Physitrack (PTRK) Q2 2025 earnings summary

Executive summary

• Achieved first-ever Q2 positive cash flow since IPO, with EUR 0.1 million inflow, reversing a EUR 0.8 million outflow year-over-year, despite EUR 200,000 in restructuring and legal costs.

• Adjusted EBITDA margin reached 33%, reflecting successful restructuring, operating leverage, and a shift to high-margin, recurring revenue.

• Recurring revenue now comprises 87% of total, up 8 percentage points year-over-year, driving predictability and margin expansion.

• Lifecare division posted 8% year-over-year revenue growth and a 50% adjusted EBITDA margin; Wellness division saw flat to declining revenue but improved profitability as SaaS ARR grew 109% year-over-year.

• Strategic focus on SaaS transition, operational efficiency, and innovation, with new product launches, AI-driven automation, and a leaner, scalable model.

Financial highlights

• Group revenue grew 6% year-over-year (8% constant currency), with pro forma Q2 revenue at €3.5m and annualized revenue at €14.3m.

• Adjusted EBITDA increased 34% year-over-year to €1.2m, with margin at 33%; adjusted EBITDA less CapEx margin at 15%.

• Free cash flow improved from EUR 0.8 million outflow in Q2 2024 to EUR 0.1 million inflow in Q2 2025.

• Lifecare annualized revenue at €11.3m; Wellness at €3m; Group ARR grew 21% YoY, with Lifecare ARR at €11.9m (+20%) and Wellness ARR at €1.3m (+109%).

• SaaS ARR in Wellness up 109% year-over-year and 25.7% quarter-on-quarter.

Outlook and guidance

• Medium-term goal to double revenue base, leveraging strong market demand and scalable SaaS model, replacing the previous 30% annual organic growth target.

• Targeting group EBITDA margins of 40%-45%, in line with Lifecare's current 50% margin, with short-term margin contraction possible due to acquisitions.

• Continued focus on cash generation, with potential for future dividend distribution as debt levels decrease and profits are reinvested into organic growth.

• Expecting further profitability improvements as OpEx refinements in Champion Health are completed and SaaS expansion continues.

• Strategic metrics to focus on cash conversion and ARR expansion via upsell and enterprise wins.