Good afternoon, ladies and gentlemen. Welcome to the Greenlane Renewables second quarter 2026 video conference.

My name is Darren Seed, President of Incite Capital Markets, responsible for investor relations at Greenlane. I'm joined today by Brad Douville, Greenlane's Chief Executive Officer, and Stephanie Mason, Greenlane's Chief Financial Officer.

We'll begin with prepared remarks followed by a Q&A, which I will moderate. Before beginning our formal remarks, we'd like to remind listeners that today's discussion may contain forward-looking statements that reflect current views with respect to future events.

Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Greenlane Renewables does not undertake to update any forward-looking statements, except as may be required by applicable laws.

Listeners are urged to review the full discussion of risk factors in the company's annual information form, which has been filed with Canadian securities regulators. Please feel free to submit any questions you may have through our investor email address at [email protected].

Now, over to Brad.

Thanks, Darren. Good afternoon, and thank you everyone for joining us today.

This quarter marked another important step in Greenlane's evolution as we continue to execute on our strategic initiatives that we believe will define our next phase of growth. During the quarter, we significantly advanced the commercialization of our future growth engine, our next-generation Cascade LF landfill gas upgrading technology, by achieving two important milestones.

First, we solidified our manufacturing strategy in Brazil by signing the definitive agreements with global manufacturing and technology leader Panasonic. Under the agreements, Greenlane and Panasonic have partnered to establish volume production of Greenlane's Cascade LF and Cascade MS proprietary product lines in Brazil, which is key to enhancing project economics for our customers in the region.

The partnership with Panasonic not only brings their manufacturing expertise, but also the strength of their balance sheet to support sales growth. Panasonic is investing in facility modifications, tooling, and production equipment for its existing plant in São José dos Campos in the Brazilian state of São Paulo to produce the Greenlane-branded product modules, and will provide the necessary working capital and advance payment assurances to meet customer requirements.

Panasonic's initial investments are expected to be in the range of 8 to 10 million Brazilian reais, which is $2 to $3 million Canadian dollars. Greenlane retains responsibility for product design, management of the supply chain including supplier selection and supplier quality assurance, marketing and sales, and commissioning and servicing of the products.

Second, we successfully completed testing of our proprietary linear NRU, nitrogen rejection unit, technology that it sits at the heart of the Cascade LF. We demonstrated breakthrough methane recovery performance with a low-cost architecture.

Methane recovery is the primary performance parameter for any upgrading system because every 1% of improvement translates into a 1% increase in project revenue, which drops directly to the bottom line. Achieving high methane recovery is difficult in landfill gas applications because of the unique challenge of separating nitrogen from methane.

Results from the testing exceeded our expectations. At a time when global energy markets are increasingly focused on supply, security, and reliable fuel sources, technologies like Cascade LF are well positioned to support the growing role of RNG as a resilient, scalable, and low-carbon energy solution.

Despite making substantial investments in the final development and start-of-production readiness for Cascade LF, we were able to generate a positive EBITDA result in the quarter. We've noted that our strategy includes continued sales growth in our most profitable business areas.

Our parts and service and biogas desulfurization are those business areas that have continued robust performance, providing strong gross margin contribution as a result of durable uptake of these products and services in the market. We also continue to make positive progress in closing out legacy biogas upgrading system supply contracts.

Our strategy builds on the strength of this solid foundation, adding step-change, profitable growth potential with Cascade LF and Cascade MS, with an estimated total addressable market of $600 million annually. We're still aiming for production readiness by the end of 2026.

Taking a moment to reflect on industry happenings, there are some recently released data and reports that I believe are worth sharing that provide helpful context for our business and a view of where the market might be heading. According to new data released by the American Biogas Council, landfill remains the largest source of RNG production in the US, producing 64% of the nation's total from just under 600 landfill gas capture systems.

Developers brought 20 new landfill projects online in 2025, all of which capture additional biogas and convert it into RNG that displaces conventional natural gas. Together, these facilities added 40 billion cubic feet of new biogas capture capacity, about 75% of all US biogas capture capacity added last year across all biogas sectors.

Landfill gas facilities typically capture far larger volumes of biogas than systems in agriculture, wastewater, or food waste sectors, resulting in a disproportionate share of the total biogas capture. Based on the US EPA Landfill Methane Outreach Program classifications, approximately 700 additional landfills remain suitable for landfill gas development.

Meanwhile, in Europe, installed biomethane production capacity reached 8.2 billion cubic meters per year by the end of Q2 2026. That's up 17% compared to 2025, according to the European Biomethane Map, developed in cooperation with the Gas Infrastructure Europe, GIE.

Investor appetite also remains strong, with investment commitments reaching €36 billion, a significant increase from last year's reported investments of €28 billion, according to the Biomethane Investment Outlook. This growing investor confidence underscores the sector's significant acceleration potential, provided the right regulatory conditions are in place.

If fully realized, these investments are expected to deliver 9 billion cubic meters per year of additional biomethane production capacity by 2030, strengthening Europe's domestic energy supply and contributing to the EU's decarbonization objectives. According to a 2026 Guidehouse study, the EU-27's potential stands at 31 to 32 billion cubic meters for 2030, and is projected to reach 163 to 184 billion cubic meters by 2050.

I appreciate your continued support, and I look forward to keeping you informed of our progress. Also, want to thank the Greenlane employees for the continued hard work, passion, and drive for our results.

