Positive Adjusted EBITDA result while continuing to invest in next generation landfill gas upgrading technology for next phase of growth
VANCOUVER, BC, Aug. 13, 2026 /CNW/ -- Greenlane Renewables Inc. ("Greenlane" or the "Company") (TSX: GRN) (FSE: 52G) (OTC: GRNWF) today announced its financial results for the second quarter ended June 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 ("IFRS") unless otherwise stated.
Second Quarter Highlights Include:
-- Revenue of $11.3 million;
-- Gross profit of $4.4 million, Gross Margin1 before amortization of $4.7
million (41% of revenue);
-- Adjusted EBITDA2 of $0.1 million;
-- Net loss and comprehensive loss of $0.9 million;
-- Sales Order Backlog3 of $25.6 million as at June 30, 2026;
-- Cash and cash equivalents of $12.1 million and no debt, other than
payables, advance payment / performance bonding and standby letters of
credit resulting from normal course operations, as at June 30, 2026;
-- Signed definitive agreements with Panasonic as production partner in
Brazil for Cascade LF, Greenlane's next-generation landfill gas upgrading
technology, and Cascade MS, Greenlane's membrane separation upgrading
solution for anaerobic digester projects; and
-- Completed testing of its new Linear Nitrogen Rejection Unit ("NRU")
Technology that sits at the heart of Cascade LF demonstrating
breakthrough methane recovery performance of up to 99.5% with low-cost
architecture in the removal of nitrogen from landfill gas when producing
renewable natural gas ("RNG")
"This quarter marked another important step in Greenlane's evolution as we continued executing on the strategic initiatives that we believe will define our next phase of growth," said Brad Douville, CEO of Greenlane. "During the quarter, we significantly advanced the commercialization of our future growth engine, our next-generation Cascade LF landfill gas upgrading technology, by achieving two important milestones. First, we solidified our manufacturing strategy in Brazil by signing definitive agreements with global manufacturing and technology leader Panasonic. Under the agreements, Greenlane and Panasonic have partnered to establish volume production of Greenlane's Cascade LF and Cascade MS proprietary product lines in Brazil, which is key to enhancing project economics for our customers in the region. The partnership with Panasonic not only brings their manufacturing expertise, but also the strength of their balance sheet to support sales growth. Panasonic is investing in facility modifications, tooling, and production equipment, for its existing plant in São José dos Campos in the Brazilian state of São Paulo to produce the Greenlane branded product modules, and will provide the necessary working capital and advance payment assurances to meet customer requirements. Panasonic's initial investments are expected to be in the range of 8 million to 10 million Brazilian Reais (C$2 million to C$3 million). Greenlane retains responsibility for product design, management of the supply chain including supplier selection and supplier quality assurance, marketing and sales, and commissioning and servicing of the products."
"Second, we successfully completed testing of our proprietary Linear NRU technology that sits at the heart of Cascade LF, demonstrating breakthrough methane recovery with a low cost architecture. Methane recovery is the primary performance parameter for any upgrading system, because every 1% improvement translates into a 1% increase in project revenue, which drops directly to the bottom line. Achieving high methane recovery is difficult in landfill gas applications because of the unique challenge of separating nitrogen from methane. Results from the testing exceeded our expectations. At a time when global energy markets are increasingly focused on supply security and reliable fuel sources, technologies like Cascade LF are well positioned to support the growing role of RNG as a resilient, scalable and low-carbon energy solution."
"Despite making substantial investments in the final development and start of production readiness for Cascade LF, we were able to generate a positive EBITDA result in the quarter. We've noted that our strategy includes continued sales growth in our most profitable business areas. Our parts and service and biogas desulfurization are those business areas that have continued robust performance providing strong gross margin contribution as a result of durable uptake of these products and services in the market. We also continue to make positive progress in closing out legacy biogas upgrading system supply contracts. Our strategy builds on the strength of this solid foundation, adding step-change profitable growth potential with Cascade LF and Cascade MS with an estimated annual total addressable market of $600 million. We are still aiming for production readiness by the end of 2026."
"Our financial performance reflects the progress we are making in executing our strategic plan," added Stephanie Mason, CFO of Greenlane. "Revenue and Adjusted EBITDA in Q2 2026 are lower than the same period last year due to the recognition of royalty revenue and timing of spare parts orders as a large parts order occurred in Q2 2025. Excluding these two items, financial results improved over the same period last year driven by a $0.9 million improvement in system sales revenue largely from biogas desulfurization sales. Q2 2026 marked a return to positive Adjusted EBITDA and we maintained a strong Gross Margin before amortization of 41%, reflecting the continued benefits of our focus on the most profitable business areas, disciplined project execution and operational efficiency."
"At the same time, as Brad noted, we continued investing in our next generation Cascade LF landfill gas upgrading technology that will support Greenlane's long-term growth. Research and development expenses doubled over the same period last year to $0.8 million. Investing in R&D at this level while returning to positive Adjusted EBITDA demonstrates that we can continue advancing innovation while improving the underlying financial performance of the business through our parts and service and biogas desulfurization business areas."
"We ended the quarter with $12.1 million in cash and cash equivalents, no debt and a sales order backlog of $25.6 million, compared to a sales order backlog of $26.3 million as at June 30, 2025. This provides financial flexibility to execute our strategic priorities while maintaining a disciplined approach to cost management and supporting our global customer base."
The Market Outlook
The Fuel for the Future law passed in Brazil in October 2024 sets annual greenhouse gas emission reduction targets for natural gas producers and importers starting in 2026, potentially reaching up to 10%. The National Energy Policy Council (CNPE) sets these targets annually, and producers and importers must meet them by incorporating biomethane into their consumption. On April 1, 2026, the CNPE approved the resolution setting a 0.5% emission reduction target for 2026. Brazil is capable of expanding its biomethane production by more than 100 times, with investments of approximately 350 billion reais (US$68bn), estimates Abiogás, a trade association in Brazil representing the biogas and biomethane sector.
According to new data released by the American Biogas Council, landfills remain the largest source of U.S. RNG production, producing 64% of the nation's total from 598 landfill gas capture systems. Developers brought 20 new landfill gas projects online in 2025, all of which capture additional biogas and convert it into RNG that displaces conventional natural gas. Together, these facilities added 39.9 billion cubic feet (Bcf) new biogas capture capacity -- about 75% of all new U.S. biogas capture capacity added last year across all biogas sectors. Landfill gas facilities typically capture far larger volumes of biogas than systems in the agriculture, wastewater, or food waste sectors, resulting in a disproportionate share of total biogas capture. Based on the U.S. EPA Landfill Methane Outreach Program classifications, approximately 705 additional landfills remain suitable for landfill gas development.
Meanwhile in Europe, installed biomethane production capacity reached 8.2 bcm per year by the end of Q2 2026, up 17 percent compared to 2025, according to the European Biomethane Map, developed in cooperation with Gas Infrastructure Europe (GIE). Investor appetite also remains strong, with investment commitments reaching EUR36 billion, a significant increase from last year's reported investments (EUR28 billion), according to the Biomethane Investment Outlook. This growing investor confidence underscores the sector's significant acceleration potential, provided the right regulatory conditions are in place. If fully realised, these investments are expected to deliver 9 bcm/year of additional biomethane production capacity by 2030, strengthening Europe's domestic energy supply and contributing to the EU's decarbonisation objectives. According to a 2026 Guidehouse study, the EU-27's potential stands at 31--32 bcm for 2030 and is projected to reach 163--184 bcm by 2050.
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
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