~On track with execution of strategic plan; quarter highlighted by second highest positive Adjusted EBITDA result and solid progress toward completing production readiness for new products by year-end~
VANCOUVER, BC, Nov. 5, 2026 /CNW/ — Greenlane Renewables Inc. (“Greenlane” or the “Company”) (TSX: GRN) (FSE: 52G) (OTC: GRNWF) today announced its financial results for the third quarter ended September 30, 2026. For further information on these results please see the Company’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. All amounts reported are in Canadian dollars and in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) unless otherwise stated.
Third Quarter Highlights from Continuing Operations Include:
Revenue of $12.3 million;Gross profit of $5.5 million, Gross Margin1 before amortization of $5.7 million (46% of revenue);Adjusted EBITDA2 of $2.0 million;Net income and comprehensive income of $0.4 million;Sales Order Backlog3 of $21.6 million as at September 30, 2026;Cash and cash equivalents of $12.2 million and no debt, other than payables resulting from normal course operations, as at September 30, 2026;Announced during the quarter Cascade H₂S order and service work order from an existing customer in the United States totalling $2.5 million; andExtended its $20 million standby letter of credit facility to September 30, 2027, secured by a guarantee from Export Development Canada.
“Greenlane delivered an outstanding third quarter, generating $2.0 million in Adjusted EBITDA, representing the Company’s second-highest quarterly Adjusted EBITDA result,” said Brad Douville, CEO of Greenlane. “The strong result reflects disciplined execution of our strategic plan which involves continuing sales growth in our most profitable business areas, ramping down our legacy low-margin biogas upgrading system contracts to ramp back up centered on our next-generation proprietary Cascade LF and Cascade MS product lines to add step-change profitable growth potential.”
“Panasonic is making solid progress toward achieving production readiness in Brazil, our launch market for our new product lines, by the end of the year, subject to receiving its permits. Upgrades to one of its factories is nearly complete. They have issued purchase orders for manufacturing equipment and long-lead-time bill of materials items for the first production units. They are also continuing to add new team members to support their ramp up. In the meantime, the Greenlane sales team is advancing a number of opportunities through the sales funnel, with some now in the late stages of the process. Quoting of the new products began about a year ago after the product reveal. Sales cycles in our industry are long and can be one to two years. With Brazil being the launch market, sales efforts have focused there, but a number of opportunities for the North American market are advancing through the sales funnel too. We expect to complete production readiness to serve the North American market in 2027.”
“We believe that our next generation Cascade LF and Cascade MS product lines will deliver attractive return-on-investment results to our customers with the best combination of product, price and performance. During the development cycle, our team has been agile and quick to innovate and respond to customer needs and changing market dynamics. We are fortifying our sustainable comparative advantage by capturing and protecting a growing portfolio of intellectual property. Our partnership with Panasonic enables local production in Brazil to allow our customers to avoid import tariffs and secure project financing at attractive rates. We have estimated the annual total addressable market for these new product lines in Brazil, the United States and Canada at $1.3 billion, of which we think we can capture a substantial share. With a strong balance sheet and no debt, we believe Greenlane is well positioned to realize the opportunities in front of us.”
“Our strong third-quarter financial performance was driven by increased parts and service and biogas desulfurization activity as well as improved margins on system sales,” said Stephanie Mason, CFO of Greenlane. “Revenue increased 7% compared to the same quarter last year to $12.3 million, supported by a 55% increase in parts and service revenue to $5.0 million partially driven by a significant order from an existing RNG project developer customer in the United States. Gross margin before amortization improved to 46%, compared with 39% in the prior-year quarter, reflecting a favourable project mix driven by higher parts and service and biogas desulfurization system sales, our most profitable business areas. Our biogas desulfurization systems are produced in our factory in Italy and delivered globally through our wholly-owned subsidiary Airdep S.r.l. Biogas upgrading system sales decreased in the quarter as three contracts were completed releasing approximately $0.7 million in project contingency.
“Adjusted EBITDA increased to $2.0 million up from $0.5 million in the third quarter of 2025, benefiting from higher gross profit and lower operating expenses. Operating expenses also reflected the capitalization of $0.7 million in development expenditures following the achievement of key milestones for our next-generation Cascade LF and MS product lines. These results demonstrate the positive contribution from our most profitable business areas as we continue investing in new product development and commercialization.”