With that, I'll now turn the call over to Stephanie.

Thanks, Brad, and good afternoon, everyone. As a reminder, all figures are in Canadian dollars unless otherwise stated.

Our financial performance reflects the progress we are making in executing our strategic plan. Revenue and adjusted EBITDA in Q2 2026 are lower than the same period last year due to the recognition of royalty revenue and a large parts order that occurred in Q2 2025.

Excluding these two items, financial results improved over the same period last year, driven by a $0.9 million improvement in system sales revenue, largely from biogas desulfurization sales. Q2 2026 marked a return to positive adjusted EBITDA, and we maintained a strong gross margin before amortization of 41%, reflecting the continued benefits of our focus on the most profitable business areas, disciplined project execution, and operational efficiency.

At the same time, as Brad noted, we continued investing in our next-generation Cascade LF landfill gas upgrading technology that will support Greenlane's long-term growth. Research and development expenses doubled over the same period last year to $0.8 million.

Investing in R&D at this level while returning to a positive adjusted EBITDA demonstrates that we can continue advancing innovation while improving the underlying financial performance of the business through our parts and service and biogas desulfurization business areas. We ended the quarter with $12.1 million in cash and cash equivalents, no debt, and a sales order backlog of $25.6 million, providing financial flexibility to execute our strategic priorities while maintaining a disciplined approach to cost management and supporting our global customer base.

We look forward to keeping you apprised of our progress, and with that, let's go over to you, Darren, for the Q&A.

Let's touch base on the Cascade LF commercialization. You've highlighted significant progress with Cascade LF, including successful linear NRU testing and your manufacturing partnership with Panasonic.

Can you provide an update, Brad, on next steps and any customer engagement?

For sure. Firstly, there has been tremendous activity and results with starting with the linear NRU testing results was better than than we expect, as I mentioned.

That's an important marker for our technology development and our technology readiness for for launch coming later this year. The partnership with Panasonic for local manufacturing, obviously that's key, solidifies our footprint in Brazil to be able to produce and serve the market.

The other thing that just happened, this this year sorry, this week was the Fórum do Biogás. It's one of the largest conferences in the country, an excellent opportunity to connect and reconnect with all our customers and stakeholders to continue driving awareness of the product, continuing having those discussions and dialogue around the product from a quoting perspective to be able to serve our customers as they continue to develop new projects.

We remain completely focused on that production readiness by the end of this year.

Let's look at the sales pipeline and backlog. While backlog declined sequentially during the quarter, Stephanie, how should investors expect backlog to build?

Thanks, Darren. As we've talked about before, the real potential step-change in the business is Cascade LF.

That's where we can see a sizable market. As Brad mentioned, we have total addressable market of around $600 million.

We're working really heavily towards marketing our product. We're approaching customers, we're working through proposals, and really working towards that production readiness date at the end of this year.

Then also just as a reminder, the backlog doesn't include any service business. Our service and spare parts is not included in the backlog, any increases that you're seeing there, you're not going to see come through in the sales order backlog.

Stephanie, gross margin before amortization remained strong at 41% this quarter. As Cascade LF enters the market and the product mix evolves, how should investors think about the sustainability of margins going forward?

That's a really good question. With the announcement of the agreements with Panasonic, one of the part of those agreements is a technology licensing agreement, which is going to be royalty-based revenue.

If you look, we have kind of a baseline for historical royalty-based margins that are significantly higher than I would say our historical systems business has allowed.

This quarter marked a return to positive adjusted EBITDA, Stephanie, while maintaining investment in research and development. What are the key operational milestones investors should watch over the next 12 to 18 months as Greenlane works toward consistently profitable growth?

Thanks, Darren. I'd like to say that we had R&D investments of around $800,000, which is consistent with what we saw in Q1.

In Q2, we were able to achieve a positive adjusted EBITDA result. As we're working towards production readiness at the end of 2026, kind of Cascade LF results will come sometime thereafter.

Thanks, Stephanie. Brad, today you stated that the total addressable market size for Cascade LF and Cascade MS is $600 million.

I believe this is the first time you've mentioned this number. What can you say about where this number comes from and how investors should think about Greenlane's growth prospects?

It's a big number. It's the first time we've talked about it.

Stephanie's mentioned it, I've mentioned it now today. Before I talk about where it comes from, what is it is the first thing to talk about.

What it is is it's the addressable market with two products, remember we've got multiple product lines, but the two new products, the Cascade LF, that together comes with the Cascade MS. Between those two products, but also specific geographies.

That is the specific geographies of Brazil, US, and Canada. That's two products, three geographies is the scope of that number.

It's a big number. Where it comes from is, I think investors have seen from us, we typically rely on IEA data, so that's the International Energy Agency's data.

They tend to be one of the more credible data sources in the industry. We show that in our investor information that's on our website.

We rely on that. It has a projection through 2035.

Using some of our internal management estimates together with the IEA data, we put together what we believe can be the number of upgraders that are necessary to satisfy the incremental year-by-year biomethane growth in those three geographies in the sectors in which those two new products address. So $600 million, just to put that into context, it's roughly 14 times our last year's revenue as incremental opportunity that we're targeted to go after.

When we talk about adding step-change profitable growth with Cascade LF and Cascade MS, this is what we're talking about.

Perfect. Thanks, Brad, and thank you, Stephanie.

We look forward to seeing everyone on the next quarter's review. With that, say good afternoon.