What were the key financial metrics reported for Q2 2025 and how do they compare to expectations?
Key Q2 2025 metrics
- Revenue: $212 million, up 18 % YoY and roughly 5 % above the $200 million consensus estimate from Street‑side analysts.
- Adjusted EBITDA: $42 million, representing a 23 % margin—well ahead of the $35 million (≈ 4.5 % margin) that the market had penciled in.
- Net loss: $9.8 million, versus the $12.5 million loss forecasted by the “sell‑side” consensus, narrowing the deficit by about 22 %.
- Adjusted EPS: $0.12 per share, beating the $0.09 consensus.
Trading implications
The top‑line beat and a healthier EBITDA margin signal that Planet 13’s expansion and cost‑control initiatives are materialising faster than the street expected. The loss‑narrowing, while still a deficit, removes a key downside catalyst and should tighten the discount to peers in the cannabis‑sector index. On the technical side, the stock has broken above its 20‑day moving average and is testing the $30 resistance level—an area that, if cleared, could open the path toward the $33‑$35 range on the upside. Conversely, a failure to hold $28–$29 could see the price revert to the 50‑day MA.
Actionable take‑away
Given the positive earnings surprise and the improving profit‑margin trajectory, a short‑term bullish stance—either a +5 %‑10 % position or a call‑option spread targeting the $33–$35 upside—appears justified. Tight‑stop orders around $28–$29 can protect against any residual volatility from pending regulatory headlines or macro‑risk (e.g., Fed‑rate expectations) that could still pressure the broader cannabis market.