Planet 13 Holdings reported second-quarter 2026 revenue of $22.9 million, down 14.9% from a year earlier, as the multi-state operator wound down its California footprint and absorbed continued wholesale price compression in Nevada and Florida. The Las Vegas-based company posted a narrower net loss of $5.6 million, compared to $13.3 million in the prior-year period, and pointed to a pending merger with Vireo Growth Inc. as the next phase for shareholders.
Margin Gains Offset Revenue Decline
The headline revenue drop looks rough on its face, but the margin story underneath tells a different tale. Gross margin climbed to 53.9% from 43.4% a year earlier, helped along by the California exit, company-wide procurement discipline, and a $1.0 million release from an inventory reserve tied to Florida distillate. Strip out that reserve adjustment and margin still lands at 49.5% - a meaningful improvement in its own right. That's the mechanism worth understanding: when an operator exits a low-margin, high-friction market like California, the remaining revenue base often carries better unit economics, even if the top line shrinks. For multi-state operators watching California's wholesale pricing continue to erode, Planet 13's exit is a data point in a broader pattern of retrenchment from that market.
Florida Momentum Amid Nevada Pressure
Florida revenue rose 17.1% sequentially, which Co-CEO Larry Scheffler framed as evidence the company is stabilizing operations there. The state remains one of the more closely watched medical markets in the country, with OMMU oversight governing extraction, distillate inventory, and product batches moving through the supply chain. Planet 13's May 2026 approval for a Florida BHO extraction facility, paired with a planned Sarasota store announced in July, suggests the company is doubling down on vertical integration in that state even as it retreats elsewhere. Nevada, by contrast, continues to face the price compression that has squeezed dispensary margins across mature adult-use markets - a reminder that even flagship stores, including the company's large-format Las Vegas location, aren't immune to wholesale pricing pressure once a market matures past its early growth curve.
What the Vireo Merger Signals for Operators
Co-CEO Bob Groesbeck's comments cut to the point directly: the market increasingly rewards scale, purchasing power, and balance-sheet strength to absorb continued price compression. That's not a throwaway line - it's an operating thesis. Smaller and mid-sized multi-state operators are finding it harder to compete on wholesale menus against larger platforms that can spread fixed costs, cultivation overhead, and 280E tax exposure across a bigger revenue base. The definitive merger agreement with Vireo Growth, announced July 27, gives Planet 13 shareholders exposure to a combined company with presumably greater distribution reach. Because the deal is pending, Planet 13 skipped its usual earnings call this quarter - a practical, if unusual, choice that keeps management focused on closing mechanics rather than forward guidance.
Balance Sheet and Cost Discipline
- Total expenses fell 17.7% to $15.2 million, reflecting company-wide cost-cutting initiatives rather than one-time items.
- Adjusted EBITDA loss narrowed to $0.5 million from $2.4 million, driven by margin gains and expense reduction.
- Cash and restricted cash stood at $16.5 million, up modestly from $15.6 million at year-end 2025.
- Total liabilities rose to $105.5 million from $101.2 million, even as total assets declined to $144.3 million.
None of these figures suggest a company in crisis, but they do point to a business managing through consolidation pressure rather than expansion. For wholesalers, landlords, and payment providers tied to Planet 13's operations, the practical question is how the Vireo integration reshapes purchasing terms, store footprints, and vendor relationships once the merger closes. That answer will matter more to the supply chain than this quarter's numbers alone.