Planet 13 (PLTH) Q2 2025 earnings summary

Executive summary

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

• 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.

• Net loss for Q2 2025 was $13.3 million ($0.04/share), compared to $8.1 million in Q2 2024, reflecting lower gross profit and cost reduction expenses.

• Adjusted EBITDA loss was $2.4 million, swinging from a positive $3.2 million in Q2 2024.

Financial highlights

• Gross profit for Q2 2025 was $11.7 million (43.4% margin), down from $15.8 million (50.9%) in Q2 2024, but up sequentially in margin from Q1.

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

• Operating cash used was $1.2 million in Q2, with $6.4 million used in operating activities for the first six months.

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

• Cash at June 30, 2025 was $15.9 million, with working capital of $21.2 million.

Outlook and guidance

• Management expects continued focus on customer experience, product innovation, and cost control to address competitive pressures.

• 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 believes current liquidity is sufficient for planned capital expenditures and operations over the next 12 months.