Physitrack (PTRK) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 3% pro forma group revenue growth, led by a 6% increase in Lifecare and offset by a decline in Wellness due to strategic exits and restructuring.

• Adjusted EBITDA margin improved to 31%, with positive free cash flow of €0.1m and €0.5m debt repaid in Q1.

• Strategic restructuring, including Wellnow divestment and Champion Health changes, reset the cost base and improved operational efficiency.

• The business is now focused on high-margin, scalable SaaS offerings, with significant deals closed and a strong enterprise sales pipeline.

• Subscription revenue rose to €3.0m, now 84% of total revenue, with Physitrack MRR up 24.1% year-over-year.

Financial highlights

• Pro forma revenue increased 3% year-over-year to €3.6m; Lifecare revenue up 6% to €2.8m.

• Adjusted EBITDA reached €1.1m (31% margin), with adjusted EBITDA less CAPEX at €0.4m (12% margin).

• Free cash flow was €0.1m, and annualized revenue was €14.2m.

• Subscription revenue accounted for 84% of total revenue, up from 78% in Q1 2024.

• €0.5m debt repaid in Q1, with €1.4m liquidity available on facility.

Outlook and guidance

• Medium-term target is to double the revenue base and achieve 40%-45% EBITDA margin, in line with Lifecare's current performance.

• Management expects continued profitable growth in FY25, supported by a leaner cost base and a growing enterprise pipeline.

• No further significant restructuring costs anticipated for the remainder of 2025.

• Continued focus on scalable SaaS growth, enhanced KPI reporting, and investment in AI-driven workflow and finance tools.

• Cash flow neutrality is expected for the full year 2025, despite anticipated Q2 outflows due to seasonality.