Cannabis Earnings: Greenlane Posts Record Q3 Revenue Of $41.3M, Up By 16% YoY

Greenlane Holdings, Inc. GNLN reported financial results Monday for the third quarter ended September 30, 2021, revealing revenue of $41.3 million, up by 16% from $35.8 million in the same period year ago. 

Q3 Financial Summary 

• Gross profit was $122,000, compared to $2.47 million in the third quarter of 2020; Gross margin was 0.3%, versus 6.9% in the corresponding quarter of the previous year;
• Net loss amounted to $28.72 million, which compares to $13.8 million in the same period of last year; 
• Adjusted EBITDA was a loss of $6.94 million, versus $6.28 million in the third quarter of the prior year; 
• At the end of the reporting period on Sep. 30, Greenlane held $13.2 million in cash and $70.8 million in working capital.

Recent Highlights

• Achieved second-highest sales level in company history for Greenlane Brands, which grew to $8.4 million in Q3 2021, up 26% compared to $6.7 million in sales for Q3 2020;
• Greenlane Brands accounted for 20.4% of Q3 2021 total revenue compared with 18.7% of total revenue for Q3 2020
• Completed transformative merger with KushCo Holdings Inc. creating an undisputed leader in the ancillary cannabis industry
• Entered into an agreement to acquire industry-leading vaporizer brand DaVinci, expanding Greenlane Brands portfolio and intellectual property pipeline

"Q3 was a transformational quarter for Greenlane, with the completion of our merger with KushCo creating the industry's leading ancillary cannabis company and house of brands,” Nick Kovacevich, CEO of Greenlane Holdings, stated. “Our first few months as a combined company have been off to a strong start, as demonstrated through several realized revenue and cost-saving synergies, including the consolidation of certain vendors and infrastructure and the development of go-to-market cross-selling strategies across each of our respective platforms. We are extremely pleased with the progress we have made on our integration efforts to date, while simultaneously driving meaningful progression in the business. We also generated another strong quarter of sales for our Greenlane Brands, which, despite the normal and expected challenges of closing a merger, still represented the second highest quarterly revenue contribution in Company history."

Greenlane Brands Outlook

The company's target is to achieve $70 million and $100 million in Greenlane Brands revenue for 2022 and 2023, respectively. In addition, the company expects Greenlane Brands, as a whole, to generate 45% product margins, and to comprise between 22% and 28% of total revenue in 2022.

Price Action 

Greenlane’s shares were trading 2.50% lower at $1.95 per share during Tuesday’s pre-market session. 

Photo: Courtesy Esteban Lopez on Unsplash