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P1

Planet 13 Holdings Inc. (PLNH)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $28.0M, down sequentially from $30.3M in Q4 2024 and below S&P Global consensus of $30.5M*, driven by pricing pressure and softer tourism; management highlighted cost alignment and efficiency initiatives to stabilize margins .
  • Gross margin compressed to 42.8% from 43.2% in Q4 and 51.9% in Q3, reflecting industry-wide pricing pressure, though Florida cultivation upgrades are expected to reduce discounting and support margin recovery .
  • Net loss improved year-over-year to $2.0M from $5.9M; Adjusted EBITDA was a loss of $2.5M versus breakeven in Q4, with lower operating leverage cited as the driver .
  • Strategic catalysts: continued Florida retail expansion (Port Richey, Orange Park, Edgewater) and a ~$10.5M recovery related to the El Capitan matter, supporting liquidity and operational focus in core markets .

What Went Well and What Went Wrong

What Went Well

  • Management reinforced brand differentiation and entertainment-led retail strategy as resilience drivers amid macro headwinds: “our differentiated brands and focus on entertainment continue to drive relative outperformance” – Co-CEO Larry Scheffler .
  • Net loss improved to $2.0M from $5.9M YoY, and total liabilities decreased slightly versus year-end, indicating measured financial discipline .
  • Florida cultivation upgrades beginning to improve product quality, expected to reduce discounting and expand gross margins in that market – CFO Dennis Logan .

What Went Wrong

  • Revenue missed consensus and declined sequentially; management cited seasonality, consumer weakness, and persistent pricing pressure across Nevada, California, and Illinois .
  • Gross margin fell to 42.8% from 51.9% in Q3 and 43.2% in Q4 due to industry-wide price compression; Adjusted EBITDA turned to a $2.5M loss on lower operating leverage .
  • Operating expenses rose year-over-year (Florida integration), and management is pursuing SG&A cost concessions (professional, audit, tax fees) to counter margin pressure .

Financial Results

Quarterly performance – sequential and trend comparison

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$32.159 $30.3 $28.032
Gross Profit ($USD Millions)$16.696 $13.1 $12.008
Gross Profit %51.9% 43.2% 42.8%
Operating Expenses ($USD Millions)$17.6 $35.8 $16.8
Operating Expenses %54.9% 118% 60.0%
Net Loss ($USD Millions)$(7.411) $(26.4) $(2.047)
Adjusted EBITDA ($USD Millions)$1.3 $0.0 $(2.5)
Adjusted EBITDA Margin %4.2% 0.0% -9.0%
Diluted EPS ($USD)$(0.02) $(0.16) $(0.01)

Q1 year-over-year comparison

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$22.877 $28.032
Gross Profit ($USD Millions)$10.484 $12.008
Gross Profit %45.8% 42.8%
Total Expenses ($USD Millions)$14.149 $18.620
Net Loss ($USD Millions)$(5.874) $(2.047)
Adjusted EBITDA ($USD Millions)$(0.0) $(2.5)

Actual vs S&P Global consensus (Q1 2025)

MetricActualConsensus Mean*Coverage*
Revenue ($USD Millions)$28.032 $30.5*1 estimate*
Adjusted EBITDA ($USD Millions)$(2.5) n/a (EBITDA consensus −$0.4M*, definitions may differ)Limited*
Diluted EPS ($USD)$(0.01) Unavailable*Unavailable*

Values retrieved from S&P Global*.

KPIs and balance sheet

MetricQ3 2024Q4 2024Q1 2025
Cash ($USD Millions)$27.411 $23.384 $15.557
Total Assets ($USD Millions)$242.959 $206.734 $203.786
Total Liabilities ($USD Millions)$92.284 $94.020 $93.059

Segment breakdown: Not disclosed in press release or filings for the quarter .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNone providedNone providedMaintained: no formal guidance
Gross MarginFY/QuarterNone providedQualitative: expect margin expansion in Florida as discounting reducesNarrative only (no numeric guidance)
OpEx/SG&AFY/QuarterNone providedFocus on cost alignment and concessions in professional/audit/tax feesNarrative only (no numeric guidance)
Tax rate, OI&E, dividendsFY/QuarterNot addressedNot addressedn/a

