Greenlane Renewables Announces Second Quarter 2025 Financial Results

~Company continues financial drive with positive Adjusted EBITDA results and remains on track with its 2025 strategic initiatives~

VANCOUVER, BC, Aug. 14, 2025 /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, 2025. 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 $15.1 million;
• Gross profit of $7.2 million, Gross Margin¹ before amortization of $7.4 million (49% of revenue);
• Adjusted EBITDA² of $3.4 million (23% of revenue);
• Net Income and comprehensive income of $1.4 million (9% of revenue);
• Sales Order Backlog³ of $26.3 million as at June 30, 2025;
• Cash and cash equivalents of $16.6 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, 2025.
• Announced over $2 million in orders for biogas desulfurization equipment from a repeat customer.
• Announced the filing of an additional patent application for the Company's new landfill gas upgrading technology bringing the total to three since December 2024.
• Subsequent to June 30, 2025, the Company extended its standby letter of credit facility to August 31, 2026 for a total of $20 million.

"Our second quarter results reflect positive progress on all fronts of our 2025 strategic plan, which I set out early this year in my letter to fellow shareholders," said Brad Douville, CEO of Greenlane. "That strategy entails development of advanced products, superior project execution, a strong parts and service platform, and royalty revenue, all underpinned by financial discipline with relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. This quarter's financial results indicate that overall we are trending in the right direction, but still have much to accomplish including launch of our next generation landfill gas upgrading product line and establishment of our own manufacturing."

"Of particular note this quarter is the royalty contract revenue and its corresponding gross margin contribution. Greenlane reached the second anniversary of its technology licensing agreement with a local partner in Brazil which triggered revenue recognition of the agreement's one-time minimum volume commitment. As a reminder, Greenlane entered into this technology licensing agreement with the primary aim of accelerating growth of production of biomethane in Brazil, the world's largest sugarcane producing region. This continues to represent one of the most exciting long-term growth opportunities in our portfolio. With over 400 sugar mills, located in agricultural regions far from the Amazon rainforest, the scale of this market is vast and still largely untapped. As with any new market, especially one of this size and complexity, we expect the trajectory to be uneven during the early commercialization phase. However, we believe the long-term potential of sugar mill-based biomethane production in Brazil is significant, and we are well-positioned to participate meaningfully as the sector scales."

"Regarding the launch of our next generation landfill gas upgrading product line, we're looking ahead to the upcoming product reveal next month. The new product line will incorporate the contents of our recent patent applications that relate specifically to proprietary system architecture and process enhancements that optimize oxygen and nitrogen removal, two of the most persistent technical barriers to efficient landfill gas upgrading. Our aim is to make RNG projects more accessible and scalable by enabling project owners to enhance revenue generating RNG output from their assets while minimizing upfront investment. Quoting customers and working through the sales cycle to secure orders will follow the product reveal next month. Revenue recognition from new orders is likely to begin in 2026. We believe that the launch of this product line will enable renewed growth driving long-term value and reinforce our leadership in distributed, dispatchable and decarbonized energy production solutions."

"Our second quarter performance demonstrates clear progress in strengthening the financial foundation of our business," added Stephanie Mason, CFO of Greenlane. "We delivered $15.1 million in revenue, up 3% from Q2 2024, and generated $3.4 million in Adjusted EBITDA, 23% of revenue, along with $1.4 million in net income and comprehensive income, 9% of revenue. This compares with losses of $0.8 million and $0.4 million, respectively, in Q2 2024, — representing a significant year-over-year improvement. Our gross margin before amortization was 49%, which includes the impact of the royalty revenue of $3.3 million received under the technology licensing agreement's one-time minimum volume provision. As noted in our Q1 financials, this amount was previously included in deferred revenue and has a corresponding gross margin excluding amortization of $2.9 million. Excluding this royalty amount, our underlying gross margin was 38%, up meaningfully from 28% in the same period last year, and our Adjusted EBITDA was $0.5 million or 5% of revenue. This improvement reflects the shift toward more profitable areas of the business and cost control, consistent with our strategic focus."

