Planet 13 Holdings posted second-quarter revenue of $22.9 million, down 14.9% from a year earlier, but the multi-state operator's own numbers tell a more complicated story than that headline decline suggests. Gross margin climbed to 53.9% from 43.4%, net loss narrowed to $5.6 million from $13.3 million, and adjusted EBITDA loss shrank to $0.5 million from $2.4 million. The Las Vegas-based company reported these results on August 12, 2026, against the backdrop of a pending merger with Vireo Growth Inc. that is reshaping how investors should read every line item.
The California Exit Changes the Math
Here's the catch with a topline revenue drop that actually reads as good news: Planet 13 deliberately walked away from California retail and wholesale operations, and that exit is doing real work on the margin line. Combined with company-wide cost and procurement initiatives, leaving California helped push gross profit to $12.3 million even as total sales fell. A $1.0 million reduction in the inventory reserve tied to Florida distillate also flattered the quarter - strip that adjustment out and gross margin lands at 49.5%, still a meaningful improvement over the prior year. For operators watching from other states, the lesson is blunt: in markets where wholesale pricing keeps compressing, sometimes the more profitable move is to stop chasing volume in a saturated territory rather than defend market share at a loss.
Total expenses fell 17.7% to $15.2 million, which Co-CEO Bob Groesbeck attributed to cost-cutting rather than a one-time event. That distinction matters for anyone modeling forward quarters. Structural cost reductions tend to persist; reserve adjustments do not.
Florida Momentum Amid Nevada Price Pressure
Florida revenue rose 17.1% quarter over quarter, a figure Co-CEO Larry Scheffler singled out as evidence the company is stabilizing a market that had been a drag on results. Planet 13 also secured OMMU approval in May for a Florida BHO extraction facility and announced a new Sarasota store in July, both moves that point toward deeper vertical integration in a medical market still building out its retail footprint. Extraction capacity in-house typically improves margin control on concentrate and vape SKUs by reducing dependence on third-party processors, though it also adds regulatory surface area - extraction facilities carry their own permitting, safety, and testing obligations under state cannabis rules.
Nevada, by contrast, continues to face price compression that the company cited as a direct driver of the year-over-year revenue decline. Nevada's adult-use market has matured to the point where wholesale pricing pressure is now a structural feature rather than a temporary dip, which puts pressure on any operator relying heavily on that state's dispensary traffic, including the company's flagship Las Vegas superstore.
What the Vireo Merger Signals for the Sector
The definitive merger agreement with Vireo Growth, announced July 27, is the real story behind this earnings release, and Groesbeck said as much directly: the market increasingly rewards scale, purchasing power, distribution reach, and balance sheet depth to absorb continued price compression. That is a fair, if sobering, read on where multi-state cannabis operators find themselves. Smaller and mid-sized MSOs are discovering that standing alone in a market defined by falling wholesale prices and unresolved 280E tax burdens is getting harder to sustain, which is pushing consolidation across the sector.
Notably, Planet 13 opted not to hold a conference call this quarter because of the pending merger, a common practice when companies enter quiet periods ahead of a deal closing. Balance sheet figures showed total assets of $144.3 million against total liabilities of $105.5 million as of quarter-end, with cash and restricted cash at $16.5 million. For shareholders, employees, and the patients and adult-use customers who shop Planet 13's dispensaries in Nevada, Illinois, and Florida, the coming months will hinge less on quarterly performance and more on whether the Vireo combination closes on the terms outlined.
