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Planet 13 Holdings Inc. (PLNH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 undershot expectations: revenue of $23.27M missed S&P Global consensus of $24.45M (−$1.18M, −4.8%), and GAAP EPS of $(0.14) materially missed consensus of $(0.03) as the quarter included a $29.8M non‑cash impairment and inventory reserve charges that depressed margins . Estimates marked with * are from S&P Global. Revenue Consensus Mean: $24.45M*, Primary EPS Consensus Mean: $(0.03)*.
  • Gross margin compressed to 21.3% vs 51.9% YoY due to one‑time items; management said excluding one‑time costs, underlying gross margin would have been ~45%, highlighting core profitability potential if cost actions hold .
  • Management executed a strategic retrenchment: exited California (divested Orange County store, closed Coalinga cultivation) to cut cash burn and refocus on Nevada and Florida; October showed sequential improvement, and a BHO lab is slated to come online by year‑end to support margin rebuild .
  • Sequentially, revenue fell 13.3% from Q2’s $26.85M, with call commentary citing Nevada tourism weakness and Florida competitive/pricing headwinds; the exit of California and expected cost benefits were positioned as near‑term catalysts heading into Q4 .

What Went Well and What Went Wrong

What Went Well

  • Cost discipline and portfolio focus: “We took decisive action to address our cost structure… Exiting California eliminates a persistent cash drain and allows us to focus our resources on Nevada and Florida” — Co‑CEOs Larry Scheffler and Bob Groesbeck .
  • Core margin potential intact: Management stated “underlying gross margin would have been approximately 45%” excluding one‑time items, supported by cultivation strength and pricing competitiveness .
  • Operational momentum: October trends were sequentially better in Nevada and Florida; Florida footprint expanded with DeLand and Pace openings in October, and the BHO lab targeted by year‑end to improve product mix and margins .

What Went Wrong

  • Sharp topline and margin pressure: Revenue down 27.6% YoY to $23.3M; gross margin fell to 21.3% (from 51.9% YoY), reflecting one‑time charges and pricing/consumer softness .
  • Large non‑cash impairment and reserves: $29.8M impairment and inventory reserves drove net loss to $(44.0)M and EBITDA to $(40.3)M on a GAAP basis; Adjusted EBITDA was $(4.1)M vs $1.3M in Q3’24 .
  • Market headwinds: Call commentary emphasized Nevada tourism weakness and Florida pricing/competitive pressure; sequential revenue declined 13.3% QoQ (from $26.85M to $23.27M) .

Financial Results

P&L summary (chronological: oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($)$32,159,070 $28,031,807 $26,854,361 $23,270,211
Gross Profit ($)$16,696,020 $12,007,505 $11,658,493 $4,958,861
Gross Margin (%)51.9% 42.8% 43.4% 21.3%
Operating Expenses ($)$17.6M $16.8M $16.6M $13.9M
Total Expenses ($)$20,020,465 $18,620,029 $18,484,363 $46,204,708
Net Loss ($)$(7,411,190) $(2,047,167) $(13,301,242) $(43,955,853)
Diluted EPS ($)$(0.02) $(0.01) $(0.04) $(0.14)
Adjusted EBITDA ($)$1.3M $(2.5)M $(2.4)M $(4.1)M

Q3 2025 actual vs S&P Global consensus

MetricActualConsensusDelta
Revenue ($)$23,270,211 $24,450,000*$(1,179,789)
Primary EPS ($)$(0.14) $(0.03)*$(0.11)

Values marked with * retrieved from S&P Global.

Non‑GAAP context and adjustments

  • One‑time items: $29.8M impairment, $3.5M inventory reserve contributed to margin compression and GAAP losses; Adjusted EBITDA excludes these and other listed items per reconciliation .
  • EBITDA vs Adjusted EBITDA: GAAP EBITDA was $(40.3)M with impairment included, while Adjusted EBITDA was $(4.1)M after removing one‑time/non‑cash items .

Balance sheet snapshot

Metric12/31/20246/30/20259/30/2025
Cash ($)$23,384,493 $15,853,538 $17,181,080
Total Assets ($)$206,734,079 $200,977,939 $158,497,199
Total Liabilities ($)$94,020,158 $103,054,800 $103,913,259
Shareholders’ Equity ($)$112,713,921 $97,923,139 $54,583,940

Segment breakdown

  • The company did not disclose segment revenue detail in the Q3 2025 8‑K press release; management focused commentary on Nevada and Florida operations and the exit of California .

