RE:Show me the money One can understand the hesitation to get too excited about Greenlane's latest quarterly release given their inconsistent profitability history. Achieving sustained net income profitability is absolutely the key milestone that will validate whether real financial progress is taking hold.
However, I don't think we should completely dismiss the developments disclosed as just 'cheap talk.' The royalty revenue stream from the ZEG Biogas partnership may have been vaguely discussed before, but it represents a tangible step in diversifying their income drivers beyond just system sales. We're starting to see it become a reality this quarter.
More importantly, management seems to be taking decisive action on numerous fronts - restructuring the business, exiting non-core units, managing costs, and focusing on margin improvements for large projects. To a degree, these are meaningful operational changes.
While net profitability understandably remains elusive so far, with a $0.8 million net loss in Q1, we did see substantial improvements in underlying metrics like higher gross margins and a significantly narrowed adjusted EBITDA loss year-over-year. Not definitive, but potentially leading indicators.