Earnings call transcript: Physitrack Q3 2025 sees revenue growth, stock falls

Physitrack PLC reported its Q3 2025 earnings, revealing a 6% year-on-year revenue increase to €3.5 million and a notable improvement in free cash flow. Despite these positive financial results, the company’s stock fell 14.4% to €16.05 following the announcement. According to InvestingPro data, the company has shown strong momentum with a 32.8% price return over the past six months. The stock currently trades at an EV/EBITDA multiple of 8x, with analysis suggesting attractive valuation levels. This drop comes amid a broader market environment where digital health companies are vying for investor attention.

Key Takeaways

• Physitrack’s revenue grew by 6% year-on-year to €3.5 million.
• Free cash flow improved by 200% compared to the previous year.
• The stock price dropped by 14.4% post-earnings announcement.
• The company continues to invest heavily in AI and platform development.
• Physitrack is targeting significant expansion in North America.

Company Performance

Physitrack demonstrated solid financial performance in Q3 2025, with a 6% increase in revenue from the same period last year. InvestingPro analysis reveals a robust free cash flow yield of 13% and an overall Financial Health score of "GOOD." The company has maintained positive free cash flow for four consecutive quarters, highlighting its strong operational efficiency. Physitrack’s focus on subscription revenue, which makes up 88% of its total revenue, has been a key driver of its financial stability. For deeper insights into Physitrack’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: €3.5 million, up 6% year-on-year
• Adjusted EBITDA: €1.2 million, representing a 33% margin and a 25% increase from the previous year
• Free Cash Flow: €0.4 million, a 200% improvement year-on-year
• Annual Recurring Revenue (ARR): €12.7 million, a 10% increase

Outlook & Guidance

Physitrack is aiming for medium-term revenue growth, with a target to double its current revenue. The company is also focused on expanding its EBITDA margin to between 40% and 45%. InvestingPro indicates that net income is expected to grow this year, with analysts forecasting positive earnings per share of $0.03 for FY2025. With a strategic emphasis on the North American market, Physitrack plans to leverage its AI-enhanced platforms to capture a larger share of the digital health market.

Executive Commentary

Henrik Molin, CEO, emphasized the company’s adaptability and robust SaaS model, stating, "Our SaaS-first model is not just profitable, but robust and sustainable." Matt Poulter, Interim CFO, highlighted the operational efficiency, adding, "We can take on additional development projects and accelerate with what we have, thanks to great tools and workflow."

Risks and Challenges

• Market Competition: The digital health market is becoming increasingly competitive with major tech investments.
• Economic Uncertainty: Macroeconomic pressures could impact consumer spending and investment in digital health.
• Currency Fluctuations: ARR fluctuations due to foreign exchange rates could affect financial performance.
• Regulatory Changes: Potential changes in healthcare regulations could impact operations and expansion plans.

Physitrack’s strategic focus on AI and North American market expansion positions it well for future growth, despite the current stock market reaction. The company’s continued investment in innovative technologies and operational efficiency could mitigate some of the risks and challenges it faces.

Full transcript - Physitrack PLC (PTRK) Q3 2025:

Henrik Molin, CEO and Founder, Physitrack: Good morning and good afternoon, everyone. Welcome to Physitrack’s Q3 2025 results webcast. I’m Henrik Molin. I’m the CEO and founder of Physitrack, and I’m joined today by our Interim CFO, Matt Poulter. Here is what’s happening. We are going to take you through the quarter at a high level with an update from both divisions. Matt will then do a deep dive into the financials. After that, we’re going to revisit the strategy and outlook before we move into Q&A. As always, you can use the Q&A function at the bottom of your Zoom panel to write those questions. We’ll read them out and we’ll answer them one by one. All right, let’s go. Q3 2025. Strong metrics around profitability and cash flow. We strengthened the financial position quite significantly with free cash flow at €0.4 million.

