Planet 13 (PLTH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $26.9 million, down from $28 million in Q1 and 13.6% lower year-over-year, reflecting price compression and weaker demand in Nevada and increased competition in Florida.

• Net loss widened to $13.3 million from $8.1 million year-over-year, driven by lower gross profit and severance costs from cost reduction efforts.

• Las Vegas SuperStore revenue rose 7% sequentially to $12 million, despite an 11% drop in visitor traffic and a 14% decline in statewide cannabis flower sales year-over-year.

• Neighborhood store network revenue was $12.2 million, down 9% from Q1, with ongoing efforts to rebuild customer trust and expand product offerings in Florida.

• Management focused on operational discipline, cost savings, and aggressive pricing strategies to reinforce competitive positioning.

Financial highlights

• Gross profit was $11.7 million, with a gross margin of 43.4%, down from 50.9% year-over-year but up from 42.8% in Q1, aided by directing more production to retail stores.

• Adjusted EBITDA loss was $2.4 million, compared to a positive $3.2 million year-over-year and a $2.5 million loss in Q1.

• Operating cash used was $1.2 million, a significant improvement over Q1.

• Total expenses decreased 4.6% to $18.5 million, reflecting early benefits from cost-saving measures.

• Sales and marketing expense increased to $1.6 million, while G&A declined to $13.6 million, reflecting early benefits from cost reduction initiatives.

Outlook and guidance

• Focus remains on offsetting price compression with higher volumes, especially in Florida and Las Vegas, while maintaining operational discipline.

• Cost reduction programs are expected to yield over $1 million in G&A savings in both Q3 and Q4, with further marketing expense reductions anticipated.

• The BHO extraction lab in Florida is on track for completion in Q4, enabling a full suite of products and supporting future growth.

• Management expects recent cost reduction actions to improve financial performance over time while maintaining quality and service.

• Continued focus on operational efficiency and targeted pricing to navigate challenging market conditions.