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Pricing pressure & consumer softnessAcknowledged seasonality and spending pressure; margins benefited from Florida and cultivation yields Price compression, targeted discounting in Florida pressured margins Persistent pricing pressure and consumer softness; sequential revenue decline Ongoing headwind
Florida operations & margin outlookAdded high-margin Florida revenue; footprint expansion Florida drove revenue growth; targeted discounting impacted margins Cultivation upgrades improving product quality; expect reduced discounting and margin expansion Improving setup
Cost discipline & SG&ANot emphasizedFocus on productivity and efficiency into 2025 Urgent cost alignment; pursuing SG&A concessions (professional/audit/tax) Intensifying
Tourism/Nevada dynamicsNot specifically highlightedNot specifically highlightedTourism softness cited as a factor in sequential decline Mixed
Liquidity & legal recovery (El Capitan)n/an/aSettlement and recovery totaling ~$10.5M expected including real property Positive liquidity tailwind
Retail expansionOpenings in Port Orange and additional FL stores Openings in Gulf Breeze and Panama City Openings in Port Richey, Orange Park, Edgewater (Daytona region) Continued expansion

Management Commentary

  • “This was a challenging quarter, marked by persistent pricing pressure and softness in tourism and consumer spending. Despite the headwinds, our differentiated brands and focus on entertainment continue to drive relative outperformance” – Larry Scheffler, Co-CEO .
  • “We are moving with urgency to align our cost base… sharpening our operational efficiency… prioritizing investments in our most strategic and high-performing assets” – Bob Groesbeck, Co-CEO .
  • “In Q1 2025… sequential decline [from Q4]… driven by seasonality, consumer weakness and persistent pricing pressure… Florida cultivation upgrades will help reduce discounting and drive gross margin expansion” – Dennis Logan, CFO .

Q&A Highlights

  • Cost actions: Management is actively reducing non-cannabis SG&A and corporate overhead, seeking concessions on professional, audit, and tax fees to support margin stabilization .
  • Florida strategy: Upgraded cultivation improving quality, with the goal of cutting discounting and lifting margins across the store network .
  • Demand environment: Sequential softness tied to seasonality and consumer weakness across Nevada, California, and Illinois; management expects a volatile landscape near-term .
  • Participants included ATB Capital Markets, Zuanic & Associates, and Partner Capital Group, focusing on costs, margin trajectory, and market conditions .

Estimates Context

  • Revenue missed consensus: $28.0M actual vs $30.5M* consensus; coverage limited (one estimate*), reflecting low Street participation for the name .
  • EBITDA context: Company reported Adjusted EBITDA loss of $2.5M; S&P Global shows an EBITDA consensus of −$0.4M* with differing definitions vs non-GAAP adjusted EBITDA .
  • EPS consensus unavailable*; reported diluted EPS was $(0.01) .
    Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Sequential slowdown and a revenue miss reflect broader cannabis pricing pressure and consumer softness; expect ongoing volatility near term as management focuses on cost alignment .
  • Florida cultivation upgrades are a key margin lever—watch for reduced discounting and improved GP% in coming quarters as quality improves .
  • Liquidity supported by ~$10.5M expected recovery tied to El Capitan; monitor timing of real property sale and further legal recoveries .
  • Cost initiatives (SG&A concessions) are critical to offset margin compression; look for evidence of operating leverage as tourism and demand normalize .
  • Near-term trading: stock likely sensitive to updates on Florida margin improvement and cost cuts; any signs of stabilizing pricing or improved tourism traffic in Nevada could be positive catalysts .
  • Medium-term thesis: entertainment-led flagship differentiation plus Florida footprint scale offer margin recovery potential; execution on costs and Florida cultivation ramp are pivotal to returning to sustained positive adjusted EBITDA .
  • Risk factors: persistent industry price compression, macro demand softness, and limited Street coverage (estimates) increase volatility and the importance of internal execution .

Additional Press Releases (Q1 2025)

  • RSUs granted to officers, directors, and employees under the 2023 Equity Compensation Plan (13.8M RSUs; vesting over 2026–2028), reflecting long-term alignment incentives .
  • Q1 press release highlights: openings in Port Richey, Orange Park, and Edgewater, Florida, supporting retail expansion in a key market .

Non-GAAP Adjustments and Impact

  • Adjusted EBITDA adds back share-based comp, M&A fees, El Capitan matter expenses, and excludes one-time gains (e.g., recovery of property in settlement), explaining divergence from GAAP net loss trajectory .