Physitrack revenue rises 14% in third quarter as spending weighs on profitability
Key Facts
Physitrack reported a 14% year-on-year increase in revenue in the third quarter of 2026, as growth accelerated alongside commercial spending and product launches that weighed on adjusted profitability. Revenue reached 3.6 million euros, according to the company's regulatory filing, while constant-currency growth was 11% compared with the corresponding period. Second-quarter revenue was about 3.4 million euros, according to the earnings call transcript published by Investing.com. The company recorded year-on-year growth of 8% in that period, before the pace accelerated in the third quarter. Physitrack described revenue growth in its latest results as the strongest of the year. Subscription revenue accounted for 94% of total group revenue in the third quarter, according to the same filing.
Adjusted earnings before interest, taxes, depreciation and amortization reached 1.1 million euros in the third quarter, according to Physitrack's filing. The adjusted EBITDA margin was 31%, with adjusted profitability under pressure from investment in commercial operations and products. The company had recorded an adjusted margin of 34% in the second quarter of 2026, according to the earnings call transcript for that period published by Investing.com. Physitrack attributed the pressure on adjusted profitability to investment in its North American commercial team, alongside product launch activities. The company identified the spending areas in its filing as the "North American commercial team and product launch activities," as quarterly revenue growth accelerated compared with the previous quarter.
Continuing operations generated operating cash flow of 1.1 million euros in the third quarter of 2026, according to the regulatory filing. Free cash flow from continuing operations was 0.2 million euros in the same period, remaining positive alongside the spending described by the company. Physitrack also reported a decline in net debt at the end of the third quarter. Net debt stood at 3.7 million euros, according to figures in the quarterly results filing. It had been 3.8 million euros in the second quarter of the year, according to the earnings call transcript published by Investing.com, before the decline reported in the latest period.
Physitrack says its platform is used by more than 110,000 clinicians in 174 countries, according to its official explanation of its product and integration model. The company allows healthcare organizations operating across multiple sites to retain their existing electronic medical record systems while using its services. In its explanation of the model, it said that "complex multi-site organizations and groups can retain their existing electronic medical records." These organizations use Physitrack for patient follow-up and exercise prescription, as well as measuring adherence and outcomes and providing remote therapeutic monitoring. The company thus offers patient follow-up services to organizations that continue to use their existing records, alongside the rollout of its electronic medical record product. It also makes the use of artificial intelligence tools subject to clinician approval before outputs are sent, attributed or signed in the clinician's name, according to the official product page.
Physitrack aims to double revenue over the medium term, according to financial targets published on the group's investor website. Alongside the revenue expansion target, it is targeting an EBITDA margin of between 40 and 45% over the medium term. Under its dividend policy, the company says it does not expect to pay dividends over that time horizon. Physitrack describes its financial targets as "forward-looking information," based on estimates and assumptions relating to its business. In its presentation of the targets, the company says those estimates and assumptions are subject to risks and uncertainty, including the stated medium-term targets for revenue growth and the earnings margin.
For the electronic medical record rollout, Physitrack set 28 September 2026 as the date for early access to open, according to the official product page. The company advertises a standard price of 59.99 dollars per user per month. Describing controls for the product's AI tools, it says: "Nothing is sent, attributed or signed in your name until you approve it." This process requires clinician approval of outputs before those steps are carried out, according to the company's published description. The electronic medical record rollout is part of the product launch activity Physitrack cited when explaining the pressure on adjusted profitability during the third quarter. According to the results filing, paid subscriptions for the electronic medical record product begin on 1 January 2027.