DocMorris Aktie

Good morning, everyone, and welcome to our Q1 '26 trading update. I'm Walter Hess, the CEO, and I'm joined today by our CFO, Daniel Wuest. In line with what we announced at the full year conference, we will provide transparent quarterly insights into our path to EBITDA breakeven, which is why we are hosting today's call.

Just a few weeks ago, during our full year '25 results, we outlined our strategic evolution from an online pharmacy player to the leading digital and AI health platform, the engine for our profitable expansion at scale. Today, we will show you the facts that validate our successful development.

Let's move straight to the Q1 highlights on the next slide to demonstrate how well this engine is now accelerating. Overall, we achieved a strong revenue growth of 10.7% year-over-year. Our Rx business showed outstanding momentum with a 30.4% growth year-over-year alongside a strong 7.6% sequential growth compared to the previous quarter. The growth was fueled by accelerating month-over-month with a remarkable uptick in March, which also continues in April. Our high-margin Digital Services business continues to scale rapidly, achieving an impressive 63.1% growth rate while consistently increasing margins.

In Q1 '26, we successfully expanded our ecosystem platform, growing our active customer base by 1 million year-over-year, whereas 0.4 million in Q1 '26, to a total of 12.6 million, which is a great achievement. And most importantly, and as you know, our main priority, we improved our adjusted EBITDA by CHF 10 million year-over-year to minus CHF 6 million, proving we are on track to achieve our breakeven target in the course of 2026.

Let's move to Slide #5 now. The 30.4% year-over-year Rx growth clearly proves that our strategy to capture the potential of the Rx market is highly effective. It shows that the patients are more and more familiar with our Digital Services and increasingly value the comfort of home delivery. We saw a growth in Rx orders from month-to-month with a significant uptick in March, rounding off a very successful first quarter and also continuing into April. And this acceleration comes together with a more and further optimized channel mix, which pleasingly increased RAS, return on advertising spend, and decreased our customer acquisition costs even further. Ultimately, this is a strong start into the year, and it demonstrates the growing stickiness of our health platform.

Our non-Rx business remains a reliable driver of value, delivering continuous and profitable growth of 6.5% year-over-year to fuel our broader ecosystem. We managed our OTC and BPC business according to plan to a growth rate of 4.4%.

Our Digital Services, including TeleClinic, Retail Media and our Marketplace grew further by an outstanding 63.1%. These digital business lines are not just growing top line, they are delivering increasing margins and therefore, a significant EBITDA contribution. And on top of it, the strong platform performance and expansion also forms an excellent basis for our Retail Media business.

And now I would like to hand over to Daniel.

Thank you, Walter. And also from my side, a very warm welcome to all the participants.

Let's move to Slide #7, where you see the EBITDA bridge, which we also provided to you during the full year figures in March. And I want to start this with the following comments. We closed Q1 with an adjusted EBITDA, as Walter already said, with minus CHF 6.3 million, representing a substantial improvement of almost CHF 10 million, exactly CHF 9.8 million compared to the quarter of last year. That's proving our continuous path to profitability. The adjusted EBITDA margin improved by over 360 basis points from minus 5.7% to minus 2.1% in Q1 compared to the previous year's quarter. If you look at the chart and you see since Q1 '25, we have seen an ongoing quarterly EBITDA improvement driven by basically 3 factors: Better operational performance, focus on marketing efficiency and also very important to mention, disciplined cost management.

Amongst other, you remember, we have closed the Heerlen Logistics operations last year. And this year, we have announced the closing of Ludwigshafen, the warehouse and their respective logistics operations, which have already contributed substantially on the cost side, but will further contribute during '26. And I can also confirm that with the closure of Ludwigshafen, we are very well on track. We will see first positive operational effects there in the second half of '26. We continue to be very transparent, and you see with this minus CHF 6.3 million in Q1 '26 in the chart on Page 7 that we expect the quarter result almost on the same level for Q2. And then as already mentioned in March, we aim for getting close to EBITDA breakeven in Q3 and there will be definitely EBITDA breakeven in Q4. And I think that's what the management team is kind of aiming to achieve.

All in all, our Q1 results demonstrate that our measures are working and will further work because it's not yet done, and bet DocMorris is very well on track to achieve EBITDA breakeven in the course of the year. We are relentlessly executing our plan with precision, knowing that our strategy, the evolution from a leading online pharmacy to a leading digital and AI health platform will pay off.

With that, I would like to go to Slide #8. There, nothing new. Backed by our strong Q1 performance and our current trading, where we see an ongoing positive trend from March, we are fully confirming our short and midterm guidance as laid out on the full year presentation in March. That means we confirm our '26 adjusted EBITDA target in the range of minus CHF 10 million to minus CHF 25 million, strongly supported by the improvements we have already seen and delivered in Q1. We are confident to achieve EBITDA breakeven even if we would be at the higher end of the guided external revenue growth guidance. And just for your memory, we guided mid-single-digit to low teens percentage range. And as you have seen in Q1, we can deliver on the EBITDA target even if we are at the upper end of the overall revenue guidance. All in all, we firmly reiterate our commitment to reaching EBITDA breakeven during '26 and achieving positive free cash flow in the course of '27.

