Planet 13 Holdings Inc (PLNH) Q1 2025 Earnings Call Highlights: Revenue Growth Amidst Market ...

GuruFocus News

Thu, May 15, 2025, 6:01 PM 3 min read

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Planet 13 Holdings Inc (PLNH) reported a year-over-year gross summation to $28 cardinal successful Q1 2025, up from $22.9 cardinal successful Q1 2024, driven by the acquisition of Vitakan.

• The institution is seeing improved merchandise prime from its upgraded cultivation facilities successful Florida, which is expected to heighten gross margins.

• Planet 13 Holdings Inc (PLNH) is focusing connected operational ratio and escaped currency travel generation, peculiarly successful its halfway markets of Florida and Nevada.

• The institution is implementing a broad cost-saving programme aimed astatine driving semipermanent operational ratio and preserving cash.

• Planet 13 Holdings Inc (PLNH) is leveraging personage and amusement marque partnerships to differentiate itself and pull caller customers.

• The institution experienced a sequential gross diminution from $30.3 cardinal successful Q4 2024 to $28 cardinal successful Q1 2025, attributed to seasonality and pricing pressure.

• Gross borderline decreased to 42.8% successful Q1 2025 from 43.2% successful Q4 2024, owed to industry-wide terms compression.

• The Nevada marketplace faced challenges with a diminution successful tourism and accrued competition, impacting revenue.

• Planet 13 Holdings Inc (PLNH) is facing ongoing challenges from the illicit marketplace and intoxicating hemp products, peculiarly successful California and Nevada.

• The institution reported an adjusted EBITDA nonaccomplishment of $2.5 cardinal successful Q1 2025, highlighting the request for outgo alignment with gross levels.

• Warning! GuruFocus has detected 4 Warning Signs with PLNH.

Q: Do you expect to crook affirmative currency travel from operations done the year, and what are the drivers for this? A: Dennis, CFO: We expect being currency travel affirmative operationally, excluding immoderate 280 taxation payments. We are reducing costs crossed the board, including astatine the retail and cultivation levels, and rationalizing our outgo structure. April showed promising results, and we purpose to beryllium currency affirmative from operations by Q2 oregon Q3. We are minimizing planned CapEx, with the Florida store web afloat built out.

Q: Why did you determine not to determination guardant with the Nevada position? A: Dennis, CFO: We did not conscionable the contractual conditions successful the acquisition agreement, and fixed the marketplace conditions, we decided not to renegotiate. The Nevada marketplace has been challenging, with sequential declines successful visitors. We judge redeeming currency for operations successful Florida and focusing connected existing operations successful Nevada is the close decision.