross margin contribution, which was received under the technology licensing agreement with a local partner in Brazil. The agreement triggered a one-time minimum volume commitment. Now, if you look down to revenue was CAD 10.8 million, which was up by CAD 2.3 million from Q4 2024. This increase consists mainly of CAD 1.7 million in higher system sales, and CAD 0.6 million increase in parts and service revenue.

Stephanie Mason: Thanks, Brad. I'm gonna talk through our highlights of 2025. As a reminder, all amounts are in Canadian dollars unless otherwise stated. 2025 saw Greenlane back to a positive adjusted EBITDA and new year at CAD 2.3 million, which was an improvement of CAD 4 million, up from a loss of CAD 1.7 million in 2024. A big contributor to this adjusted EBITDA is the CAD 2.9 million gross margin contribution, which was received under the technology licensing agreement with a local partner in Brazil. The agreement triggered a one-time minimum volume commitment. Now, if you look down to revenue was CAD 10.8 million, which was up by CAD 2.3 million from Q4 2024. This increase consists mainly of CAD 1.7 million in higher system sales, and CAD 0.6 million increase in parts and service revenue.

Speaker #1: A big contributor to this adjusted EBITDA is the 2.9 million gross margin contribution which was received under the technology licensing agreement with the local partner in Brazil.

Speaker #1: The agreement triggered a one-time minimum volume commitment. Now, if you look down to revenue, revenue was 10.8 million which was up by 2.3 million from Q4 2024.

Speaker #1: This increase consists mainly of a 1.7 million in higher system sales and 0.6 million increase in parts and service revenue. Looking to the full year of 2025, revenue was 44.4 million.

Stephanie Mason: Looking to the full year of 2025, revenue was CAD 44.4 million. This is a decline of CAD 7.4 million. This consists of a CAD 16.2 million reduction in system sales, which was partially offset by a CAD 6.3 million increase in parts and service revenue, and a CAD 2.5 million increase in royalty revenue. Now, if we go to look at gross margin before amortization, Q4 of 2025 was CAD 4.4 million or 41% of revenue, compared to CAD 3.8 million or 45% of revenue in Q4 2024. Now, for the full year of 2025, we achieved gross margin before amortization of CAD 19.1 million or 43% of revenue, compared to CAD 16.3 million or 32% of revenue for 2024.

Stephanie Mason: Looking to the full year of 2025, revenue was CAD 44.4 million. This is a decline of CAD 7.4 million. This consists of a CAD 16.2 million reduction in system sales, which was partially offset by a CAD 6.3 million increase in parts and service revenue, and a CAD 2.5 million increase in royalty revenue. Now, if we go to look at gross margin before amortization, Q4 of 2025 was CAD 4.4 million or 41% of revenue, compared to CAD 3.8 million or 45% of revenue in Q4 2024. Now, for the full year of 2025, we achieved gross margin before amortization of CAD 19.1 million or 43% of revenue, compared to CAD 16.3 million or 32% of revenue for 2024.

Speaker #1: This is a decline of 7.4 million. This consists of a 16.2 million reduction in system sales which was partially offset by a 6.3 million increase in parts and service revenue and a 2.5 million increase in royalty revenue.

Speaker #1: Now, if we go to look at gross margin before amortization, Q4 of 2025 was 4.4 million for 41% of revenue, compared to 3.8 million or 45% of revenue in Q4 2024.

Speaker #1: Now, for the full year of 2025, we achieved gross margin before amortization of 19.1 million or 43% of revenue compared to 16.3 million for 32% of revenue for 2024.

Stephanie Mason: The change in margin contribution reflects mainly the product mix as we have projects at varying margins at different stages of completion, and we're also seeing a growing contribution from our higher margins parts and service business, and royalty revenue streams. I also wanna highlight Q4 2025 net loss and comprehensive loss of CAD 1.2 million versus net income and comprehensive income of CAD 1.9 million in Q4 2024. In Q4 2025, we did see an increase in R&D expenses as we advanced our Cascade LF product line. In the prior quarter, we saw a gain in the change in fair value of note receivable, which was fully paid in January 2025. There was also movements in foreign exchange, as we had a gain in Q4 2024 versus a loss in Q4 2025.

Stephanie Mason: The change in margin contribution reflects mainly the product mix as we have projects at varying margins at different stages of completion, and we're also seeing a growing contribution from our higher margins parts and service business, and royalty revenue streams. I also wanna highlight Q4 2025 net loss and comprehensive loss of CAD 1.2 million versus net income and comprehensive income of CAD 1.9 million in Q4 2024. In Q4 2025, we did see an increase in R&D expenses as we advanced our Cascade LF product line. In the prior quarter, we saw a gain in the change in fair value of note receivable, which was fully paid in January 2025. There was also movements in foreign exchange, as we had a gain in Q4 2024 versus a loss in Q4 2025.

Speaker #1: The change in margin contribution reflects mainly the product mix as we have products, projects at varying margins at different stages of completion, and we're also seeing a growing contribution from a higher margin parts and service business and royalty revenue streams.

Speaker #1: I also want to highlight Q4 2025 net loss and comprehensive loss of 1.2 million versus net income and comprehensive income of 1.9 million in Q4 2024.

Speaker #1: In Q4 2025, we did see an increase in R&D expenses as we advance our Cascade LF product line. And in the prior quarter, we saw a gain in the change in fair value of note receivable which was fully paid in January of 2025.

Speaker #1: There was also movements in foreign exchange as we had a gain in Q4 2024 versus a loss in Q4 of 2025. We ended the year in a strong position with a sales order backlog of 33.6 million and a cash position of 17.7 million compared to 16.2 million in 2024 which was an increase of 1.5 million.

Stephanie Mason: We ended the year in a strong position with a sales order backlog of CAD 33.6 million and a cash position of CAD 17.7 million compared to CAD 16.2 million in 2024, which was an increase of CAD 1.5 million. This shows that Greenlane has a stable financial platform to support our backlog execution and our product development. With that, I'll send it back to Darren.

Stephanie Mason: We ended the year in a strong position with a sales order backlog of CAD 33.6 million and a cash position of CAD 17.7 million compared to CAD 16.2 million in 2024, which was an increase of CAD 1.5 million. This shows that Greenlane has a stable financial platform to support our backlog execution and our product development. With that, I'll send it back to Darren.

Speaker #1: This shows that Greenlane has a stable financial platform to support our backlog execution and our product development. And with that, I'll send it back to Darren.

[President] (Incite Capital Markets): Thank you, Stephanie. Brad, you spoke today about the Cascade LF system, and how excited are you about its opportunities? How should investors think about timing on revenue for this product?

Darren Seed: Thank you, Stephanie. Brad, you spoke today about the Cascade LF system, and how excited are you about its opportunities? How should investors think about timing on revenue for this product?

Speaker #2: Thank you, Stephanie. Brad, we spoke today about the Cascade LF system. And how excited are you about its opportunities? And how should investors think about timing on revenue for this product?

Brad Douville: I'm very excited, Darren. I think that's clear. It's gonna be a great product. In terms of timing, provided we get through the steps to complete the activities to deliver or be ready to ship for the first unit by the end of this year. As you've heard from us before, that we do our revenue on a percent of project completion basis. As we sign contracts, we get those build slots filled up. Remember, the first build slot with completion or being ready to ship by the end of this year, and then thereafter, we'll start to see revenue recognition from those contracts.

Brad Douville: I'm very excited, Darren. I think that's clear. It's gonna be a great product. In terms of timing, provided we get through the steps to complete the activities to deliver or be ready to ship for the first unit by the end of this year. As you've heard from us before, that we do our revenue on a percent of project completion basis. As we sign contracts, we get those build slots filled up. Remember, the first build slot with completion or being ready to ship by the end of this year, and then thereafter, we'll start to see revenue recognition from those contracts.

Speaker #3: I'm very excited, Darren. So I think that's clear. It's going to be a great product. So in terms of timing, provided we get through the steps to complete the activities to deliver or be ready to ship for the first unit by the end of this year, as you've heard from us before, that we do our revenue on a percent of project completion basis.

Speaker #3: So as we sign contracts, we get those build slots filled up. Remember, the first build slot with completion or being ready to ship by the end of this year.

Speaker #3: And then thereafter, we'll start to see revenue recognition from those contracts.

[President] (Incite Capital Markets): Got it. Looking at R&D, is this still an important factor and a related expense when considering Greenlane?

Darren Seed: Got it. Looking at R&D, is this still an important factor and a related expense when considering Greenlane?

Speaker #2: Got it. And so looking at R&D, is this still an important factor and a related expense when considering Greenlane?

Stephanie Mason: Yes, R&D will continue to be a focus into 2026. As we've talked about with our Cascade LF product line, we're localizing manufacturing in Brazil and aiming to have the first unit ready to ship in 2026. It could be a similar effort in 2026 that we saw last year.

Stephanie Mason: Yes, R&D will continue to be a focus into 2026. As we've talked about with our Cascade LF product line, we're localizing manufacturing in Brazil and aiming to have the first unit ready to ship in 2026. It could be a similar effort in 2026 that we saw last year.

Speaker #1: So yes, R&D will continue to be a focus into 2026. As we've talked about with our Cascade LF product line, we're localizing manufacturing in Brazil and aiming to have the first unit ready to ship in 2026.

Speaker #1: So it could be a similar effort in 2026 that we saw last year.

[President] (Incite Capital Markets): Got it. Thanks, Stephanie. As we've all seen in the news, there's an international situation in the Middle East that may have an impact on energy security. Does there appear to be any impact on Greenlane or perhaps the RNG space that we're aware of? Yeah, Brad, I'll flip that over to you.

