Planet 13 Holdings Reports 24.8% Revenue Decline in Q1 2026, Net Loss Increases

Planet 13 Holdings Inc. reported a significant decline in financial performance for the first quarter of 2026, with net revenues of $21.1 million, a decrease of 24.8% from $28.0 million in the same period last year. The company attributed this drop primarily to its exit from the California market, which accounted for nearly half of the revenue decline, as well as ongoing price compression across all markets due to increased competition and the impact of the illicit market. The gross profit for the quarter was $9.4 million, resulting in a gross profit margin of 44.6%, an improvement from 42.8% in the prior year, despite the overall decrease in revenue.

In terms of expenses, Planet 13 managed to reduce its total expenses by 19% to $15.1 million, down from $18.6 million in the previous year. General and administrative expenses decreased by 20% to $11.2 million, reflecting cost-cutting measures implemented throughout 2025. However, the company reported a net loss of $8.1 million, or $0.02 per share, compared to a net loss of $2.0 million, or $0.01 per share, in the first quarter of 2025. The increase in net loss was largely due to a significant rise in income tax expenses related to uncertain tax positions under IRC 280E.

Operationally, Planet 13 employed approximately 650 people as of March 31, 2026, and continued to focus on enhancing customer experience at its Las Vegas Superstore. The company has also been working on expanding its footprint in Florida, where it operates under the VidaCann brand, and plans to open additional dispensaries in Sarasota and St. Petersburg. The company’s exit from California operations is expected to be finalized in the second quarter of 2026, pending regulatory approval.

The filing also highlighted strategic developments, including the sale of its Orange County dispensary assets, which contributed to a gain of $1.5 million in other income for the quarter. Despite the challenges faced, management remains optimistic about future growth, particularly in Florida, where they anticipate scaling operations and introducing new products. The recent reclassification of marijuana from Schedule I to Schedule III under the Controlled Substances Act is expected to provide tax relief and facilitate further expansion.

Looking ahead, Planet 13 aims to drive customer traffic to its Las Vegas location through targeted marketing efforts and partnerships, while continuing to monitor market conditions and competition. The company believes it has sufficient liquidity to fund operations over the next 12 months, although it may need to arrange additional financing to support growth initiatives.