And with that, I hand over to Walter.

Yes. Thank you, Daniel. So before we move to Q&A, I want to briefly address the upcoming Annual General Meeting and the future Board composition proposals.

Our Board proposes 3 independent nominees, Thomas Bucher, Nicole Formica-Schiller and Dr. Thomas Reutter. Together with our existing Board members, this composition brings targeted expertise across the areas most critical to further execute on our strategy. Management's clear preference is for continuity and stability. We are at a pivotal point in our development. Consistent, focused execution requires a Board that is aligned, experienced and ready to act, not one in transition.

All proposed new nominees are fully independent and stand for the interest of all shareholders. We believe this is the right team to take DocMorris forward, and we encourage shareholders to support these nominations at the AGM.

Let me conclude the call with a clear message. Our vision of health in one click is not just a concept. It is fully operationalized through our integrated digital and AI health platform. However, a strategy is ultimately defined by its execution. Our Q1 results deliver strong proof that our measures are working and DocMorris is firmly on track. We are not just making promises for the future, we are delivering today. This is clearly demonstrated by our strong Rx growth and the 63% expansion in Digital Services and our continuous EBITDA improvements.

My clear statement to you is that the transition to a profitable digital health ecosystem is fully underway and is yielding tangible financial results. We have the right strategy. We have the right management team and the operational proof is in place. We are executing with absolute focus, and we are pairing the necessary sense of urgency with a clear commitment to long-term value creation.

And with that, we would like to move over to the Q&A part of this call.

[Operator Instructions] And we have already some questions. The first question comes from Mr. Koch from Deutsche Bank.

My first one is on Rx. Encouraging to see that the growth rate has accelerated again in Q1. If I analyze your Q1 number, I'm already quite close to your full year guidance. So is there anything we should consider here? Or is your full year guidance just a bit more conservative than in recent years?

Then secondly, on profitability, could you confirm that the loss in Q2 is not expected to be higher than in Q1? And if so, the upper end of the EBITDA loss range looks quite unlikely as well. Any comments here?

And then lastly, are there any upcoming regulatory changes that we should keep in mind? There have been some headlines on the potential changes to the cold chain requirements. So any color here would be helpful.

Yes. Thank you, Jan, for your questions. Let me take the first and third question. And then the second one, I would like to hand over to Daniel. On the Rx, what I just can confirm that we continuously improve the marketing mix, the performance of the marketing. And with that, we just see a really good development. And yes, so let's meet again in August, and then I can further -- or we can further give you more details about the growth and what you can expect also in the second half year and for the full year. About profitability, maybe Daniel?

Yes. I think that's always the backside of being very transparent and you did the right math or measuring up on the scale. I think it would be -- if you already would know how Q2 would come in, especially on the bottom line, then my life would be much easier, and we would now go out and [indiscernible] join with the fun. No, but on a more serious note, definitely, we aim for EBITDA -- quarterly EBITDA in the area of Q1 and knowing that Q1 and Q2 are usually the weakest quarters and with acceleration in Q3 and Q4. However, having said this, as Walter already mentioned, we see very good traction coming from March and also has been transferred into April, even that basically, we had 2 slower weeks due to the Easter time and related vacation. And therefore, I would kind of confirm your view that you could assume that it will be roughly on the level of Q2. But of course, we have -- the management has a higher ambition to maybe improve it to the upper end of the midpoint of the shaded bar, which you see in the chart.

Okay. And then coming to your third question about the regulatory development, and you mentioned the cold chain. So as you all know, there is a draft of regulation, which has been issued by the Ministry of Health. And now the EU Commission intervened and basically said that it's a violation of EU law again, we have to say. For us, it's a positive signal because we see it equally. So now the ministry has to adjust this draft. And it's really just a draft, and it's only on the regulation level. So we see it as a really positive sign as I think also the market has seen.

The next question is from Mr. Kunz from Research Partners.

I have just one question regarding Digital Services. If I calculated correctly, you had a growth rate of 110% in Q3 and then 95% in Q4. Now you have 63% in Q1. And this is a rather steep deceleration. Is that something we have to think about that it's going further down in the coming quarters? Or is it going to stabilize? Because you have your guidance or your inofficial guidance of mid-double-digit percentage range for the whole year, which would translate to, I guess, 40% to 60%.

Thank you, Mr. Kunz, for the question. I think your calculations of the last year and the quarterly development are, let's say, more or less right. And as mentioned, we indicated when we guided for Digital Services that we are aiming for mid-double-digit growth, which we would also translate into 40% to 60%. And with the -- we are now actually at the upper end. And I think in relation to TeleClinic, there, the TeleClinic was slightly below the average, but we have kind of disclosed for Q1.

