Operational discipline and innovation drive EUR 0.9m rebound, marking historical quarterly positive cash flow.
Investor snapshot
| Metric | Q2 2025 | Q2 2024 | YoY ? | Q1 2025 | QoQ ? |
| Revenue (Pro Forma) EUR m | 3.5 | 3.3 | 6% | 3.6 | -1% |
| Constant currency revenue EUR m | 3.6 | 3.3 | 8% | 3.5 | 1% |
| Subscription % of Revenue | 87 | 79 | +8pp | 84 | +3pp |
| Proforma Adjusted EBITDA EUR m | 1.2 | 0.9 | 34% | 1.1 | 5% |
| Proforma Adj. EBITDA Margin % | 33 | 26 | +7pp | 31 | +2pp |
| Proforma Adj. EBITDA less CapEx EUR m | 0.5 | 0.0 | 3314% | 0.4 | 18% |
| Free Cash Flow EUR m | 0.1 | (0.8) | 107% | 0.1 | -67% |
| Lifecare ARR EUR m | 11.9 | 9.9 | 20% | 11.2 | 6% |
| Wellness ARR EUR m | 1.3 | 0.6 | 109% | 1.0 | 27% |
| Group Net Revenue Retention (NRR) % | 100.2% (L), 98.6% (W) | 99.9% (L), 97.7% (W) | ? (minor) | 99.7% (L), 99.3% (W) | ? (minor) |
Summary for the period
Second quarter: 1st April - 30th June 2025
Based on Alternative Key Performance Measures, the Company's key financial highlights for the period are summarised below. Performance broken down per division is provided later in this release.
- Proforma revenue, following planned low margin revenue reduction, has increased by 6 per cent to generate total sales of EUR 3.5m (EUR 3.3m). This grew by 8 per cent on a constant currency basis.
- Lifecare achieved a 8 per cent revenue increase, reaching EUR 2.8m. When assessing organic revenue free from currency fluctuations this was a 11 per cent revenue increase, reaching EUR 2.9m.
- Wellness revenue was flat against prior year on both a pro-forma and constant currency basis.
- Subscription revenue increased 9 per cent (EUR 0.3m) to EUR 3.1m and now makes up 87 per cent of total group revenue, an increase from 79 at Q2 2024.
- The major contributor to the growth in subscription revenue was the Champion Health product, which saw 25.7 per cent MRR growth quarter-on-quarter.
- Proforma adjusted EBITDA of EUR 1.2m (EUR 0.9m) was generated resulting in an Proforma adjusted EBITDA margin of 33 per cent (26 per cent).
- Proforma adjusted EBITDA less CAPEX of EUR 0.5m (EUR 0.0m) was generated resulting in an Proforma adjusted EBITDA margin less CAPEX margin of 15 per cent (0 per cent). This was split between Lifecare of EUR 0.8m / 29 per cent margin and Wellness of EUR -0.1m / -15 per cent margin.
- Adjusted operating profit of EUR 0.2m (loss EUR 0.3m) was generated resulting in a margin of 5 per cent (-9 per cent).
- Adjusted ordinary and diluted profit per share totalled EUR 0.00 (EUR (0.02)).
- Cashflow generated from operations before the payment of adjusting items equalled EUR 1.4m (EUR 0.4m).
- Free cash flow for the quarter was a net inflow of EUR 0.1m (outflow EUR 0.8m).
Summary for year to date
June year to date: 1st January - 30th June 2025
Similarly, based on Alternative Key Performance Measures, the Company's key financial highlights for the first half of the 2025 financial year are summarised below.
- Proforma revenue, following planned low margin revenue reduction, has increased by 4 per cent to generate total sales of EUR 7.1m (EUR 6.8m). This grew by 5 per cent on a constant currency basis.
- Lifecare achieved a 7 per cent revenue increase, reaching EUR 5.6m. When assessing organic revenue free from currency fluctuations this was a 8 per cent revenue increase, reaching EUR 5.6m.
- Wellness revenue declined by 4 per cent on a proforma revenue basis to EUR 1.5m. On a constant currency basis, revenue declined by 6 per cent.
