Physitrack PLC

hello welcome to fizz track's q3 2026 results webcast i'm henrik marlin ceo and co-founder of fizz track and shoulder to shoulder for the first time not an ai i can assure you i'm joined by matt palter our amazing cfo so let's kick this off we'll start with a little snapshot of the quarter and I will walk you through the business updates from our two divisions Life Care and Wellness Matt is then going to take the helm and walk you through the financial results a bit more in detail and he'll give you an update on the Share Buy Back program and then we'll revisit our strategy and outlook and after that we'll take a question so as usual use your Q&A function at the bottom of your screen and I think that's it all right let's let's go Alright so a little snapshot looking at the quarter what worked really well and what perhaps didn't work quite as well and where we actually ended up. So starting with what worked. Revenue was up 14% year-on-year to 3.6 million euros on a constant currency basis that's 11% so really nice growth. Life care was up 15% and the core PhysiTrack home exercise prescription platform it grew by 26% year-on-year. that's a really really great number for a platform that's been around for more than a decade actually we'll talk more about that in a moment average revenue per license increased by 11% to 190 euros per year per user and churn remains steady at around 1% per month on a 12 month look back basis in wellness margins came up very nicely and if you look at that we're at 36% adjusted EBITDA margin which is close to our overall financial goals operating profit 0.2 million euros and importantly three new systems were launched during the quarter so remote therapeutic monitoring our electronic medical record system our EMR we'll talk more about that in the coming slides and it's an early access now we have our educational modules as well that went live we also secured two us healthcare system selections through competitive processes led by our new york team very very nice win there so lots of really nice things happening here Now let's slow down a little bit. Well, adjusted EBITDA was down 8% year on year. This was largely planned and reflects the investments that we made in building out the US operations and of course, developing these amazing new systems that we just brought to market. I'll revisit that a little bit in a moment. Now, adjusted EBITDA as capex was 0.3 million euros in the quarter and wellness ARR contracted 2.7 million euros following the loss of one large customer. And as we exited the quarter, group ARR stood at 13.6 million euros and net debt was 3.7 million with that revolver at Santander. Net debt came down during the quarter and we expected to come down further. Our educational modules are now live and on the EMR side we expect paid subscriptions to start contributing from January 2027. So overall a quarter of really strong growth a lot of product delivery and some deliberate investment in the next phase of the business. Okay so just quickly walking you through the financial highlights again revenue 3.6 million adjusted EBITDA 1.1 million euros group ARR 36 million free cash flow 0.2 million and importantly that's the eighth consecutive quarter of positive cash flow lucky eight gross margin remains very strong at 89% and recurring revenue represents 94% of the total now let's look at that it's a very resilient financial profile and we're managing to grow the business while continuing to generate cash we're going to dig a little bit deeper into that moving to life care here so realized performance so 50% growth year-on-year 3.3 million euros of revenue contribution for the quarter adjusted EBITDA was 1.4 million euros and adjusted EBITDA less capex 0.6 million euros representing an 18% margin. We've seen really nice growth throughout the year here. And as I mentioned earlier, the core Fisdrack platform itself grew by 26%. Now that's a really strong number for a mature platform. And there's more to come there, particularly as we bring EMR and remote therapeutic monitoring into the ecosystem. Average revenue per license increased by 11%. We implemented a price increase during the quarter, and we're now seeing that reflected in the numbers now what's really encouraging is that shown remains steady and i think that tells us two things first our customers are clearly seeing value in the platform and second we're still underpriced relative to the value that we're actually delivering so this room here to continue expanding revenue per customer over time just with price adjustments now the division remained profitable uh gross margin 89 and overall This is actually the strongest growth we've seen so far this year, while at the same time, we're funding a really meaningful expansion in the United States and a lot of innovation. So, very pleased with Life Care. Looking at wellness, growth was relatively flat, up 2%. As I mentioned, we did lose one large customer, which brought annual recurring revenue 2.7 million euros. But what I'm particularly pleased about here is the improvement in profitability. adjusted EBITDA margin is now 38% and adjusted EBITDA as capex is 29% so that's a really nice development revenue retention has also improved 96.6% and we're now back to growth while rebuilding the enterprise ARR base we've spent quite a lot of time resetting this business as you know we focused on the fundamentals and getting profitability back to where it should be doing stuff that is profitable not dealing with customers that are losing those money and so on so it's been a nice cleanup effort and we're now seeing the results of that work more to come from wellness but we are definitely moving in the right direction we are looking at execution priorities it's quite a busy slide but let's start top left there north america you've seen a couple of really nice us healthcare system selections announced including one with integration into epic my chart and another with a potential contract value of almost four hundred thousand dollars now that's a great testament to the hard work being done by the new york team and as our head of growth kevin likes to say It's impossible to lose. And that's the real ambition here, just to making sure that we can really do those really nice big wins. And the RTM remote therapeutic monitoring solution is now open for trials across all US customers. And of course, the US is also our number one priority for the new EMR. So we're starting to see that different parts of that strategy come together. Looking at mortgages and cash, bottom left, it's a very, very nice story here to see that we've delivered eight consecutive quarters of positive operating cash flow while also reducing debt. And we're accelerating revenue while remaining profitable. Now, adjusted EBITDA, it came down a little. and the margin is 31%, but I think that's quite marginal in the context of everything that we've delivered. We've built and launched several major new systems, expanded the US presence, and we've invested really here in creating a much bigger commercial opportunity for the business. So that's a very nice combination, and I think we can just accept that lower EBITDA margin, and that's gonna be temporarily. Looking at product unification and value expansion, we opened early access to the EMR on September 28th and we've already had almost 5,000 users sign up so far. We're now rolling that out step by step and the feedback so far has been amazing. We've also launched educational modules inside of visitrack and we'll begin commercializing these in the fourth quarter. Now, one thing I want to highlight here is how we actually managed to deliver so much innovation in such a short period of time. We brought our teams together in Poland for what we call a fizzy campus. So essentially, we hired a hotel, we moved in together, we lived together, worked together, ate together, coded together for a couple of weeks. And this model was inspired by some really, really nice, successful companies like the Fang businesses, whatever you call them these days, and companies like Atlassian. where people live together and they do these things either on campus with hotel rooms that they have as part of that or that they travel together and they do this the results were quite extraordinary and when you get talented people together in one place working towards the same goal you can move incredibly fast and that's what happened to us so we'll definitely continue doing these physical campuses and the next one is scheduled for mid-November and it's going to be really really exciting to be part of that and again just to put things into perspective the core physical platform it grew by 26 percent even without having launched the EMR and monetizing the remote therapeutic monitoring piece so i think that's a real testament to the strength of that underlying business model now finally bottom right wellness again we've been setting that business and getting back to sustainable growth and stronger profitability but without compromising on innovation some really really interesting things that have been launched as of late and I'm really, really excited about what we can do there on a standalone basis and also by integrating that into the LifeCare ecosystem. So nice, good progress there as well.

