Epsilon Healthcare Delivers Record $3.66M Quarterly Receipts and Expands Platform

Record Quarter Marks New Growth Milestone

Epsilon Healthcare (ASX:EPN) has set a new benchmark with record customer receipts of $3.66 million for the June 2026 quarter, a 72% increase compared to the same period last year and a 17% rise on the previous quarter. This surge underscores the company’s successful execution of its integrated healthcare strategy, combining contract manufacturing, clinical services, and pharmacy operations into a diversified platform.

Group revenue for the quarter reached $4.7 million, up 43% from $3.3 million in March, pushing the annualised run rate to approximately $16 million. The company’s Managing Director Peter Giannopoulos highlighted the quarter as a defining milestone, reflecting both operational momentum and a growing pipeline of domestic and international opportunities.

Epsilon Pharma’s Manufacturing Capacity Expansion

The contract development and manufacturing arm, Epsilon Pharma, delivered a stellar 122% year-on-year growth in receipts, driven by increased GMP manufacturing activity and a broadened product and service offering. A key highlight was the renewal and significant expansion of its Medicinal Cannabis Permit, authorising higher production capacity and reinforcing its position as a trusted GMP-certified manufacturer for both Australian and international markets.

This regulatory milestone not only boosts production flexibility but also enhances Epsilon’s ability to service a growing customer base, including European markets where the company holds GMP licensure. The company continues to invest in manufacturing capabilities and technical expertise to support this growth trajectory.

Epsilon Clinics and Pharmacy Drive Recurring Revenue

Epsilon Clinics sustained strong patient engagement with high repeat consultation rates and an expanding active patient base, underpinning a growing stream of recurring revenue. The telehealth-enabled model is proving scalable, offering accessible clinical care that complements the broader healthcare ecosystem.

Meanwhile, Epsilon Pharmacy, established just over a year ago, is rapidly becoming a strategic contributor with $2.3 million in annualised revenue. The launch of a custom-built digital patient portal and the opening of its first full-service community pharmacy in Newtown, Sydney, mark significant steps in enhancing patient access and operational scalability. This integrated pharmacy model links clinical consultation, prescribing, dispensing, and ongoing care, strengthening patient retention and lifetime value.

Capital Structure Strengthened to Support Growth

On the capital management front, Epsilon successfully completed a Small Holding Share Sale Facility, reducing its shareholder base from over 7,000 to around 1,700, streamlining register costs and improving administrative efficiency. The company also restructured its debt facilities, terminating a $2 million promissory note and establishing a new unsecured loan facility of up to $1.72 million with a maturity in late 2027, enhancing funding flexibility.

Cash on hand rose to $1.47 million by quarter-end, supported by positive net operating cash flow of $1.07 million. The company also increased investment in critical raw materials and active pharmaceutical ingredients to bolster supply chain resilience amid rising manufacturing volumes.

Strategic Priorities and Outlook

Looking ahead, Epsilon is targeting sustained revenue growth by scaling manufacturing, pharmacy, and clinical operations while driving operating leverage and cost discipline. The company aims to expand its manufacturing pipeline domestically and internationally, leveraging its renewed permits and GMP certifications.

Further strengthening its integrated healthcare platform remains a priority, with ongoing investments in digital health capabilities and pharmacy network expansion expected to enhance patient accessibility and engagement. The company’s disciplined capital management and diversified revenue streams position it to pursue selective strategic opportunities and long-term shareholder value creation.