Planet 13 Holdings Inc.

What they do

Planet 13 owns and operates cannabis cultivation, production, distribution, and dispensary assets across four states. It operates superstores in Las Vegas and Santa Ana, neighborhood stores, and a consumption lounge, and sells products under brands like HaHa, Dreamland, TRENDI, Medizin, and Leaf and Vine. The company holds licenses including six cultivation and six production licenses in Nevada, a California cultivation and retail footprint, a Florida medical license with 33 dispensaries, and one Illinois adult-use dispensing license.

Revenue drivers

• Nevada retail (Las Vegas Superstore and Medizin dispensary) — Largest established market; includes a 24,000 sq ft superstore, a 2,300 sq ft neighborhood store, and DAZED! consumption lounge. Revenue impacted by price compression but remains a core sales base.
• Florida medical cannabis (VidaCann) — 33 dispensaries operating as of Dec 31, 2025; revenue grew 17.1% quarter-over-quarter in Q2 2026, supported by new BHO extraction facility approval. Still in expansion phase with ongoing capital outlays.
• California retail and wholesale (Santa Ana) — Superstore and distribution license in Santa Ana; company has agreed to sell these assets, pending regulatory approval, and exited California retail/wholesale in Q2 2026, which reduced revenue but improved gross margin.
• Wholesale and product sales — Cultivation and production across Nevada and California supply both retail and wholesale channels; Nevada production facility is co-located with cultivation, and California has a 35,000 sq ft cultivation facility.

Recent performance

For Q2 2026 (three months ended June 30, 2026), revenue was $22.9 million, down 14.9% year-over-year, driven by the California exit and price compression in Nevada and Florida. Gross profit rose to $12.3 million (53.9% gross margin) versus $11.7 million (43.4%) in the prior-year quarter, helped by cost actions and a $1.0 million inventory reserve reduction. Net loss improved to $5.6 million from $13.3 million, and Adjusted EBITDA loss narrowed to $0.5 million from $2.4 million. Sequentially, revenue grew 8.4% from Q1 2026's $21.1 million. For the first half of 2026, revenue totaled $44.0 million; cash and restricted cash were $16.5 million as of June 30, 2026.

Strategy

Management is focused on stabilizing Florida operations, expanding the store base (e.g., upcoming Sarasota store), and completing the exit from California to drive margin improvement. Company-wide cost-cutting and procurement initiatives are in place. The definitive merger agreement with Vireo Growth Inc. is the stated path to create a larger, more efficient combined company with greater purchasing power and distribution. They continue to invest in Florida, including the BHO extraction facility, while Nevada expansion is paused with two cultivation facilities dark and reserved for future use or sale.

Risks

• Federal illegality and enforcement — Cannabis remains a controlled substance under U.S. federal law, and federal enforcement actions could result in fines, penalties, or criminal charges, materially hurting the business.
• Regulatory and state-law dependence — Operations are legal only under state law; changes in federal or state regulation, including potential reclassification of cannabis, could materially affect operations.
• Price compression in core markets — Nevada and Florida continue to experience price compression, which reduces revenue and may pressure margins despite cost actions.
• Merger and California exit execution — The sale of California assets and the merger with Vireo are subject to regulatory approvals; failure to close or delays could disrupt operations and financial results.

Outlook

Management expects continued improvement from Florida revenue growth and the benefits of the California exit and cost-cutting to support margins. The merger with Vireo Growth is expected to create a larger, more efficient company, with focus on running the business smoothly until closing. The company has announced continued expansion with an upcoming Sarasota store and a new Florida BHO extraction facility approved. Uncertainties remain around federal regulation and price compression, which could affect near-term results.