But as mentioned, you have to remember that last year, TeleClinic has won the TK tender, which is by far the biggest insurer in Germany. And there you have seen a huge increase in volume starting in December, but mainly in Q1. And you can expect and assume that there will be kind of a leveling out, i.e., that the base effect will then, from Q2 onwards, play in favor of TeleClinic. And having said this, TeleClinic has several tenders outstanding where we expect to get feedback rather sooner than later and which could then also basically, if they would go into the right direction, give some additional top line growth, which was not reflected in the initial guidance, which we had put out in March.

I think just to add there, I think top line growth is one, and we also explained in March that in -- with TeleClinic, we always have years where with high growth, but let's say, stable profitability, margin development, which was last year because the growth was 3 digit, but the margins more or less were stable. And this year, and that deliberately, we see already in the Q1 that the growth is a little bit lower, but the margins have substantially improved, and we expect that this will continue during the year, meaning that we are not talking kind of a 3, but rather kind of a 4 as the first number in the margin profile.

Okay. But all in all, you're quite confident that the growth rate in Digital Services in the next few quarters stabilize somewhere in this double-digit percentage range, mid-double-digit percentage range and then not kind of constantly going backwards?

No, no. I think we hope it will be the other way around, but let's see. But we are very confident that this 40% to 60% is for the time being that the wide range and not any -- adjustments to the downside are definitely not a topic for this year.

[Operator Instructions] And the next question comes from Guillaume Galland, I hope I pronounced your name correctly, from Barclays.

See, I have one question maybe on the non-Rx and OTC side. So yes, could you give us a bit more color on what you're currently seeing in German OTC? And -- so your peers have flagged some softness in the market, which was seen in Q4. [indiscernible] in Q1. It seemed that OTC has slowed in Q1 for DocMorris. So keen to hear a bit more on the consumer demand and if you've seen any changes on the competitive intensity.

Thank you, Guillaume. Happy to answer that one. So obviously, the market is going on more or less the same level and pace as also the Q4. For us, it's important. We have a plan to grow mid-single digit with OTC and BPC, and this is the level where we manage growth in that part. And yes, so as you might remember, generating OTC growth would not be really difficult. So we could grow further, but it comes with a price. And our priority is very clearly on profitability. And this is why we decided also to soft guide OTC on mid-single digit, what works well in Q1 and also in Q2, the start in April.

And then regarding -- sorry, Rossmann and dm, any change here in terms of competition?

Sorry, I didn't understand your question.

Have you seen any switch in competition from Rossmann and dm in the market on the OTC side?

No, we don't feel additional competition at all.

Guillaume, so to make it very clear, I think on the OTC, we have compared from Q1 -- Q4 to Q1 this year, we have not changed anything. We have exactly the same amount of marketing spend, marketing ratio and everything. And that's the reason -- you do not have to ask us why in Q4, we all of a sudden got to a double-digit OTC growth. But I think that was somehow exceptional. But Q1 is really according to plan and budget and to guidance, which we provided this mid-single digit and this 4.6%, we are perfectly on track to -- in this respect.

Okay. So as there are no further questions...

Yes, one more question. It just came in. I'd like to interrupt you. So the next question is from Gian-Marco Werro. The floor is yours. Yes, we can't hear you, Mr. Werro. I'm sorry.

But we can answer your question off the call at any time. So we are, of course, achievable -- available. Okay. So let's end this call. Thank you very much for taking part, for spending the time. I just can confirm we are really well on track. The management, the company needs stability and consistency, and we are strongly executing and fully focused on delivering the guidance that we have promised to you and to the market.

I wish you a wonderful day and looking forward to seeing you and meeting you in August latest. Thanks a lot.

Thank you.

So good morning, everybody, here in Zurich and at the webcast. It's a pleasure for us to present our full year results 2025. With me today is Daniel Wuest, our CFO. My name is Walter Hess. I'm CEO. Let's go straight to the highlights of 2025. We delivered on our promises, and we met the financial targets 2025. We achieved 11.1% of revenue growth and minus 48% adjusted EBITDA. And with that, we achieved our guidance. The growth of Rx was 33.2% and of non-Rx, 7.1%. The digital services with a growth of 110%, so a remarkable growth rate again and a significant profitability contribution, it's a contribution margin free, which is more than 50% already of the total company. Our AI Health Companion, which we have started to launch in October last year as a beta version in our app has been adopted really very fast. Already every third app user is utilizing this AI health assistant.

And with the strong liquidity position of CHF 160 million by end of the year, we are very confident to execute in 2026 and 2027 according to our plans. We are fully aware of the challenging and also critical market environment. However, we today focus on the future on our successful transition and on our path to breakeven and to cash generation. We do that by giving you an update on our strategy first, followed by a business update and then the financial update and outlook given by my colleague, Daniel, before we come to the Q&A session.

There are some real important megatrends in health care, which have a big impact on our business. And we see us at the sweet spot of the 3 major megatrends. One is the demographic change, which gives a structural shift towards prevention and longevity, but mainly also towards a higher chronic care demand. It's the growth of the pharmaceutical market, a market which is not dependent on the business cycles as we see right now in this difficult environment worldwide. Last year, the market size in Germany of pharmaceuticals reached already EUR 62 billion. It's a huge potential for us being captured with electronic prescriptions. And the third megatrend is the digitalization in health care, which is even accelerated now by AI.

