Planet 13 (PLTH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $31.1 million, up 36% sequentially and 20.3% year-over-year, driven by the VidaCann acquisition, DAZED! Lounge launch, and strong sales in Las Vegas and Illinois.

• Retail revenues rose 47% sequentially to $27.4 million, with organic growth and M&A both contributing.

• Net loss widened to $8.1 million from $4.6 million year-over-year, reflecting higher expenses from Florida consolidation.

• The company is executing a multi-pillar growth strategy focused on retail expansion, wholesale growth, and brand building.

• Expanded retail and cultivation footprint in Florida, including the acquisition of VidaCann with 26 stores.

Financial highlights

• Q2 2024 revenue was $31.1 million, up from $22.9 million in Q1 2024 and $25.8 million in Q2 2023.

• Gross profit reached $15.8 million, with gross margin improving to 50.9% from 45.8% in Q1 and 46.0% year-over-year.

• Adjusted EBITDA was $3.2 million (10.3% margin), up 16% year-over-year.

• Net loss was $8.1 million, up from $4.6 million year-over-year.

• Operating cash flow was $4 million, with $4 million in CapEx spent on cultivation upgrades and new dispensaries.

Outlook and guidance

• Full quarter of Florida operations expected to benefit Q3 2024 results.

• Management is cautious about revenue growth in H2 2024 and early 2025 due to consumer stress and potential demand weakening, especially in Nevada.

• Gross margins are targeted to remain above 50%, with variability expected based on state and product mix.

• Ongoing expansion of cultivation and retail network in Florida expected to drive future revenue.

• Continued engagement anticipated through new retail and lifestyle initiatives.