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Planet 13 — Q3 2026 Earnings Summary

PLNH

  • Financial Performance:

    • Q3 2026 revenue was $23.1 million, a 0.8% decrease year-over-year from $23.3 million in Q3 2025, but a 1.0% sequential increase from $22.9 million in Q2 2026.
    • Gross profit was $13.0 million (56.2% margin), compared to $5.0 million (21.3% margin) in the prior-year quarter.
    • Net loss was $6.4 million, a significant improvement from a $44.0 million net loss in Q3 2025 which included a $29.8 million impairment loss.
    • Adjusted EBITDA loss was $0.2 million, improving from a $4.1 million loss in the prior-year quarter.
    • Total expenses were $17.5 million, down 62.1% from $46.2 million in Q3 2025; excluding a $29.8 million impairment from the prior year and $2.4 million in merger-related professional fees and legal settlements, total expenses decreased 7.4% to $15.1 million.
    • Cash and restricted cash totaled $15.7 million as of September 30, 2026, compared to $15.6 million as of December 31, 2025.
    • Total assets were $139.8 million as of September 30, 2026, down from $152.3 million as of December 31, 2025.
    • Total liabilities were $107.0 million as of September 30, 2026, up from $101.2 million as of December 31, 2025.
    • Inventory decreased to $15.8 million from $18.1 million at year-end 2025, driven by a $1.1 million reduction in the inventory reserve.

  • Guidance and Future Outlook:

    • The Form S-4 registration statement for the proposed merger with Vireo Growth Inc. was declared effective by the SEC on November 2, 2026.
    • A special stockholder meeting to vote on the merger agreement is scheduled for December 10, 2026.
    • Management indicated the merger rationale remains unchanged, aiming to create a larger, more efficient combined company with better scale, purchasing power, distribution, and balance sheet strength.
    • The company is focused on executing a path to closing the merger to benefit stockholders, employees, patients, and customers.

  • Business Segments and Product Lines:

    • Florida revenue increased 15.1% sequentially and was 45% higher year-over-year, driven by upgraded cultivation, a fuller product lineup including BHO concentrates, and a more productive store network.
    • Nevada results were weighed down by lower tourist traffic at the Las Vegas Superstore and continued pricing pressure.
    • The company exited California retail and wholesale operations, contributing to the year-over-year revenue decrease.
    • Recent developments include the announcement of an upcoming Sarasota store expansion on July 22, 2026.
    • The company operates award-winning cultivation, production, and dispensary operations in Nevada, Illinois, and Florida.

  • Market and Competitive Landscape:

    • Management stated the market increasingly rewards scale, purchasing power, distribution, and balance sheet strength.
    • The company is focusing on local marketing event-driven promotions in Nevada to drive customer traffic amidst lower tourist numbers.
    • Planet 13 operates the nation's largest dispensary in Las Vegas and has expanded to include its first consumption lounge, DAZED!, and its first Illinois dispensary in Waukegan.

  • Risks and Challenges:

    • Reduced tourist foot traffic in Las Vegas continues to impact Superstore revenue.
    • Continued pricing pressure in the Nevada market.
    • The company remains subject to risks associated with cannabis regulation, including federal illegality and state-specific restrictions.
    • Forward-looking statements are subject to risks including regulatory approvals, macroeconomic fluctuations, inflation, and changing consumer habits.

  • Management Commentary and Tone:

    • Larry Scheffler, Co-CEO, noted that revenue increased for the second consecutive quarter, attributing Florida's growth to operational improvements and product lineup expansion.
    • Bob Groesbeck, Co-CEO, highlighted the second consecutive quarter of revenue growth and Adjusted EBITDA improvement, emphasizing a focus on running the business well and executing the merger.
    • Management expressed confidence that the combination with Vireo Growth will position the company better to compete than it could alone.

  • Other Key Points:

    • No conference call was hosted for Q3 2026 due to the pending merger with Vireo Growth Inc.
    • The merger with Vireo Growth Inc. was announced on July 27, 2026.
    • One-time legal settlements of $0.3 million were incurred in the current period.
    • Professional fees related to the proposed merger totaled $2.4 million in the current period.
    • The company reported a $1.1 million reduction in its inventory reserve, contributing to improved gross margins.
    • Shares trade on the Canadian Securities Exchange (CSE) under PLTH and on the OTCQX under PLNH.