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Planet 13 Holdings Inc. (PLNH)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $30.3M, below S&P Global consensus of $32.2M*, with gross margin compressing to 43.2% and Adjusted EBITDA at breakeven; net loss was $26.4M including a non‑cash impairment of $18.9M . S&P Global consensus revenue for Q4 2024 was $32.2M*, versus actual of $30.3M .
  • Sequentially, revenue declined from $32.2M in Q3 and gross margin fell from 51.9% to 43.2% due to industry price compression and targeted discounting in Florida .
  • Management highlighted 2025 execution priorities: $3–5M capex for targeted Florida manufacturing upgrades and additional store openings, debt paydown (~$3.3M bank debt repaid in Feb 2025), and ~$2.1M additional cash recovery in March (total ~$10.5M including real property) tied to the El Capitan matter
  • Q4 catalysts included Florida footprint expansion (Port Orange Oct 15, Gulf Breeze Dec 18, Panama City Dec 26) and call commentary on pricing headwinds and illicit/hemp competition; press coverage noted the stock dipped around the release

What Went Well and What Went Wrong

What Went Well

  • Revenue grew 31.8% YoY to $30.3M, with Florida driving growth; gross profit rose 19.2% YoY to $13.1M .
  • Balance sheet strengthened: cash rose to $25.4M, total assets to $206.7M; Planet 13 operated 30 Florida dispensaries and 34 locations nationwide by year‑end .
  • Management emphasized disciplined execution and efficiency initiatives: “We are taking decisive steps to enhance per‑store performance, optimize retail and wholesale operations, and streamline corporate costs…” — Co‑CEO Bob Groesbeck .

What Went Wrong

  • Gross margin compressed to 43.2% (from 51.9% in Q3) due to industry price compression and targeted discounting in Florida; Adjusted EBITDA declined to $0.0M vs $1.3M in Q3 .
  • Non‑cash impairment of $18.9M drove operating expenses higher (Q4 opex $35.8M vs $18.1M YoY) and widened net loss to $26.4M .
  • Management cautioned on continued pricing headwinds and competition from illicit markets and intoxicating hemp in CA/NV/FL, impacting top‑line and margins .

Financial Results

Quarterly Comparison (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$31.1 $32.2 $30.3
Gross Profit ($USD Millions)$15.8 $16.7 $13.1
Gross Margin %50.9% 51.9% 43.2%
Net Loss ($USD Millions)$(8.1) $(7.4) $(26.4)
Adjusted EBITDA ($USD Millions)$3.2 $1.3 $0.0
Adjusted EBITDA Margin %10.3% 4.2% 0.0%
Cash And Equivalents ($USD Millions)$26.7 $27.4 $25.4

Q4 2024 Actual vs S&P Global Consensus

MetricActualConsensusSurprise ($)Surprise (%)
Revenue ($USD Millions)$30.3 $32.2*$(1.9)-5.9%
EBITDA ($USD Millions)$(2.5) $0.7*$(3.2)n/a

Values with asterisk retrieved from S&P Global.

