Planet 13 Holdings Reports 14.9% Revenue Decline in Q2 2026, Despite Improved Gross Profit

Planet 13 Holdings Inc. reported a decline in financial performance for the second quarter of 2026, with net revenues of $22.9 million, a decrease of 14.9% compared to $26.9 million in the same period last year. For the first half of 2026, revenues totaled $44.0 million, down 19.9% from $54.9 million in the prior year. The company attributed this decline primarily to its exit from the California market, which accounted for a significant portion of the revenue drop, alongside ongoing price compression and reduced customer traffic in Nevada due to decreased tourism.

Despite the revenue decline, the company achieved a gross profit of $12.3 million for the second quarter, reflecting a gross profit margin of 53.9%, up from 43.4% in the previous year. This improvement was driven by cost reductions in cultivation and procurement, as well as a positive adjustment to inventory reserves. Total expenses decreased by 17.7% to $15.2 million, contributing to a reduced loss from operations of $2.9 million, compared to a loss of $6.8 million in the same quarter last year. The net loss for the quarter was $5.6 million, significantly lower than the $13.3 million loss reported in the prior year.

Operationally, Planet 13 has focused on enhancing customer experience and expanding its footprint. As of June 30, 2026, the company employed approximately 650 people and operated a superstore in Las Vegas, alongside neighborhood stores in Nevada and a dispensary in Illinois. The company has also made strategic moves, including the sale of its California licenses and the completion of a merger agreement with Vireo Growth Inc., which is expected to enhance its market position and operational capabilities.

The company’s cash position improved, with cash and restricted cash totaling $16.5 million as of June 30, 2026, compared to $15.9 million a year earlier. Planet 13 reported positive cash flow from operating activities of $429,408 for the first half of 2026, a significant turnaround from the cash used in operations of $6.4 million in the same period last year. Looking ahead, the company remains focused on driving customer traffic, particularly in Nevada, and is optimistic about future growth opportunities as it continues to adapt to market conditions and consumer preferences.