Physitrack plc (PTRK.ST) CEO and Founder Henrik Molin caught up with DirectorsTalk CEO Darren Turgel to discuss Q3 2026 results, the launch of its electronic medical record system, early clinic sign-ups, remote therapeutic monitoring, and its plans for 2027.
Q1: Let’s start with the numbers. Revenue grew 14% year on year, 6% quarter on quarter, and you’ve now delivered eight consecutive quarters of positive operating cash flow. What’s driving this acceleration?
A1: I think there’s a few things happening here. First of all, we have a very solid underlying business. We’ve spent more than 10 years building that, and we have, at this point, a couple of hundred thousand clinicians across all the platforms using our technology, and 94% of the revenues are recurring. So, that’s a really good foundation to build from.
What I think is particularly interesting now is that we’re seeing the results of a number of things we’ve been working on for quite some time. First of all, looking at revenue streams and making sure that they’re really profitable, and cleaning up what we didn’t want to do, things that were actually, at the end of the day, losing us money.
We’ve become much better at commercialising the existing products, especially the Physitrack platform . The platform, grew 26% in the quarter, which I’m super pleased with. It’s a 10-year-old platform, and that’s quite a testament to the fact that it’s very widely used and needed. People see the value of that.
We’ve also invested in our US commercial operation, and we’re beginning to see the results of that as well. Of course, we’re innovating at a pace I don’t think we’ve ever seen before in the company, and that’s really seen by customers.
People want to place a bet on a company that is forward-leaning and innovative because, if they don’t, they might fall behind in terms of investing in the latest and greatest technology.
So, there’s a lot coming together here, and the nice thing is that we’re doing this while remaining profitable and generating cash. We don’t have to raise money to fund all this innovation. We’re actually doing it ourselves, which is quite unusual in this space.
Q2: Your adjusted EBITDA margin came in at 31%, compared to 38% a year ago. Is that something investors should be concerned about?
A2: No, not really. We made a very deliberate decision to invest in growth. We’ve been building out our North American team, and we’ve invested quite substantially in developing and launching new products, as we’ve seen.
Just look at what we’ve achieved in the quarter. We’ve launched three major product initiatives, and we’ve secured two important US healthcare system selections on top of that 26% growth of the Physitrack platform. Revenue growth is accelerating, as we’ve seen so I think that’s money very well spent. We still have the medium-term ambition of a 40% to 45% EBITDA margin.
Now that the principal development phases of some of these products are behind us, we can start focusing more on the commercialisation. That’s when these investments will really start paying off, and you will see that EBITDA margin coming up again.
Q3: One of the biggest developments in the quarter was the launch of your new electronic medical record system, or EMR, on 28th September. You’ve been known primarily for home exercise prescription and digital rehabilitation, why move into EMR?
A3: It’s actually a very natural step for us, and this is something that I was contemplating for the last few years.
We’ve spent more than 10 years helping clinicians treat their patients, particularly outside the clinic with home exercise prescription, and then you get the patient engagement and the rehabilitation that you need to be successful as a clinician.
During that time, we learned an enormous amount about how clinicians work and what their patients need and, of course, we have a lot of really interesting data from this time period.
When we started looking at the EMR market, we felt there was something fundamentally missing. Most EMRs are built around processes. You look at the clinical process, you look at the admin process, you look at the boxes that need to be checked and the information that needs to be entered into the system, and then you build the software around all of those processes.
We wanted to approach this completely differently, and so we started with the human being who’s actually using the EMR. How can we make the day easier? How can we make it shorter? How can we give them some more time to spend with the patient? Frankly, how can we give them more time to spend with their families and loved ones when they get home?
They can get home earlier if you do things right with these types of systems.
There are clinicians who finish seeing patients and then spend an hour or two doing admin, and I think that’s just crazy when you look at what technology can do today.
We also looked at the patient experience. We’ve been really good at patient engagement historically, and we have the world’s leading app for that, and we wanted to bring that into the entire clinical journey.
From the moment that the patient comes into the system through onboarding, treatment, home exercise prescription, the follow-ups, the billing, the reimbursement, all that should work together. It should be seamless for the clinician and a really positive experience for the patient.
So those were our starting points. Not the software, not the administrative processes, but the people. Once we had that clear, we started looking at the best technology to make that happen and that’s how we arrived at an agentic AI workflow.
