Planet 13 (PLTH) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $23.3 million, down from $26.6 million in Q2 and 27.6% year-over-year, driven by lower tourist volumes in Nevada, operational challenges in Florida, price compression, and increased competition.

• Net loss reached $44.0 million, including a $29.8 million non-cash impairment loss; adjusted EBITDA loss was $4.1 million.

• Strategic exit from California underway to focus on higher-return markets and improve profitability.

• Significant cost reductions and operational restructuring implemented, with sequential revenue improvement in October in Las Vegas and Florida.

Financial highlights

• SuperStore and neighborhood network generated $21.1 million in retail revenue, down from $23.9 million in Q2.

• Wholesale revenue was $2.2 million, down from $2.7 million in Q2, due to winding down California and Nevada wholesale challenges.

• Gross profit was $5.0 million (21.3% margin), down from $16.7 million (51.9%) year-over-year; adjusted gross margin would have been ~45% excluding one-time costs.

• Operating expenses were $46.2 million, up 130.8% due to impairment charges; excluding impairments, operating expenses were $13.9 million, down 21.3%.

• Sales and marketing expense decreased 24% sequentially to $1.2 million; G&A declined 14% to $12 million.

Outlook and guidance

• Expecting stronger Q4 performance in core states, with margin improvement as one-time charges subside.

• Management expects improved margins and cash flow generation, focusing on disciplined operations in Nevada and Florida.

• BHO lab in Florida to be operational by year-end, with full product suite available in Q1 2026.

• California divestiture expected to close in Q1 2026, with positive margin impact in 2026.

• No immediate plans for new store openings in Florida; focus remains on profitability before expansion.