“We ended the quarter with $12.2 million in cash, no debt and a $20 million standby letter of credit facility, providing financial flexibility to support ongoing operations, product commercialization and future growth opportunities.”
The Market Outlook
In North America, regulatory developments continue to support the renewable natural gas (“RNG”) industry. The American Biogas Council recently welcomed new guidance from the Internal Revenue Service (“IRS”) providing certainty for RNG producers to utilize the Section 45Z Clean Fuel Production Tax Credit. The guidance incorporates several provisions intended to encourage investment in new biogas systems that convert organic waste into RNG for use as a clean transportation fuel. Previous uncertainty surrounding the application of the credit to RNG and different organic waste feedstocks had contributed to delayed investment and project development.
In Europe, biomethane continues to gain recognition as a strategic component of energy security and decarbonization. Speaking at European Biomethane Week 2026 in Brussels, EU Commissioner for Energy and Housing Dan Jørgensen emphasized the importance of renewable molecules, including biogas and biomethane, in strengthening Europe’s energy independence while supporting climate objectives.
As noted in the Brazilian media, infrastructure investment entered a more volatile phase as the first round of the presidential election approached at the beginning of October. Market participants remained cautious as a tight presidential race drove interest and foreign exchange rate volatility, while some saw post-election asymmetries. Investors were preparing for a period in which even small shifts in perceptions of the race could trigger outsized movements. Following President Lula’s re-election, Brazil’s energy sector anticipates continued support for the country’s energy transition policies. Among the expected developments is greater coordination among government ministries and agencies to advance the energy transition, including a deepening of government support for biofuels such as biomethane.
Management’s Discussion on Financial Results
The public is invited to watch Brad Douville, Chief Executive Officer, and Stephanie Mason, Chief Financial Officer present the results through a video presentation on the Company’s Events and Presentations page located HERE.
SPECIFIED FINANCIAL MEASURES
Management evaluates the Company’s performance using a variety of measures, including “Gross Margin before amortization”, “Adjusted EBITDA” and “Sales Order Backlog”. The specified financial measures, including non-IFRS Accounting Standards measures and supplementary financial measures should not be considered as an alternative to or more meaningful than revenue, gross profit or net income. These measures do not have a standardized meaning prescribed by IFRS Accounting Standards and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS Accounting Standards. The Company believes these specified financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. Management uses these specified financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS Accounting Standards when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company’s underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.
Note 1 – Gross Margin before amortization is a non-IFRS measure and is defined by the Company as gross profit before amortization of intangible assets and property and equipment.
Note 2 – Adjusted EBITDA is a non-IFRS measure and is defined by the Company as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as adjustments for other income (expense), value assigned to options, restricted share units and performance restricted share units granted, and transaction costs.
Reconciliation of net loss and comprehensive loss to Adjusted EBITDA from Continuing Operations:
(in $000s)
Three months ended
September 30
2026
2025
Net Income (loss) and comprehensive income (loss) from
continuing operations
408
103
Add (deduct):
Exchange difference on translating
foreign operations
47
(87)
Provision for income taxes
919
502
Other (income) loss
11
(23)
Foreign exchange (gain) loss
157
(359)
Finance income
(42)
(70)
Finance expense
46
40
Share-based compensation
174
107
Amortization of office equipment
45
45
Amortization of property and equipment
111
91
Amortization of intangible assets
154
154
Adjusted EBITDA
2,030
503
Note 3 – Sales Order Backlog is a non-IFRS measure and is defined by the Company as the balance of unrecognized revenue from sales contracts. The Company’s Sales Order Backlog is a snapshot in time which varies from period-to-period. The Sales Order Backlog increases by the value of new system supply contracts and is drawn down over time as these projects progress towards completion with amounts recognized in revenue (by reference to the stage of completion of each contract). Sales Order Backlog includes no amounts in connection with parts and service, given the smaller individual order values, and no amounts in connection with royalty contracts.