It’s a modern way of working, and it’s something that consumers are getting more and more used to today.
Q4: What does an agentic workflow actually mean for a clinician?
A4: It’s a bit of a buzzword, so let’s just dress that up a little bit.
Imagine being able to run much of your clinic simply by talking to your EMR or putting in very simple commands, like you actually talk to another person or an assistant in the room.
So, instead of sitting there clicking through screens, filling in forms, and moving information from one place to another, or one system to another, you tell the Physitrack EMR what you want done.
You can ask it to prepare your clinical notes, prescribe exercises, follow up with the patient, take care of a task, or help with billing and the AI does the heavy lifting for you. That’s really the idea.
So, I sometimes compare what we’re doing to what the iPhone did for mobile phones. Before the iPhone, there were a lot of phones with lots of different functions, but they weren’t particularly intuitive and the experience was fragmented, unless you were really good at scrolling through those menus.
Apple then came along and built the whole thing around the person using the device. That’s all we’re trying to do with the EMR. We’re not just adding AI to an old system, we’re rethinking how the system should work in the first place. I think that’s a very important distinction.
Q5: AI is obviously a very competitive space. Why do you think Physitrack has a chance of becoming a leading AI solution in physical therapy?
A5: Because we’re not trying to build AI for everybody. We’re building it for a very specific industry that we know extremely well.
We’ve spent over a decade working with physical therapists and other healthcare professionals and so we understand these workflows, we understand rehabilitation, we understand patient engagement, and we have a tremendous amount of domain knowledge embedded in our technology. That gives us a very interesting starting point.
So, I think the winners in AI aren’t necessarily going to be the companies that build the biggest general-purpose models.
There will also be enormous opportunities for companies that understand a particular industry better than anybody else and can apply AI in a really meaningful way and that’s where I think we have a shot of becoming the go-to AI solution in our niche.
We have the clinical foundation, we have the distribution, we have the patient engagement technology, we have 18,000 exercises in a library, and now we’re putting an intelligent operating layer across all of it. I think that’s quite a powerful combination.
Q6: You’ve reported that more than 450 clinics, representing close to 5,000 potential users, have already joined your EMR early access programme. What does that tell you?
A6: Actually, the number keeps creeping up, and so it’s more than that today, but I think it’s incredibly encouraging.
We launched on 28th September, which happens to be my mum’s birthday and we’re talking about a very short period of time now because right now, we’re in mid-October. We already have clinics representing more than 5,000 clinicians signing up and that number keeps growing every single day.
What’s also interesting is that we’re not just seeing interest from individual practitioners or very small clinics, we’re seeing larger clinics signing up as well. Not the big giants, because we don’t really want to be in that space.
These tenders are really long and convoluted, and the sales cycles can be like 9, 12, 18 or 24 months. Especially with an EMR, it’s such a big thing for a clinic to change the clinical spine of a company. So, small to mid-sized organisations are really interesting, up to a couple of hundred clinics.
Now, obviously, these are early sign-ups. Let’s remember that. They’re not paying customers yet, and we have to make sure we convert this interest into actual usage and revenue.
But this pace tells me that we’re really on to something.
I think there’s an enormous appetite for doing things differently in this industry. Clinicians are tired of spending so much of their time on admin and if we can give them a product that genuinely changes that, I think we have a very substantial opportunity to be the go-to AI solution for this niche.
So, I think it’s going to be very exciting to follow how this develops over the coming weeks.
Q7: What should we expect from the EMR over the coming weeks? How could it change Physitrack’s revenue composition in 2027?
A7: Right now, it’s all about getting clinics onto the platform, listening to what they’re telling us, and continuing to improve the product at a very high pace.
We have another residence sprint in Poland in mid-to-late November of this year and we’re building additional components there for revenue cycle management and for reporting throughout that.
In terms of the commercial situation, we’re offering three months free for these early users, and then paid subscriptions start in January, meaning that the billing for this will start at the end of the year.
We want people to experience what this can do for them before they start paying, and we want really strong feedback so that we can keep tweaking and improving.
So, in terms of 2027, I think this could drastically change the composition of our revenue over time here.
Historically, we’ve had a very strong subscription business around exercise prescription. Now we’re adding the EMR subscription itself.
Of course, there’s remote therapeutic monitoring, which is currently on free trial for all users in North America, that has a usage-based revenue model.