- Subscription revenue increased 6 per cent (EUR 0.4m) to EUR 6.0m and now makes up 85 per cent of total group revenue, an increase from 79 at Q2 2024.
- The major contributor to the growth in subscription revenue was the Physitrack product, which saw 28.4 per cent MRR growth year-on-year.
- Proforma adjusted EBITDA of EUR 2.3m (EUR 2.0m) was generated resulting in an Proforma adjusted EBITDA margin of 32 per cent (29 per cent).
- Proforma adjusted EBITDA less CAPEX of EUR 1.0m (EUR 0.3m) was generated resulting in an Proforma adjusted EBITDA margin less CAPEX margin of 13 per cent (5 per cent). This was split between Lifecare of EUR 1.5m / 27 per cent margin and Wellness of EUR -0.1m / -4 per cent margin.
- Adjusted operating profit of EUR 0.2m (loss EUR 0.2m) was generated resulting in a margin of 3 per cent (-3 per cent).
- Adjusted ordinary and diluted profit per share totalled EUR 0.00 (EUR (0.02)).
- Cashflow generated from operations before the payment of adjusting items equalled EUR 2.7m (EUR 1.4m).
- Free cash flow for the year to date was a net inflow of EUR 0.2m (outflow EUR 0.7m).
Key highlights during the second quarter
Q2 2025 marks a strong quarter of operational and financial progress, as we continue to embed a leaner, more scalable SaaS-first operating model across the Group.
Solid Financial Delivery Despite Strategic Reshaping
Group pro forma revenue grew 6 per cent YoY to EUR 3.5m, with Lifecare revenue up 8 per cent and Wellness revenue down 24 per cent due to the strategic exit from low-margin services. On a constant currency basis revenue grew by 8 per cent YoY. Proforma Adjusted EBITDA rose 34 per cent YoY to EUR 1.2m (margin 33 per cent), while Adjusted EBITDA less CapEx improved to EUR 0.5m from breakeven last year.
Underlying Cash Flow Positive Despite One-off Settlement
The Group delivered EUR 1.4m in operating cash flow in Q2 and reported positive free cash flow. Excluding EUR 0.4m in one-off legal costs related to the Champion Health founder settlement, we would have reported positive free cash flow of EUR 0.5m for the quarter.
SaaS Strategy Gaining Traction Across Both Divisions
Group ARR grew 21 per cent YoY, driven by Lifecare (+19.7 per cent) and Wellness (+109.3 per cent). SaaS revenue now accounts for 87 per cent of total revenue (+8pp YoY), supported by strong SaaS gross margins (91.9 per cent in Lifecare; 87.9 per cent in Wellness). Net Revenue Retention remained robust at 100.2 per cent (L) and 98.6 per cent (W).
Efficiency Driving Profitability and Resilience
The margin uplift is a direct result of our Q1 restructuring and the ongoing integration of automation and AI-enabled tooling. Proforma Adj. EBITDA less CapEx improved 3314 per cent YoY, while Proforma Adj. EBITDA margin rose to 33 per cent (+7pp YoY). These results validate our commitment to scalable, high-margin growth.
Divisional Execution Supporting Long-term Quality of Earnings
Lifecare delivered pricing-led growth and strong tender wins, while Champion Health successfully executed key Q2 rollouts tied to prior contracts. The Wellness division's short-term revenue dip reflects a deliberate pivot from non-recurring income to higher-quality, recurring SaaS revenue streams.
