Physitrack PLC

Hello everybody and welcome to Physitrack's Q2 2026 results webcast. I'm Henrik Molin, I'm the CEO and founder of Physitrack and I'm joined today by our CFO Matt Halter. All right, let's get to it. We will give you a little snapshot of what worked and what worked less well as a start of it. And then we'll look at the two business divisions. Matt will take you through the financials in more detail. We'll also cover the share buyback. We're going to wrap up with strategy and outlook, and then we'll move into Q&A. And as usual, submit questions at any time using the Q&A function at the bottom of your Zoom panel down there. Now, let's go. Right, Q2 snapshot. Some interesting developments. Revenue was up 8% year-on-year, 6% quarter-on-quarter. Compared to Q4 2025, we're up 10%. revenue reached 3.4 million euros and 96 percent of that revenue comes from subscriptions and that is as you know the gold standard and what we do in software your predictable recurring revenue flows and that's almost all of what our business is built on Life care revenue was up 11% year on year to 3.1 million euros. Life care ARPL, which is the average revenue per license, increased 10% to 189 euros per year. That's important because we're increasing the value of every customer relationship and we're adjusting pricing accordingly, which is great. Wellness continues to move towards profitability. Adjusted EBITDA was 170,000 euros. Profits after tax from continuing operations came in at 49,000 euros. there are also some really important milestones during the quarter the biggest one was in the US we launched RTM we now have our first paying customers live and the active leads that we're pursuing here are closing in on a hundred of a customer base of about six thousand paying customers in the US and on top of that we announced several really nice enterprise wins that you've seen through our press releases and There are some really nice movements here. Looking at what slowed a little, adjusted EBITDA margins came down slightly. That's entirely because of planned investments in sales and marketing, mainly building up the New York office with more salespeople. Adjusted EBITDA less capex also came down temporarily because of the RTM development work that we've been doing. but nice investments there and is already paying off. Free cash flow for the quarter was negative because of a settlement relating to a supplier relationship that dates back to before 2018. It's been hanging overs for a long time and it's great to put that behind us now. Operating cash flow however remains positive and that's now seven consecutive quarters of positive operating cash flow and we're very very happy with that as well. annual recurring revenue now stands at a run rate of 13.6 million euros we're also a much leaner organization today we have 33 employees a year ago we had 71. it's a very different company we're modernized we've adopted ai across the business we've simplified the organization and we've exited operating physical clinics ourselves all of that makes us a much leaner and meaner business looking ahead we expect the capex cycle to moderate during the second half of the year as the RTM build is now largely complete.

All right, some financial highlights from the quarter.

This rehashing revenue for the quarter was 3.4 million euros, 8% up year-on-year, 6% quarter-on-quarter, 10% compared to Q4 2025. Adjusted EBITDA, 1.2 million euros. Group ARR reached 13.6 million. Free cash flow from continuing operations, positive at 0.1 million. That's our seventh consecutive positive operating cash flow quarter in a row. The SaaS growth margins remain very strong at 9%. Let's take a look at Life Care. Revenue up, as I said, 11% year on year. Churn remains at 1%, 12 months look back. Adjusted EBITDA margins sit at 50%, equivalent to 1.6 million euros. Adjusted EBITDA less capex was 25%, or 800,000 euros. You'll notice that the license bates dipped slightly during the quarter, and that was mostly intentional. We parted ways with a legacy customer in the UK that generated very, very low margins. That's an agreement that I think we came in to 2017 2018 and it simply wasn't a contract we wanted to continue servicing what you can also see is some really nice movement in ARPL so again serving a higher value customer base and we implemented our plan price raise in April churn following that increase has been extremely low so in fact it's been the most successful price increase in the company's history it gives us a lot of confidence in our pricing power We still believe the platform is undervalued relative to the value of our customers getting from it and customers tend to agree looking at core KPIs. Turning to wellness. Revenue contracted 14% year-on-year. Some of the reduction in contracts was planned as we exited lower margin business that were done by the legacy team behind Champion Health. Some contracts also simply came to an end of their term. annual recurring revenue stands at 0.9 million euros adjusted EBITDA margins have improved to 32% that's bringing wellness much closer to the group's long-term financial targets adjusted EBITDA less capex margin improved to 11% we've also achieved a very nice reduction in operating expenses and that's largely the result of closing the champion health plus clinics and moving entirely to outsource clinical delivery through our Nexa partnerships and today we're really excited to not have any hands-on clinical operations ourselves we've completely exited that we've focused entirely on the software platform clinical deliveries handled through partners and that's a much leaner structure it's a much more simple operating model and it's a much more scalable business The priority now is rebuilding growth momentum from that stronger foundation. All right, looking ahead, execution priorities, sorry for the busy slide here, but there's a lot going on here. Our priorities are very clear though, North America, as a natural point of focus. The build out of the New York office where we are today continues and is really exciting. We have some very hungry people on the ground here and we're continuing to expand the commercial team. We're also adding more product capability in New York. and it's so important for us to be close to the American market and it's not just about the commercial aspects of it it's for the product aspects of it as well because healthcare providers here they're ahead of the game of their international peers they have different needs and consumers they are really really on top of what they want from UI UX because the latest and the greatest innovation reaches them ahead of time from anybody else around the world And so we want the product teams close to that market so we can respond faster and be ahead of the game. So moving over to RTM, that continues to be a really exciting opportunity. As I mentioned, we're closing in on a triple digit pipeline of RTM opportunities. I think we're closing in on 100 of those within the existing customer base. Very important point there. We're not entering North America from zero. We're actually growing inside of an existing customer base that's already generating a couple of million of revenue. So we have a very significant opportunity to increase that revenue per customer through upselling. And we don't have to build everything from zero, which traditionally is very, very expensive. on the capital market side we continue working towards a us parallel listing through otcqx we are just waiting for market cap qualification levels we've seen a lot of interest from american investors thanks to the work of our investor relations team the entrepreneurship culture here in the US makes Physitrack a very interesting company and there's a big history with market cap investing thanks to the American Stock Exchange and other outlets we're just moving towards this as our market cap grows once that happens we'll move ahead with that parallel US listing so American investors can actually just press a button and buy Physitrack more easily. Now, on the product side, RTM, of course, has been live in production since June. We've also launched a unified enterprise bundle for the U.S. market that combines home exercise programs, RTM, and continuing education that puts us more directly alongside providers like MedBridge when we're competing for enterprise customers. Motion capture, another really important part of the strategy, so as reimbursement requirements become increasingly data-driven, providers need much better patient monitoring to prove that they're actually working with their patients in a particular way so motion capture gives us another meaningful opportunity to provide that and to increase license value across the US customer base so from a financial perspective we maintain really strong margins while continuing to invest for growth and of course again seven consecutive positive operating cash flow quarters speaks for itself The numbers we saw exiting June were extremely encouraging. Both growth and margins have improved drastically and that gives us confidence heading into the second half of the year. Now finally, down there bottom right, Wellness has now completed its reset into a pure enterprise SaaS business. No longer are we involved in physical care delivery ourselves. Everything is done through partners through the NEXA system and that leaves us with a much leaner cost base, much more scalable business model and a company that's firmly profitable. So overall we're very encouraged by the first half of the year. We're looking forward to building on that momentum in the second half of 2026. Now with that I'll hand over to Matt to walk you through the financial results in more detail. Matt over to you sir.