Segment/Channel Indicators

MetricQ4 2023Q3 2024Q4 2024
Retail Revenue ($USD Millions)$19.2 $29.0 $26.9

KPIs

KPIQ2 2024Q3 2024Q4 2024
FL Dispensary Count26 29 30
Total Locations Nationwide32 33 34
Total Assets ($USD Millions)$242.4 $243.0 $206.7
Total Liabilities ($USD Millions)$84.4 $92.3 $94.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capex (targeted upgrades, manufacturing FL; additional stores)Next 12 monthsn/a$3–5M New
Debt (bank debt from VidaCann)Feb 2025~$3.3M outstanding ~$3.3M paid off Reduced
Notes payable (VidaCann)Apr 1, 2025n/a~$5.0M due Informational
Revenue/EPS/margin guidance2025None disclosedNone disclosedMaintained (no formal guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Florida expansionClosed VidaCann, added 26 FL stores; sequential growth; DAZED! lounge launched Continued store openings (Ocala), Port Orange announced; seasonality headwinds Opened Gulf Breeze and Panama City; continued focus on per‑store productivity Scaling footprint; optimizing operations
Pricing/marginsGross margin 50.9%; owned brands mix helped Gross margin 51.9%; improved cultivation yields; margin strength Gross margin fell to 43.2% on price compression and discounting in FL Margin pressure intensifies
Illicit market/hemp competitionn/aConsumer spending headwinds noted Explicit concerns on illicit and intoxicating hemp in CA/NV/FL Heightened headwind
Capital allocationSequential organic growth; cost control; capex ongoing Prioritized cash flow; strong balance sheet $3–5M capex plan; debt reduction; funds recovery Focus on productivity and liquidity
Brand/retail initiativesLifestyles brand; DAZED! lounge HaHa edibles distribution expansion; Khalifa Kush partnership NV Continued strategic brand positioning across core markets Ongoing

Management Commentary

  • “In 2024, despite industry‑wide price compression, we remained disciplined in executing our key priorities—expanding our retail footprint, scaling operations, and strengthening our product portfolio and brand equity.” — Larry Scheffler, Co‑CEO .
  • “As we move into 2025, our focus is on maximizing productivity and efficiency across our footprint… streamlin[ing] corporate costs—all with a clear goal of strengthening margins.” — Bob Groesbeck, Co‑CEO .
  • CFO commentary: unrestricted cash was $23.4M at year‑end; ~$1.4M used in Q4 operating cash flow; $3–5M capex planned; ~$3.3M bank debt paid off; additional $2.1M recovered and ~$5M real property, totaling ~$10.5M related to El Capitan .

Q&A Highlights

  • Analysts probed Florida pricing and margin outlook; management reiterated headwinds from illicit/hemp competition and focus on differentiation via product quality and brand positioning .
  • Capex prioritization: targeted manufacturing upgrades and selective store openings in Florida to improve per‑store productivity .
  • Liquidity actions: debt paydown and cash recoveries tied to El Capitan to bolster flexibility; notes payable timing (Apr 1) discussed .
  • Tone vs prior quarters: more cautious on near‑term pricing/margins but confident in long‑term positioning and operational improvements .

Estimates Context

  • Q4 2024 revenue missed S&P Global consensus ($30.3M actual vs $32.2M*), while EBITDA was negative vs a modest positive consensus (actual $(2.5)M vs $0.7M*) .
  • With gross margin down to 43.2% and management signalling ongoing pricing pressure, Street EBITDA and margin assumptions likely need to drift lower near‑term to reflect Florida discounting and the competitive backdrop .
    Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

  • Florida expansion remains the top growth lever, but near‑term margin pressure from price compression and discounting is a central risk to profitability .
  • Execution pivot to productivity: watch capex deployment ($3–5M) and per‑store metrics in Florida for operating leverage restoration .
  • Liquidity improving: debt reduction and ~$10.5M total recovery tied to El Capitan support flexibility; monitor timing of asset sale proceeds and remaining legal recovery .
  • Near‑term trading: absent formal revenue/margin guidance and with margin compression, risk‑reward skews to headlines (pricing, regulatory progress in FL, illicit/hemp enforcement) and cadence of cost actions .
  • Medium‑term thesis: scaled FL network plus brand partnerships (e.g., Khalifa Kush in NV) and entertainment‑driven retail experiences (DAZED!) provide differentiation once pricing normalizes .
  • Watch retail mix and gross margin trajectory; sequential improvement from Q4 lows would be an early signal that discounting is abating and cultivation upgrades are paying off .
  • Corporate cost discipline and operating efficiency programs are central to restoring Adjusted EBITDA; track quarterly opex and non‑cash charges .

Values with asterisk retrieved from S&P Global.