Greenlane Holdings Reports 70.2% Decline in Net Sales for Q1 2025

Greenlane Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net sales dropping to $1.5 million, a decrease of 70.2% from $4.9 million in the same period of 2024. The company attributed this decline to a major restructuring of its Industrial Group, which transitioned much of its business to a commission-based revenue model to preserve working capital. This shift, along with a strategic focus on in-house brands with higher margins, has resulted in reduced top-line revenue. The gross profit margin, however, improved to 49.1%, up from 30.7% in the prior year, reflecting the impact of the new commission structure.

Operating expenses for the quarter were approximately $4.2 million, down from $5.5 million in the previous year, primarily due to a reduction in workforce aimed at aligning costs with revenue. Salaries, benefits, and payroll taxes decreased by 57% to $1.3 million, while general and administrative expenses rose by 23% to $2.8 million, driven by increased professional services and facility costs. The company reported a net loss of $3.9 million for the quarter, slightly improved from a loss of $4.5 million in the same period last year.

In terms of strategic developments, Greenlane has focused on optimizing its operations and enhancing its product offerings. The company launched a new product line, Groove, and entered into strategic partnerships to improve margins and reduce working capital requirements. These partnerships include collaborations with MJ Packaging and a vape supplier, which are expected to streamline operations and enhance profitability. Additionally, Greenlane has made significant progress in consolidating its warehouse and distribution operations, which is anticipated to yield further cost savings.

As of March 31, 2025, Greenlane reported total current assets of $33.6 million, a substantial increase from $23.8 million at the end of 2024, largely due to cash raised from a private placement in February 2025. The company’s cash position improved to $8.5 million, compared to $0.9 million at the end of the previous fiscal year. Greenlane's working capital also increased to $18.6 million, indicating a stronger liquidity position. The company plans to continue focusing on cost reduction, product innovation, and strategic partnerships to enhance its financial stability and profitability in the coming months.

Looking ahead, Greenlane's management expressed confidence in the company's ability to navigate current market challenges and achieve profitability. The outlook is contingent on successful execution of its strategic initiatives, including further cost reductions, revenue growth through new product introductions, and potential capital raises. The company believes that its current cash reserves and operational cash flow will be sufficient to meet its liquidity needs for at least the next 12 months, extending into the second quarter of 2026.