DocMorris AG

DocMorris reported Q1 revenue growth of 10.7% year over year, with Rx up 30.4%, non-Rx up 6.5%, OTC and BPC up 4.4%, and Digital Services up 63.1%. Adjusted EBITDA was minus CHF 6.3 million, an improvement of CHF 9.8 million versus last year, and the adjusted EBITDA margin improved by more than 360 basis points to minus 2.1% from minus 5.7%. Active customers rose to 12.6 million, up by 1 million year over year. For guidance, management confirmed full-year 2026 adjusted EBITDA of minus CHF 10 million to minus CHF 25 million, said Q2 should be roughly around the Q1 loss level, expects to get close to EBITDA breakeven in Q3 and to be at EBITDA breakeven in Q4, and reiterated positive free cash flow in 2027.

Walter Hess framed the quarter as proof that the company’s shift from online pharmacy to a digital and AI health platform is working. He emphasized strong Rx momentum, a better marketing mix, and the scaling of higher-margin Digital Services, saying the business is delivering today rather than only promising future progress. His tone was confident and insistent on stability, continuity, and execution, including support for the proposed board nominations at the AGM.

Daniel Wüest focused on the financial bridge to profitability, highlighting the CHF 6.3 million adjusted EBITDA loss, the CHF 9.8 million year-over-year improvement, and the margin gain to minus 2.1%. He attributed the improvement to better operational performance, marketing efficiency, and disciplined cost management, including the prior Heerlen logistics closure and the announced Ludwigshafen closure, which should start showing positive operational effects in the second half of 2026. He also said Q1 and Q2 are usually the weakest quarters, expects Q2 to be roughly on the Q1 level, and reaffirmed the full-year EBITDA range and breakeven path.

Analysts pressed on whether Rx growth was already near the full-year target, whether Q2 losses could be worse than Q1, whether Digital Services growth was decelerating too quickly, and whether there was any regulatory or competitive change to worry about. Management said Rx is being helped by an improved marketing mix and that more detail would come in August, while on profitability Daniel said Q2 is likely to be roughly around Q1 but with an ambition to improve toward the upper end of the midpoint. On Digital Services, management said 40% to 60% remains the working range for the year, TeleClinic growth will normalize after the TK tender base effect, and margin improvement should continue. On regulation, Walter said a draft cold-chain rule was challenged by the EU Commission as likely violating EU law, which he viewed as a positive signal, and on OTC competition he said they did not feel additional competitive pressure from Rossmann or dm.