Planet 13 Reports Q2 2025 Financial Results

LAS VEGAS – Planet 13 Holdings Inc., a vertically integrated multi-state Cannabis operator, released its Q2 2025 financial results, reflecting a challenging quarter marked by market pressures and strategic adjustments.

The company reported revenue of $26.9 million, down 13.6% from $31.1 million in Q2 2024, driven by price compression in Nevada and heightened competition in Florida. A net loss of $13.3 million widened from $8.1 million year-over-year, while Adjusted EBITDA swung to a $2.4 million loss from a $3.2 million gain.

The revenue decline reflects broader industry challenges, including a weaker consumer environment in Nevada, where Planet 13 operates its flagship dispensary near the Las Vegas Strip, and increased competition in Florida, a key growth market. Gross profit fell to $11.7 million, or 43.4% of revenue, from $15.8 million, or 50.9%, in Q2 2024, as industry-wide pricing pressure squeezed margins. Total expenses dropped 4.6% to $18.5 million from $19.4 million, signaling early success in cost-cutting measures, though severance and restructuring costs contributed to the quarter’s net loss.

The balance sheet showed cash reserves at $15.9 million, down from $23.4 million at year-end 2024, raising concerns about liquidity as the company funds expansion. Total assets slightly declined to $201.0 million from $206.7 million, while liabilities increased to $103.1 million from $94.0 million, reflecting debt obligations and operational commitments.

Planet 13 pursued expansion in Florida, opening dispensaries in Orange Park and Edgewater, bringing its total to multiple locations in this high-potential market. The company also launched a revamped loyalty program to boost customer retention amid competitive pressures. A leadership transition saw Steve McLean appointed interim CFO, following Dennis Logan’s resignation, signaling a focus on financial discipline.

Co-CEO Larry Scheffler emphasized the company’s aggressive pricing strategy in Nevada to leverage its scale, while maintaining quality and a superior retail experience. Co-CEO Bob Groesbeck highlighted cost reductions and balance sheet protection, with restructuring costs viewed as a step toward long-term efficiency. However, the Q1 2025 results, which showed $28.0 million in revenue and a narrower $2.0 million net loss, suggest that Q2’s performance was a step back, potentially due to seasonal factors or intensified market pressures.

The Cannabis industry faces ongoing headwinds, including oversupply in mature markets like Nevada and regulatory complexities in emerging markets like Florida. Planet 13’s Q2 results align with broader trends of margin compression, as seen in competitors’ reports. For instance, pricing pressures have been noted across the sector, with companies adjusting strategies to maintain market share. Planet 13’s focus on cost optimization and targeted pricing mirrors efforts by peers to navigate these conditions.

For investors, Planet 13’s ability to execute its strategy while managing cash burn will be critical. The company’s brand strength, particularly its Las Vegas dispensary and new consumption lounge, DAZED!, provides a competitive edge, but scaling operations in new markets like Florida and Illinois will require careful capital allocation.