Planet 13 Reports Q1 2026 Financial Results

LAS VEGAS – Planet 13 Holdings Inc. released its first-quarter 2026 financials, reflecting the effects of substantial operational changes and declines in top-line figures, yet showcasing margin gains and cost controls as indications of progress following a period of restructuring.

For the three months ended March 31, revenue totaled $21.1 million, representing a 24.8% decrease from $28 million recorded in the same period last year – a downturn primarily attributed to the company’s exit from California retail and wholesale operations, along with ongoing price compression in Nevada and Florida. The net loss widened to $8.1 million.

Gross margin improved to 44.6% from 42.8% a year earlier. Operating expenses dropped 22.6% to $13 million, and the adjusted EBITDA loss narrowed slightly to $2.3 million from $2.5 million in Q1 2025. The cash position held firm. Planet 13 ended the quarter with $16.3 million in cash and restricted cash, up modestly from $15.6 million at year-end, with operating cash flow essentially at break-even.

“Q1 was a transition quarter that reflected the cost of the strategic work we executed over the past several quarters, including the California exit, the Wagon Trail consolidation in Nevada, and the disciplined cost reduction across the organization. With that work substantially behind us, Q2 is the first quarter the repositioned company will operate without those transition costs in our results,” noted Larry Scheffler, Co-CEO of Planet 13.

Planet 13 anticipates Q2 2026 to be the first quarter operating without transition costs from the California withdrawal, and expects its BHO concentrate facility in Florida to contribute significantly to revenue and margins. The company spent $0.7 million in CapEx during Q1, covering remaining construction payments for the Florida BHO lab and a new Sarasota store build, and expects minimal capital expenditures for the rest of the year. The federal regulatory shift on Cannabis rescheduling may prove equally significant.

In Nevada, illicit and hemp-derived product competition in Las Vegas continues to pressure market share. However, management expects that Clark County hemp regulations taking effect in July, along with potential (positive) federal action, will help rebalance that dynamic.

Planet 13’s Q1 highlights a well-known trend in the U.S. Cannabis industry right now: top-line pressure absorbed through structural cuts, with margin discipline doing most of the heavy lifting while markets wait for federal policy to catch up with commercial reality. The California exit removed a drag, the Florida BHO ramp-up is a near-term catalyst, and the S III Cannabis rescheduling is a real tax event. The throughline across MSOs this quarter is that 280E relief on medical Cannabis operations is solid, reasonable, and predictable, while broader structural questions around pricing, competition, and access to institutional capital remain unresolved. For Planet 13, Q2 will be the first unobstructed look at what the leaner, refocused company actually produces; and that quarter’s numbers will matter far more than these ones.