Physitrack PLC (PTRK) - Healthcare and Virtual Wellness

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https://www.physitrackgroup.com/press-release?slug=physitrack-plc-interim-report-january-june-2025

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Full report as PDF
https://storage.mfn.se/04d3eb63-8ee7-4d5a-9d93-e432d80c5550/q2-2025-interim-report-final.pdf

Positive cash flow in Q2 :partying_face:
This has been heavy on costs; I expected zero or slightly less. Additionally, with a one-off cost of €0.4M, it would have been €0.5M in the black.

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.

Costs have also been brought down, and low-margin sales were removed, so key figures improve instantly. The turning of this ship has been long awaited. Now, finally, tailwinds are visible in the forecasts :sailboat:

More on cash flow from the CEO’s comments

From a financial perspective, the benefits are clear. When adjusting for restructuring-related outflows, our business is deeply cash flow positive. Even when these one-off costs are included, we have generated a positive cash inflow for the quarter. To put this into perspective, the second quarter of 2024 saw a cash outflow of approximately €800,000. To have transformed that into a positive cash in-flow, including the impact of this year’s restructuring costs, is a remarkable achievement and reflects the strength and sophistication of our operational model.

It’s worth noting that the second quarter is typically cash intensive due to annual audit fees and prepaid subscriptions. That we have navigated this period with stability is a testament to our discipline and to theeffectiveness and success of the measures we have implemented.

This had also gone unnoticed: In the Wellness sector, they are transitioning to a recurring billing model, which temporarily weakened the segment’s figures, but in the future, through price increases, will lead to better and more predictable cash flow.

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%), but positions the business for long-term, high-margin growth

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Kurssien ja niiden muutosten kyselyt, kauhistelut ja hehkuttelut (Osa 4)
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New Lifecare sector deal with NHS and a private sector operator.

https://www.physitrackgroup.com/press-release?slug=physitrack-announces-commercial-partnership-with-leading-uk-rehabilitation-provider-pure-physiotherapy

“The subscription agreement, valued initially at £14,000 per annum and expected to scale significantly with further clinic adoption, marks a strategic advance in Physitrack’s UK growth — particularly among leading MSK providers operating at the interface of public and private healthcare.”

A very modest start, but it seems to be a growing business.

My own stock alerts went off earlier today when the stock was suddenly up 13%, so I was already expecting news. With this, it seems to be more the rule than the exception that news of deals leaks beforehand. However, this was still such a small deal that after those who bought based on the leak, there was no more upside for the stock price.

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Lind Research insights after Q2

A more extensive report is also available behind the link. The disclaimer states that it’s not for direct distribution, but it can be found there.

An Increased Focus on Value Creation

PTRK is moving in the right direction to unlock value. In particular, Q2 showed a stronger focus on profitable growth and improved cash flow.

Many of our suggestions for increasing value have already been executed by PTRK, which is a good sign:

From EBITDA to cash flow: The change is apparent as focus has shifted more to “EBITDA less CAPEX”, we hope to see long-term goals for this instead of EBITDA margin in the near-term.

Better segment reporting: The difference between the Q4’24 report and the Q2’25 report is clear; it’s now easier to see how the segments have changed over time.

Headquarters (HQ) cost cuts: HQ costs as a share of revenue hit an all-time low.

The share has had a strong run since our initial investment case write-up, but we still view PTRK as undervalued and mispriced. We raise our valuation assumptions following the strong execution by the company and that they are following our suggested value-creation plan.

Large safety margin: Our assumptions suggest that a share price of up to about 26 SEK is attractive, even when the Required Rate of Return is set at 20%. This gives us a large safety margin at the current price level.

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Nathan Skwortsow, one of the co-founders, has been gradually selling his ownership. Apparently, the rest has now been sold off in a block trade.

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Nathan’s continuous sales and the information about his intention to sell a large position have certainly not helped the stock price development. After that, the price clearly corrected upwards, albeit along with the general market rally of the day.

OTAnalytics’ (private equity investor) comments
https://www.linkedin.com/posts/otanalytics_𝗣𝗵𝘆𝘀𝗶𝘁𝗿𝗮𝗰𝗸-𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽-activity-7365257116535730176-YB8d?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAyidnABz3BglLwePEvedd9sbeGvexU0JV4

Last Friday, Physitrack PLC co-founder Nathan Skwortsow seem to have sold his remaining 1.3 million shares – about 8% of the company – in an off-market transaction.

