• First month of positive EBITDA under the new operating model
• Production scaled, Q4 guidance upgraded
• Service-level transformation sustained

Peak Processing Limited (ASX: PKP), a leading manufacturer of THC-infused beverages, reported its first month of positive EBITDA under the new operating model in March 2026. The company delivered ~A$159k positive EBITDA on ~A$1.2m revenue, with a 56% contribution margin (up from 32% in February). Production volumes exceeded guidance, with ~1m beverage units produced in Q3 FY26, representing a ~42% QoQ increase. Based on confirmed customer purchase orders, Q4 FY26 production is now expected at ~1.5m beverage units, a ~50% QoQ increase. The company also sustained its service-level transformation, achieving an OTIF (On-Time-In-Full) of 99.95% across Q3 FY26. Key payables were materially reduced, including the Canada Revenue Agency liability, and working capital was strategically deployed into core inventory. The cost base has been fundamentally rebased, with A$2.25m in annualised cost savings now flowing through the P&L. The company secured major customer wins, expanded its proprietary brand portfolio, and made progress on its US operations, including the commissioning of the Florida Envision Emulsion Lab.

Q4 FY26 production is now expected at ~1.5m beverage units, a ~50% QoQ increase from Q3 FY26.

The operational and management reset is complete. Peak enters the stronger summer season with its strongest forward order position to date, and expects to generate positive operating cash flow during Q4 FY26 and on an ongoing basis thereafter. Several advanced-stage manufacturing negotiations are expected to conclude during Q4 FY26, across both Canada and the United States.