That’s a 200% improvement year on year, or an €800,000 uplift compared to last year. Looking at Q2 and Q3 together, the improvement in our cash position totals €1.8 million. I’ll come back to what this means for the way that we operate and innovate. Let’s just say that the impact has been extremely rewarding by doing this. Our adjusted EBITDA margin is now at 33%. EBITDA less CAPEX also came in at €0.4 million. That’s an almost 300% improvement compared to last year. Revenue growth across the group, net of currency effects, was 6%, with annualized revenue now at €14.2 million. With solid profitability and great cash flow, we’re in a strong position to accelerate growth with the momentum that we have behind the products. Some more metrics here. For the quarter, revenue was €3.5 million, up 6% year on year, or 9% on a constant currency basis.

Momentum continues in the Lifecare division and across the group with disciplined execution here in terms of cash utilization. The business has been optimized to deliver results at a much reduced burn rate. That’s an excellent place to be. That’s without compromising on innovation velocity. I’ll get to that in a second. SaaS overall is at record levels in the business, representing almost nine out of every ten euros that we make, 88% of the total. This gives us predictability, stability, and resilience. That’s the whole point of running our SaaS business, because it’s a strength that really underpins what you do with velocity commercial stuff. It’s easy to plan your business this way. With the enhanced operational framework and the improvements that we’ve done this year, we’re really well positioned for renewed growth across the group, both divisions.

We have new commercial hubs, physical offices in London and New York, that are going to set the stage for that. Breaking it down by division, Lifecare is now 80% of the group. Wellness is 20%. First in Lifecare, we saw 13% in terms of year-on-year growth, and we reached €11.7 million in ARR. EBITDA was €4.1 million, translating into a 48% margin. Churn remains stable at around 1% per month. That’s 12 months backward looking. This is really, really nice for this type of business with a low price point that’s comparable to what you have in the B2C world. We flock in way, way below what you can expect there. Most important, this aligns with the long-term trend and no changes there. Adjusted EBITDA less CAPEX came in at €2.2 million or a 26% margin. Overall, Lifecare is really efficient, strong cash conversion, and it’s a robust springboard.

We can use that for future development R&D within Lifecare itself, but also across the group with Wellness. Switching to Wellness, this is the remaining 20%. Pro forma revenue growth here was a negative 18%, and we’re at about €1 million in ARR now. This follows deliberate filtering out of unprofitable business lines and contracts negotiated by previous founders, as well as parting ways with areas that barely broke even. That means we can focus on doing the right things with a limited set of products and really do well there instead of being spread too thin. Adjusted EBITDA, the margin there is now 2%. It’s not where we want it yet, but we’re clearly moving in the right direction. Importantly, this is no longer a cash burn operation. We have streamlined what we do. The leadership is unified and aligned across product engineering, sales, and marketing.

One team, two products, and the silos are gone. One culture, one way of doing it. This is how this is going to be a really nice story in terms of commercial acceleration. That is the priority. The larger deals that we rolled out recently are setting the stage for stronger momentum here, both inside of those ecosystems where you sell to one big counterparty that has several corporates inside of their book of business, but also to sell to similar businesses like that. I think there are some really interesting things happening in the sales pipeline that we’ll get back to later this year. All right, let’s step back for a second and just revisit the restructuring or the optimization that we did. It’s important to point out we never did this for cost-cutting reasons, similar to what other people do.

They decide that the cost base needs to come down with a certain %, and then they slash things blindly. We came at this as an optimization exercise. We asked ourselves, what is the leadership that we need to make this work? What is the minimum viable team size? If you apply the best available tools and the best culture, the best processes to this, how can you drive innovation with the velocity and the success that you need commercially? We looked at the core innovation capacity to make sure that we can keep the competitive moat and then make sure that we could deliver sustained value to customers with a great price point and a feature set that would blow people away. The result is a highly modernized workflow across the whole group.

We were heavy users of AI tools for enhancements since 2019, actually, when we rolled out AI text-to-speech in our library. Now, with every single team having the best range of tools, and they keep evaluating new things that come in, I argue that we are on top of things in our industry. I’d say we’re probably top 5, 10% of adopters globally of these types of tools for live coding and for optimizing code bases, also for the commercial work that we do, and obviously finance for making sure that we can release quarterly reports really, really fast. A lot of changes. These tools have enabled significant innovation without requiring really large teams behind them. That’s the reason why the financial position has strengthened so much. It’s very, very interesting what we’ve done here.

