Earth Science Tech Targets 40% Profit Surge in Bold Strategic Overhaul

MIAMI, Feb. 17, 2026 – Earth Science Tech, Inc. (OTC: ETST) today announced a sweeping series of strategic initiatives aimed at transforming the holding company into an “institutional-ready” public entity, projecting over 40% growth in net income for the upcoming fiscal year. The plan includes significant cost-saving measures, corporate governance reforms, and a sharpened focus on its core assets.

The company anticipates these actions will generate approximately $1.4 million in annualized savings. This is expected to lift its projected net income for the fiscal year ending March 31, 2026, from a baseline of $3.3 million to an estimated $4.7 million. This move signals a new phase for ETST, which has spent the last few years transitioning from a business with legacy challenges into a profitable and growing platform.

“Over the past three years, Earth Science Tech has transformed from a business facing legacy financial and structural challenges into a more streamlined operating platform with accelerating revenue momentum,” said Giorgio R. Saumat, CEO and Chairman of the Board. “The Company has now reached a meaningful inflection point, and as we enter our next phase of growth, the Board and management believe this is the right time to advance toward a fully shareholder-driven public company structure.”

A New Financial Blueprint for Growth

The ambitious financial targets are built on a foundation of strengthening performance. For its third fiscal quarter ended December 31, 2025, ETST reported impressive results, including an 14.1% year-over-year increase in revenue to $8.4 million and a 341% surge in net income to $910,000. The company also improved its gross margin to 76.3% and generated $1.2 million in cash from operations fiscal year-to-date, all while remaining free of bank debt.

This momentum supports the company’s confidence in its new initiatives. The projected $1.4 million in cost savings, combined with operational efficiencies, underpins the forecast of reaching $4.7 million in net income. This figure does not account for any additional upside from organic growth, suggesting potential for even stronger results.

Further demonstrating its commitment to shareholder value, the company has been actively managing its capital structure. Over the nine months leading up to its latest quarterly report, ETST repurchased and retired 3.7 million shares of its common stock, a move that reduced its total share count by 3.6% year-over-year.

Leadership Accountability and Governance Reform

Perhaps the most striking element of the announcement is the dramatic reform of executive and board compensation. In a move to enforce fiscal discipline and align leadership directly with shareholder interests, CEO Giorgio R. Saumat and COO Mario G. Tabraue have voluntarily voided their employment contracts. Both executives will now operate on an “at-will” basis, having waived all revenue-based bonuses and variable compensation. The negotiation of new employment agreements has been deferred until after the company's annual proxy in July 2026 to allow for shareholder feedback to be integrated.

In tandem, the Board of Directors has voted to reduce its own compensation, immediately decreasing attendance fees for board meetings. These actions are designed to send an unequivocal message about the company’s commitment to a leaner, more accountable operational model.

“This restructuring represents a significant maturation in Earth Science Tech’s corporate governance,” stated Jeff P. H. Cazeau, an Independent Director and Chairman of the Audit Committee. “By voluntarily anchoring executive pay to shareholder approval and reducing near-term fixed costs, management is sending a clear signal that they are stewards of capital first and foremost.”

To further enhance transparency, the company plans to introduce a non-binding “say-on-pay” advisory vote at an upcoming shareholder meeting. Additionally, shareholders will have an advisory vote on the proposed retirement of the company’s Series B Preferred Stock. To ensure the integrity of that process, Mr. Saumat, who directly owns over 42% of the company’s common stock, has voluntarily agreed to abstain from voting on the matter.

Streamlining a Diversified Portfolio

Central to the new strategy is a plan to “optimize the portfolio.” ETST has grown into a diversified holding company with interests spanning multiple sectors. Its core focus is the health and wellness industry, where it operates a vertically integrated portfolio including compounding pharmacies RxCompoundStore.com and Mister Meds, telemedicine platforms like Peaks Curative, and the Las Villas Health Care facility.

Beyond healthcare, the company’s holdings include Avenvi, a real estate and asset management arm, and an 80% stake in MagneChef, a direct-to-consumer brand for innovative kitchen products. The company’s new strategy involves targeting the divestiture of “non-core assets” to better focus capital on its most promising ventures.

While the company has not specified which assets are under review, its stated repositioning around healthcare and pharmaceutical operations since 2022 suggests that its non-healthcare ventures may be candidates. The goal is to consolidate operating subsidiaries under unified brands, unlocking synergies and driving material improvements in operating margins.

Building an Institutional-Ready Company

The announced changes are part of a broader effort to elevate ETST’s status and appeal to institutional investors. This includes recent operational upgrades, such as engaging Semple, Marchal & Cooper, LLP, a PCAOB-registered accounting firm, to enhance its audit capabilities in line with its growing scale and complexity.

This strategic pivot is already being noticed by market observers. At least one analyst has issued a “Buy” rating on ETST stock with a $0.15 price target, with forecasts projecting significant earnings and revenue growth in the coming year. The company’s transformation from a small operation with approximately $200,000 in annual revenue in early 2023 to a firm reporting over $33 million in revenue and $3 million in net profit in its last fiscal year highlights a rapid and successful turnaround.

As ETST implements these changes, management is confident that the results will become increasingly visible. “The timing of these transformational actions is supported by improving financial performance and increasing operating leverage across the business,” Saumat concluded. “We believe the underlying momentum will become increasingly evident in our financial results over time as these changes take hold and are supported by continued disciplined cost management, accelerating revenue and stronger cash generation.”