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Digging Deeper into Greenlane Holdings’ Finances

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Greenlane Holdings

Greenlane Holdings (GNLN) priced its IPO at $17 per share and rose almost one quarter after the listing on April 18. The company raised $102 million through the IPO. However, the stock has been volatile this week. In this part, we’ll discuss some of Greenlane Holdings’ finances from its IPO filings.

Greenlane Holdings posted revenues of $179 million last year. The company’s revenues more than doubled last year. Most cannabis companies have been reporting strong revenue growth. However, profitability has been elusive for most of the companies in the cannabis space (HMMJ) (MJ). Charlotte’s Web Holdings (CWBHF) is among the rare cannabis companies generating profits.

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Other financial measures

Greenlane Holdings reported a gross profit margin of 20% last year—compared to 23.3% in 2017. The company posted an adjusted EBITDA of $4.1 million last year—compared to $3.50 million in 2017. While Greenlane Holdings’ adjusted EBITDA improved last year, it posted a net loss of $5.9 million in 2018 compared to a net profit of $2.3 million in 2017. The company’s interest expense rose from ~$270,000 in 2017 to $3.2 million in 2018, which dragged its net income. The depreciation and amortization expense also doubled to $1.5 million last year. Greenlane Holdings reported $1.0 million in legal expenses as it transitioned to a public company last year. The company’s cash flows deteriorated last year. Greenlane Holdings posted operating cash flows of -$13.6 million in 2018 compared to $3.1 million in 2017.

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