DocMorris (DOCM) H2 2025 earnings summary

Executive summary

• Achieved 11.1% revenue growth for 2025 in local currency, meeting financial targets and guidance, with adjusted EBITDA at CHF -48.2m.

• Rx segment grew 33.2%, non-Rx by 7.1%, and digital services by 110%, with digital services now contributing over 50% of total company margin.

• AI Health Companion launched and rapidly adopted, with one-third of app users utilizing the AI assistant; strategic partnership with Google announced to enhance digital health offerings.

• Strong liquidity position of CHF 160 million and net debt reduced to CHF 138 million.

Financial highlights

• Gross margin increased by 90 basis points to 22.2%.

• External revenue reached CHF 1,186m, up 11.1% in local currency and 9.3% in CHF year-over-year.

• Personnel expense ratio lowered by 50 basis points due to efficiency gains and automation.

• Adjusted EBITDA improved slightly to CHF -48.2m despite higher marketing spend.

• Distribution and logistics costs increased due to higher order volumes and market-wide logistics inflation.

Outlook and guidance

• Targeting EBITDA breakeven in 2026 and free cash flow breakeven in 2027.

• 2026 revenue guidance: mid-single digit to low teens growth, with Rx expected to grow ~20%, OTC mid-single digit, and digital services mid-double digit.

• EBITDA guidance for 2026: CHF -10 million to -CHF 25 million, with a 300 basis point margin improvement.

• Mid-term (2030) CAGR guidance revised to 15%, with digital services gaining higher relative share.

• Capital expenditure guidance at CHF ~30m per year.