Key Highlights

  • Group EBITDA was A$710,000 on Revenue of about A$4.4 million, the first positive quarter, with beverage production of 1,610,908 units, up 61% on the March quarter.
  • Net cash used in Operating Activities fell 42% to A$1.523 million, but the company states its expectation of positive Operating Cash Flow in the quarter was not achieved.
  • Cash was A$1.417 million, and a binding three-year exclusive agreement covers manufacture of Fryday Kush THC beverages across 13 US states.

Peak Processing Limited (ASX:PKP), a manufacturer of THC-infused beverages, released its June 2026 Quarterly Activities Report and Appendix 4C on 29 July 2026, covering Q4 FY26. All financial figures are unaudited.

Earnings and revenue

Revenue of about A$4.4 million was up about 40% on Q3 FY26's A$3.2 million and was the highest quarterly revenue of FY26. Group EBITDA was A$710,000, a Margin of about 16%, against a loss of about A$0.3 million in Q3. EBITDA is stated on a consolidated basis after corporate and head-office costs and before non-operating and non-cash items. The company says it will report on a quarterly basis with quarter-on-quarter comparisons as the primary measure.

Production

Production of 1,610,908 beverage units was the highest quarterly Volume in company history and up 61% on Q3's 1,002,405 units. It was in line with guidance upgraded twice in the quarter, from about 1.4 million to 1.5 million units and then 1.6 million. FY26 production totalled 4,184,749 units. On-time-in-full delivery was 97%, against 99.95% in Q3 and 53% in June 2025, and the Envision Emulsions platform was used across 62% of active SKUs.

Cash flow and funding

Record customer receipts of A$3.327 million were up about 10%, and net cash used in operating activities was A$1.523 million against A$2.630 million. Revenue exceeded receipts by about A$1.1 million, which the company attributes to the timing of collections. It states that its earlier expectation of positive operating cash flow in Q4 was not achieved, citing timing of government receivable and customer collections and scheduled legacy arrears repayments.

Cash closed at A$1.417 million, from A$538,000 at 31 March, after a A$2.4 million Loan note raising converted to equity. Total available funding was A$1.422 million, and the Canada Revenue Agency balance is subject to a structured payment plan.

Listings and new agreement

Peak secured 19 new product listings across five provinces and four categories, including 12 in Ontario, extending beyond beverages into concentrates, infused pre-rolls and edibles. Its proprietary brands recorded about 20,500 cans in Alberta and entered Quebec through JUSTE Bulles. It also signed a binding three-year exclusive agreement with BTAB Solutions Inc. to manufacture Fryday Kush THC beverages across 13 designated US states.

Cost base

Product Manufacturing and operating costs were A$2.822 million, against A$3.330 million in Q3, reflecting normalised input purchasing after the Q3 inventory build. Staff costs fell to A$1.263 million from A$1.455 million as the final Tranche of restructured severance concluded, and administration and corporate costs fell to A$653,000 from A$765,000. Advertising and Marketing costs were A$22,000. The company describes the cost base as substantially leaner after an operational reset in mid-2025.

Operations and brands

Automation Investment at the Windsor, Ontario Facility includes vision inspection systems. The Envision Emulsions platform was used in 34% of beverage units produced and all eight new beverage products launched in the quarter. Proprietary Brand sales in Alberta reached about 20,500 cans, up about 281% on the previous quarter, and Manitoba rose about 119% to about 5,100 cans, with a first-in-Canada four-can multi-pack listed in Alberta and Quebec. The company notes Q4 revenue exceeded receipts and that collections have accelerated since quarter end.