**Summary**
Wellnex Life Limited (ASX/AIMWNX) released a market update on January 16, 2026, highlighting significant financial and operational improvements in the first half of FY26 (H1 FY26). Key achievements include
1. **Financial Performance**
H1 FY26 EBITDA improved by $2.4 million compared to the prior year.
Gross margin increased from 22.8% to 31.3%.
December 2025 EBITDA rose by $0.7 million year-on-year, driven by reduced operating costs.
The company operated at breakeven by the end of Q2 FY26.
2. **Pain Away Brand**
Quarterly sales in Q2 FY26 reached $3.3 million, with a 7.6% improvement in gross margin.
Market share gains in Australia, with heat patches and roll-ons outperforming category growth.
New distribution partnerships secured, including Priceline and major pharmacy wholesalers, with upcoming launches at Costco Australia and New Zealand.
3. **Operational Focus**
Simplified operations and cost discipline measures have stabilized the business.
Contract manufacturing is being optimized for better productivity and sustainability.
4. **Outlook**
Wellnex enters H2 FY26 with improved stability and a clear turnaround trajectory.
The company remains focused on consistent performance and long-term shareholder value creation.
Executive Chairman Ash Vesali emphasized the company’s progress and commitment to sustainable growth, positioning Wellnex for continued success in 2026.