Just to wrap up Q3, before I hand over to Matt, we’ve delivered strong profitability for your cash flow, as you saw, $1.8 million over Q2 and Q3 combined, very significant. SaaS revenue, almost 90% in terms of our revenue flows. Lifecare, that solid double-digit growth, very high margins. Wellness is streamlined, more focused, and scalable. Strategically, of course, we reshaped the business for efficiency, innovation, sustainable growth, and all that jazz. With that, I’ll hand over to Matt for a deeper dive into the financial results. Over to you, Matt.

Matt Poulter, Interim CFO, Physitrack: Thanks, Henrik. Let me take you through the financial results in the third quarter of 2025. Q3 was another quarter of consistent delivery and operational discipline. Group Proformer came in at €3.5 million, up 6% year over year, or 9% on a constant currency basis, which reflects our ongoing stability in Lifecare and the deliberate recalibration within Wellness. Sequentially, revenue was broadly flat compared to Q2, underlying the resilience of our subscription base during what is typically a softer seasonal quarter. Subscription revenue reached 88% of total revenue, which was up 6 percentage points year over year, a particularly strong outcome given around €70,000 of one-off Lifecare sales in the period, which would have otherwise lifted this ratio even higher.

Looking at forward indicators, annualized revenue now stands at €14.2 million, up 5% from €13.5 million a year ago, while annual recurring subscription revenue grew 10% year over year to €12.7 million. These metrics are key in understanding the quality and predictability of our revenue base and continue to demonstrate the strength of our SaaS model. The quarter-on-quarter movement in ARR is predominantly due to FX effects. As a truly global business, we see natural currency volatility in reported revenue, but we’re typically well-hedged operationally, with most of our major currency exposures balancing between revenue and costs. This means that while revenue may fluctuate modestly due to FX, EBITDA impact remains minimal, underscoring the inherent stability of our financial model. Adjusted EBITDA was €1.2 million, up 25% year over year, maintaining a strong 33% margin.

Adjusted EBITDA less CAPEX, our key measure of earnings quality and cash efficiency, was €0.4 million for the quarter, representing an 11% margin and 13% year to date. That places us within the upper range of SaaS peers at our scale and highlights our ability to translate profit into cash while maintaining capital efficiency. Next slide, please. Turning to the divisional review, Lifecare continues to anchor group performance. Revenue grew 30% year over year and held broadly stable compared to Q2, supported by strong retention, disciplined pricing, and steady average revenue per license growth. SaaS gross margin remained high at 89.5%, supported by low churn at around 1%, a clear indicator of customer stickiness and sustained value delivery. In Wellness, revenue declined by 18%, reflecting the planned expiry of legacy Champion Health contracts and seasonal softness in non-recurring business.

While the short-term sales environment has remained challenging, the quality of the revenue base continues to improve, with SaaS gross margin expanding to 91.6%, up almost 28 percentage points year over year. Looking ahead, we do expect to see some additional churn from remaining legacy contracts in Q4, which will further streamline the base. The near-term focus remains on stabilizing the commercial pipeline and deepening client retention to position Wellness for scalable SaaS growth in 2026. Next slide, please. At a group level, profitability remains consistent and resilient. Adjusted EBITDA was €1.2 million, with margins above 30% for three consecutive quarters, a clear reflection of operating leverage and cost discipline. Adjusted EBITDA less CAPEX, our measure of pre-financing cash generation, came in at €0.4 million for Q3 and €1.6 million year to date, compared to €0.4 million in the same period last year.

