Greystone Logistics: After the iGPS Shock, a Micro-Cap Bets on Data-Driven Pallets
The script flipped abruptly at Greystone Logistics in November. After 11 years as the company's dominant customer, iGPS—a plastic pallet leasing company—called to say it was done. “Our biggest customer for the last 11 years, in November, called and just said, "Today is our last day."” — Warren Kruger, CEO · 2026-04-16 That single phone call erased roughly $30 million of annual revenue from a business that had been running at about $14–16 million per quarter. The current quarter's result is brutal: revenue fell 76% year-over-year to $3 million.
From Manufacturer to Service Provider
CEO Warren Kruger's answer is to pivot from selling pallets to managing them. The company is now actively courting the leasing world it had avoided while serving iGPS. The centerpiece is a tracking-and-tracing platform built around cellular devices embedded in pallets. Kruger claims he acquired 38,000 such devices before iGPS left, giving Greystone a ready supply for closed-loop pools. “We can tell them where those units are every single day. We can tell them the temperature. We can tell them if they've been dropped, if there's been an ajar to the unit.” — Warren Kruger, CEO · 2026-04-16 Walmart, already a large customer, has placed 80 truckloads of orders in the last 90 days, and a pilot is running at a Walmart distribution center in the Midwest.
The Financial Squeeze
The pivot is happening on a fragile balance sheet. Greystone's bank, IBC, has granted interest-only terms for a year, and the company sold a property for $1.675 million to shore up cash. The layoffs of 140 people (from a workforce of ~250) were painful but necessary. “We laid off 140 people. That really hurts me as a person because that's hard. But we had to do the right thing.” — Warren Kruger, CEO · 2026-04-16 The numbers are stark: gross margin swung to -42%, operating income to -$3M, and the company is burning cash.
Prior calls had hinted at a stronger trajectory. In January, Kruger said “we've gone to an interest only for the calendar year 2026 with our bank IBC.” — Warren Kruger, CEO · 2026-01-15 And as recently as April 2025, he was talking about “$40 million worth of revenue with very, very limited CapEx.” — Warren Kruger, Chairman and CEO · 2025-04-15 Now the question is whether the new services can replace the lost iGPS volume before the cash runs out.
Kruger points to a big opportunity—a potential contract to manage 90,000 pallets—and to contract grinding and pelletizing that brings in about $150,000 a month. “It's just a great way to generate additional income for Greystone while we wait on some of the big opportunities.” — Warren Kruger, CEO · 2026-04-16 But the market is skeptical: the stock is down 17.8% over the last 90 days, and the price remains near its all-time low.
We have the infrastructure, we have the machinery, we have the tooling and we have great opportunities in the marketplace. Now we just have to bring those to -- bring those home.
Kruger's conviction is personal—he says he holds about 9 million shares. The company's entire future hinges on converting interest into orders. If the 90,000-pallet deal materializes and the tracking service gains traction, Greystone could begin a meaningful recovery. But the current reality is a micro-cap with a negative gross margin fighting for survival. The next two quarters will tell whether this is a turnaround story or a final chapter.