Now, what is everybody talking about right now?

The EMR. So, of course, we'll talk about that a little bit more. There's an extensive interview with me from this morning where we speak more about that and then also, obviously, the launch announcement on the 28th of September is a good source of information too now. We're very excited about this. I'm going to talk about it a little bit more if that's okay. So when we started building the MR, we looked at the situation that was facing healthcare providers around the world from a micro perspective. And we also saw things from a micro perspective that are really, really interesting. These are people that are incredibly time constrained. So these guys want to work faster. They want to work smarter. And above all, They want to spend more time with their patients rather than sitting in front of a computer doing administration. There's an interesting disconnect here. In their personal lives, of course, people are getting increasingly used to working with AI agents. They can ask questions, give instructions, get things done almost instantly now. That's a trend that's changed the world in the last, let's say, nine to 12 months. And the way that people interact with technology as consumers has fundamentally changed. But when they go to work, They're often using systems that feel like they were built 20 years ago or maybe even 40 years ago. A lot of menus, a lot of clicking around, lots of boxes to tick, a lot of text-heavy interfaces, and we wanted to fix that. So we took everything that we learned from more than 10 years of serving healthcare providers around the world, so the data, the workflows, the patient engagement side, the relationships there. And we had our own experience as well as pioneers in AI. And we built an EMR with agentic AI at the core. And that's the important distinction here. AI isn't an add-on. It's not a little feature sitting somewhere on the side. It's right at the heart of the system. So you can talk to EMR. You can give it instructions in plain language. You can ask it to perform tasks rather than having to navigate through This is a very natural transition for clinicians who want to move gradually towards an agentic way of working and that is very much the future here. so what's really exciting is that we built this as a complete solution so from patient onboarding and scheduling to clinical documentation billing insurance reimbursement and of course home exercise prescription and home exercise prescription is really at the heart of it because ultimately ultimately that's what you want your your patients to leave with so a clear plan for how they're going to get better and very very tightly integrated with PhysiTrack with the remote therapeutic monitoring as well so instead of having a lot of disconnected systems the clinic can operate through one unified platform and I think this has the opportunity to become the go-to AI platform for clinics and starting in physical therapy of course which is a market we know super well but the opportunity is obviously much broader than that over time and because we're really doing something here where we're rethinking how clinical software should work we start with the human beings who actually use it and that's why we're so excited about this anyway enough said about that the traction is really really nice and the numbers have actually ticked up even further than this this are numbers from from i believe from monday morning but we have had A very, very nice response here. Almost 500 clinics and almost 5,000 individual users have signed up to early access for this. And remember, we only opened this up on September 28th. We're talking about a very short time period here. What we're doing now is we're releasing access to the system step by step. It is live. It is run by customers. And I believe the beta is now 50 clinics. What we do is we work with them step by step. When we're comfortable, we will increase or expand the beta, but we have a wider release on the 2nd of November. So hopefully that whole list will be able to profit from this and learn from what we can do and then give us feedback as they go. So far, feedback has been really, really encouraging, and so you've seen some of these quotes on socials. Still early days, of course, but when you look at the level of interest and you combine that with the size of our existing customer base, the strength of our distribution, I think it's fair to say that we could be sitting on a very significant new source of recurring revenue here, so potentially even explosive. So we'll see, we're not going to say too much here, but we know these customers really well and we understand the workflows and the pain points. We spent more than a decade building trust in this market and now we're bringing it in a completely new way. So we really think we've hit a home run here. We'll give you updates throughout the progress and we will we will see what comes through with that now with that before matt just gives up on me and falls asleep matt will take you through the financial results in more detail and also talk about the share buyback program matt over to you let's see financial results here we go thanks henrik and good morning everyone henrik has walked you through what we built this quarter and i'm going to now show you what it did the numbers how we grew where we invested and how we paid for it