By division, Lifecare contributed the majority of this, €2.2 million year to date, up nearly 50% from last year, demonstrating strong operational scalability. Wellness, while still operating at a small loss, has materially reduced its negative contribution compared to the prior year, reflecting the early benefits of structural repositioning and tighter cost management. Overall, the group’s profitability profile has evolved from being seasonal to consistent, delivering steady, high-quality earnings each quarter. Next slide, please. On cash and liquidity, the message is clear. Physitrack remains disciplined and cash generative. Q3 marked our fourth consecutive quarter of positive free cash flow at €0.4 million, and that was a €0.8 million improvement year over year. Year to date, the group has generated €1.8 million of cash, demonstrating that our operations are now fully self-funding.

We ended the quarter with €1.4 million of undrawn headroom under our borrowing facility, providing flexibility to invest where we see the strongest returns. Our treasury strategy continues to focus on de-risking the balance sheet, using excess cash to gradually repay down our debt facility while maintaining sufficient capacity to reinvest selectively in innovation and growth. This balanced approach allows us to protect liquidity, strengthen our capital structure, and sustain our competitive advantage without increasing financial risk. Next slide, please. Turning briefly to the balance sheet, movements this quarter primarily reflect our continued emphasis on working capital efficiency, visibility, and reduction of both trade receivables and trade payables. This tighter cash cycle supports positive cash conversion and enhances predictability across quarters. The declining preferred consideration relates to the ongoing payments to the previous owners of Champion Health.

We remain on track to complete these payments by April 2026, with a further €170,000 due in Q4 this year, and then the remainder in Q1 and Q2 2026. Overall, the balance sheet remains strong and flexible, aligned with our capital allocation priorities, maintaining a conservative liquidity position while supporting internal investment and sustainable growth. To summarize, Q3 demonstrates that Physitrack’s SaaS-first model is not just profitable, but robust and sustainable. We continue to generate cash, maintain strong margins, and investment discipline. With four consecutive quarters of positive free cash flow, stable ARR, and industry-leading profitability metrics, we’re well positioned to build on this foundation, driving scalable, high-quality growth as our commercial expansion gaps pace through 2026. I’ll hand back over to Henrik to go through the strategy and outlook.

Henrik Molin, CEO and Founder, Physitrack: Thanks, Matt. Nice work. All right, we have the value proposition on this slide, so you can read that in your own time. Just wanted to reiterate the financial goals. Top-line growth remains a priority, of course. Medium-term target is to double the company’s revenue base. EBITDA margins, we aim to bring the entire business in line with what Lifecare is today, so 40% to 45%. Cash generation demonstrated now four quarters consecutively that the model is cash generative, and a strong trend set to continue. Long-term shareholder value over time, we will position Physitrack PLC as a dividend distributing investment, provided that we have ample investments into our R&D and we have a CAPEX level that’s consistent with high velocity and innovation, of course. That aside, this is something that will be positive because we are focused, we’re disciplined, we’re committed, and we will deliver profitable and scalable growth.

With that, I’d like to thank you all for your time today. Let’s move into Q&A. You can submit your questions via the Zoom Q&A function, and we’ll read them out. We’ll get to as many of them as we can. Thank you so much, and see you on the other side. Right, let’s get ready for some Q&A. I’m just going to see if I can pin us here so that we can be side by side. All right, let’s see. Okay, we have a couple of questions around free cash flow and the trend of free cash flow vis-à-vis CAPEX. The question is, you’ve delivered positive free cash flow for four consecutive quarters. Thank you for noticing. How sustainable is this trend as you continue to invest in AI tools and platform development?

Yes, the trend is very sustainable because the team composition and size, it doesn’t really need to change as we add R&D projects for several reasons, and I’ll walk you through that. It’s more of a matter of how you define the roadmap. The team size and composition scale very well thanks to tools and workflow. It’s a matter of priorities mainly. You don’t really have this linear relationship anymore between the number of projects that you have in your R&D and the team that you need if you keep a disciplined approach and if you have the right type of prioritization. We can take on additional development projects and accelerate with what we have, thanks to great tools and workflow. The margin is really attractive now, obviously, and cash flow is highly positive. This will continue to improve as revenue increases, and then in itself will also feed innovation.