And also there, we are at the forefront with our digital and AI health platform. How our response to these megatrends looks like, we would like to show you with a short video. It's a video about our health companion, which is live in the app already since last October.

[Presentation]

As you can see, we are evolving from a transaction-led retail business into a health platform that orchestrates and covers the full customer and patient journey. By merging the online pharmacy with a marketplace not only for products but also for health services, digital health services and telemedicine orchestrated by the AI Health Assistant alongside with a state-of-the-art retail media business, we have created a platform which is unique and it's a novelty in Europe. This trustworthy and integrated platform with more than 12 million active customers, more than 1,000 marketplace sellers and more than 6,500 established doctors in Germany allows us to capture the full value of the entire journey. It makes our business fundamentally more defensible and less dependent on linear retail market growth.

With the structural foundation now firmly in place, we are ready to ignite the platform flywheel and accelerate our scale at low marginal cost. And with that, let's move to the business update now. And of course, starting with Rx. What you see here is the sustained quarterly growth of our Rx business. And I can already confirm now that this will continue in Q1 2026. Last year, we achieved a growth rate of -- a growth of 33%, which leads to a 1.8% higher revenue in Q4 last year compared to the first quarter in '24, just when eRx started in the German market.

If it comes to the quality of the eRx customers, I have to mention that the European and the German Court of Justice last year they confirmed -- reconfirmed that we are allowed to give bonus to our customers and patients. Therefore, we have restarted to do it in July last year with the result of increased retention and higher order frequency of new and of existing customers. And this led to a 3x higher retention rate and order frequency of customers that they are getting now also bonus with eRx compared with the customers, the previous customers that sent to us the paper prescriptions. Also, the average order value is growing quarter-by-quarter. In Q4 last year, the average order value of an eRx order was already at EUR 128.

And just a few days ago, we have waited a long time. The doctors and insurance associations communicated that they have agreed now on a chronic care flat rate for doctors, and they will start 1st of July. But it's limited to a few diseases and to specific customer segment groups. In our view, it's a good start. It's a start in the right direction, in the direction of a more efficient and a more customer-centric health care in Germany. And it's a start of a catalyst, which is called repeat script, which we have already integrated in our product as we speak right now. It was important that in the first 5 to 6 quarters, we could -- we invested in creating awareness for the CardLink solution, the solution that customers, patients can read in prescriptions digitally.

We have seen that the incremental cost of new customers that we had to find and to acquire via upper funnel channels like TV, out-of-home or radio were ineconomic with regard to the relation of customer acquisition costs to customer lifetime value. Therefore, we have started to shift, and we have done it in Q4. We have shifted and we have reduced the marketing spend into the Rx acquisition. And we have started to prioritize on performance marketing channels to ensure that we remain in the economic zone, which you see on the slide, it's the green zone with our customer acquisition costs in relation to customer lifetime value. But in addition, we have a growth lever, which is the direct bonus and the exemption from co-payment, which in combination, gives us the right mix to continuously grow with our eRx business.

Let's come to the non-Rx business now. Here, you see we grew by 7.1% last year. If we talk only about the OTC and BPC business, the growth was 4.8%. But this growth came with the discontinuation with Zur Rose brand, which accounted for 2% to 3%. So effectively, the growth of the OTC and BPC business last year with the remaining brands was between 7% and 8%. It also came with an improved marketing performance, leading to higher customer retention and better customer lifetime value of our OTC and Beauty Personal Care customers. The digital services continue to grow remarkably with 110% on revenue growth with continuous really attractive margin. Both will go on also this year and beyond.

On Slide #13, you see that our core brand, DocMorris, accelerated really rapidly last year and grew by more than 20%. So this shows a clear proof point for the successful execution of our brand strategy that we have defined at the beginning of last year. At the same time, our sub-brands, Medpex and Apotal were managed well and kept at a slight growth, contributing positively to the overall platform performance. Let's deep dive a little bit in the 2 parts of the digital services, as a TeleClinic, the telemedicine platform and the Retail Media business. TeleClinic first. The number of treatments in 2025 was 2 million, which is a growth year-over-year of more than 50%. A patient in an average had a doctor on the screen, in the app within 5 minutes.

That's amazing. Imagine how long it takes until you have an appointment and you see a local doctor if you have an emergency. TeleClinic is available 24/7 with GPs and specialists. And almost half of all the treatments have been done outside the opening hours of the doctor practices that shows the importance of this telemedicine pillar as part of the health care of the standard health care in Germany, but also in other countries. As said before, so the number of doctors already reached more than 6,500 and is continuously growing. But the most important and the key success factor for TeleClinic is the strong partner network, which is secured by long-term contracts. It's with insurance, digital health providers and doctor associations. To expand this partner network is the most important key strategic priority in TeleClinic also for this year and the years after and also expanding the services they give to these partners, be it insurance companies or doctor associations.

