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Wellnex Life
Despite achieving a break-even milestone, Wellnex Life faces scrutiny over its financial health amid governance challenges and cash flow pressures.
(AI video summary)
This video was created on 16 January 2026 for IG audiences by ausbiz.
ASX code: WNX
Wellnex Life's rocky path to profitability
Wellnex Life's recent earnings report indicated an improvement in earnings before interest, taxes, depreciation, and amortisation (EBITDA) by $2.4 million compared to the previous corresponding period (PCP). However, analysts note the company’s losses were $7.5 million in the first half of 2025, still resulting in a current loss of $5 million. This raises concerns about the company's ability to maintain profitability in the foreseeable future.
Governance and financial issues
With a market capitalisation of approximately $11 million, Wellnex Life faced a costly listing on the Emerging Companies Market (ECM) without achieving a turnaround. Analysts highlight governance issues and debt concerns, including a high-interest debt at 14% and a repayment demand from a former chief executive officer (CEO), impacting cash flow. Despite improved gross margins from 23% to 30%, the figure remains below the 50% target for brands with intellectual property (IP).
Investment outlook
Wellnex Life faces significant financial and operational hurdles. While reduced losses indicate progress, achieving stability and profitability remains distant.
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