What’s very interesting here, and let me just talk about AI for a second here in terms of development projects. You saw the data piece in the beginning. We have a very vast database that we started building already in 2014, and there’s some really interesting things that you can do there with AI attached to that in terms of how the ecosystem develops, individual features, how exercise programs can be predictable, predictive, and also how we can move into B2C with it. Interestingly enough, some of the largest technology providers on the planet here, like the Googles, the Meta, the Access, and others, they’re investing heavily in digital health right now because it’s quite a unique place to be, and it creates a very favorable environment for us as customers of these guys.

With that, we can actually access a lot of their experience and a lot of their tools for little or no money at all because they are very keen on sponsoring these types of things. In addition to this team composition based on the tool kits that we have, there’s also a strong position for us as an R&D provider in AI around this thanks to this. We are really leaning into the data side of things, which you’ve seen. We’ve done that for a long time.

We had our first version of Fusidata in 2015, but this is really something that’s very interesting in the age of AI, and we’re very able to capitalize on this very nicely thanks to the way that our R&D efforts are set up and the way that we can get sponsorship for it, similar to what we got back in the days when we worked with Apple in developing the platform. The second question is sort of a twin question. CAPEX has remained steady at around €0.7 to €0.8 million. Should we expect this level to hold, or do you anticipate any step up in 2026? I think you can expect that level to hold or even decrease slightly. We don’t have any step ups planned in 2026.

We look at, again, the optimization of workflows and tools and things like that to just do more with the same amount of people, but just being more efficient, more effective. To build on the previous point, we can really scale what we have there, and of course, the leverage that we can get from investments from other companies that are being made into AI now, so they can prove monetization. We’re very much favored by that. That’s a nice combination for us so that we can maintain velocity and consistency here. Third question here, ARR development. Pass this over to Matt. Can you elaborate on the drivers behind the ARR decline this quarter beyond FX? Do you expect ARR to stabilize or return to growth in Q4?

Matt Poulter, Interim CFO, Physitrack: Thanks, Henrik. I think we should break the ARR down into two parts. Let’s, first of all, focus on the Lifecare. Lifecare was down about €155,000 quarter on quarter, which is about 1.3%. Roughly about €150,000 of that is explained by foreign exchange. We have seen an impact on revenue by movements in the FX rate. Overall, though, with us being pretty naturally hedged, we don’t see that flow through to EBITDA. In that of currency, the performance was pretty much flat. I think what we’re also seeing with just the Lifecare there is that it’s a reflection also of the Q3 uplift. We saw a big price rise in May this year. That’s now annualized out. Operationally, we see churn around the 1% mark. That has been steady for the last few years now. The ARPL and customer lifetime value are also up year on year.

Lifecare predominantly there, that decline was all FX related. Obviously, the bigger ARR decline you’ll see is in the Wellness. That’s more just the planned phase-out of the legacy contracts tied up with the old Champion Health management there. Those contracts were quite high value, but they were costing us a lot in terms of operational manpower just to manage. They were unprofitable. In a way, whilst we’ve sort of seen that decline there, it hasn’t impacted the bottom line. If we’re honest, we’re probably going to expect to see a little bit more of that in Q4. Maybe not to the same extent we’ve seen this quarter as the remaining of those contracts unwind. From that point, ARR should be stable. Overall, in Q4, we expect the ARR to level out and then return to growth into 2026 as the new business sales continue to come through.

Hopefully, the FX also stabilizes too.

Henrik Molin, CEO and Founder, Physitrack: Thanks, Matt. Yeah, there’s a follow-up question on that. Can you explain about the legacy customers within Wellness? I’ll take that one. What are the likes of dropship shops? Matt was saying when you have founders pretty much ready to do whatever it takes just to win a contract without looking at the team composition or the effort required to deliver that, then they skew profitability in a big way. You get the licenses, you get the revenue, but if you look at it on the flip side, you don’t get the profitability. That’s also known as growth at any price. We looked very, very hard at some of these things that were in the book of business, and some of it just had to go.

