Greenlane Holdings, Inc.

Q2 2023 net sales were $19.6 million, down from approximately $24.0 million in Q1 2023 and down from $39.9 million in Q2 2022. Gross profit was $4.6 million versus $5.5 million in Q1 2023, and gross margin was 23.3% versus 23.0% last quarter; Q2 2022 gross margin was 20.3%. Total operating expenses were $14.1 million, down from $15.0 million in Q1 2023 and $21.8 million in Q2 2022. Net loss was $10.5 million, or $6.56 per share, compared with a $10.2 million loss, or $6.40 per share, in Q1 2023. Adjusted EBITDA loss was $5.9 million versus $6.8 million in Q1. Cash ended the quarter at $4.7 million, working capital was $14.2 million, and net inventories were $29.8 million. Management did not provide formal next-quarter or full-year financial guidance, but said Q3 and Q4 should see accelerated expense reductions, margin improvement from the asset-light strategy, and a lift from nicotine products in the back half of Q3.

Craig Snyder focused on the company’s shift toward profitability through cost reduction, asset-light execution, and new product/partner wins. He said the Q3 quarter will be the first full quarter under the new asset-light strategy with CCELL, and that revenue may moderate while margins improve as more revenue is recognized on a net basis. His tone was constructive and upbeat, especially around nicotine expansion, MSO relationships, and the expectation that expense cuts will accelerate in the second half of the year.

Lana Reeve walked through the quarter’s key figures: net sales of $19.6 million, gross profit of $4.6 million, gross margin of 23.3%, operating expenses of $14.1 million, net loss of $10.5 million, and adjusted EBITDA loss of $5.9 million. She noted the year-over-year improvements in margin were partly distorted by inventory write-offs in the prior year, but also highlighted that operating expenses were down 35.2% year over year, helped by more than a 50% reduction in workforce and restructuring. On the balance sheet, she cited $4.7 million in cash, $14.2 million in working capital, and $29.8 million in inventories, and said the company is focused on improving cash flow and managing debt.

Analyst Aaron Grey asked how the path to profitability would work and whether Greenlane would need meaningful sales growth or whether margin expansion and cost cuts could be enough. Management answered that both sides matter: expenses should fall significantly in Q3 and Q4, while the asset-light shift should lift margins even if revenue moderates. Grey also asked about the MSO/dispensary business and whether the packaging transition would reduce that focus; Snyder said the MSO opportunity is actually accelerating, with deeper conversations around retail merchandising and Greenlane’s broader product offering.