Redcare Pharmacy Reports 20% Second-Quarter Revenue Growth as Profitability and International Performance Improve
Redcare Pharmacy delivered another strong quarter in 2026, reporting accelerated revenue growth, a significant improvement in profitability and an important milestone in its international operations. The European online pharmacy group increased second-quarter revenue by 20% year over year to EUR 853 million, up from 18% growth in the first quarter, while its adjusted EBITDA margin expanded by 0.9 percentage points to 3.5%.
The company’s performance reflects continued momentum across both non-prescription medicines and prescription medicines, with particularly strong growth in the German prescription business. At the same time, Redcare Pharmacy’s international segment reached positive adjusted EBITDA for the first time, signaling progress toward sustainable profitability outside its core DACH markets.
For the first six months of 2026, Redcare Pharmacy generated revenue of approximately EUR 1.7 billion, representing 19% year-over-year growth. Adjusted EBITDA increased 62% to EUR 44 million, equivalent to 2.6% of revenue.
The results highlight Redcare Pharmacy’s ability to continue expanding its customer base and sales while improving operational efficiency and profitability.
Customer Base Reaches 14.7 Million
Customer growth remained an important driver of Redcare Pharmacy’s performance during the second quarter.
The company ended the quarter with 14.7 million active customers, an increase of 1.2 million compared with the same period a year earlier. The company also added approximately 500,000 active customers during the second quarter alone.
The continued expansion of the active customer base provides a larger foundation for future revenue growth as Redcare Pharmacy works to increase customer engagement across prescription and non-prescription healthcare products.
Customer satisfaction also remained strong. Redcare Pharmacy reported an overall Net Promoter Score of 74, while its e-prescription, or e-Rx, business recorded an NPS of 77.
A high NPS indicates that customers are generally positive about their experience and are willing to recommend the service. For an online pharmacy competing for repeat purchases and prescription customers, customer satisfaction can play an important role in retention and long-term growth.
The average shopping basket also increased during the quarter. The average basket value rose 4% year over year to EUR 68, indicating that customers are spending more per transaction.
The combination of customer acquisition, customer satisfaction and higher average basket values gives Redcare Pharmacy several avenues for continued revenue expansion.
CEO Highlights Strong Q2 Momentum
Olaf Heinrich, CEO of Redcare Pharmacy, described the second quarter as another strong period for the company.
He pointed to accelerated growth, continued momentum in the German prescription business and a significant improvement in profitability as key highlights.
The addition of another half million active customers during the quarter was also highlighted as an important achievement, bringing the overall active customer base to 14.7 million.
One of the most significant developments, however, was the performance of the International segment. The business generated positive adjusted EBITDA for the first time, marking a transition from investment and expansion toward profitability.
According to Heinrich, the milestone demonstrates progress in scaling the international operation in a sustainable way.
The development is strategically important because Redcare Pharmacy has been investing in expanding its platform across multiple European markets. Achieving positive adjusted EBITDA in the international business suggests that the company is beginning to benefit from greater scale and operating leverage.
Non-Rx Business Continues to Grow
Redcare Pharmacy’s non-prescription, or non-Rx, business continued to provide a solid contribution to overall growth.
Group non-Rx revenue increased 13% year over year to EUR 515 million in the second quarter.
Germany, the company’s largest market, recorded non-Rx revenue growth of 12% to EUR 269 million, accelerating from 9% growth during the first quarter of 2026.
The acceleration in German non-Rx growth indicates that the business continues to benefit from consumer demand for online access to medicines, health products and other pharmacy-related items.
Non-Rx products remain an important component of the online pharmacy business because customers can typically purchase these products without a prescription. This can allow digital pharmacies to build shopping frequency and customer relationships while complementing their prescription operations.
The performance also suggests that Redcare Pharmacy continues to attract customers across a broad range of healthcare and pharmacy needs rather than relying exclusively on prescription medicine sales.
Prescription Revenue Drives Stronger Growth
Prescription revenue was an even more significant contributor to Redcare Pharmacy’s second-quarter performance.
Group Rx revenue increased 34% year over year to EUR 339 million, substantially outpacing non-Rx growth.
The strongest performance came from Germany, where Rx revenue increased 58% to EUR 180 million.
The company said the underlying growth momentum in German Rx remained in the high-50% range, reflecting sustained adoption and utilization of digital prescription services.
Germany has become an important growth market for Redcare Pharmacy as electronic prescriptions increasingly support digital pharmacy transactions. The continued expansion of e-prescription use gives online pharmacies an opportunity to capture a larger share of prescription-related spending.
The company’s e-Rx customer satisfaction score of 77 also indicates that customers using the digital prescription offering remain highly satisfied.
Meanwhile, prescription revenue in Switzerland increased 15% to EUR 159 million, providing another positive contribution to overall Rx performance.
The strong Rx growth in Germany and continued expansion in Switzerland demonstrate the importance of prescription services to Redcare Pharmacy’s broader growth strategy.
DACH Region Delivers Strong Performance
The company’s DACH region, which includes Germany, Austria and Switzerland, remained a major contributor to the quarter.
DACH revenue increased 21% year over year to EUR 696 million, compared with EUR 574 million in the second quarter of 2025.
The region benefited from strong growth in both prescription and non-prescription activities, with Germany accounting for a significant portion of the increase.
DACH also generated adjusted EBITDA of EUR 28 million, up from EUR 20 million in the prior-year period.
The adjusted EBITDA margin in the region increased to 4.0%, compared with 3.5% during the same quarter a year earlier.
The combination of strong revenue growth and higher profitability demonstrates that Redcare Pharmacy is gaining operating leverage as it expands in its core markets.
