Planet 13 Holdings Inc. Reports Q3 2025 Financial Results
Planet 13 Holdings Inc. (OTCQX: PLNH) released its third‑quarter 2025 financial statements on November 12, 2025, providing a comprehensive view of the company’s performance amid ongoing expansion and restructuring efforts. The data reflect a challenging revenue environment, significant profitability pressures, and strategic moves that could reshape the business’s future trajectory.
Key Financial Highlights
| Metric | Q3 2025 | YoY % Change |
|---|---|---|
| Revenue | $23.3 million | ‑27.6 % |
| Gross profit | $5.0 million | ‑70.6 % |
| Gross margin | 21.3 % | ‑30.6 % |
| Net loss | $44.0 million | Includes $29.8 million non‑cash impairment |
| Adjusted EBITDA loss | $4.1 million | |
| Cash and cash equivalents | $17.2 million | |
| Total liabilities | $103.9 million |
Gross margin excluding one‑time items is projected to be approximately 45 % by management, indicating that the underlying operational efficiency could rebound once non‑recurring expenses are removed.
Operational Context
- Divestiture and Market Entry: The company completed the sale of its California assets on November 3, 2025. This divestiture was part of a broader strategy to streamline operations and concentrate on high‑growth markets. Concurrently, Planet 13 opened a new network of dispensaries in Florida during Q3/Q4, positioning itself in a state with a rapidly expanding recreational market.
- Product Development: Management highlighted a planned launch of a BHO (butane hash oil) laboratory by year‑end, underscoring a shift toward premium, value‑added cannabis products that could improve margin profiles.
- Capital Structure: Cash reserves of $17.2 million provide a buffer for ongoing operations and upcoming product development, while total liabilities have risen to $103.9 million, reflecting the cost of expansion and recent acquisitions.
Market Reaction and Forward Outlook
- Stock Performance: As of November 10, 2025, the share price traded at $0.181, a 32 % decline from the 52‑week high of $0.528 and a modest rise from the 52‑week low of $0.171. Market capitalization stands at approximately $70 million.
- Analyst Expectations: The company’s Q3 results align with analyst forecasts that anticipate a continued revenue decline (≈ 20 % YoY) and a loss per share near $0.028. However, analysts project a modest improvement in gross margin to 45 % once one‑time items are excluded.
- Strategic Implications: The divestiture of California assets frees capital for Florida expansion and potential product innovations. The planned BHO lab could unlock higher‑margin product lines, potentially reversing the downward pressure on profitability.
Conclusion
Planet 13’s Q3 2025 results illustrate a company in transition. While revenue and gross profit have contracted sharply, management’s focus on high‑margin product development and market repositioning signals a proactive approach to restoring profitability. Investors will be watching closely how the Florida dispensary rollout and the forthcoming BHO laboratory influence the company’s financial trajectory in the coming quarters.