Nathan stepped away from the operational side several years ago and has since gradually reduced his stake. With a background as co-founder of Lexa and Kamernet, two of the Netherlands’ largest platforms for dating and housing rentals, he has in recent years focused on new startup investments. My interpretation is that the sale is primarily about freeing up capital for new projects – though of course the exact reasons are not known.

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More comprehensive Redeye comments related to the previous point

… At the time of the IPO, Skwortsow owned approximately 23% of the shares, while Molin held around 25%. Skwortsow has not been active in Physitrack for quite some time and has gradually reduced his ownership, while Molin’s ownership has remained intact. By the end of July 2025, Skwortsow’s stake had declined to around 8%. Given his continuous selling, combined with the relatively limited liquidity in the share, an overhang effect has lingered on the stock. With this latest transaction, that overhang now appears largely removed. Since Skwortsow no longer has operational commitments to the company, we see no drama in a founder exiting to pursue new ventures.

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:partying_face: :us: :handshake:

Physitrack PLC Announces Appointment of new Head of Sales, North America

Physitrack PLC today announced the appointment of Yanni Metaxas as its new Head of Sales for North America, effective 1 September 2025.

Metaxas joins Physitrack from Mount Sinai Health System in New York City, one of the largest hospital systems in the United States, serving more than 400,000 lives. At Mount Sinai, he was responsible for consumer sales of care products, overseeing both direct and automated sales channels.

With a B.A. in Mathematics from Boston University, Metaxas brings deep experience in healthcare sales and system-level relationship management. In his new role, he will be responsible for driving growth across key North American customer segments, with a particular focus on major hospital systems including NYU Langone, Cedars-Sinai, and the Hospital for Special Surgery.

Metaxas will also lead engagement with electronic medical record (EMR) providers, further expanding Physitrack’s partnerships with large-scale platforms such as Epic Systems as well as specialised physical therapy EMR providers including Raintree (United States), Jane, and ClinicMaster (Canada). Additionally, he will oversee customer development with major Canadian providers, notably CBI Health, the largest physical therapy network in the country.

Henrik Molin, CEO of Physitrack, commented:
“It is great to welcome Yanni to Physitrack. Having someone at the heart of the North American healthcare system, with his depth of experience and gravitas, is exactly what we need to take our business to the next level. His track record in healthcare sales and his understanding of complex provider networks will be invaluable as we expand our presence across North America. We are very excited to have him on board.”

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B2C has been on the agenda for some time, now the first public steps in that direction

The sums here are small, but there is growth potential in the market. Similar steps can probably be taken in the US market over time

Physitrack Plc announces deal with European insurer to launch consumer-facing self-management product

First phase of agreement generates €55,000 of upfront and €24,000 annual recurring revenue, strengthens Physitrack’s presence in direct to consumer offering.

London, UK – September 25, 2025 – Physitrack Plc (Nasdaq First North Premier: PTRK) today announced an agreement with one of the largest insurers in mainland Europe to launch a new consumer-facing self-management and self-triage application for musculoskeletal (MSK) conditions. The first phase of the agreement is valued at €55,000 upfront with an annual recurring subscription fee of €24,000, with revenue recognition expected to commence in the third quarter of 2025. Subsequent phases of the agreement, with additional revenue generation and expanded scope of delivery, commence in Q4 2025 and Q1 2026 respectively.

The solution will enable the insurer’s plan members to proactively screen themselves for MSK-related issues and receive guided escalation either to self-management through Physitrack’s exercise library and patient engagement suite, or directly to physiotherapy care when clinically appropriate.

This agreement builds on a long-standing relationship between Physitrack and the insurer, reflecting a shared commitment to empowering patients to take control of their care journey while supporting the insurer in optimising clinical workflows, enhancing patient satisfaction, and managing costs related to physiotherapy.

“We are proud to extend our collaboration with this major European insurer,” said Henrik Molin, CEO and Founder of Physitrack Plc. “It has been a pleasure to evolve our technology together over the years, and this next step brings plan members greater freedom to access the right care at the right time—whether that means self-care or professional physiotherapy support.

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Redeye’s Q3 preview on Oct 21.

Profitability should be improving, with price increases in Lifecare. But Wellness is expecting larger contracts in addition to the aforementioned insurance company deal.

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The journey continues in the same direction after a good Q2. Profitability and cash flow are developing, and the closure of low-margin clinics reduces revenue as expected. One-off restructuring costs are still visible, of course.