We’re creating opportunities around other services that sit naturally within the clinical workflow as well so rather than selling one product to a clinician, we’re increasingly providing the technology that helps them run their entire practice.
I think that’s very interesting commercially. You have more ways to generate revenue from the same customer relationship, while at the same time, you’re making the product more valuable to that customer. It’s a very nice dynamic.
I don’t want to give specific percentages for the 2027 revenue mix at this stage or the absolute numbers. We need to see how adoption and conversion develop but I think we’ve entered a very interesting period for the company, just looking at how many people are coming to this solution from several places around the world.
Q8: You mentioned remote therapeutic monitoring, or RTM. You’ve now made that available to all your US customers on a trial basis. Where is that business going?
A8: Well, RTM is another area where I think we have a really interesting opportunity.
We’ve already got the technology that connects clinicians with patients outside the clinic with home exercise prescription. That’s been part of the business for years and so we’re really good at that. We also had the first physical therapy telehealth solution in the pandemic that we were really good at as well.
Now with RTM, we’re taking that a step further by helping clinicians monitor patients remotely and, where the relevant requirements are met, get reimbursed for that work.
We’ve now made RTM available to our entire US customer base on a trial basis. The reason for doing that is quite simple, we want people to start using it.
So, once a clinician sees how it fits into their daily workflow and how it can help them deliver better care while potentially generating additional revenue for their practice, I think it becomes a much easier proposition.
For us, RTM introduces a different type of revenue. It’s linked to patient usage of the technology rather than simply the number of software licences that you charge a subscription fee for. As adoption grows, that can become a very interesting additional revenue stream.
Of course, when you combine RTM with EMR and home exercise prescription and motion capture that’s coming out, you have a much more complete solution. So everything starts working together.
Q9: You increased prices earlier this year. Your churn has remained stable at around 1%. Does that suggest your customers aren’t particularly price-sensitive?
A9: I think customers are price-sensitive, of course, and everybody is to some extent, but I don’t think they’re extremely price-sensitive if they feel they’re getting good value. That’s really what it comes down to.
If you’re using a product every day or several times a day, and that product is making your life easier, saving you time and helping you do a better job, and you can increase revenue with it, well, then the price becomes less of an issue.
We increased our prices in May, and our average revenue per licence is now up 11%, while churn has stayed at around 1% per month, looking back over 12 months. I think that demonstrates that we have some pricing power, but you can’t take that for granted. You have to keep earning that.
The way you earn it is by innovating, by continuously making the product better, introducing functionality that people actually want, and making sure that customers feel they’re getting more value over time. That’s how you win.
This is why I’m so focused on the pace at which we innovate. If we can keep delivering new functionality at the speed, we’re now capable of, I think we’re in a very good position commercially.
Q10: You also announced two US healthcare system selections during the quarter. How significant are those?
A10: They’re very significant, and I’m particularly proud of our New York team for getting these across the line.
One of them is on the top 10 list of healthcare systems in the US and also in the world. One is a large academic healthcare system, and the other one is a metropolitan safety-net system, as they call it, where we’re replacing two incumbent vendors and we’re integrating directly with Epic, which is the biggest EMR in the world, and Epic’s MyChart.
Now, these are not the types of contracts that immediately transform your revenue. Healthcare systems have long procurement cycles and implementations take time, but they’re extremely important for us strategically. They’re signed off and they’re ready to roll in the next few weeks and, at the latest, early 2027.
Now, when you win competitive processes against established providers in the United States and you’re selected by these kinds of organisations, it gives you a level of credibility that opens a lot of doors. In the US, where we see our biggest growth opportunity, this is really, really valuable.
So, as you know, we’ve invested in building our presence there in the New York office, 47th and Fifth Avenue, and I think we’re starting to see that that was absolutely the right decision.
Q11: You’ve also had some departures among key leaders coming out of the quarter. How are you approaching replacements, and what does the recruitment market look like for the kind of people you need?
A11: Well, I actually think that departures are a very positive part of the evolution of a company.
When you start doing things in a new way, people who are used to doing things in the old ways will inevitably have to make a choice. They can adapt to the new environment, they can embrace new tools and ways of working, or they can decide that they’d rather work somewhere that operates in a more traditional way. That’s absolutely fine.
