• Positive Operating Cash Flow: $218k in operating cash, a $1.5m turnaround on the prior year
• B2C Momentum: Branded B2C portfolio contributed 65% of revenue
• Product Innovation: Launched OzSun sugar-free THC gummies, finalized AVANI AVA women's health range

ECS Botanics Holdings Ltd (ASX: ECS), a leading medicinal cannabis company, reported positive operating cash flow of $218k for the quarter ended 31 December 2025 (Q2 FY26), representing a $1.5 million turnaround from the prior year's December quarter. This improvement reflects a strong focus on cost management and the successful execution of ECS's B2C (own-brands direct-to-consumer) strategy, which commenced in early FY25. The company's branded B2C portfolio contributed 65% of quarterly revenue, driven by new product launches and broader distribution. During the quarter, ECS launched OzSun sugar-free THC gummies and finalized preparations for the AVANI AVA women's health range. ECS also entered into a national distribution partnership with Burleigh Heads Cannabis Pty Ltd to expand patient access to its products. The company completed a $1.95 million placement to support new product registrations, inventory build, and European expansion. ECS enters the second half of FY26 with a strengthened balance sheet and a clear pathway to sustainable positive operating cash flow.

Domestically, ECS is focused on deepening penetration within the Australian market through new brand launches, including the AVANI AVA women's health range and its recently launched vegan sugar-free THC gummies. Internationally, the company is executing a disciplined expansion strategy, prioritizing key regulatory milestones and product registrations in Europe, with an initial focus on Germany. ECS has also commenced strategic preparation for possible entry into the US medicinal cannabis market.