Wellnex Life reports a significant turnaround with a 31.5% revenue increase and near break-even operating cash flow in the December quarter, driven by strategic brand consolidation and cost discipline.
- Operating cash outflow improved to -$0.16m from -$2.98m in Q1 FY26
- Revenue grew 31.5% quarter-on-quarter to $7.1 million
- Brand sales declined due to strategic focus on core assets
- Cash balance rose to $0.98 million with $2.01 million undrawn financing
- Payments to related parties totalled $0.36 million
Strong Cash Flow Recovery
Wellnex Life Limited (ASX/AIM – WNX) has delivered a marked improvement in its financial performance for the quarter ended 31 December 2025. The company’s operating cash outflow narrowed dramatically to just $0.16 million, a significant turnaround from the $2.98 million outflow recorded in the previous quarter. This improvement was underpinned by a robust 31.5% increase in total revenue, which rose to $7.1 million, alongside disciplined cost reductions.
Strategic Brand Consolidation
Despite the overall revenue growth, Wellnex Life’s brand sales declined by 25.5% to $3.8 million. This was a deliberate outcome of the company’s strategic decision to consolidate and deprioritise non-core assets, focusing resources on its flagship brand, Pain Away, and other core offerings. The pivot aims to enhance long-term profitability and operational efficiency, reflecting a clear shift in corporate strategy.
Improved Cash Position and Financing
The company’s cash position strengthened, with cash and cash equivalents rising to $0.98 million by quarter-end. Additionally, Wellnex Life has $2.01 million in undrawn financing facilities available, part of a total $11.65 million facility, of which $9.65 million is currently drawn. These facilities include secured revolving trade and debtor finance and a secured loan facility, providing a buffer to support ongoing operations and strategic initiatives.
Operational Discipline and Governance
Payments to related parties, including directors’ fees and executive remuneration, amounted to $0.36 million during the quarter. The Board expressed confidence in the company’s execution and ongoing engagement across the business, highlighting a disciplined approach to margin enhancement and cost control. Wellnex Life remains committed to its turnaround strategy, focusing on improving cash conversion and strengthening its balance sheet.
Looking Ahead
Executive Chairman Ash Vesali will host a live investor briefing on 2 February 2026 to discuss the quarter’s results and outline the company’s path forward. Investors will be keen to hear how Wellnex Life plans to sustain momentum, manage its financing, and capitalise on its core brand strengths in the coming quarters.
Bottom Line?
Wellnex Life’s disciplined focus and improved cash flow set the stage for a critical phase in its turnaround journey.
Questions in the middle?
- How will the strategic consolidation of brands impact revenue growth in the medium term?
- What measures will Wellnex Life take to further reduce reliance on drawn debt facilities?
- Can the company sustain improved cash flow while investing in core brand expansion?