**Summary of Wellnex Life Limiteds Half-Year Report (H1 FY26)**
**Key Highlights**
**Revenue Growth** Revenue increased by 8% to $12.9 million in H1 FY26 compared to the same period in FY25.
**Gross Margin Improvement** Gross margin rose significantly by 9.4 percentage points to 32.1%, driven by cost control and operational efficiency.
**Operating Breakeven** The company achieved operating breakeven in Q2 FY26, marking a turnaround in financial performance.
**Strategic Turnaround** Wellnex Life implemented a strategic turnaround focused on a leaner, more efficient operation, enhanced management processes, and tighter capital management.
**Funding Review** Post-period, the company is exploring funding options, including settling related party loans.
**Financial Performance**
**Revenue** $12.919 million, up 8% from H1 FY25, with brand sales contributing 72.3% and IP licensing the remainder.
**Loss Reduction** Loss from ordinary activities after tax decreased by 76.2% to $(1.793) million.
**Net Tangible Assets** Decreased slightly to $(13.06) cents per ordinary security from $(12.51) cents in the previous period.
**Operational Updates**
**Pain Away** Maintained market position with $7.0 million in sales, improved gross margin by 7.9%, and gained market share in heat patches and roll-ons.
**Wakey Wakey/Nighty Night** Consolidated underperforming SKUs, ceasing investments in these areas.
**Wagner Health Liquigesic** Launched Australias first TGA-approved soft gel liquid paracetamol, expanding product offerings and strengthening brand recognition.
**Mr Bright** Discontinued natural teeth whitening brand, planning to divest its intellectual property.
**Corporate Governance**
**Board Restructure** Reduced the number of directors from 7 to 3, with Ash Vesali appointed as Executive Chairman.
**Management Changes** Accepted resignations of Joint Chief Executive Officers, with Vesali overseeing both the Board and management during the transition.
**Going Concern**
Despite losses and net operating cash outflows, the company believes it can continue as a going concern, supported by
Stabilizing turnaround trajectory and increasing gross margins.
Potential asset monetization opportunities.
Targeted cost reduction program aiming for $1 million in annualized savings.
Ability to raise additional capital and access debt facilities.
**Conclusion**
Wellnex Life Limited demonstrated significant progress in H1 FY26, achieving revenue growth, gross margin improvement, and operating breakeven. The company remains focused on consistent performance and long-term shareholder value creation, while addressing financial challenges through strategic initiatives and funding exploration.
| Financial Metric | H1 FY26 (Dec 2025) | H1 FY25 (Dec 2024) | Change |
|---|---|---|---|
| Revenue | $12.9 million | $11.962 million | 8% increase |
| Gross Margin | 32.1% | 22.7% | 9.4 percentage points increase | tr>
| Loss from ordinary activities after tax | ($1.793 million) | ($7.526 million) | 76.2% decrease in loss |
| Net Tangible Assets per ordinary security (cents) | (13.06) | (12.51) | Minor decrease |
| Total Current Liabilities - Borrowings | $5.215 million | $5.708 million | 8.6% decrease |
| Total Non-Current Liabilities - Borrowings | $4.819 million | $0 million | New borrowing |
| Related Party Loans | $2.969 million | $2.856 million | 4% increase |