Florida-based Greenlane Holdings, Inc. (NASDAQ:GNLN) reported a slump in revenue for the second quarter ending June 30, but outlined a strategy for real returns in the near future.
The company’s second-quarter revenue stood at $19.6 million, marking a decrease from the $24 million in the previous quarter. The figure missed Yahoo Finance analysts’ expectations by $2.2 million.
The net loss for the quarter rose slightly to $10.5 million from $10.2 million sequentially. However, Greenlane showcased an improvement in its adjusted EBITDA loss, reporting a $5.8 million loss in the second quarter, a step forward from the $6.8 million loss of the previous quarter.
Despite the dips, Greenlane is bullish about its future.
“We have been working hard to right-size our business, focus on core areas, and reduce our overall cost structure while improving our margins,” the company said in a statement. Greenlane is banking on its proprietary brands like Eyce, DaVinci, and Groove, among others, as key drivers of future growth and profitability.
The company’s CEO, Craig Snyder, voiced his confidence in the strategies implemented to ensure long-term profitability.
“We are continuing our transformative strategy by focusing on our path to profitability,” Snyder said. Greenlane has undertaken certain measures, such as consolidating facilities, optimizing labor costs, and eliminating preexisting debts, to streamline its operations and financials.
“In Q2 we had charges related to severance of two former senior executives which clouded the gains we have made in overall cost of labor,” management said in the release.
“These two agreements represented more than 12% of the overall labor number in Q2 and are one time in nature. We expect overall cost of labor to continue to decline and are focused on a labor structure that brings the business to profitability.”
The company paid off a $15 million debt with lender Whitehawk Capital during the period “prior to the first anniversary date and we believe by doing so allows us a much more authority over our future.”
Another highlight of the report was the launch of 21 new products this year. The company also expanded into disposable nicotine offerings, tapping into a U.S. market that exceeds $6 billion annually.
It added, “We identified industry leading partners, manufacturers, and brands to capitalize on our expansion into the nicotine industry including Fume, Death Row Vapes, Packspod, and Tyson 2.0.”