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Greenlane Holdings, Inc. GNLN, one of the largest global sellers of premium cannabis accessories, child-resistant packaging, and specialty vape products, reported financial results for its third quarter and nine months ended September 30th, 2022.
“We expect to gain significant efficiencies from our efforts to simplify the business, improve our systems and go-to-market offerings, and fully recognize our lower operating costs,” said Nick Kovacevich, Greenlane CEO.
Financial Results
- Revenue for Q3 2022 decreased 31% to $28.7M, compared to $41.3M in Q3 2021. For the nine months ending September 30, 2022, revenue was $115.1 million, a 5% increase from the $110.0 million reported for the comparable prior year period.
- Net loss for Q3 2022 was $79.2 million, inclusive of a $66.8 million goodwill and intangible assets impairment charge, compared to $28.7 million in Q3 2021 and $14.5 million in the second quarter of 2022. Basic and diluted net loss of $11.43 per share compared to a loss of $8.19 per share for the prior-year quarter, and a loss of $18.01 for the trailing nine months versus a loss of $19.60 for the comparable prior-year period.
- Adjusted EBITDA loss for Q3 2022 was $11.2 million compared to a loss of $6.9 million for Q3 of 2021. For the nine months ending September 30, 2022, the adjusted EBITDA loss was $24.6 million versus a loss of $15.8 million for the comparable period.
Among the strategic initiatives, the company announced management changes related to the transition to the consumer brand business model, launched a new, enhanced wholesale shopping experience, and also launched Groove, a new house brand that offers quality products at an affordable price. cheap price.
It also announced a distribution partnership with AUXO by CCELL, signed an agreement to distribute Greenlane brands in Puerto Rico and announced a strategic partnership with Leaf Trade to increase B2B visibility. In addition to an announced sale of the headquarters building for $9.95 million and the announcement of the closing of the public offering of $7.5 million.
Results from Operations:
Net sales for the three months ending September 30, 2022, were $28.7 million, a decrease of $12.6 million or 30.6% over the prior-year quarter. For the nine months ending September 30, 2022, net sales were $115.1 million, an increase of 5% compared with net sales of $110.0 million during the corresponding 2021 period.
Gross margins were 17.3% during the quarter versus 3.6% during the third quarter of 2021 and 16.5% during the nine months ending September 30, 2022, compared with 17.4% during the corresponding 2021 period.
Net loss attributable to Greenlane Holdings, Inc. was $75.1 million during the quarter, or $11.43 per share, which included $66.8 million related to the Goodwill impairment charge, compared with a loss of $16.3 million, or $8.19 per share, in the third quarter of 2021. Net loss was $102.6 million, during the nine months ending September 30, 2022, or $18.01 per share, versus a net loss of $23.6 million, or $19.60 per share during the corresponding period in 2021.
Adjusted EBITDA loss was $11.2 million during the quarter, compared with a loss of $6.9 million, in the third quarter of 2021. Adjusted EBITDA loss was $24.6 million, during the nine months ending September 30, 2022, versus a loss of $15.8 million, during the corresponding period in 2021, according to the press release.
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