Greenlane Renewables (GRN) Q1 2026 earnings summary

Executive summary

• Achieved 36% year-over-year revenue growth in Q1 2026, reaching CAD 9.5 million, with gross margin (excluding amortization) rising to 43% from 40% in Q1 2025, driven by biogas desulfurization and parts and service.

• Adjusted EBITDA loss improved to CAD 0.8 million from CAD 1.1 million in Q1 2025, reflecting higher revenue and margin.

• Strategic focus on profitable growth in parts and service, biogas desulfurization, and technology licensing, with a shift to proprietary products and royalty-based revenue.

• Partnership with Panasonic to manufacture Cascade LF and MS in Brazil, leveraging Panasonic's expertise and capital, with initial investments of $2–3 million.

• Cascade LF product launch targeted for late 2026, with Brazil as the initial market and expansion plans for North America.

Financial highlights

• Q1 2026 revenue was CAD 9.5 million, up from CAD 7.0 million in Q1 2025, a 36% increase.

• Gross margin (excluding amortization) improved to 43% from 40% in Q1 2025.

• Adjusted EBITDA loss narrowed to CAD 0.8 million from CAD 1.1 million year-over-year.

• Ended Q1 2026 with CAD 13.5 million in cash, no debt, and a sales order backlog of CAD 31.5 million.

• R&D expenses rose to CAD 0.8 million from CAD 0.3 million year-over-year, reflecting investment in Cascade LF.

Outlook and guidance

• Preparing for start of Cascade LF production by end of 2026, expected to drive step-change profitable growth.

• No additional capital required for Brazil ramp or global expansion due to Panasonic partnership covering manufacturing costs.

• Ongoing customer engagement and sales pipeline development for Cascade LF in Brazil and North America.

• Regulatory changes in Brazil, including the Certificate of Biomethane Guarantee of Origin, expected to create durable demand for biomethane and support long-term technology deployment.