• Third consecutive quarter of positive operating cash flow, delivering $118k
• B2C revenue up 55% YoY, reflecting continued market share gains
• Initial OzSun shipments cleared for Germany, with commercial volumes to follow

ECS Botanics Holdings Ltd (ASX:ECS), a leading medicinal cannabis company, provided an update on its activities and cash flow for the quarter ended 31 March 2026 (Q3 FY26). The company delivered a resilient operating performance, with revenue of $4.81 million broadly stable on the prior corresponding period despite a material contraction in overall industry volumes. ECS achieved positive operating cash flow of $118k, representing its third consecutive cash flow positive quarter, reflecting improved gross margins, disciplined cost management and the continued shift toward higher-margin branded sales. Branded B2C sales remained strong at $3.4 million, representing approximately 71% of total revenue and increasing 55% year-on-year, underscoring ECS's continued success in gaining market share and increasing penetration of its branded product portfolio. The company also progressed its differentiated product pipeline, with the launch of its AVANI AVA THC:CBD pessary scheduled for early May. On the international front, ECS advanced its strategy, with initial OzSun flower batches successfully passing regulatory testing in Germany, and the company preparing to deliver its first commercial shipment of medicinal cannabis oils to its partner in New Zealand. Despite a significant shift in the Australian medicinal cannabis market, with sales declining by approximately 28.5% in the second half of 2025, ECS was able to maintain stable revenue, grow B2C sales and deliver continued profitability, reflecting ongoing market share gains and the strength of its strategic focus.

ECS enters the final quarter of FY26 with strong operational momentum and a clear pathway to continued growth, supported by an increasing contribution from higher-margin branded products and expanding international sales channels. Key near-term catalysts include the commencement of commercial shipments of OzSun into Germany, scale-up of the AVANI AVA women's health range, continued expansion of the OzSun and value-oriented product portfolio, and growth in export sales, including initial New Zealand oil shipments.