Florida-based Greenlane Holdings, Inc. (NASDAQ:GNLN), maker of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, reported increased revenue and decreased net losses for the first quarter ended March 31, 2023.
The company reported a 9% increase in revenue sequentially to $24 million. At the same time, Greenlane cut operating expenses by 32% compared to the previous quarter, from $22.1 million to $15 million.
Net loss for the company was reduced to $10.2 million, down from $13.3 million in the previous quarter. Adjusted EBITDA loss also fell slightly from $7.6 million in the previous quarter to $6.8 million.
“We are executing on our aggressive transformative strategy by focusing on our path to profitability, enhancing and growing our leading position as a product innovator and disruptor in our segment,” Greenlane CEO Craig Snyder said in a statement.
The company also unveiled 16 new products during the quarter, including 12 from Groove, three from Eyce, and the MIQRO-C from DaVinci, contributing to its revenue increase.
Greenlane’s gross margin was 23%, down from 26.7% in the fourth quarter of 2022. However, the company is hopeful that an emphasis on higher-margin proprietary brands like Eyce, DaVinci, Groove, Marley Natural, Keith Haring, and Higher Standards will improve its gross margin profile and accelerate its path to profitability.
The company significantly reduced its operating expenses, it said, including a 46.6% drop in labor-related expenses and a 34.5% reduction in general and administrative expenses versus the same period last year.
Snyder noted that the company’s rising revenue and cost cuts “puts us on a positive trajectory for the remainder of 2023.”
Greenlane also continued to advance its global omnichannel strategy, working with strategic market distribution partners across South America, Canada, Mexico, and Puerto Rico to expand its market reach.
“We look forward to additional Greenlane brand product launches in Q2 and fiscal year 2023 and expect to see continued revenue growth from our consumer segment,” Snyder said.