The Calmer Co. International Limited has reported a second consecutive quarter of revenue exceeding $2 million, driven by strong U.S. growth and record monthly sales in December. The company’s strategic focus on wholesale and B2B extract channels underpins its confidence in reaching breakeven this fiscal year.
- Second consecutive quarter with revenue above $2 million
- Record monthly sales of $910,000 in December
- U.S. revenue grows 9% quarter-on-quarter, now 51% of total sales
- Wholesale and B2B extract sales increase 15% quarter-on-quarter
- Secured $700,000 in convertible note funding post-quarter
Sustained Revenue Growth Amid Normalisation
The Calmer Co. International Limited (ASX, CCO) has delivered its second consecutive quarter with revenue exceeding $2 million, reporting $2.01 million for Q2 FY26. This follows a strong Q1 boosted by retail pipeline fills and launch promotions, with Q2 reflecting a natural normalisation of these effects. Despite a 16% quarter-on-quarter revenue dip, the company achieved a record monthly sales figure of $910,000 in December, signalling robust underlying demand as it heads into the second half of the fiscal year.
U.S. Market Expansion Drives Growth
The United States remains the engine of growth for The Calmer Co., with revenue increasing 9% quarter-on-quarter to $1.01 million and now representing 51% of total group sales. This growth is underpinned by strong performance on Amazon and expanding wholesale channels. The company’s strategic emphasis on B2B extract sales is paying dividends, with wholesale and B2B extract revenues rising 15% to $362,000, highlighting the potential for margin expansion and scalable volume growth in the world’s largest kava market.
Operational Discipline and Investment in Growth
While net operating cash outflows increased by 27% to $757,000, this was largely due to targeted research and development efforts focused on new CO₂ extract formats for wholesale and B2B channels. The company maintained cost discipline, reducing staff costs by 4% following a prior 14% cut, and increased advertising spend by 16% to support U.S. product launches and direct-to-consumer channels. Inventory was deliberately increased to $1.77 million to meet anticipated demand, supported by $700,000 raised post-quarter through the second tranche of a convertible note facility, bolstering liquidity and growth initiatives.
Diversified Channels and Product Formats
The Calmer Co.’s diversified revenue streams span retail, e-commerce, wholesale, and B2B segments. E-commerce accounted for 45% of revenue, with Amazon USA as the dominant platform, while retail sales declined 35% quarter-on-quarter due to expected post-pipeline fill adjustments. Kava powder remains the core product, contributing 79% of sales, with extracts growing to 14% as the company expands its ingredient portfolio. Ready-to-drink products and medicinal formats, though smaller contributors, support brand visibility and regulatory diversification, particularly in the U.S. market.
Outlook and Confidence in Breakeven Pathway
Looking ahead, The Calmer Co. enters Q3 FY26 with solid momentum, driven by record December sales and expanding wholesale demand. The company’s management remains confident in its FY26 growth plan and pathway to sustainable cash flow breakeven, supported by disciplined cost management, strategic capital deployment, and a diversified revenue base. The recent confirmation by the U.S. Food and Drug Administration that traditionally prepared kava beverages qualify as food under federal law further opens medium-term retail growth opportunities in the U.S.
Bottom Line?
With strong U.S. momentum and strategic investments underway, The Calmer Co. is poised to convert growth into profitability in the coming quarters.
Questions in the middle?
- How will the timing of new wholesale ingredient formats impact revenue in Q3 and beyond?
- What is the potential scale and margin profile of the B2B extract business as it matures?
- Will The Calmer Co. initiate formal U.S. retail distribution following FDA classification?