CEO Interview
A Physitrack Spotlight interview with CEO & co-founder Henrik Molin commenting on the report is available at: https://vimeo.com/1103480245/0b3f4ff077
Lifecare Division Summary:
Financial Performance (Quarterly & YTD View)
| Metric | Q2 2025 | Q2 2024 | YoY ? | YTD 2025 | YTD 2024 | YoY ? |
| Revenue (EUR) | 2,798,632 | 2,590,641 | 8% | 5,552,356 | 5,182,208 | 7% |
| SaaS Revenue (EUR) | 2,626,319 | 2,444,332 | 7% | 5,208,929 | 4,931,275 | 6% |
| Avg. Licenses | 69,328 | 67,094 | 3% | 69,014 | 66,072 | 4% |
| ARPU (EUR) | 171.5 | 146.9 | 17% | 164.9 | 146.8 | 12% |
| Custom App Maintenance | 159,029 | 103,139 | 54% | 304,618 | 185,620 | 64% |
| Custom Set-up Revenue | 13,284 | 43,170 | -69% | 38,809 | 65,313 | -41% |
| OPEX (EUR) | (1,400,604) | (1,388,668) | 1% | (2,848,728) | (2,704,326) | 5% |
| Adj. EBITDA (EUR) | 1,398,027 | 1,201,973 | 16% | 2,703,628 | 2,477,882 | 9% |
| Adj. EBITDA Margin (%) | 50% | 46% | +4pp | 49% | 48% | +1pp |
| D&A (EUR) | 706,349 | 710,583 | -1% | 1,469,177 | 1,391,150 | 6% |
| Adj. EBIT (EUR) | 691,678 | 491,390 | 41% | 1,234,451 | 1,086,732 | 14% |
| CAPEX | (581,489) | (729,565) | -20% | (1,199,112) | (1,428,574) | -16% |
| Adj. EBITDA less CAPEX (EUR) | 816,538 | 472,408 | 73% | 1,504,516 | 1,049,308 | 43% |
| Adj. EBITDA less CAPEX Margin (%) | 29% | 18% | +11pp | 27% | 20% | +7pp |
SaaS KPIs (Quarterly)
This includes Lifecare SaaS entities Physitrack and Physiotools.
| KPI | Q2 2025 | Q2 2024 | Q1 2025 | YoY ? | QoQ ? |
| ARR (EUR m) | 11.9m | 9.9m | 11.2m | 19.7% | 5.8% |
| Customer Growth Rate (%) | 0.5% | 2.6% | 1.1% | N/A | N/A |
| ARPL (EUR) | 171 | 147 | 162 | 16.6% | 5.4% |
| CLTV (EUR) | 2,271 | 2,065 | 2,149 | 10.0% | 5.7% |
| Average monthly Churn Rate (%) | (1.0%) | (1.0%) | (1.0%) | -pp | -pp |
| NRR (%) | 100.2% | 99.9% | 99.7% | +0.3pp | +0.5pp |
| SaaS Gross Margin (%) | 91.9% | 93.1% | 91.1% | -1.2pp | +0.7pp |
Commentary
- Lifecare continues to deliver stable and high-margin SaaS growth.
- ARPL growth of 16.6 per cent YoY reflects a price adjustment implemented in September 2024, alongside expanded platform capabilities.
- Deployment of AI tools (PhysiAssistant) and the redesigned patient app have improved clinician workflow efficiency and patient engagement.
- Organic growth strategy is yielding low churn, now stable at 1.0 per cent, and underpins license base expansion.
- The segment's performance demonstrates strong recurring revenue fundamentals and disciplined cost management.
Wellness Division Summary:
Financial Performance (Quarterly & YTD View)
| Metric | Q2 2025 | Q2 2024 | YoY ? | YTD 2025 | YTD 2024 | YoY ? |
| Revenue (EUR) | 715,940 | 943,910 | -24% | 1,522,422 | 2,029,063 | -25% |
| Proforma Revenue (EUR) | 715,940 | 717,601 | 0% | 1,522,422 | 1,588,162 | -4% |
| SaaS Revenue (EUR) | 274,587 | 255,953 | 7% | 527,284 | 559,495 | -6% |
| Avg. Licenses | 116,786 | 71,035 | 64% | 117,183 | 66,954 | 75% |
| ARPU (EUR) | 10.9 | 8.7 | 24% | 9 | 9 | 7% |
| Non-recurring revenue | 441,352 | 687,958 | -36% | 995,138 | 1,469,569 | -32% |
| OPEX (EUR) | (762,438) | (1,007,959) | -24% | (1,479,840) | (1,944,639) | -24% |
| Proforma Adj. EBITDA (EUR) | (46,498) | (64,049) | 27% | 42,582 | 84,424 | -50% |
| Proforma Adj. EBITDA Margin (%) | -6% | -7% | +1pp | 3% | 4% | -1pp |
| D&A (EUR) | 126,194 | 208,082 | -39% | 254,004 | 289,600 | -12% |
| Proforma Adj. EBIT (EUR) | (172,693) | (272,131) | 37% | (211,422) | (205,176) | -3% |
| CAPEX | (59,292) | (217,127) | -73% | (106,901) | (301,704) | -65% |
| Proforma Adj. EBITDA less CAPEX (EUR) | (105,791) | (281,175) | 62% | (64,320) | (217,280) | -70% |
| Proforma Adj. EBITDA less CAPEX Margin (%) | -15% | -30% | +15pp | -4% | -11% | +7pp |
SaaS KPIs (Quarterly)
This includes Wellness SaaS entity Champion Health.