In 2025, TeleClinic achieved a revenue of EUR \26 million. But please be aware, this EUR 26 million, that's not comparable with retail revenue. Retail revenue with relatively low margins. Here, we talk about take rate revenue with much higher margins and a complete different value. TeleClinic is the leading platform for statutory and private health care in Germany. And telemedicine is a key pillar also for the new ministry in Germany. It's part of the coalition agreement. And now as they are preparing the digital -- the new digital strategy, so TeleClinic is part of the primary care, but also of the emergency care solution of the future regulation. You see it's still a huge potential for telemedicine in general.

The market penetration of telemedicine is still below 0.5%. So we are still at the very beginning and already now EUR 26 million of take rate, mostly take rate revenue. In '26, we expect a mid-double-digit revenue growth and a further increase of the EBITDA margin. Our Retail Media business, we started with it 3 years ago, and we are meanwhile the leading retail media health care platform in Germany. We could prove to the advertisers and their brands, the brands you all know that by using our retail media platform, they can strongly increase engagement and strongly increase conversion and achieving really attractive RAS metrics. Last year, -- with Retail Media, we generated a double-digit euro million revenue with really high margin, even higher than with the telemedicine platform.

And also in the upcoming years, '26 and further, we expect continued strong and profitable growth of our Retail Media business. So let's come back to the health companion, where we have launched our AI Health Assistant in last October in the app. Right now, we are rolling it out in all our web applications. So during March and April, you will see more and more visibility of the assistant also in our web. The health assistant is the central intelligence of our platform. Here you see on this slide, Slide #17, 3 specific use cases of our health assistant. In the area of the transactional AI commerce, we integrated conversational intelligence in our search bar in order to give personalized responses and recommendations to every customer and patient using our app. In the center, you see the AI assistant, providing AI-generated advice-oriented insights and becoming more and more a trusted health adviser for our customers and patients.

And on the right-hand side, -- the assistant acts as proactive health orchestrator, seamlessly guiding the user, for example, from having a symptom to a doctor, be it the local doctor or a telemedicine doctor from TeleClinic, of course, or guiding them to a skin check service. And there, by the way, within only 2 months that we have this service live, we could detect already more than 200 skin tumors and melanomas with our service and our digital health assistant. So by managing health in one place as we do, the AI assistant helps to maximize the patient and customer lifetime value and accelerates our transition to a digital and AI health platform.

So on Slide #18, we are really very proud that today, together with Google, we could announce an incredible strategic partnership. We have chosen Google in order to leverage on their cutting-edge AI capabilities and infrastructure. Google has chosen us in order to combine their most advanced technologies with our deep digital health care and pharmaceutical expertise. Together, -- in this partnership, we are defining and delivering new seamless health products in the future in order to make health care better and more accessible.

One point which was really important for us and which we secured is that we keep the full sovereignty of our data while meeting also the highest requirements for data privacy and security. Let me conclude this first part with the strategy and the business update. We have spent the last few years in building this platform engine. Now we have started to drive it. Our strategy is set. Our positioning is unique, and our priority is on relentless execution, just to unlock the full value of our DocMorris platform.

And with that, I would like to hand over to Daniel for the financial update and the outlook.

Thank you, Walter, and also a very warm welcome from my side to the people here in the room and the ones on the webcast. First of all, I want to provide you with some further insights on the financial performance of '25, but then much more important also to provide you with the outlook and the guidance and specifically how we will achieve EBITDA breakeven in the course of '26 and then subsequently, free cash flow breakeven in the following year, meaning in '27. Let's start with a quick look back on the financial year '25. As Walter already have mentioned it, we could secure comfortable and good top line growth of 11.1 percentage in local currency.

And I'm very proud that all the business lines have contributed to this growth. Of course, Rx and Digital Services had the lion's share of the growth with Rx growing more than 33% and digital services above 110%. Reported revenues, which are the revenues without Apotal showed even a better performance and grew with 12.4% in local currency. There, you already see that the growth of Apotal was below the average of the group and also to a small part, also the growth of the segment EU. I'm very proud also that the gross margin of the group increased by 90 basis points to 22.2% despite the reallocation of marketing expenses from marketing into bonus and co-payment, which had an impact that will be directly deducted from sales and therefore, has a negative impact on the gross margin.

And therefore, the 90 basis points are even more remarkable. As you know, we only started with the co-payment and the bonus basically from Q4 onwards and until Q3, we did a lot of additional upper funnel marketing spend. Let's quickly deep dive into the 2 segments, where I will focus on segment Germany because that's the lion's share of the contribution. You see segment Germany a growth rate excess of the group of 11.7% also fueled by Rx and digital services.

