Planet 13 Holdings Inc.

Planet 13 reported Q1 2026 revenue of $21.1 million versus $25.2 million in Q4, gross profit of $9.4 million, and gross margin of 44.6%. Adjusted EBITDA was a loss of $2.3 million, compared with a loss of $0.3 million in Q4 and a loss of $2.4 million in Q1 2025. Sales and marketing expense was $1.2 million, down 22% year-over-year, and G&A was $11.2 million, nearly $3 million lower year-over-year. Cash and restricted cash ended at $16.3 million, up from $15.6 million at year-end, and operating cash flow was essentially breakeven. Management did not give formal next-quarter or full-year revenue guidance, but said April retail performance tracked the internal Q2 plan and that Q2 should be the first quarter without California wind-down transition costs. They also said Florida BHO revenue is expected to begin in Q2 and contribute to gross margin through the back half of 2026, while cash position is expected to improve through 2026.

Larry Scheffler characterized Q1 as a transition quarter and said the company has been repositioning for better cash flow, with the benefit beginning to show in April. He highlighted stabilization in Las Vegas tourism, sequential improvement in all three neighborhood markets in April, and said Q2 should be the first quarter that reflects the repositioned portfolio without transition drag. He also said the company is being cautious in Florida, holding store count steady and conserving cash until it sees stronger traffic and customer growth.

Steve McLean said the Q1 revenue decline was driven almost entirely by two nonrecurring items: the California divestiture, which removed about $2.5 million of quarterly revenue, and the absence of the Florida loyalty accrual benefit recognized in Q4. He said gross profit was $9.4 million with 44.6% margin, and that margin would have been 5.4% higher excluding the Q4 loyalty adjustment; he also noted the Florida BHO lab, the California exit, and Nevada consolidation should support materially better margins as 2026 progresses. He said G&A fell to $11.2 million, down nearly $3 million year-over-year, cash and restricted cash were $16.3 million, CapEx was $0.7 million, and the tax provision included $4.2 million under pre-rescheduling 280E treatment with roughly $37 million in uncertain tax positions still on the balance sheet.

Analysts focused on whether hemp competition was already causing retailers to destock or reorder less, and management said they were hearing about that tangentially in Florida but were not yet seeing it show up in store numbers, while Las Vegas effects were not material yet. Another question centered on Florida expansion plans; management said they are holding steady and conserving cash, sticking with the current store base unless there is a clear traffic improvement. A final question revisited the Q4 Florida loyalty accrual benefit, and management said it was a one-time item of a little over $2 million tied to a modified loyalty program and purchase accounting from VidaCann, and it will not recur.