How Will Wellnex Life Turn 40% Revenue Growth Into Profitability?

Revenue Growth Driven by Pain Away

Wellnex Life Limited has delivered a notable 40.4% increase in revenue for the financial year ended June 30, 2025, reaching $23.6 million. This growth was primarily fuelled by its owned brands, with the Pain Away topical pain relief range contributing for a full year for the first time. Pain Away, Australia’s second largest topical pain relief brand, has demonstrated strong market traction, supporting the company’s top-line expansion.

Losses Widen Amid One-Off Costs and Finance Charges

Despite the revenue surge, Wellnex Life’s loss after tax widened by 13.6% to $15.6 million. The increased loss reflects significant non-cash adjustments and one-off expenses totaling $10.7 million, alongside finance costs of $2.1 million. These costs relate largely to the acquisition of Pain Away, the company’s UK initial public offering (IPO), and associated capital raising activities. However, when excluding these one-off items, the company’s normalised EBITDA loss narrowed substantially by 57% to $2.2 million, indicating operational improvements.

Balance Sheet Strengthened by AIM Listing and Debt Settlements

Wellnex Life’s financial position improved markedly, with net assets increasing 85.6% to $11.3 million. This was supported by the successful dual listing on the AIM market of the London Stock Exchange, which facilitated the settlement of deferred consideration for Pain Away and the redemption of outstanding convertible notes totaling approximately $13 million. The company’s cash position remains modest at $497,000, but management highlights significant inventory valued to generate around $3 million in sales and ongoing financial support commitments from key stakeholders.

Outlook – Disciplined Investment and Market Expansion

Looking ahead to FY26, Wellnex Life expects strong revenue growth and improved gross profit margins, driven by a more disciplined trade investment strategy. The company plans to leverage expanded licensing partnerships and continued growth in both domestic and international markets, including the UK. The Pain Away brand is anticipated to maintain net margins around 50%, underpinning profitability ambitions. Additionally, the company has secured a new $2.825 million loan facility to provide further financial flexibility.

Risks and Going Concern Considerations

Despite positive momentum, the company’s financial report flags material uncertainty regarding its ability to continue as a going concern, given current liabilities exceed current assets by $8.4 million. Management remains confident, citing strong brand performance, inventory value, and access to capital markets and financial support. Investors will be watching closely for audit outcomes and quarterly updates to gauge execution on growth and profitability targets.