Planet 13 (PLTH) Q3 2025 earnings summary

Executive summary

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

• Net loss for Q3 2025 was $44.0 million ($0.14/share), including a $29.8 million non-cash impairment loss; nine-month net loss was $59.3 million ($0.18/share).

• Gross profit margin declined to 21.3% in Q3 2025 from 51.9% in Q3 2024, impacted by one-time charges and inventory write-downs.

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

• October showed sequential revenue improvement in Las Vegas and Florida, signaling early success of repositioning efforts.

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%.

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

• Cash at quarter end: $17.2 million; working capital: $18.6 million.

Outlook and guidance

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

• 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.

• Illinois operations to leverage exclusive product lines and wholesale agreements in 2026.