Planet 13 (PLTH) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $30.3 million, up 31.8% year-over-year, driven by Florida expansion, but down sequentially due to seasonal trends and price compression.

• Full-year revenue grew 18.2% to $116.4 million, supported by the VidaCann acquisition and Florida store openings.

• Q4 net loss was $26.4 million, including an $18.9 million non-cash impairment; full-year net loss improved to $47.8 million from $73.6 million.

• Retail footprint expanded to 34 stores, with a focus on maximizing productivity and slowing new store openings for the remainder of 2025.

• Strategic priorities include improving product quality, expanding wholesale, and driving operational efficiency.

Financial highlights

• Q4 gross profit was $13.1 million (43.2% margin), up from $11.0 million, but margin declined from 51.9% in Q3 due to price compression and discounting.

• Adjusted EBITDA was break-even in Q4, compared to $1.3 million in Q3; full-year adjusted EBITDA rose 49% to $3.5 million.

• Q4 operating expenses nearly doubled to $35.8 million, including $18.9 million impairment; full-year expenses fell 13.3% to $82.6 million.

• Unrestricted cash at year-end was $25.4 million, up from $17.3 million; $5.2 million in operating cash flow generated for the year.

• Total assets were $206.7 million and liabilities $94.0 million at year-end.

Outlook and guidance

• Expect continued pricing headwinds and competitive pressures in 2025, especially from illicit and hemp markets.

• Anticipate margin recovery in Q2 and Q3 2025 as upgraded greenhouses in Florida deliver higher-quality product.

• Targeting 50–53% gross margins in Florida and high 50s in Nevada retail, with overall focus on cost control and efficiency.

• 2025 focus is on maximizing productivity, enhancing per-store performance, and streamlining costs.

• CAPEX for 2025 projected at $3–5 million, mainly for Florida store openings and manufacturing upgrades.