Even here, the gross margin is even developed a little bit better, 10 basis points more with 100 basis points in addition and that also with the reservation that the payment of bonus and the co-bonus will have a negative impact on gross margin, but will then be reversed on the CM3 level contribution margin 3 level because it's just a reallocation of direct marketing spend to bonus and co-payment. Segment EU, a modest growth. I think we would have expected a little bit higher growth, but they managed also to improve the gross margin by 40 basis points. But unfortunately, given the low growth and the indirect cost base that didn't manage then to have a positive effect on the EBITDA level, while that's the reason why that segment EU is still slightly EBITDA negative.

With that, let's come to our KPIs, which all look very promising and which kind of pleasant in our view. Let's start with the active customers. For the first time, we have also included the TeleClinic customers because that's a significant number of customers. But let's, first of all, stick to the online pharmacy customers, which showed a substantial increase of 700,000 from 10.3 million to CHF 11 million. You remember Walter said told you that the discontinuation of the Zur Rose brand, and you can assume that a few hundred thousand customers have been lost.

We have not adjusted for that. And without that, the number would even look better. But we are very pleased what we see here. Also, TeleClinic increased the customers on the platform by 300,000 from 0.9 million to 1.2 million, and both numbers are on an ongoing basis, increasing. Also in relation to the app downloads, I think there's an active tracking of the app downloads.

I think it's an indication, but definitely not the one and only. But also here, you see a decent increase of 200,000 app downloads compared to '24, and we reached 2.1 million app downloads in '25. Now let's come to the average order values or the basket sizes. First of all, on Rx, you see an increase of EUR 4, which is by itself already a remarkable increase. But you have also seen a few slides before that in Q4, the average order size was EUR 128. And you see really that in the first 3 quarters, the average basket size was much lower compared to Q4, where we really started our efficient and dedicated marketing, and that also tells you something about the quality of the newly acquired customers.

One remark, please note that our basket size is calculated excluding VAT -- just for reasons, if you compare other baskets, you always have to make sure that if it's with or without VAT, given that the VAT in Germany is 19% that makes pretty some difference. If you gross it up our basket, then it would be much higher than the [ EUR 114 ]. On OTC, Walter mentioned it, we focused also on economic and customer lifetime value and the economy of the customers. Therefore, slight decline from 42% to 41%, but basically almost stable and nothing to worry about it.

The order frequency also here, good development from 3.9 to 4.0x. OTC remained flat with 2.0 orders per year. The repeat order rate, which was already extremely or very high and decently high at 76%, further increased to 77%, which is also a very good value. And just all in all, shows the quality and the quality of our existing, but also of our new clients, which we have acquired during the last year. Now let's quickly talk about a few highlights or perceived lowlights based on the first reactions. I do not want to go you through line by line through the whole P&L. I think the top line and gross margin, we have discussed.

Let's focus on the different cost pillars. Personnel expenses, there, I'm very pleased we could lower the respective ratio by 50 basis points. That's the first -- showing the first positive impact on our managing the indirect costs, which are basically to 100% personnel costs, but also shows the improved efficiency where we really go through the processes and kind of automatize and also using KI to better allocate resources, and that has already a very nice impact in '25 on the personnel cost ratio, and there will be some much further leverage in the coming years. Marketing expenses, as mentioned, rose by over CHF 11 million. And there, we are talking only direct marketing expenses.

We have said we shifted basically from direct marketing, not completely, but partially to indirect marketing, which you see as a decline or lower revenues. And therefore, it's not only the CHF 11 million, but you have to add a small single-digit million to really see the full additional marketing impact, which has been done in '25. Distribution expenses, there, the ratio unfortunately went into the wrong direction. On an absolute level, that shows the increase of the -- the orders, which come with higher distribution costs. But on top of that, we have seen a substantial increase of logistic costs, transport costs, given kind of the high demand for logistic services, but we think that, that should be come to an end.

And otherwise, if it will be ongoing, and we have already started with that, that we have to pass it to the clients with different models that either they pay for earlier delivery or other models just to kind of compensate for any potential further distribution and logistic cost increases. I think reported EBITDA was CHF 1.6 million lower than the adjusted EBITDA, where the adjustments come from. We have a net restructuring cost with the closure of -- that's net minus CHF 1 million because we could also sell the property, and therefore, it's only net minus CHF 1 million. We also adjusted CHF 2 million positive EBITDA contribution through the sale of the Swiss properties. And then we made additional provisions for legal cases in the magnitude of CHF 2 million. I think in our business, that's business as usual and nothing to worry because you notice that every second week there, someone is kind of putting a claim against the online pharmacies.

And therefore, we have kind of just for the corporate practice some legal provisions in the amount of CHF 2 million. On the net financial result, that also seems to be kind of going completely into the wrong direction with CHF 12 million additional net financial result. But just to call you down, it's the CHF 12 million are all noncash. It's CHF 5 million FX impact on our intercompany loans. You know we fund those in Swiss francs and give the intercompany loans in euro to our companies. And at the end of the year, we have to kind of compare it then with the actual euro value.

