• Delivered positive net operating cash flow of $0.14 million
• B2C revenue increased 21% QoQ to $3.2 million
• Total revenue reached $5.7 million, up 19% QoQ and 15% YoY

ECS Botanics Holdings Ltd (ASX: ECS), a leading medicinal cannabis company, reported positive net operating cash flow of $0.14 million in Q1 FY26, an improvement of $1.6 million quarter-on-quarter and $0.9 million year-on-year. The company's direct-to-consumer (B2C) revenue increased 21% QoQ to $3.2 million, with growth recorded across all product lines. B2C now represents 56% of total revenue. Total revenue reached $5.7 million, up 19% QoQ and 15% YoY, driven by expansion in B2B sales in addition to B2C growth. Quarterly cash receipts were $5.3 million, representing 8% growth QoQ and 22% YoY, reflecting stronger sales momentum. The company's international expansion plans are also progressing, with Terphogz set for European launch following a distribution agreement. ECS has also focused on operational efficiency, with staff costs reduced by 17% and manufacturing costs reduced by 22% from the previous quarter. The company's expansion projects remain on track for completion in October 2025, and it retains $2.9 million in cash and available finance, providing flexibility to support future initiatives.

The company reported total revenue of $5.7 million for Q1 FY26, up 19% QoQ and 15% YoY. It also delivered positive net operating cash flow of $0.14 million during the quarter.

ECS is well positioned to pursue clear growth opportunities across both domestic and export markets, while also delivering targeted cost efficiencies. The company has entered FY26 with a clean balance sheet and a solid sales pipeline underpinned by high-quality products with compelling value propositions and strong customer relationships.