One-off costs out of the figures going forward and a couple of bigger deals on the Wellness side, then there will be good grounds for a re-rating of the valuation :clap:

Full report:

Physitrack PLC – Interim report: January – September 2025

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Summary for the period
Third quarter: 1st July – 30th September 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.

  • Pro forma 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 9 per cent on a constant currency basis.

  • Lifecare achieved a 13 per cent revenue increase, reaching EUR 2.9m. When assessing organic revenue free from currency fluctuations this was a 17 per cent revenue increase, reaching EUR 3.0m.

  • Wellness revenue declined by 18 per cent on a pro forma revenue basis to EUR 0.6m. On a constant currency basis, revenue declined by 16 per cent. This is a reflection of unprofitable clinic closures as well as planned expiry of legacy founder-linked contracts as the division refocuses on higher margin enterprise customers.

  • Subscription revenue increased 7 per cent (EUR 0.2m) to EUR 3.0m and now makes up 88 per cent of total group revenue, an increase from 82 at Q3 2024.

  • Adjusted EBITDA of EUR 1.2m (EUR 0.9m) was generated resulting in a Pro forma adjusted EBITDA margin of 33 per cent (28 per cent).

  • Pro forma adjusted EBITDA less CAPEX of EUR 0.4m (EUR 0.1m) was generated resulting in an Pro forma adjusted EBITDA margin less CAPEX margin of 11 per cent (2 per cent). This was split between Lifecare of EUR 0.7m / 23 per cent margin and Wellness of EUR -0.04m / -7 per cent margin.

  • Adjusted operating loss of EUR 0.1m (loss EUR 0.2m) was generated resulting in a margin of -2 per cent (-6 per cent).

  • Adjusted ordinary and diluted profit per share totalled EUR -0.01 (EUR (0.02)).

  • Cashflow generated from operations before the payment of adjusting items equalled EUR 1.4m (EUR 0.8m).

  • Free cash flow for the quarter was a net inflow of EUR 0.4m (outflow EUR 0.4m).

Edit:

Adding Redeye’s quick comments here; according to them, it also met expectations.

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Ostin/myin juuri äsken (Osa 7)
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Redeye’s more extensive comments

And OT Analytics’ corresponding [analysis]
(a private investor who follows Physitrack and is a major owner)

In short: as my own comment above. Cash flow and profitability are now in order. Growth is needed on the Wellness side for the true value to emerge. Trades at approx. \~50% discount to peers.

Edit 24.10. also adding Lind Research’s analyses here

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Wellness restructuring completed, clinics closed, and focus on SaaS business

** Physitrack announces strategic restructure of Wellness division to focus on high-margin SaaS growth in 2026**

London, 24 November 2025 – Physitrack PLC (“Physitrack”) announces the continued restructuring of its Wellness division as part of the Group’s strategy to focus on high-margin, recurring-revenue software in 2026.

As part of this restructuring, the Group will exit human-intensive, lower-margin care operations in Wellness and focus on its core SaaS platforms in Physitrack and Champion Health. This includes the divestment of Fysiotest / Champion Health Nordics and the closure of all remaining clinics in Champion Health Plus.

This strategy is a continuation of the work initiated in 2024 and 2025 to focus the Group, improve profitability and reinforce Physitrack as a SaaS-led business. The divestments and closures do not affect Physitrack’s core SaaS platforms, where demand and growth opportunities remain strong heading into 2026.

Summary highlights (pro forma YTD to 30 September 2025)

Had the divestment and clinic closures taken effect from 1 January 2025:

  • Revenue impact: –€1.0m
  • Adjusted EBITDA impact: +€0.2m
  • Adjusted EBITDA margin: 38%, compared with the reported 32%
  • Cash impact: +€0.1m
  • Recurring revenue mix: would have been 95% of Group revenue (vs 86% reported)

These changes strengthen the Group’s financial profile, improve revenue visibility and support a more scalable, software-driven growth trajectory into 2026 and beyond.

Intended divestment of Fysiotest AB / Champion Health Nordics
Physitrack has signed Heads of Terms with existing management for a potential divestment of Fysiotest Europa AB / Champion Health Nordics through a management buy-out. Completion, subject to contract, is targeted for the end of December 2025.