And as you all know, the euro substantially devaluated against the Swiss franc. There, CHF 5 million from that side. And last year, we had a positive effect of CHF 4 million. If you add it up, then you are at CHF 9 million. And the other CHF 3 million, which would then add up to the CHF 12 million, and that has a cash effect, but it will level out. That was the early repayment and repurchase of the '26 convertible bond because, as you remember, the offer was 103.5%, and we had to take that as a financial expenses. But on the other hand, we will save more than the CHF 3.5 million in this year because we do not have to pay the coupon of 6.875% of the '26 convertible bond anymore.

So therefore, if you deduct the CHF 12 million, basically exactly the same net financial result. And just for your information, going forward, we have now redeemed the CHF 26 million fully 250 million outstanding, 3% coupon, 7.5% and then you have to add CHF 4 million to CHF 5 million of IFRS 16 financial expenses, and that brings you to roughly CHF 12 million of real cash out interest financial expenses for the coming future. Also on tax, you have seen we have not paid, but recorded CHF 12 million tax -- negative tax burden. Also there, no cash at all. There's 0 cash has gone out. It must be also somehow logical because we have recorded still a loss. The reason for that is that the deferred tax assets where we have tax loss carryforwards of several hundred million.

And given a little bit lower growth in Rx and in some of our subsidiaries, that's just a manual thing, and we had to devalue the deferred tax asset, the positive ones, and that was this booking of this CHF 12 million, no cash effect at all. And given that it's based on a 5-year plan, the next year, we most likely have to do it the other way around, and then you will see there a positive contribution, but also with no tax effect. So far to the P&L, the balance sheet, I keep it very short. I think as a CFO, I'm very relaxed with this balance sheet. It has been substantially strengthened in last year with the rights issue in May, but then also with the partial refinancing of the '26 convertible bond so that we now have a very strong liquidity base of CHF 160 million.

The net debt has been reduced to CHF 138 million and the equity ratio, which was strong already before, is now even stronger and amounts to 50%. As you may have read, we had redeemed the remaining CHF 22 million of the '26 convertible bond by beginning of March. And that's what I said as from now on, we only have the CHF 50 million and the CHF 200 million convertible bond outstanding, which are the only financial and interest-bearing debt besides the CHF 4 million to CHF 5 million lease payments, which we have also to pay on an annual basis. Let's have a quick look on the indirect cost and the net working capital.

Indirect cost, everything goes into the right direction. From my view, not -- the arrow is not yet steep enough, but it will definitely steepen 7.2%. That's nothing you can be or I as a CFO can be proud of. But as I said in the past, you can be assured that this ratio will become significantly below 5% in our midterm plan, and you will see on an annual basis, further improvement on that area. Net working capital, also there, maybe -- that's because the liquidity position was so comfortable or is so comfortable, maybe not that focus by the end of last year. We had some overstocking of CHF 11 million, but that was based on a very strong Q4, which already started by the end of Q3, and we had really to overstock and the flu season also was kind of skewed towards the end of the year.

We have done it a little bit too much. I think definitely CHF 5 million could have been less stocking. And then what's kind of -- I do not like very much is the CHF 9 million accounts receivable there, let's call it, sloppiness and I take it on my part, but that is also a nice asset to reverse in this year and the coming years. So far, everything on the cost, net capital and indirect cost side on track. And now let's go into details how we will achieve EBITDA breakeven in '26 and then subsequently free cash flow breakeven in '27. And we heard some complaints that we have now introduced CM3 contribution margin 3. I would say, okay, maybe the analysts have not yet in the spreadsheet, but I think it's the highest transparency you can really get from our end and what is CM3? CM3 is the last line of operating profit.

You only have to deduct indirect costs and then you are at EBITDA. And I think that's definitely kind of, in our view, how we steer the company and how we -- and that's really the basis and the fundamental of our target and our mission to become EBITDA breakeven, and that's the reason why we want to share that with you. As you can see in '25, and you see the value of digital services, basically 3/4 or even more than 3/4 of CM3 contribution came from digital services, while the online pharmacy, that's Rx and OTC, BPC, including EU are keeping up substantially in the second half. That's the green part of the bar. For '25, we are very open and nice and even put the number on it, slightly grounded, but nevertheless, a very good indication. And then you see where -- why we are so confident that we will reach EBITDA breakeven.

There will be a substantial contribution from digital services. As you know, they grow top line. And as Walter said, it's basically take rate equals gross margin, more or less the slight reduction equals EBITDA. But also the online pharmacy is substantially keeping up in '26. You see that the green bar, and they are almost on an equal level in absolute terms with digital services with the CM3 contribution, okay, they are on the top line much bigger, and that should not be a surprise. But having said this, in '26, even Rx, and that's really exceptional, will be CM3 positive. That's due to our very focused and increased marketing efficiency, which has been substantially double-digit negative still in '25.

And you see the same pattern goes on for the first half in '27 and the first half '22. We will increase the CM3 margin by more than 300 percentage by 3 percentage points and more than double the CM3 contribution in absolute terms in 2026. And you see there will be -- there's not the end that will be ongoing also into '27. I think that's really important because if you now have CM3, you deduct the indirect cost and then your EBITDA level. And how that looks, we go even further into the detail on the next slide.

