Physitrack PLC (PTRK) Earnings Call Transcript
July 22, 2026
Earnings Call Speaker Segments
Hi, and welcome. Today, I have Henrik Molin with me, and he's the CEO of Physitrack. A warm welcome, Henrik.
Thank you, Jessica. Great to be here.
So you recently released your Q2 report. What would you like to highlight from the report?
Yes. I mean all good things are 3, as they say in the very detail. So let me pick a few things. So first, financially, we're now tracking at around 10% growth year-to-date, and that's not 1 million miles away from where we need to be to achieve our long-term ambitions with doubling the company in a reasonable time frame. We also delivered our seventh consecutive quarter of positive operating cash flow. So it shows the business is becoming increasingly robust. Second, commercially, RTM is now live in the U.S. We have our first paying customers. And there's some really, really interesting, very big activity going on around that here in New York, where I am today. So that's a very significant milestone because it moves the company from talking about the opportunity to actually executing on it. And then third, from an innovation perspective, we have much better visibility on where the product needs to go. So we're learning directly from the most sophisticated health care market in the world, and those insights will shape what we build next.
Nice. So you spoke about the revenue growth, but ARR also saw quite a spike in terms of growth. What needs to happen for this to build into sustainable double-digit growth? And how much of the H2 acceleration is already contracted versus still need to be won?
Well, from my perspective, I might be oversimplifying, but I think the formula is actually pretty simple. It's more of what we're already doing. So we have a really strong commercial team here in New York. We've strengthened marketing. I don't know if you've done an AI search lately using Claude or ChatGPT. We come up at the very top of that most of the time and also our social comms and the campaign that we've done there has been very, very successful. So we're seeing this translate into a lot of incoming leads and a lot of wins in the U.S. and increasingly also in the U.K., which we've seen from press releases. So it's really about that systematic lead generation that feeds a systematic sales process. And underpinning all of that is product innovation, of course, and that's the area where I won't say I'm dissatisfied, but I'm the least satisfied today. I want us to develop products much closer to the U.S. market, not just because we are commercially selling a lot of things in here, but this is where the most demanding customers are that have an outlook on what they need and what the innovation needs to be in 6, 12, 18 months down the line. So if you build for those demanding customers, you generally build products that work everywhere. So you will see us increased product capacity or capabilities in New York. So that's the product side, not necessarily engineering side. But over time, you're going to see a tightening of that product market fit where it really matters not just for the U.S. market, but globally as well. As for the second half, we are a subscription business. So it's like a snowball you just roll down the mountain. So a good portion of growth is already built into the model. That snowball keeps rolling. But of course, there's a lot of meaningful stuff left to win here and some really great opportunities. So H2 is looking extremely strong. And I'd say it's probably pretty modest in terms of deal-making than what we saw in -- sorry, H1 is pretty modest in deal-making that what we will see in H2. So it's a very healthy, very strong pipeline.
It sounds like exciting times ahead.
We try, we try.
And you mentioned RTM that is now live with the first paying U.S. customer. How many are live today? And how many of your active U.S. discussions are you expected to convert to commercial RTM contracts over the next couple of quarters?
Yes. So we are now live with one of the largest hospital systems in the United States and one of the largest ones in the world. It's incredibly exciting for us to be there. Beyond that, we have about 100 active discussions and sales processes going on in parallel, and we have some negotiations and tenders. My expectation is that we'll convert a meaningful proportion of all of the stuff in the next 2 to 3 quarters. Now that said, this is very important. This is a relatively new care category for a lot of these customers. So there's an education process that you need to go through to get them to understand and to jump on and to expand this because remote patient monitoring, it really changes a lot of the ways that they work. So there's implementation, there's training, there's adoption, there's the commercial efforts at their end. So here, in the U.S. you market your health care offerings and you pushed out customers and you actually need to have marketing campaigns that flag out the fact that these things are available. And a lot of these things need to come in place before revenue starts to ramp. So selling it is just the first part of that, you educate people on the basis of the software itself and how that works and then they need to have processes and education to make sure that you have a movement in that direction. So they aren't overnight deployments. So they typically take a quarter or 2 to get fully up and running, but the momentum is there, the appetite is there, and there's a lot of activity here in what is a very fast-growing market.
And speaking about the educational sequence that needs to happen. Are you in charge of that? Or is there another actor?
Me personally? No.
No.
But I do oversee them.
At Physitrack, yes.
