• FY26 Q1 revenue increased on FY25 Q1
• Operating cash outflows decreased 11.6% Q1 FY26 vs Q1 FY25
• Strategic review of New Zealand operations concluded; focus remains on cost efficiency

Avada Group Limited (ASX: AVD) has reported its quarterly activities report and Appendix 4C for the three-month period ended 30 September 2025. Key highlights include:- FY26 Q1 revenue increased on FY25 Q1 after allowing for conclusion of Brisbane City Council contract in June 2025- Operating cash outflows decreased 11.6% Q1 FY26 vs Q1 FY25- Strategic review of New Zealand operations concluded; focus remains on cost efficiency amid soft market conditionsThe company has made progress on its Q1 FY26 restructure, with a focus on cost reduction and operational efficiency. Business units were consolidated and duplicated functions removed, aligning costs with trading conditions. A fleet and resource optimisation initiative is also underway, aiming to improve gross margin by reducing operating costs and enhancing asset efficiency.The strategic review of Avada's New Zealand operations has concluded, with a continued focus on cost efficiency and market alignment amid cautious optimism for sector recovery in FY26. The company has also continued its transition toward centralised core operating systems, with the finance system now live and the integration of payroll into the finance platform entering its initial implementation phase.The company has reduced debt, paying down a further $2.8m during the quarter, and made payments to related parties for salaries, director fees and consulting fees totalling $349k.

The company has not provided any high-importance, price-sensitive forward-looking financial metrics.