- Earth Science Tech reported fiscal Q3 2026 revenue of $8.4 million, up 14.1% year over year, with gross margin expanding to 76.3% and adjusted EBITDA rising to $1.2 million
- Management said Peaks, the company’s telemedicine platform, surpassed $2.0 million in revenue in less than a year, while the company pursues additional state licenses to expand its footprint
- ETST engaged Semple, Marchal and Cooper, LLP as its independent PCAOB auditor, a governance move framed as necessary as consolidated accounting complexity increases
Healthcare delivery is being reshaped by two forces that often move at different speeds: consumer demand for faster access and more personalized care, and institutional requirements for stronger compliance, reporting, and audit readiness. Telemedicine adoption has normalized virtual visits, while pharmacy and fulfillment models increasingly compete on speed, service, and regulatory execution. For multi-subsidiary healthcare operators, the differentiator is not simply growth, but the ability to scale responsibly across jurisdictions, products, and clinical workflows without losing control of governance and financial discipline.
Earth Science Tech (OTC: ETST) is executing that playbook as a strategic holding company that builds value by acquiring and actively managing operating businesses in pharmaceuticals, telemedicine, healthcare services, real estate, and select consumer markets. The company’s stated focus is on controlling interests where operational oversight, regulatory compliance, and disciplined scaling can drive durable growth.
A Healthcare-Centered Portfolio with Multiple Operating Units
ETST is a diversified holding company focused on the health and wellness sector. Through wholly owned subsidiaries, it cites a vertically integrated portfolio that includes compounding pharmacies and telemedicine platforms, alongside related clinical support infrastructure. The company has RxCompoundStore.com and Mister Meds as licensed compounding pharmacies, supported by Peaks Curative, DOConsultation.com, and Las Villas Health Care for patient connectivity and clinical services.
The model is built on integration. Telemedicine can serve as the front door to patient access, while pharmacy operations can capture recurring prescription fulfillment and expand patient lifetime value. That integration, however, tends to increase operational complexity, especially as state-by-state licensing expands and consolidated reporting requirements become more demanding.
Fiscal Q3 Results Show Margin Expansion and Improved Profitability
In its third fiscal quarter ended December 31, 2025, Earth Science Tech reported revenue of $8.4 million, up 14.1% compared to $7.4 million in the year-ago quarter. Gross profit totaled $6.4 million, resulting in a 76.3% gross margin, up from 69.2% a year earlier. Net income was $910,000, or $0.003 per diluted share, compared to $206,000, or $0.001, in the prior-year quarter. Adjusted EBITDA was $1.2 million, compared to $0.3 million in the year-ago quarter.
Management also reported $1.2 million in positive cash from operations fiscal year to date. Operating expenses for the quarter were $5.1 million, compared with $4.9 million a year earlier, reflecting higher advertising and marketing and SG and A costs, partially offset by a decrease in salaries expense.
On the balance sheet, ETST reported total assets of $8.1 million as of December 31, 2025. The company reported cash of $416,000 and working capital of $773,000, and stated it had no bank debt. ETST attributed the cash decrease from earlier periods to inventory investments to support higher sales volumes and improve product availability, alongside increased operating activity.
External Commentary Highlights Seasonality, Supply Issues, and Expense Discipline
A February 18, 2026 earnings review from Zacks Small Cap Research discussed ETST’s reported fiscal Q3 2026 results and the company’s filing of its quarterly report. The review described revenue of $8.4 million as below its $10.0 million forecast, while attributing some of the variance to adverse seasonality and temporary Active Pharmaceutical Ingredients supply issues in India and China during November and December, which it said were subsequently resolved.
The same review noted that operating expenses came in below its model expectations, citing lower compensation as a key driver, partially offset by higher general and administrative costs. It also highlighted adjusted EBITDA of $1.2 million and the company’s share repurchases, including 1,143,000 shares during the quarter and 3,703,296 shares during the first three quarters of fiscal 2026, which management said reduced outstanding shares by 3.6% year over year.
Telemedicine Growth and a Broader State Footprint
ETST has pointed to Peaks Curative as a growth driver, stating the platform surpassed $2.0 million in revenue in less than a year. Management has also emphasized geographic expansion, noting up to 10 additional state licenses pending. If approvals progress, the company’s addressable market could expand materially, but so does the compliance burden, which puts more weight on governance, controls, and audit readiness.
Corporate Governance as a Parallel Investment
On the same day it released quarterly results, ETST announced it engaged Semple, Marchal and Cooper, LLP as its new independent Public Company Accounting Oversight Board auditor. The company framed the change as a strategic upgrade to financial governance infrastructure, stating that the complexity of consolidated accounting has increased as it expands across pharmacy compounding, telemedicine, and real estate.
The decision is notable because auditor selection tends to be a signal of institutional posture. For a company managing multiple subsidiaries, audit capabilities can influence investor confidence, the ability to pursue uplisting goals, and the company’s readiness for more stringent reporting expectations.
The Thread Connecting the Updates
Taken together, the recent updates outline a company that is attempting to scale a healthcare-centered portfolio while strengthening the internal controls that often lag behind rapid expansion. The quarter delivered revenue growth, margin expansion, and materially higher profitability versus the prior year. The external earnings review placed emphasis on the durability of growth drivers, expense rationalization initiatives, and the impact of temporary supply disruptions. Meanwhile, the auditor engagement highlights a management focus on governance as the portfolio becomes more complex.
For more information, visit EarthScienceTech.com.
NOTE TO INVESTORS: The latest news and updates relating to ETST are available in the company’s newsroom at https://ibn.fm/ETST
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