They didn’t have a place for that because it’s important to run a business that at the end of the day puts food on the table. I hope that’s a good answer to that. Another question here about Lifecare and dropping subscribers versus Q2. Explain the reasons behind this. There’s seasonality. I think it’s important not to just stare at licenses in terms of the Lifecare business because it’s not a B2C business. There’s more in this book of business under the surface than you see with the licenses. A lot of these things have other things attached to them in terms of work that we do. We have custom apps. There are other add-ons that people have, and you’ll see more of that as well. From one quarter to the next, you will see fluctuations there. It’s never a steady line.

Also, during the summer months, you see people, they take a break from things. People pack it in and they decide to sell their businesses. There’s a lot of things that go on in those months, and it’s not really something that’s very relevant to explain the success of this. Again, it’s not like a B2C business. Developments in Wellness, could you clarify them as the report lacks clear data and is hard to interpret? The question also lacks a bit of insight into what you mean with developments, just teasing you a little bit there. Obviously, cleaning up the book of business has been very important. There were a number of things in the Wellness division that were there with hands-on care that were meant for as a segue into digital care originally.

The big boost that you saw in revenue growth right after the IPO with some of these businesses, tripling, quadrupling, even going up as much as 5X. They did that on the basis of digital-first hands-on care that was meant to segue into full digital care. When we saw that the pacing of that and the way that that was costing us money didn’t work out, we decided to shift that out. We did MBOs, we shut off business lines, et cetera. What you see now is the remaining part of that, which is almost full digital. There’s some little bit of trimming left to do in terms of physical care delivery. What you see there is a continued journey to just really making this into a full digital business, which was the plan the whole time. Now what you will get is that journey with profitability.

I hope that in combination with what we explained about legacy contracts, that that makes sense in terms of financing. Yeah, Matt, we can tag team on this one. Investment in intangibles has been falling a couple of quarters, but are up in this quarter. Will you be starting to invest more again now when you have a positive cash flow? I answered that in the beginning of it. It’s interesting when you optimize a team composition for RMD, and if you apply some of these, we can call them new tools. We’ve been using them for a couple of years now, but things to, they call it vibe coding now, but ways to optimize your product development process, way to optimize like your code base building, tools to optimize the code base itself.

We had 350,000 lines of code when the new generation took over after my co-founder back in 2021. It’s been significantly trimmed. Costs have been significantly reduced for site reliability engineering and hosting, et cetera. It’s a very efficient team that we have that scales very, very nicely. You can see seasonal variations, but the overall trend is a falling one, and certainly on a percentage basis, as revenue increases, we don’t have to increase the size of the engineering team. It doesn’t work that way anymore. Thanks to great tools, you can actually keep a team stable in terms of the size while the overall business increases. Yeah, we are investing on a systematic basis, but it’s not something that’s really generating new CAPEX in that way. Matt, I don’t know if I have anything to jump in in terms of that.

Matt Poulter, Interim CFO, Physitrack: Yeah, no, I think that’s a fair reflection. We do see some seasonality in those CAPEX numbers and where there are specific projects, whether that’s investment in the platform or in new systems to support the underlying operations. We will see some fluctuations there, up or down, $100,000 or so. Yeah, I think pretty much we will be maintaining those CAPEX levels going forward, despite an increase there in that positive cash flow.

Henrik Molin, CEO and Founder, Physitrack: The CAPEX game has changed in the last, I’d say, you know, year, a couple of years with the advent of AI tools. It’s not what it used to be. The predictability of it is vastly different, and I think there’s an A-team and a B-team situation there in terms of how optimized your CAPEX spend is. I certainly think that we are part of the A-team in terms of how we have done it with the best-in-class tools applied between product and engineering. Of course, also look at the velocity in terms of our reporting. A lot of that is thanks to AI tools that we use just to get faster numbers. It’s really a big, big difference on how you can do things and how you invest in things and how you can increase velocity without actually adding a lot of cost to it. It’s actually mind-blowing.

