Australian medicinal cannabis company ECS Botanics (ASX:ECS) announced a turnaround in its financial performance, delivering both a return to profitability and positive cash flow for the first half of FY26.
The company achieved a profit before tax of $0.04 million, a substantial improvement compared to the almost $2 million loss reported in the prior corresponding period.
Total revenue rose to $11.3 million, representing a 16.5% increase a year earlier.
The growth was largely driven by the expansion of the company’s branded B2C portfolio, which now accounts for approximately 60% of total group revenue, alongside increased penetration of finished dose formats and contributions from B2B and export channels.
ECS reported an EBITDA of $0.8 million, reflecting improved margins and operating leverage.
The company also achieved positive operating cash flow for two consecutive quarters, marking a major shift from the $1.2 million cash outflow recorded in the first half of the previous financial year.
Management attributed the results to the cumulative impact of strategic initiatives implemented over the past two years, which have repositioned the company as a more diversified and cash-generative medicinal cannabis business.
ECS has completed a major infrastructure expansion, enabling 12-month production capabilities.
At the time of reporting, ECS Botanics' share price was $0.0060.