About Greenlane Renewables
Greenlane is driving change: accelerating the energy transition. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading global technology provider and supplier of biogas desulfurization and upgrading systems, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 355 systems supplied into 28 countries. We transform biogas generated from organic waste into high-value grid-ready renewable natural gas (“RNG”) from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste. Greenlane is transforming energy production and creating new, sustainable revenue streams for its customers – all while dramatically reducing carbon emissions. Partner with us, let’s accelerate the energy transition together. For further information, please visit www.greenlanerenewables.com.
Forward Looking Information Advisory –
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “will”, “would”, “likely”, “could”, “plan”, “expects” or “is expected to”, “believe”, “continue to”, “remains” or “continually”, “is pursuing”, “proposed”, “aiming to” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen or that current events or conditions will continue or be repeated. The forward-looking information contained in this press release, includes, but is not limited to: management’s expectations regarding the disciplined execution of the Company’s strategic plan, continuing sales growth in the most profitable business areas, the ramping down of legacy low-margin contracts and the ramping up based on next-generation Cascade LF and Cascade MS product lines to add step change profitable growth potential; Panasonic’s progress towards achieving production readiness in Brazil by end of the year; the advancement of sales opportunities in Brazil and the North American market; expectations regarding completion of production readiness to serve North American market in 2027; expectations that Cascade LF and Cascade MS will deliver attractive return-on investment results with the best combination of product, price and performance; expectations of Company’s ability to capture substantial share of the $1.4 billion annual total addressable market across Brazil, the United States and Canada; expectations of benefits of Panasonic partnership in facilitating local production in Brazil to avoid import tariffs and secure attractive project financing; expectations that North America regulatory developments support the RNG industry and provides certainty for RNG producers to utilize Section 45Z Clean Fuel Production Tax Credit. The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believes to be reasonable at the time such statements were made, including Panasonic’s ability to timely obtain permits and achieve manufacturing readiness in Brazil by 2026; the Company’s ability to achieve North America production readiness in 2027, commercial viability of Cascade LF and Cascade MS, management’s perceptions of future growth, expectations regarding demand for RNG and biogas upgrading systems; the continued availability of government support and favorable regulatory frameworks for renewable energy; the state of competition in the RNG industry; the $0.7 million capitalization of development costs assuming that the Cascade LF and Cascade MS product lines achieved the requisite key milestones; the Company’s ability to manage costs and maintain operating efficiencies. While management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond Greenlane’s control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation risks relating to: performance and market acceptance of the Cascade LF technology and related intellectual property; the Company’s ability to convert sales order backlog into revenue; fluctuations in customer demand, project schedules or contract margins; changes in government policies, incentives, or regulations affecting the RNG and biogas sectors; competitive pressures; supply chain disruptions; and general economic and geopolitical conditions. Additional risk factors can also be found in the Company’s Management Discussion and Analysis and its Annual Information Form, all of which have been filed under the Company’s SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
FINANCIAL OUTLOOK INFORMATION – This news release contains “financial outlook information” regarding Greenlane’s prospective revenue and results, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above. Revenue and other estimates contained in this news release were made by Greenlane management as of the date of this news release and are provided for the purpose of describing anticipated changes, and are not an estimate of profitability or any other measure of financial performance. Investors are cautioned that the financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company’s revenues are largely derived from a relatively small number of biogas upgrader orders accounted for on a stage of completion basis over typically a nine to eighteen-month period. Timing of new contract awards varies due to customer-related factors such as finalizing technical specifications and securing project funding, permits and RNG off-take and feedstock agreements. Some contracts contain termination provisions that allow the customer to terminate with no penalty or with minimum prescribed threshold payments based on the length of time since the contract was entered into. Some projects have built-in pause periods to allow customers to complete concurrent activities such as civil work. As a result, the Company’s revenue varies from month to month and quarter-to-quarter. THE COMPANY QUALIFIES ALL THE FORWARD LOOKING STATEMENTS AND FINANCIAL OUTLOOK INFORMATION CONTAINED IN THIS NEWS RELEASE BY THE FOREGOING CAUTIONARY STATEMENTS.
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this news release.
SOURCE Greenlane Renewables Inc.
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