Greenlane Holdings reported third‑quarter 2025 results that show a sharp decline in traditional revenue and a widening net loss. Net sales fell to $0.74 million from $4.04 million in the same quarter last year, a drop of 82 percent, while the net loss expanded to $8.9 million from $3.8 million in Q3 2024. The company’s Q2 2025 revenue of $0.8 million and net loss of $3.2 million provide a quarterly context that underscores the acceleration of the decline.
The dramatic erosion of revenue is largely attributable to a $5 million non‑cash inventory reserve that the company recorded as part of a comprehensive review of inventory aging and realizability linked to its transition to a digital‑asset treasury model. The reserve turned the legacy business’s gross profit into a loss for the quarter, illustrating the financial cost of moving away from its cannabis‑accessory product line.
Cash and debt metrics highlight the company’s precarious financial position. As of September 30, 2025, Greenlane held $1.8 million in cash and had eliminated all debt, a result of a $110.7 million private placement closed on October 23, 2025. The placement generated $24.3 million in net cash proceeds, $19 million in stablecoin, and 54.2 million BERA tokens, the digital asset that the company now holds and stakes to generate yield.
Management’s guidance signals a cautious outlook. The filing includes a “substantial doubt about the company’s ability to continue as a going concern,” reflecting the combination of a large net loss, a low cash balance, and the need to rely on the performance of the BERA token. The company’s strategic pivot to a capital‑light, IP‑driven operating model is intended to reduce fixed costs and shift the business toward yield generation from token staking.
The results underscore the risks and opportunities of Greenlane’s transformation. While the legacy revenue stream has collapsed, the company has secured significant capital and eliminated debt, positioning it to pursue its new digital‑asset strategy. However, the going‑concern warning and the reliance on the performance of a single cryptocurrency token introduce substantial uncertainty about the company’s near‑term financial stability and long‑term viability.
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