Elixinol Wellness posted revenue growth, a significantly reduced operating cost base, and its first underlying operating cash flow positive quarter during the three months to December.
The company brought in revenue of $4.1 million, a 9.5% rise quarter-on-quarter, pushing full-year 2025 sales to $15.5m — a 3.6% improvement on FY24.
FY25 gross profit climbed 5.4% compared to the prior year.
The update was Elixinol's first financial report since Gavin Evans took on the chair role in December, a period that followed heightened concern about the company's funding position after its cash at bank fell to $400k at the end of September.
Those concerns were not reflected in the December quarter filing, which showed Elixinol recording its first underlying operating cash flow positive period.
The company called the outcome a "major operating milestone", crediting the turnaround to an accelerated program of cost-reduction measures that brought operating expenses down considerably.
Evans said the firm had been "laser focused on operational efficiency", adding that the December quarter demonstrated progress in expanding retail contracts, diversifying revenues, improving margins and lowering the cost base.
Elixinol's portfolio covers a range of health and wellness brands, among them The Healthy Chef, Hemp Foods Australia, Mt Elephant, and The Australian Superfood Co.
Quarter-on-quarter growth was led by The Healthy Chef, whose e-commerce revenue rose 42% year-on-year, while Hemp Foods Australia turned in a record quarter.
With margins improving and operating costs down sharply, Elixinol said it now had a "clear path to profitability".
