Physitrack Plc (PTRK.ST), delivered a slightly stronger-than-expected performance in the second quarter of 2026, according to the latest research note from Redeye, with growth returning across several important measures and the group continuing to improve the quality of its earnings.
Revenue increased by 8% year on year to EUR 3.4 million, while annual recurring revenue, or ARR, reached EUR 13.6 million. That was ahead of Redeye’s EUR 13.0 million estimate and represented one of the clearest signs that Physitrack has returned to growth.
The quarter also included two strategically important developments. Remote Therapeutic Monitoring, or RTM, went live commercially in the United States with its first paying customers, while the Wellness division returned to profit. Redeye said it expects only limited, positive changes to its estimates following the report.
Physitrack Q2 2026 highlights
- Group revenue increased 8% year on year to EUR 3.4 million.
- Group ARR reached EUR 13.6 million, 5% above Redeye’s EUR 13.0 million estimate.
- Adjusted EBITDA was EUR 1.2 million, with a 34% margin.
- Adjusted EBITDA less capex was EUR 0.3 million.
- Lifecare revenue grew 11% year on year to EUR 3.1 million.
- Lifecare ARR reached EUR 12.7 million, up 8% quarter on quarter and 7% year on year.
- Lifecare delivered a 50% adjusted EBITDA margin.
- Average revenue per licence rose 10% year on year to EUR 189 following the May price increase.
- Monthly Lifecare churn remained steady at 1.0%.
- Champion Health returned to profit, generating adjusted EBITDA of EUR 107,000 at a 32% margin.
- Net operating cash flow from continuing operations was EUR 0.7 million in Q2 and EUR 1.6 million for the first half.
Lifecare returns to licence growth
The Lifecare division was one of the strongest parts of the quarter. Revenue increased by 11% year on year to EUR 3.1 million, while ARR reached EUR 12.7 million.
The licence base also returned to growth. Physitrack reported 67,107 licences at the end of June, compared with 66,625 in March. According to Redeye, the business had fully absorbed the impact of a single large customer churn event in the first quarter, with replacement licences coming in at materially higher price points.
Revenue quality remained high. SaaS revenue of EUR 3.0 million represented 96% of Lifecare’s divisional revenue, while SaaS gross margin recovered to 90.9%, an increase of 1.2 percentage points from the previous quarter.
The May price increase also appears to have been absorbed without a material effect on customer retention. Average revenue per licence rose by 10% year on year and 7% quarter on quarter to EUR 189, while monthly churn remained at 1.0%.
RTM becomes a commercial opportunity
A key development during the quarter was the commercial launch of Remote Therapeutic Monitoring in the United States.
Physitrack plc secured its first paying US RTM customers in June and also achieved US medical-device status. Redeye views RTM as an important strategic catalyst, although the business is still investing in the US opportunity and its wider platform ahead of a potential ramp-up in revenue.
Lifecare’s adjusted EBITDA less capex was EUR 0.8 million, down 4% year on year, reflecting this continued investment.
For the second half of the year, management’s focus is expected to include converting its North American investment and RTM launch into additional revenue.
Wellness returns to profit
Physitrack’s Wellness division, which includes Champion Health, also showed a notable improvement.
Champion Health generated adjusted EBITDA of EUR 107,000 in Q2 2026, compared with just EUR 2,000 in the same period of 2025. Its adjusted EBITDA margin reached 32%.
Revenue was EUR 338,000, down 14% year on year but up 3% from the first quarter. The year-on-year decline reflected the planned expiry of legacy founder-linked contracts as the business moves towards what Redeye describes as a more scalable enterprise model.
Monthly churn improved to 3.7% from 4.5% in Q1, while net revenue retention was 95.9%. Wellness ARR stood at EUR 0.9 million.
Cash flow remains positive
Physitrack generated EUR 0.7 million of net operating cash flow from continuing operations during the quarter, taking first-half operating cash flow to EUR 1.6 million.
This marked the seventh consecutive quarter of positive operational cash flow. Free cash flow was approximately EUR 0.1 million before a one-off legal settlement, while net debt stood at EUR 3.9 million and available liquidity was EUR 1.7 million.
The company also announced a share buyback and management long-term incentive plan. The buyback is intended to fund the incentive plan entirely using treasury shares, making it non-dilutive.
Research Analyst Jessica Grunewald wrote: “We view it positively: stretching, shareholder-aligned and self-funding.”
In Summary
Physitrack’s Q2 2026 performance gives Redeye several reasons for a more constructive view of the company’s progress. ARR came in ahead of expectations, Lifecare returned to licence growth, RTM became commercially active in the US and Wellness moved back into profit.
At the same time, Physitrack Plc continues to invest in its North American opportunity, meaning future progress will depend in part on converting that investment into sustained revenue growth. For now, Redeye believes the quarter supports its view that Physitrack is becoming a leaner, higher-margin SaaS business, while maintaining the cash discipline established during 2025.