  • Expected consideration: €1
  • Estimated disposal costs (adjusting items): approx. €0.1m
  • Goodwill and intangible assets to be derecognised: €1.6m (carrying value at 30 September 2025)

Contracts relating to the Champion Health Swedish platform will remain with Physitrack’s Champion Health business, with Nordic sales activities now led from London. As part of the finalisation of the SPA, Physitrack expects to enter into a reseller distribution agreement with existing management to continue selling the platform in the region.
2) Champion Health Plus – closure of clinic operations
Physitrack will close the remaining Champion Health Plus clinics and retain the asset-light elements of the business, including the National Network offering and the Nexa digital triage platform.

  • Estimated closure-related costs (adjusting items): approx. €0.2–0.3m
  • Impairment of related goodwill and intangibles: €3.3m (carrying value at 30 September 2025)

The retained activities align fully with Physitrack’s SaaS and digital health strategy, supporting scalable and margin-accretive growth.

Management commentary
Henrik Molin, CEO and Co-founder of Physitrack, commented:

“These actions complete the Wellness pivot to pure-play SaaS we started in 2024. By exiting labour-intensive care operations and focusing fully on our SaaS and digital platforms, we position Physitrack for sustainable, high-margin growth in 2026 and beyond.”

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Redeye Q4 / 2025 previews

Lower-margin businesses discontinued and sold during this year, for which revenue is declining.
As a result, there are also goodwill impairments, which are reflected in the earnings / EPS. There is no longer a very significant impact on cash flow, but it will be visible in the reported result.

Significant adjustments of EUR 5.1m

Investors should prepare for significant “below-the-line” movements this quarter. However, we expect only a minor portion—approximately EUR 0.4m—to affect cash flow. Total adjusting items are expected to be roughly EUR 5.1m, primarily driven by a balance sheet cleanup following the divestment of Fysiotest and the closure of clinic operations:
• Impairment of Goodwill/Intangibles: EUR 3.3m (non-cash operating expense).
• Derecognition of Assets: EUR 1.6m (non-cash operating expense, related to goodwill and intangibles).
• Restructuring Fees: EUR 0.4m (cash-effecting costs related to the divestment of Fysiotest and the closure of clinic operations).

No major deals have been announced, so no significant growth is expected. At this stage, I am personally following cash flow more closely and comments regarding the expansion of the US market. Of course, also EBITDA at this point, to ensure that profitability development returns to the expected track.

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A Q4 update fairly in line with expectations. Official and audited figures will follow later. Growth is needed; profitability is significantly better.

CEO Henrik’s interview
https://vimeo.com/1159117322/60b2488cb7?fl=tl&fe=ec

Here is a good summary from an active follower, especially the notes regarding the US market.
https://x.com/HappyZubi/status/2015730831482916923?s=20

edit:
Adding Redeye’s comments as well:

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Ostin/myin juuri äsken (Osa 8)
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Physitrack starts share buybacks, as cash flow is finally healthy and valuation is low
:+1:

Physitrack PLC announces intention to implement share buyback program

Physitrack’s Board of Directors has approved the intention to implement a share buyback program (the “SBB”), subject to lender consent and prevailing market conditions.

London, February 20. 2026

Physitrack PLC (Nasdaq First North: PTRK) (“Physitrack” or the “Company”) today announces that its Board of Directors has approved the intention to implement a share buyback program (the “SBB”), subject to lender consent and prevailing market conditions.

The Board believes that, following the Group’s strengthened profitability, improved margin profile and sustained positive free cash flow, it is appropriate to establish a framework that enhances capital flexibility and supports long-term shareholder value creation.

The Company intends to utilise the existing shareholder authorisation granted at the Annual General Meeting to repurchase up to 10 per cent of the Company’s issued share capital. Any repurchases would be funded from operating cash flow and distributable reserves and would not involve drawings under the Company’s revolving credit facility.

The SBB provides the Company with flexibility in capital allocation. Repurchased shares may be cancelled to reduce the number of shares outstanding or held in treasury for potential future use, including possible share-based incentive arrangements. No share-based incentive plan has been approved at this time.

Henrik Molin, CEO and co-founder, commented:
“Physitrack exits 2025 with materially improved cash generation, stronger margins and a more focused operating model. Establishing a share buyback framework reflects the Board’s confidence in the business and its commitment to disciplined capital allocation. We view buybacks, like dividends, as a legitimate shareholder value tool. This program provides flexibility to optimise our capital structure while continuing to invest in growth.”

Implementation of the program remains subject to approval from the Company’s banking partner. The Board does not currently anticipate any impediment to obtaining such approval.

