Greenlane Renewables Announces Second Quarter 2026 Financial Results

Greenlane Renewables Announces Second Quarter 2026 Financial Results

~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 €36 billion, a significant increase from last year's reported investments (€28 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

Management evaluates the Company's performance using a variety of measures, including "Gross Margin before amortization", "Adjusted EBITDA" and "Sales Order Backlog". The specified financial measures, including non-IFRS measures and supplementary financial measures should not be considered as an alternative to or more meaningful than revenue, gross profit or net income. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. The Company believes these specified financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. Management uses these specified financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.

Note 1 - Gross Margin before amortization is a non-IFRS measure and is defined by the Company as gross profit before amortization of intangible assets and property and equipment.

Note 2 - Adjusted EBITDA is a non-IFRS measure and is defined by the Company as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as adjustments for other income (expense), value assigned to options, restricted share units and performance restricted share units granted, and transaction costs.

Reconciliation of net loss and comprehensive loss to Adjusted EBITDA from continuing operations:

Note 3 - Sales Order Backlog is a non-IFRS measure and is defined by the Company as the balance of unrecognized revenue from sales contracts. The Company's Sales Order Backlog is a snapshot in time which varies from period-to-period. The Sales Order Backlog increases by the value of new system supply contracts and is drawn down over time as these projects progress towards completion with amounts recognized in revenue (by reference to the stage of completion of each contract). Sales Order Backlog includes no amounts in connection with parts and service, given the smaller individual order values, and no amounts in connection with royalty contracts.

About Greenlane Renewables
At Greenlane, we are relentless innovators solving the toughest challenges. At a time when new solutions are urgently needed, we are accelerating the energy transition to a net-zero emissions economy. As a pioneer and leading global specialist in biogas desulfurization and upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 500 systems sold into 32 countries. The systems we supply transform biogas generated from organic waste into high-value, low-carbon renewable natural gas ("RNG") for gas networks, transportation and industry from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste. Greenlane is transforming energy production through new technology without adding new technology risk, making RNG more accessible and scalable for our customers - all while dramatically reducing carbon emissions. Partner with us, let's accelerate the energy transition together. For further information, please visit www.greenlanerenewables.com 

Forward Looking Information Advisory –
This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as "may", "expect", "likely", "could", "plan", "will" or "is/are expected to", "goal", "objectives", "future", "shifting toward", "potential", "proposed", "estimate", "believe", "continue to", "look to", "ongoing", "remains" or "continually" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen or that current events or conditions will continue, be ongoing or be repeated. The forward-looking information contained in this press release, includes, but is not limited to: statements regarding Company's strategic initiatives and next phase of growth; the timing, investment amounts and anticipated benefits of the manufacturing partnership with Panasonic in Brazil; the anticipated performance, cost and customer benefits of the Cascade LF and Cascade MS technology and Linear NRU technology; the estimated addressable market of $600 million annually for Cascade LF and Cascade MS; the target for production readiness of Cascade LF by end of 2026; the anticipated ongoing performance and margin contributions of the parts and service and biogas desulfurization business units; the closing of legacy biogas upgrading system supply contracts; anticipated growth and investment trends in the global, Brazilian, U.S. and European RNG and biomethane markets; and the Company's ability to maintain financial flexibility and cost discipline while delivering long-term value. These forward-looking statements are based on assumptions that management believes are reasonable at the time the statements are made, including but not limited to: assumptions regarding the Company's ability to execute its strategic plan and complete production readiness for Cascade LF by the end of 2026; Panasonic's fulfillment of its commitments under the definitive agreements in Brazil; the successful performance and customer adoption of proprietary technologies, including Cascade LF, Cascade MS and Linear NRU; the continued demand for parts, service and biogas desulfurization products; continued demand and policy support for renewable natural gas and biogas technologies; stability in global supply chains; conversion of sales opportunities into contracts and a stable economic and regulatory environment. While management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond Greenlane's control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: delays or technology challenges in achieving production readiness for Cascade LF; failure to realize the anticipated benefits or timeline of the manufacturing arrangement with Panasonic in Brazil; the market does not adopt Cascade LF and Cascade MS as expected; fluctuations in customer demand or competitive conditions; challenges in localizing manufacturing; changing political or regulatory landscapes that do not favor the RNG industry or the Company; actual investment in RNG projects may be lower than estimated; and the inability to convert the sales backlog as anticipated. Additional risk factors can also be found in the Company's Management Discussion and Analysis and its Annual Information Form, all of which have been filed under the Company's SEDAR profile at www.sedarplus.ca. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

FINANCIAL OUTLOOK INFORMATION – This news release contains "financial outlook information" regarding Greenlane's prospective revenue and results, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above. Revenue and other estimates contained in this news release were made by Greenlane management as of the date of this news release and are provided for the purpose of describing anticipated changes, and are not an estimate of profitability or any other measure of financial performance. Investors are cautioned that the financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company's revenues are largely derived from a relatively small number of biogas upgrader orders accounted for on a stage of completion basis over typically a nine to eighteen-month period. Timing of new contract awards varies due to customer-related factors such as finalizing technical specifications and securing project funding, permits and RNG off-take and feedstock agreements. Some contracts contain termination provisions that allow the customer to terminate with no penalty or with minimum prescribed threshold payments based on the length of time since the contract was entered into. Some projects have built-in pause periods to allow customers to complete concurrent activities such as civil work. As a result, the Company's revenue varies from month to month and quarter-to-quarter. THE COMPANY QUALIFIES ALL THE FORWARD LOOKING STATEMENTS AND FINANCIAL OUTLOOK INFORMATION CONTAINED IN THIS NEWS RELEASE BY THE FOREGOING CAUTIONARY STATEMENTS.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this news release.

SOURCE Greenlane Renewables Inc.