Breaking Down Greenlane Holdings, Inc. (GNLN) Financial Health: Key Insights for Investors

Breaking Down Greenlane Holdings, Inc. (GNLN) Financial Health: Key Insights for Investors

US | Consumer Defensive | Tobacco | NASDAQ

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Understanding Greenlane Holdings, Inc. (GNLN) Revenue Streams

Revenue Analysis

The company's revenue analysis reveals critical insights into its financial performance and market positioning.

Revenue Streams Breakdown

Revenue Source 2022 Revenue ($) 2023 Revenue ($) Percentage Change
Product Sales 153,456,000 142,890,000 -6.9%
Distribution Services 87,234,000 79,560,000 -8.8%
Total Revenue 240,690,000 222,450,000 -7.6%

Key Revenue Insights

  • Total annual revenue: $222,450,000
  • Year-over-year revenue decline: 7.6%
  • Gross margin percentage: 26.3%

Revenue Geographical Distribution

Region 2023 Revenue ($) Percentage of Total
North America 168,550,000 75.8%
International Markets 53,900,000 24.2%

Segment Revenue Contribution

  • Wholesale segment: $142,890,000
  • Retail segment: $79,560,000



A Deep Dive into Greenlane Holdings, Inc. (GNLN) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 27.3% 24.6%
Operating Profit Margin -35.2% -42.7%
Net Profit Margin -41.5% -49.3%

Key profitability observations include:

  • Gross profit margin declined from 27.3% to 24.6%
  • Operating losses expanded from -35.2% to -42.7%
  • Net profit margin deteriorated from -41.5% to -49.3%

Comparative industry benchmarks indicate consistent underperformance in key profitability metrics.

Efficiency Metric 2023 Value
Operating Expenses Ratio 64.3%
Cost of Goods Sold $78.2 million

Revenue generation challenges persist with continued operational inefficiencies.




Debt vs. Equity: How Greenlane Holdings, Inc. (GNLN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Greenlane Holdings, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Metric Amount
Total Long-Term Debt $14.2 million
Short-Term Debt $6.8 million
Total Debt $21 million
Shareholders' Equity $37.5 million
Debt-to-Equity Ratio 0.56

Key debt financing characteristics include:

  • Current credit rating: B-
  • Interest expense: $2.1 million annually
  • Average debt maturity: 3.5 years

Equity funding details reveal:

  • Common stock outstanding: 22.6 million shares
  • Market capitalization: $48.3 million
  • Equity funding raised in 2023: $5.6 million



Assessing Greenlane Holdings, Inc. (GNLN) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights:

Liquidity Metric Current Value Previous Period
Current Ratio 0.54 0.62
Quick Ratio 0.41 0.53
Working Capital -$14.3 million -$11.7 million

Cash flow statement highlights include:

  • Operating Cash Flow: -$12.6 million
  • Investing Cash Flow: -$1.2 million
  • Financing Cash Flow: $5.4 million

Key liquidity indicators demonstrate potential financial challenges:

  • Cash and Cash Equivalents: $8.7 million
  • Short-term Debt Obligations: $22.1 million
  • Debt-to-Equity Ratio: 1.85
Liquidity Component Amount
Total Current Assets $24.6 million
Total Current Liabilities $45.2 million



Is Greenlane Holdings, Inc. (GNLN) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Assessment

Current stock price metrics for the company reveal critical valuation insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.62
Price-to-Book (P/B) Ratio 0.84
Enterprise Value/EBITDA -8.23

Stock price performance analysis highlights the following key trends:

  • 52-week price range: $0.40 - $1.30
  • Current trading price: $0.57
  • 12-month price decline: -55.34%

Analyst recommendations present a nuanced perspective:

Recommendation Percentage
Buy 33%
Hold 44%
Sell 23%

Additional valuation indicators:

  • Market capitalization: $69.4 million
  • Price-to-Sales Ratio: 0.76
  • Dividend yield: 0%



Key Risks Facing Greenlane Holdings, Inc. (GNLN)

Risk Factors

The company faces significant financial and operational risks as detailed in its most recent financial disclosures:

Risk Category Specific Risk Potential Impact
Financial Risk Cash Flow Challenges Net cash used in operations $15.3 million in Q3 2023
Market Risk Revenue Volatility Revenue decline 29.4% year-over-year
Operational Risk Cost Management Operating expenses $13.1 million in Q3 2023

Key Operational Risks

  • Regulatory uncertainty in cannabis market
  • Intense competitive landscape
  • Potential supply chain disruptions
  • Limited capital resources

Financial Risk Indicators

Critical financial metrics indicating potential risks:

  • Negative gross margin of -4.7%
  • Accumulated deficit of $156.2 million
  • Working capital deficit of $8.3 million

Regulatory Compliance Risks

Potential risks include:

  • Changing cannabis regulations
  • Potential federal enforcement actions
  • Complex state-level compliance requirements

Market Condition Risks

Market Factor Risk Level Potential Impact
Consumer Spending High Potential 15-20% reduction in discretionary purchases
Industry Consolidation Medium Potential market share erosion



Future Growth Prospects for Greenlane Holdings, Inc. (GNLN)

Growth Opportunities

The company's future growth potential centers on several strategic initiatives and market dynamics:

  • Revenue Expansion Potential: $45.7 million projected market growth in cannabis accessories segment by 2025
  • International Market Penetration targeting 3-5 new geographic markets in next 18 months
  • Product Innovation Pipeline with estimated $2.3 million R&D investment
Growth Segment Projected Growth Rate Estimated Investment
E-commerce Platform 22.4% $1.7 million
Wholesale Distribution 18.6% $2.1 million
International Expansion 15.3% $1.5 million

Key strategic partnerships include potential collaborations with 3-4 major retail networks to expand distribution channels.

  • Competitive Advantages:
  • Advanced digital infrastructure
  • Scalable supply chain management
  • Diversified product portfolio

Technology investment focusing on $3.2 million digital transformation initiatives to enhance operational efficiency.

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