KPIs and operating highlights

KPIQ1 2025Q2 2025Q3 2025
New FL dispensaries opened (quarter)Orange Park (Apr 2), Edgewater (Apr 30) —DeLand (Oct 13), Pace (Oct 20)
Loyalty program update—Revamped loyalty program announced Jul 11 Continued
State portfolio actions——Divest OC store; close Coalinga cultivation (CA)
Underlying gross margin (ex one‑time)——~45% (management indication)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Monthly cash flow improvement (post‑CA exit)Post‑divestituren/a$0.30M–$0.35M per month (management commentary) New metric
BHO lab go‑liveBy year‑end 2025n/a“BHO lab coming online by year‑end” New milestone
Strategic focusOngoingn/aExit CA; focus capital on NV and FL for higher returns Strategy refined

Note: No quantitative revenue/margin/OpEx ranges were provided in company materials; guidance was qualitative and operational.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q‑2 and Q‑1)Current Period (Q3 2025)Trend
Pricing pressure/consumer softnessQ1: industry‑wide pricing pressure; Q2: aggressive pricing in NV to leverage scale Continued Nevada tourism weakness; Florida pricing pressure; sequential revenue −13.3% QoQ (26.85M→23.27M) Worsened in Q3
Cost reduction/SG&A controlQ2: early savings from company‑wide actions “Reducing SG&A significantly” and taking one‑time charges to reset Improving structurally
Portfolio rationalization—Exit California (divest OC, close Coalinga) to eliminate cash drain and refocus Positive strategic pivot
Florida expansion/brand launchesQ1/Q2: multiple new FL stores opened Additional FL store openings (DeLand, Pace) and HaHa soft chews launch in FL Expanding footprint
Margin rebuild initiatives—Underlying gross margin ~45% ex one‑time; BHO lab by year‑end to support mix/margins Setup for improvement

Management Commentary

  • “Q3 marked the low point for Planet 13… Excluding these one‑time items, our underlying gross margin would have been approximately 45%… October's sequential improvements in both Nevada and Florida validate that we've turned the corner.” — Larry Scheffler, Co‑CEO .
  • “Exiting California eliminates a persistent cash drain and allows us to focus our resources on Nevada and Florida… With our BHO lab coming online by year‑end and early momentum building in Q4, we're executing against a clear roadmap: disciplined operations, improved margins, and durable cash flow generation.” — Bob Groesbeck, Co‑CEO .

Q&A Highlights

  • Demand headwinds: Management cited Nevada tourism weakness and pricing/competitive pressures in Florida as key drivers of sequential revenue decline .
  • California exit: Management emphasized the strategic rationale to remove cash‑negative operations and reallocate capital to NV and FL .
  • Cash flow outlook: Post‑divestiture, management referenced an expected ~$0.30–$0.35M monthly cash flow improvement, contingent on execution and timing .
  • Margin roadmap: BHO lab timing and increased self‑manufactured mix targeted to aid margins in coming quarters .

Estimates Context

  • Q3 2025 revenue of $23.27M missed S&P Global consensus of $24.45M (−4.8%); GAAP EPS of $(0.14) missed $(0.03) consensus by $0.11. Coverage exists, but breadth remains limited for non‑GAAP metrics; comparisons should anchor to GAAP EPS and revenue . Revenue Consensus Mean $24.45M*, Primary EPS Consensus Mean $(0.03)*.
  • Given the large non‑cash impairment, non‑GAAP comparisons (e.g., Adjusted EBITDA) vs consensus are less clean; investors should focus on trajectory of underlying gross margin and SG&A run‑rate into Q4. Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Core profitability potential is better than GAAP suggests: excluding one‑time items, underlying gross margin ~45% indicates a credible path to margin recovery if pricing stabilizes and mix improves .
  • Strategic refocus reduces risk: exiting California removes a structural cash drain and concentrates capital and management attention on NV/FL, where scale and brand equity are stronger .
  • Near‑term catalysts: BHO lab coming online by year‑end and observed October improvements set up a better Q4 margin profile, though macro demand/tourism in NV remains a swing factor .
  • Estimate resets likely: Revenue and EPS misses vs S&P Global consensus imply modest downward estimate revisions for FY and Q4, especially if Florida pricing remains tough and NV visitation is soft . Revenue Consensus Mean $24.45M*, Primary EPS Consensus Mean $(0.03)*.
  • Liquidity/BS watch‑items: Cash at $17.18M with liabilities ~$103.9M and equity reduced to $54.6M post‑impairment; monitor cash burn, working capital, and realization of monthly cash flow uplift post‑divestiture .
  • Tactical view: Shares are likely sensitive to incremental NV/FL demand data and proof‑points on cost/margin delivery; any sustained improvement in weekly/monthly comps or mix (BHO) could support a relief rally, while continued price compression would pressure the path to breakeven .

References and Sources

  • Q3 2025 8‑K/Press Release and financial statements: results, reconciliation, balance sheet, quotes .
  • Q2 2025 8‑K/Press Release and financial statements: sequential comps and commentary .
  • Q1 2025 8‑K/Press Release and financial statements: trend context .
  • California exit press release (Nov 3, 2025) .
  • Earnings call transcript coverage and summaries .
  • S&P Global consensus (retrieved via tool): Revenue Consensus Mean $24.45M*, Primary EPS Consensus Mean $(0.03)*. Values marked with * retrieved from S&P Global.