The world has changed, and I’m happy to say that we changed with it in a very good way. Now, are the Wellness deals announced so far this year reflected in the number of Wellness licenses? That’s a good question because if you looked at the news ticker earlier this year, you saw one of these really big deals, like a Wellness aggregated deal in the UK. That’s a company where we do a deal with that company, and they in turn roll out the solution, in this case, Champion Health, to their customers. It’s like a distribution channel. You get paid for the deal itself, obviously, with the customizations you need to do, and you get paid the first set of licenses that you roll out for the first set of customers. There’s been a lot of growth in these ecosystems that come as the system rolls out.

We have not captured the number of licenses that that potential represents. We are just at the early stages of rolling out in that ecosystem, which was the biggest deal in terms of monetary value if you aggregate the money that it’s worth over the life of that contract. We’ve only just begun there. It’s quite interesting. You will see an uptick in licenses in the back of that, and you’ll see revenue increases increasing in the following phases of that. What are your targets for Wellness for 2026? We will be doing similar deals like that. We learned a lot from doing that build. That was an enterprise build with a lot of things in terms of automated rollout tools, dashboards, et cetera, similar to what we have on the Physitrack end with something we call Physitrack Direct or Physitrack Pro these days. They’re renaming it.

We did a lot of these things, also in terms of the robustness, stability, scalability, the automated nature of it. That is something that we’re recycling in other deals as well of a similar nature, not just in the UK, but more importantly in North America, where we have these types of customers already in Lifecare. It is a matter of just plugging in Champion Health to that. That is really interesting, and that’s a big priority for the rest of 2025 and for 2026. There is a question: Can you elaborate on your current pipeline of new opportunities? I explained some of that. You have some of these big aggregated deals, and you also have direct business. There is some very, very interesting stuff in the pipeline. The downside is some of it actually takes time to close.

There is also a downside, not a lot of people want to talk about it. They are very secretive, and this is where you get anonymized press releases. We don’t mention the name, but you can read between the lines sometimes and figure that out. There is a lot going on. $0.2 million have been taken in this quarter in restructuring cost. Yes, we know that. Some very happy lawyers out there went through that. Where are you in this process? When do you expect to be done with restructuring? We are done. There might be some legacy invoices that you get for time spent from lawyers, etc. That was the main thing. We were quite lucky in the fact that we didn’t have a lot of staff that needed to be bought out of the business or as things came to a close.

We were quite lucky in that respect. We are done. Again, there might be just on the margin some lingering lawyer invoices. Those people have to eat as well at some point. Can you comment on the sales pipeline in the U.S.? We have a couple of million of business in the U.S. I think we are arguably undersold in the U.S. We can do a lot more with those existing relationships. Only in New York City, we have customers like NYU Langone, HSS, we have bigger players like Cedars-Sinai, Mercy’s Children’s Hospital in Philadelphia, etc. These are really, really, really big hospital systems. On top of that, you have big private clinical chains. There are a few of them here, Professional Physical Therapy, for example, which is very significant.

Also north of the border in Canada, you have companies like CBI, where we’ve only just begun to scratch the surface of their ecosystems in terms of what we can do to cater to them. CBI, for example, in Canada, has about 1,500, I think, total users, and we just have a fraction of them as customers today. With a new office here and our new salesperson here, we really hit the ground running with existing relationships. It’s going to be a very interesting journey here. This is just with existing customers. There’s also the scope to do more. We just signed a new Head of Marketing who’s going to be based in New York, who’s going to look at, obviously, the global scope of things, but there’s such a big growth potential here if you do that right. This is without actually taking on too much additional cost.

We revamped the marketing team and the sales effort. Just having these new people come in, I think that’s going to change things quite dramatically here, both in terms of how we can work with existing customers. They represent a couple million today. They should be $10 million. Also, how we go about getting new customers in. Some very exciting times coming up. Stay tuned for more. That brought us to the end of the Q&A, the way I can see it. Thank you very much for your time. Thank you for your confidence in us. Thank you for tuning in until we meet the next time. See you.

Matt Poulter, Interim CFO, Physitrack: Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.