Planet 13 Reports Q3 2026 Financial Results

LAS VEGAS – Planet 13 Holdings Inc. reported substantially narrower third quarter losses after exiting California and curbing cultivation expenses, even as softer tourism in Las Vegas weighed on overall sales. Total revenue came in at $23.1 million, down 0.8% from $23.3 million a year earlier. Sales rose 1% compared to the second quarter, the company’s second consecutive sequential gain.

The annual dip reflected the company’s withdrawal from retail and wholesale operations in California alongside slower foot traffic and persistent price competition at its flagship Las Vegas Superstore. Growth in Florida helped offset those pressures, with state revenue surging 45% from the prior year and climbing 15.1% sequentially. Larry Scheffler, one of the company’s two chief executives, credited better flower from upgraded cultivation, a fuller product lineup that now includes BHO concentrates, and a more productive store network. Planet 13 also plans to expand its Florida footprint with an upcoming dispensary in Sarasota.

Profitability metrics improved markedly as management prioritized higher margin retail operations. Gross profit more than doubled to $13 million, lifting gross margin to 56.2% from 21.3% in Q3 2025. Lower cultivation costs in Nevada, improved outside procurement, a $1.1 million reduction in inventory reserves, and the exit from low margin California wholesale all contributed to the expansion.

Total expenses fell 62.1% to $17.5 million from $46.2 million a year earlier, a period burdened by a $29.8 million impairment charge. Stripping out that prior impairment as well as $2.4 million in current quarter merger advisory fees and a single legal settlement, core operating expenses declined 7.4% to $15.1 million.

On the bottom line, net loss narrowed to $6.4 million, or $0.02 per share, compared with a net loss of $44 million in the same period last year. Adjusted EBITDA loss shrank to $0.2 million from $4.1 million a year earlier. As detailed in the company’s quarterly financial filing with the Securities and Exchange Commission (SEC), operating cash outflow across the first nine months of the year dropped to roughly $175,000 from $10.6 million in the comparable 2025 period.

Planet 13 ended September with $15.7 million in combined cash and restricted cash, including $5.8 million in unrestricted funds, against $107 million in total liabilities and $139.8 million in assets.

Management declined to host an earnings conference call because of its pending all stock acquisition by Vireo Growth, a transaction detailed in regulatory merger filings. Federal securities regulators declared Vireo’s registration statement effective on November 2, clearing the way for Planet 13 shareholders to vote on the deal on December 10.

Company filings also note that Planet 13 will exit Nevada wholesale distribution in Q4 2026 with minimal expected revenue impact, while warning that limited capital availability could force operational restructuring if stockholders reject the merger.

For Cannabis industry observers, the quarter illustrates the harsh arithmetic governing multistate operators in mature markets. Tourist reliant destination retail in Las Vegas no longer guarantees easy margin expansion, pushing operators to shed unprofitable wholesale lines and lean heavily on limited license medical states like Florida. Even with healthier store level margins and near breakeven operating cash flow, Planet 13 faces a shrinking equity cushion and elevated liabilities. Operational belt tightening has bought the company time, yet combining scale with Vireo offers a far more durable path through an industry still starved for institutional capital.