Planet 13 Reports Q3 2025 Financial Results

LAS VEGAS – Planet 13 Holdings Inc., a multistate Cannabis operator with flagship operations in Nevada and Florida, disclosed a $44 million net loss for the third quarter, reflecting the toll of compressed prices, softening demand, and one-time charges across its portfolio.

Revenue fell to $23.3 million, a 27.6% drop from $32.2 million a year earlier, as Nevada’s tourism slump [with visitor volume down 10% year over year] eroded sales at the company’s high-profile Las Vegas superstore. The dispensary, known for its entertainment draw, generated $9.8 million, while a network of smaller neighborhood outlets added $11.3 million. Florida contributed $7.6 million but grappled with market saturation and prior inventory quality issues that prompted a $3.5 million reserve charge. Wholesale revenue, at $2.2 million, also declined amid restructuring in Nevada and the wind-down of California activities.

Gross profit shrank to $5 million, yielding a 21.3% margin, a sharp retreat from 51.9% in the prior year after accounting for $1.1 million in costs tied to offloading California stock at a discount and the Florida reserve. Excluding those items, the margin held closer to 45%, a figure executives attributed to efficiencies in cultivation and competitive pricing. Operating expenses dropped 21% to $13.9 million, signaling early traction from cost controls, though total expenses ballooned to $46.2 million on a $29.8 million non-cash impairment related to Florida and California assets. Adjusted EBITDA swung to a $4.1 million loss from a $1.3 million gain last year.

Cash reserves stood at $17.2 million at quarter’s end, down from $23.4 million at year-start, with short-term debt at $10.6 million. Capital spending has tapered to under $1 million remaining, focused on completing a butane hash oil (BHO) lab in Florida.

Co-chief executives Larry Scheffler and Robert Groesbeck framed the period as a “trough,” marked by tough calls including the full exit from California, where unchecked illicit competition and regulatory hurdles turned operations into a persistent drain. The divestiture, set to close in the first quarter of 2026, is projected to free up $300,000 to $350,000 in monthly cash flow. In Nevada, efforts to court local customers through events and promotions showed promise, with October revenue up 5% from September. Florida’s outlook brightened too, with an 8% sequential gain last month and upgrades to flower potency and extraction capabilities slated to expand the product lineup by early next year.

For investors tracking the Cannabis sector’s uneven recovery, Planet 13’s results underscore a familiar script: oversupply and economic headwinds testing even well-positioned players. Yet the company’s pivot to core markets, paired with October’s uptick, points to a stabilizing base. Here at Highly Capitalized Network-HCN, we see this as a reset moment, not a reversal, but a disciplined step toward margins that can weather the cycle’s next turn.