Darren Seed: Got it. Thanks, Stephanie. As we've all seen in the news, there's an international situation in the Middle East that may have an impact on energy security. Does there appear to be any impact on Greenlane or perhaps the RNG space that we're aware of? Yeah, Brad, I'll flip that over to you.

Speaker #2: Got it. Thanks, Stephanie. And as we've all seen in the news, there's an international situation in the Middle East that may have an impact on energy security.

Speaker #2: Does there appear to be any impact on Greenlane or perhaps the R&D space that we're aware of? Maybe a Brad will put that over to you.

Brad Douville: Yeah, well, I think, you know, obviously the events happening in the Middle East are fresh. They're new, but they do bring us back to a clear focus on energy security. You know, that's a thing. It highlights the over-concentration of energy sources. In this case, you know, mainly oil, but not just oil, passing through a small strait of Hormuz in the Middle East. You know, that reminds us of the importance of local production energy sources, and RNG is one of those. You know, anything that does not have to flow through that strait, we have to think about again in terms of global energy security and sources of supply. RNG provides that. RNG is local, it's low carbon, and it's lucrative.

Brad Douville: Yeah, well, I think, you know, obviously the events happening in the Middle East are fresh. They're new, but they do bring us back to a clear focus on energy security. You know, that's a thing. It highlights the over-concentration of energy sources. In this case, you know, mainly oil, but not just oil, passing through a small strait of Hormuz in the Middle East. You know, that reminds us of the importance of local production energy sources, and RNG is one of those. You know, anything that does not have to flow through that strait, we have to think about again in terms of global energy security and sources of supply. RNG provides that. RNG is local, it's low carbon, and it's lucrative.

Speaker #3: Yeah. Well, I think obviously the events happening in the Middle East are fresh. They're new. But they do bring us back to clear focus on energy security.

Speaker #3: That's a thing. It highlights the overconcentration of energy sources, in this case, mainly oil, but not just oil. Passing through a small strait of Hormuz in the Middle East, and that reminds us of the importance of local production, energy sources.

Speaker #3: And R&D is one of those. So anything that does not have to flow through that strait we have to think about again in terms of global energy security and sources of supply.

Speaker #3: So R&D provides that. R&D is local. It's low carbon. And it's lucrative. So those are the things that we need to keep in mind with the R&D opportunity.

Brad Douville: You know, those are the things that we need to keep in mind with the RNG opportunity.

Brad Douville: You know, those are the things that we need to keep in mind with the RNG opportunity.

[President] (Incite Capital Markets): Well, thanks, Brad. Now let's pull this back to the financials released today. What should investors expect from Greenlane this year in 2026?

Darren Seed: Well, thanks, Brad. Now let's pull this back to the financials released today. What should investors expect from Greenlane this year in 2026?

Speaker #2: Well, thanks, Brad. Now let's pull this back to the financials. Released today. What should investors expect from Greenlane this year in 2026?

Stephanie Mason: Yeah. 2025 was a good year. You know, we ended with a positive EBITDA number. We have CAD 33.6 million in our backlog, CAD 17.7 million in cash. We're starting the year with a really strong foundation. Our objective for 2026 is to still strive towards positive adjusted EBITDA results, but I will say we do see fluctuations quarter-over-quarter. And then as Brad's talked about and I've talked about, Cascade LF is a new exciting product for us. We're striving towards a ready-to-ship date by the end of the year, and we're excited to see the impact this new product could have for Greenlane.

Stephanie Mason: Yeah. 2025 was a good year. You know, we ended with a positive EBITDA number. We have CAD 33.6 million in our backlog, CAD 17.7 million in cash. We're starting the year with a really strong foundation. Our objective for 2026 is to still strive towards positive adjusted EBITDA results, but I will say we do see fluctuations quarter-over-quarter. And then as Brad's talked about and I've talked about, Cascade LF is a new exciting product for us. We're striving towards a ready-to-ship date by the end of the year, and we're excited to see the impact this new product could have for Greenlane.

Speaker #1: Yeah. So 2025 was a good year. We ended with a positive EBITDA number. We have 33.6 million in our backlog, 17.7 million in cash.

Speaker #1: So we're starting the year with a really strong foundation. Our objective for 2026 is to still strive towards positive adjusted EBITDA results, but I will say we do see fluctuations quarter on quarter.

Speaker #1: And then as Brad's talked about and I've talked about, Cascade LF is a new, exciting product for us. We're striving towards a ready-to-ship date by the end of the year.

Speaker #1: And we're excited to see the impact this new product could have for Greenlane.

[President] (Incite Capital Markets): Thanks, Stephanie. Well, thank you for watching today's financial report, everyone, and we look forward to seeing you next quarter.

Darren Seed: Thanks, Stephanie. Well, thank you for watching today's financial report, everyone, and we look forward to seeing you next quarter.