International Segment Reaches Profitability
Perhaps the most strategically important development during the quarter was the International segment’s move into positive adjusted EBITDA.
International revenue increased 17% year over year to EUR 158 million, compared with EUR 135 million in the second quarter of 2025.
At the same time, the segment generated adjusted EBITDA of EUR 1.4 million, compared with a loss of EUR 2 million in the prior-year quarter.
The adjusted EBITDA margin improved from negative 1.5% to positive 0.9%.
The move into positive EBITDA is an important milestone because international expansion often requires significant initial investment in marketing, infrastructure, technology and operating capabilities.
As revenue scales, fixed costs can be spread across a larger sales base, potentially improving margins. The second-quarter results suggest Redcare Pharmacy is beginning to realize some of these benefits.
Sustaining profitability in the international business could provide the company with another source of earnings growth while reducing the overall financial burden associated with expansion.
Gross Profit Reflects Changing Revenue Mix
Redcare Pharmacy reported second-quarter gross profit of EUR 189 million, up from EUR 169 million in the second quarter of 2025.
However, the gross profit margin declined year over year to 22.1%, compared with 23.8% in the prior-year period.
The company attributed the year-over-year margin decline primarily to a higher proportion of prescription revenue and lower gross margins in the non-Rx business.
Prescription medicines can have different economics compared with non-prescription products, meaning that rapid growth in Rx revenue can affect the overall gross margin even while total gross profit increases.
The second-quarter gross margin did, however, improve from 21.0% in the first quarter of 2026.
This sequential improvement indicates that the company’s underlying margin performance is moving in a positive direction despite the changing product mix.
The development demonstrates the importance of considering both revenue growth and operating efficiency when assessing Redcare Pharmacy’s performance.
Lower Selling and Distribution Costs Improve Efficiency
One of the key contributors to the improvement in adjusted EBITDA was a reduction in selling and distribution expenses relative to revenue.
Adjusted selling and distribution expenses reached EUR 136 million during the second quarter, compared with EUR 130 million a year earlier.
While the absolute expense increased, the ratio to revenue declined substantially from 18.4% to 16.0%.
The company attributed the improvement to more efficient marketing spending and operating leverage.
This is an important development because online pharmacy businesses often depend heavily on customer acquisition and marketing investments. As a company becomes larger and more established, it can potentially generate additional sales without increasing marketing expenses at the same pace.
The lower expense ratio suggests Redcare Pharmacy is benefiting from that effect.
The company’s ability to control customer acquisition costs while continuing to add active customers could become increasingly important as it seeks to maintain high growth rates while improving profitability.
Administrative Expenses Remain Controlled
Adjusted administrative expenses increased to EUR 23 million, compared with EUR 20 million in the second quarter of 2025.
However, because revenue expanded at a faster pace, administrative expenses declined as a percentage of revenue from 2.9% to 2.7%.
This represents another example of operating leverage within the business.
Controlling administrative costs while expanding revenue can help support margin expansion, particularly when combined with more efficient marketing and distribution spending.
The continued improvement in these operating ratios helped offset the pressure from the lower gross margin and contributed to the company’s stronger adjusted EBITDA performance.
Adjusted EBITDA Increases 63%
Overall, Redcare Pharmacy reported adjusted EBITDA of approximately EUR 30 million for the second quarter, representing a 63% increase compared with the same period in 2025.
The adjusted EBITDA margin expanded from 2.6% to 3.5%.
The improvement demonstrates that the company is growing earnings at a faster rate than revenue, an important indicator of operating leverage.
DACH contributed EUR 28 million of adjusted EBITDA, while the International segment added EUR 1.4 million.
The remaining contribution and group-level effects reflect the company’s overall operating structure.
For the first half of 2026, adjusted EBITDA reached EUR 44 million, 62% higher than in the comparable period.
The combination of stronger EBITDA and continued double-digit revenue growth shows that Redcare Pharmacy is moving toward a more profitable growth model.
Strong First-Half Performance Sets the Stage for Continued Expansion
The first-half results reinforce the strength of the second-quarter performance.
Revenue increased 19% to approximately EUR 1.7 billion, while adjusted EBITDA rose 62% to EUR 44 million.
The company’s performance is being driven by several complementary factors: strong prescription growth, continued expansion of the non-Rx business, a growing customer base, higher average basket values and improving cost efficiency.
The German Rx business remains one of the strongest growth engines, while international operations are beginning to demonstrate greater financial maturity.
The company’s customer metrics also remain encouraging, with 14.7 million active customers and strong NPS scores.
Redcare Pharmacy’s second-quarter results demonstrate a combination of accelerated growth and improving profitability.
The company increased revenue by 20% year over year to EUR 853 million, while adjusted EBITDA rose 63% and the margin reached 3.5%. Prescription revenue grew particularly strongly, with German Rx revenue increasing 58% and group Rx revenue rising 34%.
At the same time, the company continued to expand its non-prescription business and added approximately 500,000 active customers during the quarter.
The move of the International segment into positive adjusted EBITDA represents another important step in the company’s development. International revenue grew 17%, while the segment moved from a EUR 2 million adjusted EBITDA loss to EUR 1.4 million in positive adjusted EBITDA.
The results suggest that Redcare Pharmacy is increasingly able to combine scale with efficiency. Improved selling and distribution cost ratios, controlled administrative expenses and stronger operating leverage are helping the company expand profitability alongside revenue.
With customer numbers continuing to rise, prescription adoption gaining momentum and international operations reaching profitability, Redcare Pharmacy enters the second half of 2026 with several important growth drivers in place.
The company’s latest performance reinforces its position as a rapidly growing digital pharmacy business in Europe and demonstrates continued progress toward a sustainable, increasingly profitable operating model.
Source link: https://www.redcare-pharmacy.com/