We’re changing quite fundamentally how we build products and how we organise ourselves and how we use technology internally for the business. I think that’s really necessary. The world is changing so quickly now, and we need people who are comfortable with that.
So, we’re taking our time with some of these hires. That’s in product and also in leadership for engineering and, of course, there’s a new marketing team that’s really ramping up nicely here. A big part of what’s going on here with the sign-ups has been with the new marketing team working closely with the product team.
But I really want the right people here. I want people who are future-proof, for lack of a better word, not just in terms of their experience, but in how they think and how they use tools and how they approach innovation and leadership.
I don’t want somebody who’s going to come in and tell us how things were done five years ago. I want somebody who’s excited about what we’re going to do five years from now and I’m very encouraged by the talent we’re seeing coming through.
We’re seeing people from our competitors, we’re seeing people from very interesting tech companies and people are very interested in joining that New York team. So, I expect a number of these senior appointments to be based in New York because that’s increasingly where the commercial heart of our business is.
New York has sailed up as the number one hub for tech recruitment in the last few months and I think it’s the right place to be. We have fantastic infrastructure in New York, we have a very solid financial position, and we have the compensation and incentive programmes to attract really exceptional people.
So, with that recruitment ad behind us, I’m just going to say that I think we’re in a very positive position when it comes to getting new people on board and revamping the leadership here. There’s more to come on this, but I’m genuinely excited about the people we’re attracting and what they’ll be able to help us build.
Q12: You also mentioned a new development methodology in the report, which you call PhysiCampus, or residence sprints. What is that, and how has it changed the way Physitrack operates?
A12: This is something that I’m actually personally really excited about because I think it’s changing what we’re capable of doing as a company.
The idea is very simple, and it’s inspired by what some of the biggest tech companies on the planet do.
They have big campuses, they have hotel rooms on the campuses and people do these big sprints ahead of getting big product releases in place.
So, you bring people together in one location, you give them a very clear objective, and you work incredibly closely together for an extended period of time; engineers, product people, commercial people, everybody who needs to be involved.
Instead of having endless meetings and waiting for decisions to travel between different departments and time zones, you sit together and solve things as they come up. Of course, you have breakfast together, lunch together, dinner together, you hang out, you go for walks, and you figure out what you want to do.
You have a lot of ideas that pop up just by being in person. That dynamic is great.
So, we did our first major residence in Poland in September, and it was really instrumental in accelerating the development of the EMR. I think it really demonstrated what’s possible when you get the right people together, give them the right tools, and remove a lot of the traditional friction.
Even the day-to-day friction of, “Oh, I have to take a break for lunch or dinner,” and “What am I going to do to clean my house or my room?” So, that’s a really important part.
Of course, we’re also using AI extensively in how we develop software. We were pioneers in that already back in 2022, before vibe coding even had a name and that means that you can achieve much more with the same human resources.
I think that’s going to be a very important part of how we operate going forward. We don’t necessarily need to become a much bigger organisation in terms of people to deliver bigger things. We need to become a much faster and more effective organisation.
I think we’re on our way to doing that, and the residence sprints are just a perfect example.
The next one is in the second half of November, and that’s going to be really exciting to be part of.
Q13: Finally, Henrik, looking forward to the remainder of 2026 and into 2027, what are the main things investors should be watching?
A13: I think the first thing is that we have a very strong underlying business, and we want to keep building on that. We’re growing, we’re profitable, we’re generating cash, and we’ve demonstrated that we have pricing power. That’s a very good place to start.
I think the really interesting thing now is what happens with all the products that we’ve brought to market. We’ve spent a lot of time building them, and now we get to commercialise them.
The EMR, RTM, the new educational modules, and a little bit further down the line, the motion capture piece, which we demoed in Abu Dhabi for the first time over the last few days at a conference there.
These aren’t disconnected products, they’re increasingly becoming part of one ecosystem that helps clinicians run their practices and deliver better care. I think that’s where the big opportunity lies.
Of course, we’re continuing to evolve the organisation. We’re bringing in new talent. We’re building out the US presence. We’re finding new ways to innovate at a pace that would have been very difficult for us just a couple of years ago. More residence sprints and more amazing things coming out of product and engineering.
So, I think we’re in a very interesting position, we have more than 10 years of experience and a very solid business behind us but in many ways, it feels like this is a start-up again. That’s a very exciting place to be.
