Q2 FY26 Quarterly Update and Appendix 4C
Wellnex Life Limited reported a significant improvement in operating cash outflow to $(0.16) million for the quarter ended 31 December 2025, a substantial reduction from $(2.98) million in the previous quarter, driven by 31.5% quarter-on-quarter revenue growth and cost reductions. Customer cash receipts increased to $5.10 million, and the company ended the quarter with a cash balance of $0.98 million, supplemented by $2.01 million in undrawn financing facilities. Total revenue reached $7.1 million, with IP licensing revenue surging by 1000% to $3.3 million, while brand sales saw a 25.5% decrease to $3.8 million as the company deprioritised non-core assets. Payments to related parties for directors' fees and remuneration amounted to $0.36 million.
Select text to share a quote on X · sign in to keep highlights & notes in your WNX notes
Highlights
- Operating cash outflow improved significantly to $(0.16)m, from $(2.98) m in Q1 FY26 on the back of 31.5% QoQ revenue growth and significant cost reductions
- Customer cash receipts increased to $5.10m, up from $4.54m in the previous quarter
- Manufacturing and operating cash flows returned to normal levels, following a one-off raw material purchase in Q1 FY26
- Quarter end cash balance rose to $0.98m, with $2.01m in undrawn financing facilities available
- Please join Executive Chairman, Ash Vesali, for an upcoming live investor briefing on Monday, 2 February 2026 at 11am (AEDT). Register here: https://wellnexlife.investorportal.com.au/live-investor-briefing/
Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex Life" or the "Company") Executive Chairman, Ash Vesali is pleased to provide the following operational and business update along with its Appendix 4C for the quarter ended 31 December 2025 (all figures unaudited).
During the December quarter, the Company recorded customer cash receipts of $5.1m, reflecting improved trading conditions and continued strength in core brand Pain Away.
| Revenue | Q2 FY26 | Q1 FY26 | % Change |
|---|---|---|---|
| Brands | $3.8 million | $5.1 million | (25.5%) |
| IP Licensing | $3.3 million | $0.3 million | 1000% |
| Total | $7.1 million | $5.4 million | 31.5% |
| Gross Profit | $2.1 million | $1.8 million | 16.7% |
Brands sales declined to $3.8m in Q2 FY26, primarily due to the Company's previously announced decision to consolidate and deprioritise non-core assets, as part of a strategic focus on core brand and long-term profitability.
Net operating cash outflow for the quarter was $(0.16)m, a significant improvement compared with $(2.98)m in the prior quarter. As of 31 December 2025, the Company held $0.98m in cash and cash equivalents and had total financing facilities of approximately $11.65m, of which $9.65m had been drawn as further referred to in 7 of Appendix 4c below.
The Company remains focused on its turnaround strategy, improving cash conversion, and strengthening its balance sheet.
During the quarter, payments of $0.36m were made to related parties. These payments relate to directors' fees, executive remuneration and associated costs.
The Board is encouraged by the strong execution and sustained engagement across the business. The Company continues to operate with increased focus and discipline to further identify opportunities to enhance margins and reduce costs.
Join Executive Chairman, Ash Vesali, for an online investor briefing on Monday, 2 February 2026 at 11am (AEDT). Register here: https://wellnexlife.investorportal.com.au/live-investor-briefing/
This ASX/AIM announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 77 150 759 363 | 31 December 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 | |
| 1. | Cash flows from operating activities | 5,101 | 9,637 |
| 1.1 | Receipts from customers | ||
| 1.2 | Payments for | (142) | (259) |
| (a) research and development | |||
| (b) product manufacturing and operating costs | (2,511) | (7,097) | |
| (c) advertising and marketing | (619) | (1,428) | |
| (d) leased assets | |||
| (e) staff costs | (1,064) | (1,944) | |
| (f) administration and corporate costs | (379) | (1,268) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 0 | 0 |
| 1.5 | Interest and other costs of finance paid | (264) | (350) |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (GST refund/(paid)) | (285) | (432) |
| 1.9 | Net cash from / (used in) operating activities | (163) | (3,141) |
| 2. | Cash flows from investing activities | - | - |
| 2.1 | Payments to acquire or for: | ||
| (a) entities | |||
| (b) businesses | |||
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) intellectual property | - | ||
| (f) other non-current assets | - | - | |
| 2.2 | Proceeds from disposal of: | - | - |
| (a) entities | |||
| (b) businesses | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) intellectual property | - | - | |
| (f) other non-current assets | - | - | |
| 2.3 | Loan repayment from other entity | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (cash acquired from CBDG Administration) | - | |
| 2.6 | Net cash from / (used in) investing activities | - | - |
| 3. | Cash flows from financing activities | ||
| 3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
| 3.2 | Proceeds from issue of convertible debt securities | - | - |
| 3.3 | Proceeds from exercise of options | - | - |
| 3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (331) | (1,150) |
| 3.5 | Proceeds from borrowings | 4,735 | 11,677 |
| 3.6 | Repayment of borrowings | (3,440) | (6,907) |
| 3.7 | Transaction costs related to loans and borrowings | - | - |
| 3.8 | Share applications to be refunded | - | - |
| 3.9 | Other (repayment of lease liabilities) | - | - |
| 3.10 | Net cash from / (used in) financing activities | 965 | 3,620 |
| 4. | Net increase / (decrease) in cash and cash equivalents for the period | 174 | 497 |
| 4.1 | Cash and cash equivalents at beginning of period | ||
| 4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (163) | (3,141) |
| 4.3 | Net cash from / (used in) investing activities (item 2.6 above) | ||
| 4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 965 | 3,620 |
| 4.5 | Effect of movement in exchange rates on cash held | (1) | (1) |
| 4.6 | Cash and cash equivalents at end of period | 975 | 975 |
| 5.1 | Bank balances | 975 | 174 |
| 5.2 | Call deposits | - | - |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (funds held in trust) | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 975 | 174 |
| 6. | Payments to related parties of the entity and their associates | Current quarter $A'000 | |
| 6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 360 | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | ||
| 7.1 | Loan facilities | 9,125 | (7,120) |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (Director's loan) | 2,525 | (2,525) |
| 7.4 | Total financing facilities | 11,650 | (9,645) |
| 7.5 | Unused financing facilities available at quarter end | 2,005 | |
- Secured Revolving Trade and Debtor Facility with Scottish Pacific of $3.8 million Interest Rate: BBSY plus 6.8%. 2. Secured loan facility with Reach Wholesale of up to $5.35m at 14% per annum expiring August 2027. A further $0.375m is available to the company if requested at the absolute discretion of lender.
| ABN | Quarter ended ("current quarter") | |
|---|---|---|
| 77 150 759 363 | 31 December 2025 | |
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| 8. | Estimated cash available for future operating activities | $A'000 |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (163) |
| 8.2 | Cash and cash equivalents at quarter end (item 4.6) | 975 |
| 8.3 | Unused finance facilities available at quarter end (item 7.5) | 2,005 |
| 8.4 | Total available funding (item 8.2 + item 8.3) | 2,980 |
| 8.5 | Estimated quarters of funding available (item 8.4 divided by item 8.1) | 18.3 |
| 8.6 | If item 8.5 is less than 2 quarters, please provide answers to the following questions: |
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
Date: ...................................................................................
The Board of Directors
Authorised by: ...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.