| KPI | Q2 2025 | Q2 2024 | Q1 2025 | YoY ? | QoQ ? |
| ARR (EUR m) | 1.3 | 0.6 | 1.0 | 109.3% | 25.7% |
| Customer Growth Rate (%) | -6.1% | -1.4% | 0.9% | N/A | N/A |
| ARPL (EUR) | 11 | 10 | 9 | 18.9% | 33.9% |
| CLTV (EUR) | 123,659 | 100,015 | 118,115 | 23.6% | 4.7% |
| Net MRR Churn Rate (%) | (1.4%) | (2.3%) | (0.7%) | +0.9pp | -0.7pp |
| NRR (%) | 98.6% | 97.7% | 99.3% | +0.9pp | -0.7pp |
| SaaS Gross Margin (%) | 87.9% | 56.9% | 77.3% | +31.0pp | +10.6pp |
Commentary
- Strategic Pivot to SaaS Underway: The Wellness division is transitioning from low-margin, one-off revenue to a recurring SaaS model. This has temporarily softened total revenue (Q2 YoY -24 per cent), but positions the business for long-term, high-margin growth.
- SaaS Growth Accelerating: Champion Health drove a 25.7 per cent QoQ increase in ARR and 7 per cent YoY SaaS revenue growth in Q2, supported by initial revenue from a large contract signed earlier this year. SaaS gross margin expanded to 87.9 per cent (+31pp YoY).
- Margins Expanding on Cost Discipline: Cost-saving initiatives and Q1 restructuring have taken effect, with OPEX down 18 per cent YoY and Adj. EBITDA less CAPEX improving 28 per cent YoY. Margin uplift reflects greater efficiency as the SaaS model scales.
Webcast conference:
July 24, 2025, at 15.00 CET. The presentation will be held in English and will be available on https://www.physitrackgroup.com after the webcast conference.
Speakers:
Henrik Molin, CEO
Matt Poulter, Interim CFO
Link to webcast registration:
https://us06web.zoom.us/webinar/register/WN_bSvZ7K-aRe6UM25qYIQ35A
Participants will be able to ask questions via Zoom's Q&A function.
Enquiries regarding this announcement should be addressed to:
Henrik Molin, CEO and co-founder, Physitrack.
+44 208 133 9325
ir@physitrack.com
media@physitrack.com
About Physitrack
Physitrack PLC, founded in 2012, is a global digital healthcare provider, focused on the B2B wellness and virtual-first care markets. With staff with 12 nationalities on four continents, customers in 17 time zones, and end users in 187 countries, Physitrack is a truly global company.
The company has two business lines:
1. Lifecare - SaaS platform tailored mainly to physiotherapy and musculoskeletal care, enabling practitioners to deliver clinical home exercises, education prescription, outcomes tracking, triaging and Telehealth.
2. Wellness / Champion Health - SaaS platform for Employee Wellness and care powered by a combination of world-leading technology and wellness professionals based in the United Kingdom, Germany and the Nordics.
Physitrack PLC is headquartered in London, United Kingdom, and listed on Nasdaq First North Premier Growth Market (PTRK).
Visit us at
https://physitrackgroup.com/ (investor relations)
https://physitrack.com (product marketing)
About Champion Health
Champion Health, a subsidiary of Physitrack Plc, is a leader in corporate wellness technology, providing an innovative platform that empowers businesses to support their employees' well-being through personalised wellness action plans and advanced analytics.
Visit us at
https://championhealth.co.uk/
