Planet 13 Holdings Stock Earnings Reports

Planet 13 reported Q1 2026 revenue of $21.1M (down from $25.2M in Q4) reflecting a transition quarter driven largely by the California divestiture (~$2.5M of quarterly revenue) and the absence of a one-time Florida loyalty accrual benefit recognized in Q4. Gross profit was $9.4M (44.6% margin) and adjusted EBITDA was a loss of $2.3M. Management emphasized the quarter as the cost of repositioning (California exit, Wagon Trail consolidation, wholesale restructuring) and said April operating results are tracking to plan. Cash and restricted cash totaled $16.3M (up modestly from year-end) and operating cash flow was essentially breakeven. Management expects Q2 to be the first quarter operating without the transition drag and reiterated the path to positive adjusted EBITDA as operational improvements and margin tailwinds (including the Florida BHO concentrate lab coming online) play out. The most consequential development is federal rescheduling of medical marijuana from Schedule I to Schedule III: Planet 13’s Florida medical business is directly in scope, which should remove 280E federal tax treatment on a go-forward basis and materially alter tax expense. The company is working with advisers on the accounting/tax implications (including guidance on a ~$37M uncertain tax position) and expects to provide more clarity on the Q2 call. Local (Clark County) and federal hemp rule changes (mid-July and November, respectively) should help close the competitive imbalance from intoxicating hemp products and benefit licensed operators. Near-term market headwinds remain (soft Las Vegas tourism, pricing pressure, illicit hemp activity), but management believes the company is better positioned than in the past 18 months and expects meaningful benefit in the back half of 2026 as regulatory enforcement and BHO production ramp.