The recent battles in space and on Crait took their tolls on both the Resistance and The First Order.
The Resistance lost what thought to be their only hope, Luke. Two thirds of their fleet was gone along with their crews, leaving them with enough souls to barely fill the Millenium Falcon. Leia is lively but still recovering no doubt; at least they have their general. Crait and D'Qar were lost to The First Order which means they have nowhere to go. The Resistance has almost nothing left.
The First Order is in slightly better shape but they are still wearing thin. Supreme Leader Snoke is dead along with his infamous Praetorian Guards, leaving Kylo Ren to be the new Supreme Leader. Hux is at his side but it's obvious he is wary of Ren, they never did get along well. Large amounts of their ships were destroyed but they aren't lacking in that area as much as the Resistance. What is lacking is the knowledge of what to do next about the Resistance.
It was clear that a hole was left behind in each side.