The timing, size and execution of any repurchases will remain at the discretion of the Board and will be conducted in accordance with the EU Market Abuse Regulation (MAR), applicable safe harbour rules and Nasdaq First North Premier Growth Market requirements.

No share repurchases have been made as of the date of this announcement.

Further updates will be provided in accordance with applicable disclosure requirements

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I would hope for more deals on the wellness side so that its competitiveness and demand would be proven. This will do for now while waiting for those :handshake:

Physitrack announces agreement with leading Swiss healthcare organisation

Physitrack PLC (Nasdaq First North Premier: PTRK) has reached an agreement with a major Swiss Health Care organisation. The deal is worth 149,985 CHF (approximately 156,000 EUR), equivalent to 37,497 CHF (approximately 39,000 EUR) in annual recurring subscription revenue (ARR)

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US market is open :partying_face:
While not significant in value, the signal value for the future is very good.

Physitrack signs Agreement with New York-based Academic Medical Center

Physitrack PLC (Nasdaq First North Premier: PTRK) — New Commercial Agreement Generates $100,556 in Total Contract Value and $31,897 in Annual Recurring Revenue with major North American Customer.

NEW YORK, United States, and LONDON, United Kingdom, March 30, 2026

Physitrack today announced a new commercial agreement with a New York state-based academic medical center to deliver the Physitrack platform.

The agreement is valued at $100,556 in total contract value and $31,897 in annual recurring subscription revenue, with revenue recognition expected to commence in Q2 2026.

Subsequent phases of the agreement may include expanded scope and additional user licenses, with the potential to generate additional recurring revenue.

Under the agreement, Physitrack will provide its digital rehabilitation and clinical exercise prescription platform to 190 clinician users, enabling the customer to:

  • Improve access to rehabilitation care and remote patient monitoring across clinical teams
  • Scale digital home exercise programme delivery and patient education through a single integrated platform
  • Enhance clinical outcomes tracking and patient engagement through integrated telehealth capabilities
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Permission received from the lender to start the program

Physitrack PLC receives lender consent for share buyback program

Physitrack PLC (Nasdaq First North: PTRK) (“Physitrack” or the “Company”) today announces that it has received the necessary consent from its banking partner to proceed with its previously announced share buyback program (the “SBB”), removing the final material condition to implementation.

The SBB will be subject to an annual cap and will incorporate standard governance controls, including pause triggers and resumption conditions appropriate for a program of this nature. All repurchases will be conducted in accordance with the safe harbour provisions of EU Market Abuse Regulation (MAR) Article 5 and Nasdaq First North Premier Growth Market requirements.

Henrik Molin, CEO and co-founder, commented:

“Receiving bank approval is an important milestone. All material conditions to the program are now in place and we look forward to updating shareholders further in due course as we appoint a broker for the execution of the program.”

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Stable

Summary for the period

First quarter: 1 January – 31 March 2026

Based on Alternative Key Performance Measures, the Company’s key financial highlights for the period are summarised below.

  • Constant currency revenue amounted to EUR 3.3m (EUR 3.1m), corresponding to 6 per cent year-on-year growth.
  • Subscription revenue continued to represent the majority of Group revenue (96 per cent), reflecting the strength of the recurring SaaS model.
  • Adjusted EBITDA decreased 3 per cent maintaining at EUR 1.1m (EUR 1.1m), corresponding to a margin of 34 per cent (36 per cent).
  • Adjusted EBITDA less CapEx decreases to EUR 0.3m (EUR 0.5m).
  • Operating cash flow from continuing operations maintained at a relatively consistent level EUR 0.9m (EUR 1.0m).
  • Free cash flow from continuing operations remained positive at EUR 0.1m (EUR 0.2m), maintaining 6 consecutive quarters of positive free cash flow.

Interesting highlight, listing on the US OTC market :thinking:

A further development is our ongoing review of a potential quotation on the OTCQX Best Market in the United States. This could enhance access to US investors without affecting our Nasdaq First North Premier listing or involving a capital raise, supporting our continued expansion in North America.

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True, it’s stable. Fortunately, we are slowly drifting forward anyway. I’d prefer to see slightly stronger figures before the US listings.

By the way, we’ve drifted quite close to Redeye’s bear case again:

Physitrack - Redeye

Are there any other analysts still covering this?

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It seems there are no other official analyst firms following Physitrack.
However, there are a couple of Swedish private/corporate investors:

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