Greenlane Holdings Inc (NASDAQ: GNLN) reported a net loss attributable to shareholders of $24.8 million for the second quarter ended June 30, 2026, a significant expansion from the $3.2 million loss recorded in the second quarter of 2025. On a per-share basis, losses stood at $(6.06), an improvement from the $(25.46) per share loss in the same period last year. The deterioration in profitability was largely driven by non-cash charges related to its digital asset treasury strategy, specifically a $19.1 million decline in the fair value of BERA holdings and a $1.8 million impairment of legacy investments.

Despite the bottom-line pressure, the company demonstrated operational discipline by reducing total operating expenses by approximately 37% sequentially from the first quarter of 2026. Total operating costs fell to $3.6 million in Q2 2026 from $5.8 million in Q1 2026, primarily due to a reduction in salaries and benefits following headcount adjustments in its legacy business.

Financial Performance Overview

The company’s legacy wholesale and distribution business continued to wind down, with net revenue falling 90% year-over-year to just $82,000. This revenue consisted entirely of legacy sales and does not reflect the company’s new digital asset focus.

Digital Asset Treasury Strategy

Greenlane’s core strategy revolves around accumulating BERA, the native token of the Berachain blockchain. During the quarter, the company deployed approximately $1.2 million into BERA and BERA-equivalent assets and $4.1 million into stablecoin-related protocol instruments.

As of June 30, 2026, Greenlane held approximately 81.3 million units of BERA. While the quantity of holdings increased from 77.7 million units at the end of Q1 2026, the fair value of these assets dropped significantly to $16.4 million from an implied higher valuation earlier in the period, reflecting broader market volatility in digital assets. The company also recognized $309,000 in staking and yield revenue, derived from participation in Berachain’s Proof of Liquidity consensus mechanism and yields on stablecoin instruments.

What the Numbers Show

A critical divergence exists between Greenlane’s operational efficiency and its investment performance. While the company successfully reduced its cash burn rate—evidenced by the 37% sequential drop in operating expenses—the net loss widened nearly eightfold year-over-year. This indicates that the current financial results are not driven by operational inefficiencies but are almost entirely dependent on the mark-to-market volatility of its BERA holdings. The $19.1 million unrealized loss on digital assets accounted for roughly 77% of the total net loss, highlighting that the company’s near-term earnings profile remains highly sensitive to crypto-market pricing rather than underlying business operations.

Balance Sheet and Liquidity

Cash and cash equivalents stood at $6.1 million as of June 30, 2026, down from $32.5 million at year-end 2025. The decline in cash was driven by investing activities, including $11.3 million spent on purchasing digital assets and $8.1 million on stablecoin-related protocol instruments. Total assets decreased to $32.0 million from $74.9 million at December 31, 2025, reflecting both the drawdown in cash reserves and the write-down in the fair value of digital assets.

Subsequent Events

Following the quarter-end, the SEC staff approved an amendment to Nasdaq listing standards establishing a minimum market value of listed securities requirement of $5.0 million. However, this approval was stayed pending Commission review. Greenlane noted that absent this stay, its current market value would fall below the new threshold. The company is monitoring the situation and evaluating alternatives to maintain compliance with Nasdaq listing requirements.

Greenlane is aligning its operating expenses with its digital asset treasury strategy to achieve a simpler, lower overhead model compared to its legacy consumer products business. The company has implemented cost-saving initiatives, including reducing headcount, exiting legacy warehouse operations, and lowering other public company costs. These measures are intended to provide greater financial flexibility to pursue its BERA accumulation strategy.

Financial Discipline and Operational Efficiency

Since completing its strategic transition in October 2025, Greenlane has fully exited warehouse operations and converted its legacy commerce business to an asset-light, drop-ship model. Headcount was reduced from 23 positions at December 31, 2025, to 13, a decrease of more than 40%. These actions drove cost of sales down from approximately $748,000 to approximately $231,000 and facility costs down from approximately $500,000 to approximately $200,000, comparing the first quarter of 2026 to the prior year period.

First quarter 2026 general and administrative expenses included approximately $2.3 million in non-recurring costs related to Nasdaq compliance, the reverse stock split, and legacy facility exits. Management continued cost reduction efforts in the second quarter of 2026 through vendor contract renegotiations, rationalization of software and third-party service agreements, and reductions in professional and advisory fees. The company is actively resolving legacy accounts payable and other liabilities to reduce future cash requirements.

Digital Asset Treasury Strategy

Greenlane’s BERA treasury strategy focuses on active participation in the Berachain ecosystem to increase its BERA holdings. The company stakes its BERA holdings to earn staking rewards, recognized as revenue, and deploys its stablecoin treasury into DeFi markets. It plans to continue opportunistically buying and accumulating BERA to earn staking rewards and support the ecosystem.

As of July 7, 2026, Greenlane holds 81.6 million units of BERA.

PoL Next Upgrade

The Berachain Foundation has activated PoL Next, an upgrade consolidating protocol rewards into a single yield-bearing asset, sWBERA. This initiative aims to increase yields for sWBERA and protocol revenue directed to BERA holders over time. As a holder of BERA and sWBERA, Greenlane may benefit from the new yield structure, though the amount and timing of any benefit remain uncertain and may be zero. The Berachain Foundation also intends to partner with select startups building on Berachain, offering support in exchange for revenue-sharing arrangements to benefit BERA holders.