**Summary of Wellnex Life Limited Q2 FY26 Quarterly Update and Appendix 4C**
Wellnex Life Limited (ASX/AIMWNX) released its Q2 FY26 quarterly update and Appendix 4C on January 29, 2026, highlighting significant operational and financial improvements. Key takeaways include
1. **Financial Performance**
Operating cash outflow improved to $(0.16) million, a substantial reduction from $(2.98) million in Q1 FY26, driven by 31.5% quarter-on-quarter (QoQ) revenue growth and cost-cutting measures.
Customer cash receipts rose to $5.10 million, up from $4.54 million in Q1 FY26.
Total revenue increased to $7.1 million, with IP Licensing revenue surging by 1,000% to $3.3 million, offsetting a 25.5% decline in Brands revenue to $3.8 million due to strategic consolidation of non-core assets.
Gross profit grew by 16.7% to $2.1 million.
2. **Cash Position**
Quarter-end cash balance increased to $0.98 million, with $2.01 million in undrawn financing facilities available.
Total financing facilities stood at $11.65 million, with $9.65 million drawn.
3. **Strategic Focus**
The company continues its turnaround strategy, focusing on core brands like Pain Away, improving cash conversion, and strengthening the balance sheet.
Manufacturing and operating cash flows normalized after a one-off raw material purchase in Q1 FY26.
4. **Corporate Updates**
Payments of $0.36 million were made to related parties for directors fees, executive remuneration, and associated costs.
The Board remains optimistic about execution and engagement across the business, with efforts to enhance margins and reduce costs.
5. **Investor Engagement**
Executive Chairman Ash Vesali will host a live investor briefing on February 2, 2026, at 11 am (AEDT).
6. **Appendix 4C Highlights**
Net cash from operating activities improved to $(0.16) million.
Financing activities contributed $0.965 million in net cash.
Estimated cash available for future operations is $2.98 million, sufficient for approximately 18.3 quarters based on current cash outflows.
Wellnex Life remains committed to its strategic goals, with a focus on profitability and sustainable growth.
Below is an HTML table comparing the financials and debt year on year based on the provided text. The table includes key metrics such as revenue, gross profit, cash balance, and debt levels for Q2 FY26 and Q1 FY26.
### Notes:
1. **Year-on-Year Comparison**: The provided text only includes data for Q2 FY26 and Q1 FY26, so a full year-on-year comparison is not possible. The table compares the two quarters instead.
2. **Debt and Cash Balance**: The debt and cash balance figures are based on the information provided in the Appendix 4C and the main text.
3. **Percentage Changes**: Calculated based on the available data for Q2 FY26 and Q1 FY26. This table provides a clear comparison of key financial metrics between Q2 FY26 and Q1 FY26, highlighting improvements and changes in revenue, cash flow, and debt levels.