"We've been diligent in maintaining strong cost discipline on a year to date basis," added Ms. Mason. "G&A expenses are down 28% year-over-year and we've delivered $2.3 million in Adjusted EBITDA, representing 11% of sales—further evidence of our ability to translate revenue growth into profitability. Greenlane's Sales Order Backlog increased significantly, ending the quarter at $26.3 million, up 24% from Q1 2025, reflecting strong order intake momentum. With a healthy cash position and a disciplined approach, we believe Greenlane is well positioned to launch its next generation landfill gas upgrading product line, including manufacturing, and deliver long-term value and capitalize on growing market opportunities."

The Market Outlook

The RNG industry continues to build positive momentum across markets, applications, and policy frameworks. Recent analysis from the American Gas Foundation shows U.S. RNG production potential has increased by 17% since 2019—enough to supply every U.S. household currently using natural gas, with the potential to reduce over 300 million metric tons of CO₂ annually. Meanwhile, the International Energy Agency's latest outlook reveals that globally, RNG production could scale to 20 times current levels, meeting up to 25% of global natural gas demand if fully realized. These findings reaffirm RNG's role as a critical pillar of the energy transition and a scalable solution in the push toward decarbonization.

Momentum is also being driven by a significant policy win. The recent passage of the "One Big Beautiful Bill Act" in the U.S. preserves a key incentive to support clean fuel production, which will help provide a degree of certainty for RNG project developers to plan, invest, and grow. D3 RIN prices under the U.S. Renewable Fuel Standard have recently settled around US$2.20 compared with being at or slightly above US$3.00 for most of 2024.

At the application level, demand for RNG is expanding into new, high-growth areas. Recent industry articles highlight how AI data centers are creating 24/7 energy demand profiles that align with RNG's low-carbon, dispatchable energy attributes. In the transportation sector, Volvo reported a 25% global increase in natural gas-powered truck sales, with RNG-powered fleets offering up to 100% CO₂ reductions compared to diesel. Across these sectors, RNG is proving to be a practical and powerful tool in addressing some of the toughest energy and climate challenges.

In the Brazilian market, an area of opportunity, it is reported that Brazilian biomethane output surged by 73.5% in the second half of 2024, driven by new plant operations and pending regulatory authorizations. Recent facilities in the states of São Paulo and Rio de Janeiro have boosted national production to approximately 526,040 m³/day. Additional plants under construction—projected to add 800,000 m³/day—are expected to come online by the end of 2026 under government mandates linking RNG supply to pipeline blending requirements.

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 and RSU's granted, strategic initiatives, transaction costs and non-recurring items.

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

(in $000s)	Three months ended Jun 30, 2025
	2025	2024
Net loss and comprehensive loss	1,427	(416)
Add (deduct):
Exchange difference on translating foreign operations	(150)	(61)
Provisions for income taxes	1,521	(41)
Foreign exchange loss	198	(158)
Other (income)  loss	40	(647)
Finance income	(85)	(70)
Finance expense	39	37
Share-based compensation	134	250
Amortization of office equipment	45	54
Amortization of property and equipment	87	81
Amortization of intangible assets	150	142
Adjusted EBITDA from continuing operations	3,406	(829)

Note 3 - Sales Order Backlog is a non-IFRS measure and is defined by the Company as the balance of unrecognized revenue from contracted system sales. 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 sales 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). Note that Sales Order Backlog does not include parts and service or royalty revenue.

About Greenlane Renewables

Greenlane is driving change: accelerating the energy transition. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading specialist in biogas desulfurization and upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 355 systems supplied into 28 countries. We transform biogas generated from organic waste into high-value grid-ready renewable natural gas ("RNG") from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste. Greenlane is transforming energy production and creating new, sustainable revenue streams for its 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: the Company remaining on track to to achieve 2025 strategic plans; anticipated market opportunities including in Brazil, expected benefits of landfill gas upgrading product line, projected industry growth, Company's ability to deliver long-term value and capitalize on growing market opportunities, anticipated impacts of government policy and legislation, potential market demand trends, and expected future financial or operational performance.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 on its 2025 strategic initiatives; the continued demand and policy support for renewable natural gas and biogas technologies; stability in global supply chains, timely commercialization of new product lines; 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: the Company's inability to achieve 2025 strategic goals or commercial milestones; delays or underperformance in  product development, including next generation landfill gas system; 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; 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.

For more information please contact: Incite Capital Markets, Darren Seed / Clayton Paradis, Ph: 604.493.2004; Brad Douville, CEO, Greenlane Renewables, Email: [email protected]