Stock Markets March 19, 2026

DocMorris narrows losses, sets path to EBITDA break-even during 2026

Swiss online pharmacy trims capex and medium-term growth targets while projecting operational break-even next year

By Nina Shah
DocMorris narrows losses, sets path to EBITDA break-even during 2026

DocMorris AG reported adjusted EBITDA of CHF -50 million for fiscal 2025, within management’s previously communicated range, and issued guidance showing a narrower loss for 2026 with the company targeting EBITDA break-even as the year progresses. Management also trimmed medium-term revenue growth expectations and reduced capital expenditure plans while maintaining an approximately 8% EBITDA margin target.

Key Points

  • DocMorris posted adjusted EBITDA of CHF -50 million for fiscal 2025, inside the previously issued target range of CHF -48 million to -52 million.
  • Management guided 2026 adjusted EBITDA to CHF -10 million to -25 million and expects to reach EBITDA break-even during 2026; external sales growth is guided to mid-single-digit to low teens.
  • Medium-term external revenue growth guidance was lowered to around 15% from 20%, and capital expenditure guidance was trimmed to approximately CHF 30 million from approximately CHF 35 million while maintaining an EBITDA margin target of approximately 8%.

DocMorris AG reported adjusted EBITDA of CHF -50 million for fiscal year 2025, which sits inside the previously announced target interval of CHF -48 million to -52 million, according to company figures released on Thursday. Management said it now expects to reach adjusted EBITDA break-even during 2026 as the year advances.

For fiscal 2026 the company guided an adjusted EBITDA range of CHF -10 million to -25 million. The midpoint of that range is described as 13% above consensus analyst estimates. In addition to the EBITDA guidance, DocMorris forecast external sales growth in a band from mid-single-digit to low teens, against a consensus growth expectation of 12%.


Second-half and quarterly performance

In the second half of 2025 DocMorris reported gross profit growth of 18% year-over-year, with a gross profit margin of 22.1%. Adjusted EBITDA for the second half amounted to CHF -19 million, representing a -3.3% margin. That result improved on the prior-year half, when adjusted EBITDA was CHF -28 million, and it was also stronger than consensus expectations of CHF -22 million.

Management noted a sequential improvement in the adjusted EBITDA margin, rising by 200 basis points from the previous period. Cash and cash equivalents at year-end 2025 were reported at CHF 120 million.

On a quarterly basis, external group revenue for the fourth quarter rose 16% year-over-year in local currency and 15% on a reported basis, reaching CHF 331 million. For the full fiscal year 2025 external revenue grew 11% in local currency year-over-year, exceeding the company’s initial target of at least 10% growth.


Revenue mix and competitive context

Prescription drug sales in the fourth quarter were CHF 64 million, an increase of CHF 3 million sequentially but a deceleration compared with the CHF 5 million sequential addition recorded in the third quarter. The 21% year-over-year increase in prescription sales was noted to be below the performance of Redcare Pharmacy, which posted prescription sales of EUR 155 million with 23% quarter-over-quarter growth and 60% year-over-year growth in the same period.

German non-prescription sales advanced 15% year-over-year in local currency and 14% in Swiss francs, described as the strongest quarter for that category in over two years. That compares to Redcare Pharmacy’s 6% growth for the equivalent period.


Outlook and medium-term targets

DocMorris reiterated its objective to reach EBITDA break-even during 2026 and to achieve free cash flow break-even in 2027, driven in management’s view by expanding contributions from prescription drugs and Teleclinic services. Management revised medium-term external revenue growth guidance downward to around 15% from a previous target of 20%.

Capital expenditure guidance was reduced to approximately CHF 30 million from approximately CHF 35 million previously, while the company kept its medium-term EBITDA margin goal at approximately 8%.

Risks

  • Slowing sequential additions to prescription drug sales could impede revenue momentum and delay progress toward EBITDA or free cash flow break-even - this primarily affects the healthcare and e-commerce sectors.
  • Downward revision of medium-term external revenue growth from 20% to around 15% increases execution pressure on management to deliver margin improvements and cost discipline - this impacts investor expectations in equity and credit markets.
  • Reliance on increasing contributions from prescription drugs and Teleclinic as the drivers of break-even means outcomes depend on those segments sustaining growth rates shown in recent quarters - relevant for competitive dynamics in online pharmacy and telehealth services.

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