Greenlane Renewables Inc.

Stephanie Mason said Q2 2026 revenue and adjusted EBITDA were lower than the same period last year because Q2 2025 included royalty revenue and a large parts order. She said that excluding those two items, financial results improved year over year, driven by a $0.9 million improvement in system sales revenue, largely from biogas desulfurization sales. Gross margin before amortization was 41%, and the company returned to positive adjusted EBITDA in the quarter. Research and development expenses doubled year over year to $0.8 million. Greenlane ended the quarter with $12.1 million in cash and cash equivalents, no debt, and a $25.6 million sales order backlog. Looking ahead, management reiterated its aim for production readiness for Cascade LF by the end of 2026, with results from Cascade LF expected thereafter.

Brad Douville framed the quarter as an important step in Greenlane’s transition to its next phase of growth. He emphasized two milestones: the Panasonic manufacturing partnership in Brazil and testing that exceeded expectations for the proprietary linear NRU technology at the heart of Cascade LF. His tone was constructive and confident, repeatedly pointing to Cascade LF and Cascade MS as step-change growth drivers and saying the company remains focused on production readiness by the end of 2026.

Stephanie Mason focused on the quarter’s financial discipline and the mix of the business. She said gross margin before amortization held at 41% and that the quarter returned to positive adjusted EBITDA despite continued investment in R&D, which rose to $0.8 million. She also highlighted $12.1 million in cash and cash equivalents, no debt, and a $25.6 million backlog, while noting that parts and service are not included in backlog and that royalty-based revenue tied to Panasonic should carry significantly higher margins than historical systems business.

Analysts asked how customer engagement is progressing for Cascade LF, and Brad said recent testing and the Panasonic deal strengthen readiness for launch, while the company is using the Forum do Biogás conference to reconnect with customers and advance quoting discussions. On backlog, Stephanie said investors should not read too much into sequential movement because service and spare parts are excluded from backlog, and the real step change is expected from Cascade LF. When asked about margin sustainability, she pointed to royalty-based revenue from the Panasonic licensing agreement as having significantly higher margins than the historical systems business. Management also said the $600 million addressable market for Cascade LF and Cascade MS is based on IEA data plus internal estimates across Brazil, the U.S. and Canada.