Planet 13 Holdings Inc.

Planet 13 reported Q1 2026 revenue of $21.1 million, down from $25.2 million in Q4, and gross profit of $9.4 million with gross margin of 44.6%, flat versus Q4 as reported. Sales and marketing expense was $1.2 million, down 22% year over year, G&A was $11.2 million versus $12.0 million in Q4 and nearly $3 million lower year over year, and adjusted EBITDA was a loss of $2.3 million versus a loss of $0.3 million in Q4 and a loss of $2.4 million in Q1 2025. The company ended the quarter with $16.3 million in cash and restricted cash, spent $0.7 million in CapEx, and said operating cash flow was essentially breakeven. Management did not give formal numeric Q2 or full-year revenue/EBITDA guidance, but said April retail performance tracked the internal Q2 plan and that Q2 should be the first quarter without California transition drag; they also expect gross margin to improve as 2026 progresses and cash to increase through the year.

Larry Scheffler framed Q1 as a deliberate transition quarter, saying the company absorbed the costs of repositioning in pursuit of better cash flow. He pointed to early April improvement across all three neighborhood markets and said Q2 should be the first quarter that reflects the repositioned portfolio without transition drag. His tone was cautious on the macro backdrop, citing weak tourism, tough pricing and illicit hemp, but more optimistic about the back half of the year as hemp enforcement and the company’s restructuring benefits begin to show.

Steve McLean emphasized that the sequential revenue decline was mostly nonrecurring, citing roughly $2.5 million of California revenue lost from the divestiture and the absence of the Florida loyalty accrual benefit from Q4. He highlighted gross profit of $9.4 million, 44.6% gross margin, a $0.8 million sequential reduction in G&A to $11.2 million, and adjusted EBITDA of negative $2.3 million. On the balance sheet, he noted $16.3 million of cash and restricted cash, $0.7 million of CapEx, essentially breakeven operating cash flow, and about $1.5 million of divestiture proceeds. He also said the Q1 tax provision of $4.2 million still reflects pre-rescheduling 280E treatment and that the company is evaluating the roughly $37 million uncertain tax position liability.

Pablo Zuanic asked when hemp-related enforcement would start helping sales and whether Florida competitive dynamics would cause Planet 13 to add stores. Management said they are hearing some early destocking in Florida but not seeing it in store numbers yet, and no meaningful impact in Las Vegas so far; they expect more benefit as July approaches. On Florida expansion, Larry said the company is holding tight on store count for now and wants to conserve cash unless traffic materially improves. Pablo also asked about the Q4 Florida loyalty accrual, and Larry clarified it was a one-time item of a little over $2 million tied to a modified loyalty program and prior purchase accounting, and it will not recur.