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% year-over-year, reflecting disciplined execution amid challenging market conditions and increased competition in Nevada and Florida.

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

• 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.

• Wholesale revenue declined to $2.7 million from $3.4 million in Q1, as the company prioritized margin by channeling more products through its own dispensaries.

Financial highlights

• Gross profit was $11.7 million (43.4% margin), down from $15.8 million (50.9% margin) year-over-year, but up from 42.8% in Q1.

• Adjusted EBITDA loss was $2.4 million, swinging from positive $3.2 million in Q2 2024 and improving slightly from $2.5 million in Q1.

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

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

• Total expenses decreased 4.6% to $18.5 million, reflecting early savings from cost reduction measures.

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.