Planet 13 Holdings Inc.

Planet 13 reported Q1 2026 total revenue of $21.1 million, down from $25.2 million in Q4, with the sequential decline largely tied to the California divestiture, which removed about $2.5 million of quarterly revenue, and the absence of a one-time Florida loyalty accrual benefit. Gross profit was $9.4 million and gross margin was 44.6%, flat sequentially as reported; adjusted gross margin was said to be 5.4% higher excluding the Q4 one-time benefit. 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. 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. The company ended the quarter with $16.3 million in cash and restricted cash, up from $15.6 million at year-end, spent $0.7 million on CapEx, and had essentially breakeven operating cash flow. No explicit next-quarter or full-year revenue/EPS guidance was provided, but management said Q2 should be the first quarter without transition drag and that cash position should improve through 2026.

Larry Scheffler framed Q1 as a transition quarter tied to strategic repositioning, exit costs, and cost-base rationalization, saying the benefit should begin showing up in April and Q2. He emphasized stabilization in Las Vegas tourism, third-party hemp pressure, and the expectation that Clark County’s hemp rules and federal hemp restrictions will help level the playing field later in the year. He also said the company is staying cautious in Florida and is focused on preserving cash unless traffic and customer trends improve materially.

Steve McLean said the sequential revenue decline was almost entirely explained by the California exit and the missing Florida loyalty accrual benefit, while underlying revenue was roughly flat sequentially. He pointed to gross margin at 44.6%, a $0.8 million sequential G&A reduction to $11.2 million, and a $2.3 million adjusted EBITDA loss, noting Q2 will be the first quarter without transition drag. On the balance sheet, he highlighted $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 in the quarter; he also said the Q1 tax provision of $4.2 million reflects pre-rescheduling 280E treatment and that the company is evaluating a roughly $37 million uncertain tax position liability.

Analysts asked when hemp competition would start showing up in the stores, and management said they are hearing signs in Florida but do not yet see it in the numbers, while Las Vegas benefits are expected to become more visible closer to the mid-July Clark County effective date. On Florida expansion, Larry said the company is holding tight on store count and staying conservative with cash unless traffic and customers improve meaningfully. On the Q4 Florida loyalty accrual, management said it was a one-time item of a little over $2 million tied to a modified loyalty program and balance-sheet liability release, and it will not recur.