Medicalgorithmics released yesterday the results for 4Q25. Key points:
• Sales amounted to 10.1 million PLN, +71% y/y and +40% q/q, in line with preliminary revenue reported by the company of 10.2 million PLN.
• Subscription sales were 9.2 million PLN (+51% y/y), of which 4.6 million PLN came from the U.S. market (+110% q/q) – we had assumed 4.7 million PLN. Additionally, 4.7 million PLN outside the U.S. (+0% y/y) compared to our assumption of 4.5 million PLN. Device sales were 0.8 million PLN versus our assumption of 0.9 million PLN.
• Costs were 10.4 million PLN, indicating a quarterly decline from 11.3 million PLN and below our forecast of 10.9 million PLN.
• EBITDA was 1.0 million PLN compared to –4.2 million PLN in 4Q24, in line with preliminary results. The dominant company's EBITDA was 1.7 million PLN.
• EBIT was –0.4 million PLN compared to our forecast of –0.3 million PLN. The dominant company's EBIT was 0.4 million PLN. • Net loss was 0.9 million PLN and was lower than our forecast of –1.2 million PLN.
• Operating cash flows were 1.7 million PLN compared to –1.4 million PLN in 4Q24. Capital expenditures were 4.1 million PLN compared to 3.1 million PLN in 4Q24.
• Net debt was 19.8 million PLN, an increase from 16.8 million PLN after 3Q25. Cash burn was 3.0 million PLN compared to 4.6 million PLN in 4Q24.
Opinion: Neutral. Results in line with preliminary estimates. The company, for the first time since changing its business model, recorded a positive EBITDA profit, and at the unit level even an EBIT profit.
The non‑profitable area remains VCAST, which also generates high R&D costs.
The company focused on implementation at its largest U.S. client, which ultimately concluded in 4Q25, hence a relatively weak growth dynamic in other areas – for other clients in the U.S. and outside the U.S.
