Planet 13 Announces Q1 2026 Financial Results

• Planet 13 Holdings Inc. reported Q1 2026 financial results on May 13, 2026.
• Revenue declined 24.8% year-over-year to $21.1 million from $28.0 million in Q1 2025.
• Net loss widened significantly to $8.1 million compared to a $2.0 million loss in the prior year period.
• Gross margin improved to 44.6% from 42.8% in Q1 2025, indicating operational efficiency despite lower sales volume.
• Adjusted EBITDA loss narrowed slightly to $2.3 million compared to a $2.5 million loss in the prior year period.
• Total expenses decreased by 19.0% year-over-year due to cost-cutting initiatives.
• Cash and restricted cash increased marginally to $16.3 million as of March 31, 2026, from $15.6 million at end of Q4 2025.
• Management attributes revenue decline to the exit from California retail/wholesale operations and price compression in Nevada and Florida.
• Federal medical rescheduling rule effective April 2026 is expected to benefit Florida operations.

• The news confirms the financial consequences of the strategic California exit announced in February 2026, which was previously categorized as a material positive operational move.
• Revenue decline is consistent with expectations following the divestiture of non-core assets but represents a significant contraction in top-line growth.
• The widening net loss ($8.1M vs $4.6M in Q4 2025) is concerning given management's claim that transition costs are behind us, suggesting underlying operational profitability remains elusive.
• Cash position stability ($16.3M) despite an $8.1M quarterly burn indicates the California exit proceeds or financing helped preserve liquidity, mitigating immediate solvency risk.
• The improvement in gross margin (44.6%) validates the strategic pivot toward higher-margin core markets but does not yet offset the revenue loss.
• Overall impact is negative on profitability metrics but neutral-to-positive on balance sheet preservation relative to the known exit strategy.

• Planet 13 Holdings Inc. operates a chain of cannabis dispensaries primarily in Nevada, Florida, Illinois, and previously California.
• Flagship Project: The Las Vegas flagship dispensary remains the largest revenue contributor alongside Florida expansion.
• Strategic Focus: Currently shifting capital allocation from cash-flow negative California operations to higher-return markets (Nevada and Florida).
• Operational Status: Completed exit from California retail and distribution licenses; Coalinga cultivation facility sale closed with license transfer underway.