Greenlane Holdings Reports 79.7% Decline in Net Sales for Fiscal Year 2024

Greenlane Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total net sales dropping to approximately $13.3 million, a decrease of 79.7% from $65.4 million in 2023. The company attributed this decline primarily to a major restructuring that transitioned much of its packaging and industrial vaping product lines from a gross sales model to a commission structure, aimed at preserving working capital. This shift, along with a focus on in-house brands with higher margins, contributed to a substantial reduction in revenue.

The company's cost of sales also decreased, aligning with the drop in revenue, falling by 85.3% to $7.0 million. Despite the decline in sales, gross profit margins improved to 47.3%, up from 27.3% in the previous year, largely due to the new commission revenue model that allowed for higher margins on vaporizer sales. Operating expenses were reduced by 58.8% to $18.1 million, reflecting significant cuts in salaries, benefits, and general administrative costs as part of the company's right-sizing efforts.

Operationally, Greenlane has made strategic changes, including a reduction in workforce by approximately 43% to align costs with revenue and enhance profitability. The company has also entered into strategic partnerships to improve margins and reduce working capital requirements. As of December 31, 2024, Greenlane had approximately $0.9 million in cash and $1.5 million in working capital, a decrease from the previous year, indicating ongoing liquidity challenges. However, management believes that recent capital raised through a private placement in February 2025 will support operations through at least the second quarter of 2026.

Geographically, the decline in sales was evident across all regions, with U.S. sales dropping to $10.9 million from $58.5 million, Canadian sales falling to $0.2 million from $1.3 million, and European sales decreasing to $2.2 million from $5.5 million. The company continues to focus on optimizing its product offerings and enhancing its e-commerce platforms to drive future growth. Looking ahead, Greenlane aims to increase revenue through new product introductions and strategic partnerships while managing costs effectively to achieve profitability.