Xenitra Limited (ASX:XEN) told shareholders on Thursday that it delivered positive operating cash flow of A$800,000 in Q4 FY26 and ended the quarter with A$3.79 million in closing cash.

The result marked a A$2.13 million improvement from the previous quarter and a A$2.46 million improvement from the cash outflow recorded in Q4 FY25, according to the company.

Non-executive chairman Dr Anthony Noble said the figures were the “clearest evidence to date” that Xenitra had completed a strong turnaround.

“Customer receipts were lower as the company reduced its exposure to low-margin, working-capital-intensive trading, but product and operating payments reduced much more substantially,” he said in remarks to XEN shareholders.

Xenitra reported customer receipts of A$5.33 million for the quarter, down 32% quarter-on-quarter as legacy nutritionals trading was moderated. Product manufacturing and operating payments fell to A$3.75 million, 56% below Q3, which the company said reflected improved cash conversion and a leaner business model.

Preliminary unaudited accounts showed Q4 sales of about A$5 million with a gross margin of about 16%, supported by higher-margin sales channels including the OPAL ecosystem.

“The strategic shift is now visible in both the cash flow and the gross-margin profile of the business,” Dr Noble said, referring to the three strategic pillars Xenitra has been focusing on heading into FY27.

“Nutritionals remains an important scale and distribution pillar, but growth is increasingly being directed to OTC medicines and OPAL-tokenised sales, where we believe the margin and cash-return characteristics are stronger.

“The OPAL launch delivered rapid sales and distributor growth, while the Fukang acquisition created the platform for our OTC strategy to move into execution.”

Xenitra said its restructuring has also reduced fixed infrastructure and non-core activities, with the aim of delivering about A$1 million in annualised savings. The company’s FY26 quarter update is also likely to draw attention because it shows how the business is trying to rebalance away from lower-margin trading toward channels it says are more capital efficient, while preserving distribution reach through nutritionals and expanding into OTC medicines. The ASX-listed company said it enters FY27 focused on disciplined execution, scaling its growth engines, and “converting strategic progress into sustainable growth.”

XEN was trading at 0.3 cents per share this morning.

Disclaimer: This content was prepared as part of a partnership with Xenitra Ltd. It is intended to inform investors and should not be taken as financial advice. The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions.