Elixinol Wellness Q2 Revenue Climbs 10.8% as Cash Receipts Surge
Elixinol Wellness reported a 10.8% revenue increase in Q2 2025, supported by improved cash receipts and a focused cost containment program. The company secured new funding and launched a menopause-targeted product, positioning itself for margin growth and profitability in H2.
- Q2 revenue rose to $4.1M, up 10.8% year-on-year
- Customer receipts improved to $4.3M, enhancing cash conversion
- Aggressive cost containment and SKU rationalisation underway
- Secured $1.35M debt facility and $150K equity raise to support growth
- Launched Menopause+ product entering the well-ageing market
Q2 Financial Rebound
Elixinol Wellness Limited (ASX, EXL) has reported a notable rebound in its Q2 2025 financial results, with group revenue climbing to $4.1 million, marking a 10.8% increase compared to the same period last year. Customer receipts also improved, reaching $4.3 million, which outpaced reported revenue and signaled enhanced cash conversion efficiency. This recovery follows a softer-than-expected Q1, reflecting the company’s ability to navigate a challenging retail environment.
Operational and Cost Discipline
Despite stable gross margins at 35.9%, Elixinol is aggressively pursuing cost containment strategies aimed at reducing its operating cost base from the second half of the fiscal year. These measures include overhead reductions, SKU rationalisation to eliminate underperforming products, and supply chain and procurement optimisations. The company is also finalising post-merger systems integration to unlock further efficiencies, signaling a disciplined approach to margin enhancement and cash preservation.
Brand Performance and Portfolio Moves
The company’s brand portfolio delivered mixed results in Q2. The Healthy Chef brand posted its strongest quarter since acquisition, buoyed by the launch of Menopause+, a new product targeting the growing well-ageing segment. Hemp Foods Australia rebounded strongly, while Mt Elephant returned to growth despite a streamlined SKU range. Meanwhile, Soul Seeds is being consolidated into Hemp Foods Australia to simplify the portfolio and sharpen brand focus. Elixinol USA paused marketing ahead of a planned brand refresh, which may impact near-term sales but aims to strengthen long-term positioning.
Funding and Liquidity
Elixinol closed the quarter with $1.1 million in cash and secured additional funding through a $1.35 million 12-month secured debt facility at 12% interest, alongside a $150,000 equity raise. The company also maintains access to various e-commerce financing facilities, providing liquidity to support inventory growth and operational scaling. These financial resources underpin Elixinol’s strategy to achieve sustained profitability through margin-accretive revenue growth and disciplined capital management.
Looking Ahead
With a pipeline of new product innovations, including additional Healthy Chef protein waters and sustainable product formats from Mt Elephant, Elixinol is positioning itself for margin uplift and improved cash flow in the second half of 2025. The company’s focus on portfolio rationalisation, overhead reduction, and supply chain optimisation will be critical to turning around net cash outflows and reaching profitability.
Bottom Line?
Elixinol’s Q2 momentum and strategic cost initiatives set the stage for a pivotal H2 push toward profitability.
Questions in the middle?
- How will the consolidation of Soul Seeds into Hemp Foods impact overall brand performance?
- What are the expected market reactions to the upcoming Elixinol USA brand refresh?
- Can the company sustain improved cash conversion and margin expansion amid ongoing retail challenges?
