Planet 13 Holdings Charts a New Course with Strategic Refocus

Planet 13 exits California, focuses on Nevada & Florida. Q4 2025 shows improved margins and near-break-even EBITDA as strategic shift takes hold.

Following a challenging fiscal year, Planet 13 Holdings is executing a significant strategic pivot centered on operational streamlining. The company’s latest financial results suggest its decisive shift away from underperforming markets and toward its core assets is beginning to yield tangible improvements.

A Path to Profitability Emerges

The focal point of the company's renewed strategy is a near-complete exit from the cash-draining California market. Internally, the California operations were considered a persistent drain, consuming resources without delivering meaningful returns. To solidify this move toward sustainable profitability, Planet 13 sold its Orange County licenses and cultivation assets in Coalinga in February 2026.

Management is now channeling its resources and investment into strengthening its position in what it deems its core, more profitable markets: Nevada and Florida. The expansion in Florida includes new locations in DeLand and Pace, supported by a customer loyalty program launched in February. Co-CEOs Bob Groesbeck and Larry Scheffler view the company's fourth-quarter 2025 performance as the potential start of a turnaround, a process that could gain further momentum from any future federal reclassification of cannabis in the United States.

Financial Performance: A Tale of Two Periods

The full-year 2025 results were burdened by legacy issues. The company recorded an 11% decline in revenue to $103.4 million and a substantial net loss of nearly $64 million. A significant portion of this loss, however, is attributed to non-cash impairment charges.

A more encouraging picture emerged in Q4 2025. Sequential quarterly revenue increased by 8% to $25.2 million. More strikingly, the gross margin saw a dramatic recovery, jumping to 44.6% from 21.3% in the prior quarter—a direct result of the operational tightening. While Planet 13 still posted a net loss of $4.6 million for the quarter, its adjusted EBITDA showed marked improvement, coming in at a loss of just $0.3 million, narrowly below the break-even point.

Looking Ahead to 2026

For the current 2026 fiscal year, Planet 13 has established a clear objective: achieving positive cash flow to demonstrate the underlying earning power of its refined portfolio. The company ended the year with a liquidity position of $15.6 million, providing a financial foundation for this goal. The operational mandate is unequivocal, with all efforts concentrated on driving growth and efficiency in Nevada and Florida.