Greenlane Second Quarter Revenue Grows 7.1% To $34.7M, Reports Record Core Revenue

Greenlane Holdings, Inc. GNLN reported its second-quarter financial results 

Tuesday with revenue of $34.7 million, beating Seeking Alpha's estimates of $33.94 million and representing an increase of 7.1% from the same quarter of 2020.

Second-Quarter Financial Highlights  

• Q2 2021 core revenue (defined as non-nicotine revenue) grew 14.9% to $34.5 million, compared to $30 million in Q2 2020;
• Achieved third consecutive quarterly sales record for Greenlane Brands, which grew to $9 million in Q2 2021, up 62.5% compared to $5.5 million in sales for Q2 2020;
• Greenlane Brands accounted for 25.9% of Q2 2021 total revenue compared with 17.1% of total revenue for Q2 2020;
• Successfully transitioned to core business lines. Core revenue accounted for 99.3% of total revenue for Q2 2021;
• Gross profit and gross margin grew by $1 million and 1.3%, respectively, to $7.8 million and 22.4%, compared to $6.8 million and 21.0% in Q2 2020;
• After quarter-end, the Company completed a $32 million registered direct offering priced at the market. Cash totaled $11.6 million as of June 30, 2021. As of June 30, 2021, working capital was $36.4 million, compared to working capital of $54.2 million, as of December 31, 2020.

“Our second quarter 2021 results reflect the success of our efforts to drive growth in our core business lines and higher margin Greenlane brands,” Aaron LoCascio, Greenlane’s chairman and CEO. “I am proud of our accomplishments and want to thank our entire team for their ongoing dedication as we execute on the opportunity ahead. During the quarter, we drove solid Greenlane Brands revenue growth, up 62% year over year and representing 26% of our total Q2 revenue, supported by strong organic growth."

Price Action 

Greenlane’s shares were trading 1.28% lower at $2.34 per share at the time of writing Tuesday afternoon. 

Photo: Courtesy of Benjamin Brunner on Unsplash