DocMorris AG

DocMorris reported Q1 revenue growth of 10.7% year over year, with Rx up 30.4%, non-Rx up 6.5%, OTC/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 the prior-year quarter, and the adjusted EBITDA margin improved from minus 5.7% to minus 2.1%. Active customers rose by 1 million year over year to 12.6 million. For guidance, management reiterated 2026 adjusted EBITDA of minus CHF 10 million to minus CHF 25 million, said Q2 should be roughly in line with Q1, expects to get close to breakeven in Q3 and achieve EBITDA breakeven in Q4, and reaffirmed positive free cash flow in 2027.

Walter Hess framed the quarter as evidence that DocMorris is evolving from an online pharmacy into a digital and AI health platform that is already producing tangible financial results. He emphasized strong Rx momentum, rapid scaling of Digital Services, and better marketing efficiency and customer acquisition economics. His tone was confident and insistent on execution, continuity, and board stability, saying the company is “well on track” and that the strategy is “fully operationalized.”

Daniel Wüest highlighted the financial bridge from Q1, focusing on adjusted EBITDA of minus CHF 6.3 million and the nearly CHF 10 million year-over-year improvement. He said the improvement was driven by better operational performance, marketing efficiency, and disciplined cost management, including the closures of Heerlen and Ludwigshafen logistics operations. He reiterated the full-year adjusted EBITDA target of minus CHF 10 million to minus CHF 25 million, said Q2 should be around Q1’s level, and confirmed the path to EBITDA breakeven in 2026 and positive free cash flow in 2027.

Analysts focused on whether Rx growth was running ahead of the full-year plan, why Q2 profitability might not worsen materially versus Q1, and whether any regulatory changes could affect the cold-chain setup. Management said Rx growth benefited from improved marketing mix and that more detail would come in August, while Daniel said Q1 and Q2 are typically the weakest quarters but Q2 should be roughly on Q1’s level, with a possible move toward the upper end of the midpoint of the EBITDA range. On regulation, Walter said the cold-chain draft is only at the proposal stage and the EU Commission has objected, which he viewed as a positive signal. Questions also probed Digital Services deceleration; Daniel said the company still expects mid-double-digit growth, roughly 40% to 60%, with TeleClinic margins improving even as growth normalizes.