No, we have -- that's our customer excellence team does that. And so there's been a build-out here between sales and customer excellence. And so we work with the software. Then in terms of the clinical workflows, we have a couple of clinical representatives that we work with on a consultancy basis that sort of help, but they usually have deployment teams that work on these things. So typically, for big hospital systems, you have maybe half a dozen people involved with all of these aspects of rolling out and training and just getting stuff up and running. And so what you do is you support them from a software point of view. And this is quite important. The market is changing quite drastically. Here, there's new legislation in place that make it impossible to deliver RTM with an outsourced care delivery. So some of the models that people have deployed have been a hybrid of software and care. So Limber, for example, they actually take away all clinical workflow as well as the software workflow. That's not going to be allowed anymore. And so health care providers they need to just focus on the tech, on the software and then have their own teams that do this. And for us, that's an opportune moment because we are much better at the software, and we're great at that software training and those type of rollouts. So we're in a very good position there. And we'll see more of that in our communication with some campaigns around that new RTM legislation that's coming out in the next couple of weeks.
And with Wellness back in profit, what cross-sell tractions are you seeing between Lifecare and Champion Health or Wellness, especially using mental health and MSK? And how large can that opportunity become?
Yes. So we've already integrated elements of Champion Health into the Physitrack ecosystem, and it's helping us to win business today. So it's already accretive. It's hard to single out like what is moving the needle for customers in terms of their conversion, is it -- so we have that great library with -- from Champion Health, then parts of that is integrated into the Physitrack library. We have some new UI/UX patents from Champion Health that we've included. If you look at the patient app today, there are some things that we couldn't have done in the past, Champion Health, but it is helping us win business now because the reality is that physical health and mental health, they belong together. So if you're treating the whole person, which a lot of these care providers do, you need both of these things. And that's exactly what Champion brings to the table. And so that addition has been really important. Now we are combining the 2 into one ecosystem, and that's mainly targeting consumers and insurance providers. We're calling that project Physia. And so it's -- you can see it as a B2C platform, but also a more population health-based B2B2C, meaning they go to insurers Blue Cross Blue Shield, some of the big guys that can roll that out to their insured population so that people take care of their own things. So similar thing to what we've done with VGZ in the Netherlands, where they have a consumer-based self-service MSK physical therapy platform that we underpin. So that's something that will be systematically done with a UI event from Champion Health actually, which I actually generally think is among the best in digital health today. And so merging those 2 disciplines into one is going to be really significant. And I think it's a real moonshot there. It doesn't require the type of investments that you normally see in moonshots cases or product launches because we have most of that technology, we have the content and we have the commercial infrastructure. So if you execute on this well, it has the potential to be a very different business over time. So that's an interesting leg to stand on in parallel to Life Care and RTM and what we're doing with the B2B versions of Champion today.
So we should keep an eye out for Physia?
Yes. So we'll see more comments around that as we build that. But some of the prototypes and some of the things that we've done there, they look great. And again, I think the Champion Health tech looks amazing and to have that as the center point for merging these business lines and to B2B2C and B2C, that's going to be really fun. That gets me really excited.
And last question. It's about the LTI program that rewards 10% to 15%, 3-year revenue CAGR with an EBITDA that is underpinned over 5 to 6 years. What does the structure signal about your growth and profitability ambition? And how important is this program for attracting talent in the U.S.?
Yes. No, it's a fair question. So the LTIP and those CAGR numbers, they're not defining our growth ambitions. They're there to create incentives so that people can realistically achieve them and accelerate so they can benefit as early as possible as the business accelerates. So they don't go hand in hand. So it does signal that we're confident about growth by just having something like that for senior team members, but we've set the hurdles deliberately at a very sensible level. So personally, you know this. I don't think any technology CEO should be aiming for 10% to 15% growth. You'd been building a business that's pretty much sideways at that point. So you build a business that has potential to double every few years or even faster, and that's the mindset, right? So, but these type of things that they're incredibly important from a talent perspective, especially when we compete in the U.S. with getting people here, we need comp structures that are applicable to the U.S. market. And also not to forget, we've built a team here that allows us to have very deep experience in this market. And these people have become really valuable to us, and they're attractive to competitors that want to launch into the U.S. or even people that are already established here that would love to poach them to have them accelerate their business. So if we want to retain these guys and also recruit other people on the ground here, we do need an incentive program that's competitive with the market. And that's why you have those CAGR hurdles in there that are deliberately quite easy to reach.
Thank you very much, Henrik.
Always a pleasure.
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