Peak Processing extends positive EBITDA streak as cash burn drops

Cash burn falls as EBITDA remains positive

Peak Processing Limited (ASX:PKP) has extended its operational turnaround, reporting positive Group EBITDA of A$22,000 for the September quarter while cutting net operating cash outflow by about 79% quarter on quarter to A$317,000. It is the second consecutive quarter in which the THC beverage manufacturer has reported positive Group EBITDA, following the A$710,000 result recorded in the June quarter.

Revenue was approximately A$3.34 million, down about 25% from the prior quarter's A$4.43 million after a planned one-week July shutdown. Customer receipts told a more favourable story, rising 14% to A$3.787 million as production from the record June quarter converted into cash. Peak had previously reported its first positive EBITDA quarter, marking the June result as the first such quarter in FY26.

Production reset adds a third can format

Production fell 22% quarter on quarter to about 1.25 million beverage units because of the shutdown, but remained 44% above the corresponding quarter a year earlier. The interruption was used to commission 355ml standard cans, completing Peak's ability to manufacture the three primary formats used across the Canadian cannabis beverage category: 355ml standard, 355ml sleek and 222ml sleek.

The Windsor facility also produced 87,456 THC shots during the quarter, with repeat orders received. Peak is projecting production of about 1.0 million shots over the next 12 months, although that estimate remains subject to customer orders and market demand. The shots line runs alongside the canning lines, according to the company, allowing the new vertical to add volume without reducing canned beverage capacity or requiring additional staff or equipment.

New listings and formulation platform broaden the pipeline

Peak launched 11 products during the quarter and secured six additional listings across topicals, dried flower and vapes for launch in December. Envision Emulsions powered about 44% of beverage units produced, up from 34% in the June quarter, while six of the nine beverage products launched during the period used the platform.

Service performance also held firm, with on-time, in-full delivery above 97% for the quarter. That compares with 53% when Peak's operational reset began in June 2025. In the United States, the company continued developing the three-year Fryday Kush manufacturing program announced in June, which is expected to use its Florida production arrangement and Envision technology.

Funding position improves operationally but remains tight

Reported cash and cash equivalents fell to A$813,000 from A$1.417 million at 30 June. The quarter included A$209,000 of transaction costs linked to FY26 capital raisings, A$68,000 of capital expenditure and a A$10,000 foreign exchange movement. A customer receipt of about A$142,000 cleared on 2 October rather than before quarter end, while A$152,000 of payroll was paid on 30 September; Peak says an illustrative adjustment for both items would have produced an operating cash outflow of about A$23,000 and closing cash of about A$1.107 million.

Those adjusted figures are not the reported Appendix 4C result. On the reported numbers, Peak calculates about 2.56 quarters of funding based on its current operating cash usage and has no unused finance facilities. Its secured Stoke Canada asset-based loan is fully drawn at CAD$1 million, carries interest of 22% a year and matures in May 2027, while a CAD$60,000 Canada Revenue Agency loan matures in December 2026.