DocMorris Aims for 2026 EBITDA Breakeven, Revises Growth

Key Financial Highlights

DocMorris AG reported an adjusted EBITDA of CHF -50 million for fiscal year 2025, falling within its initial guidance. The Swiss online pharmacy has now set a target to achieve EBITDA break-even during 2026, signaling a clear path toward profitability.

Performance and Growth Drivers

In the fourth quarter, external group revenue increased 16% year-over-year in local currency, driven by strong performance in key markets. German non-prescription sales grew 15% year-over-year, outperforming competitor Redcare Pharmacy. Prescription drug sales also showed a robust 21% year-over-year increase, though sequential growth decelerated slightly.

Future Outlook and Revised Targets

Looking ahead, management has revised its medium-term targets, lowering external revenue growth expectations from 20% to approximately 15%. However, the company maintained its long-term adjusted EBITDA margin target of 8% and reduced its capital expenditure guidance. The company ended 2025 with cash and cash equivalents of CHF 120 million.

Summary

DocMorris is focusing on sustainable profitability, underscored by its 2026 break-even goal and revised, more conservative growth forecasts. The company's strong Q4 performance, particularly in the German market, provides a solid foundation for achieving these targets as it moves toward free cash flow break-even in 2027.

FAQ

Q: What is DocMorris's main financial target for 2026?
A: DocMorris is targeting to reach EBITDA break-even as 2026 progresses.

Q: How did DocMorris's Q4 revenue perform?
A: The company's external group revenue increased by 16% year-over-year in local currency during the fourth quarter.

Source: Investing.com