• FY26 Q2 cash receipts increased 24.0% compared to FY26 Q1
• FY26 Q2 operating cash expenditures increased 14.4% compared to FY26 Q1
• Cash and cash equivalents at the end of FY26 Q2 improved compared to the prior quarter

AVADA Group Limited (ASX: AVD, 'AVADA' or 'the Company') and its controlled entities ('the Group') has provided its quarterly activities report, together with its Appendix 4C, for the three-month period ended 31 December 2025. The key highlights include a 24.0% increase in FY26 Q2 cash receipts compared to FY26 Q1, driven by strong sales in the December quarter. Operating cash expenditures also increased 14.4% compared to FY26 Q1, in line with the increased revenues and mobilisation costs. The company's cash and cash equivalents at the end of FY26 Q2 improved compared to the prior quarter. AVADA continued to strengthen its commercial execution during the quarter, underpinned by the ongoing build-out of the Avada Traffic national operating model and improved alignment between Business Development, Commercial and Operations. Client awareness of AVADA's scale, capability and footprint continues to increase, leading to multiple project wins and panel appointments predominantly across Queensland and New South Wales. The company's enterprise transformation program also continued to progress, with a defined portfolio of interrelated initiatives across finance, operations, commercial and business development functions. The increased revenue and operating expenditure in Q2 for Queensland and NSW operations was supported by the CBA trade finance facility, with unused financing facilities available at the end of the quarter amounting to $15.3 million.