That's the -- that's really kind of to the heart of what the CFO usually not any longer in Excel, but in sheets keeps and does not share with anyone. But here, you see the phasing of our EBITDA ramp-up. The basis is Q4 '25. In Q4 '25, we had still a negative EBITDA, but it was in the area of minus CHF 7 million, which is a huge positive development due to the rights issue, we had to report Q1 '25 EBITDA, which was minus CHF 16 million. Q4, we were down at minus CHF 7 million.

And Q4 is really the run rate for our journey -- EBITDA journey in '26 with Q1 being somewhere in the area of Q4 because we see the same trends, the same patterns, the same dynamics, improvement in Q2, which is usually the first 2 quarters are not the best ones. It has some seasonality in our business, but not too much because there is additional measures included. Then Q3, we are, at this point in time, confident that we will reach EBITDA breakeven and Q4 will then be EBITDA positive. And this altogether, you will see first half the lion's share of the negative EBITDA contribution and the second half of the year, there we will hopefully see kind of a positive EBITDA contribution. And that leads us -- that's a little bit that will come now later to our guidance, but you see that it's minus CHF 10 million to minus CHF 25 million is our guidance for the EBITDA. As I said, -- it's CM3, that's the bridge, the minus CHF 48.2 million. Then the CM3 contribution, I said more than double. That's -- we haven't put the numbers there, but you also have something to calculate.

And then the indirect costs where we are really working hard and try to bring them down, but that's according to budget, still some negative contribution, and that will lead us to the EBITDA guidance, which you see on the screen of minus CHF 10 million to minus CHF 25 million. I think CM3 is a very important pattern to get there, but also in combination with operational and marketing efficiency. And then we will also very tight CapEx management and also on the indirect costs. You see we have many layers where we can play and really optimize to get -- to achieve our target, first of all, in '26 to become EBITDA breakeven in the course of '26. But then with the same patents and instruments, we will become free cash flow positive also in the course of '27. That brings me now to the guidance for First of all, for '26, the short-term guidance, we have pretty broad guidance on the top line, mid-single digit to low teens.

Reason for that is that we achieve EBITDA breakeven also with relatively modest growth, which is more the left side of the mid-single digit. But we also see patterns that we could even become EBITDA breakeven with accelerated growth. And that's the reason why we just want to keep the flexibility to play EBITDA versus growth, especially on the marketing side, and that's one explanation for the rather broad guidance. And as you know, we try to definitely come out at the right end of the guidance. But given, let's say, the different patterns, we will then have to narrow it during -- in the course of the financial year '26. As a soft guidance, how does that translate into kind of the business segments? Rx will be around 20%, which is kind of basically in line what Walter showed before.

We cut the 20% noneconomic customers that comes with kind of a little bit lower but much more profitable growth on Rx. OTC, we stick to the mid-single digit as we have been before and as we have demonstrated that, that's possible. And digital service, there we will see mid-double digit growth as digital service combined and with a substantial increase of the EBITDA margin of the already very high EBITDA margin, but there will be further appreciation of the margin. I talked about EBITDA, minus CHF 10 million to minus CHF 25 million. That's kind of -- that also needs to be said an improvement of 300 basis points or 3 percentage points of the EBITDA margin. That's coming from the wrong direction, but I think it's still substantial, such kind of relative increase. And then CapEx, roughly CHF 30 million, maybe rather at the high end and we are positive that could be maybe slightly lower as we have seen in '25 with CHF 27 million.

That will lead us to our ultimate goals, EBITDA breakeven and free cash flow breakeven in '26 and '27. And with this 2 years, taking into consideration that we have to really drive profitability, maybe a little bit against growth. The midterm guidance, we are very pleased that we basically can confirm the midterm guidance, which we put out in -- ahead of the rights issue. Of course, it's not 20% CAGR anymore. It's 15% CAGR anymore. But I think the most -- the best or the most impressive thing in my view is that we can keep the 8%. We can even stay more behind it because given that the relative growth of Rx goes down, and that makes the relative weight of digital service even bigger at the back end.

And therefore, the business mix is really in favor of us with kind of having OTC, which is very important also for customer acquisition for Rx, but also for our TeleClinic and Retail Media business. Rx, which is decently growing and then digital services with high EBITDA contribution and high growth, which will have a higher relative share at the back end of our 5-year business plan, meaning that this is true for 2030, basically covering 5 years. CapEx has also been reduced by CHF 5 million. I think we are comfortable with CHF 30 million average CapEx rate. And I think that's basically the guidance where we are -- what we are aiming for and where we are kind of being measured to.

And before I hand over to Walter because he's already jumping up, just 2 subsequent events, which you have seen on the convertible bond, I've already talked about. The closure of Ludwigshafen, which we announced also today, just some -- I cannot say, highlights, but some financials to that. We will have onetime restructuring costs between EUR 3 million to EUR 4 million. If you take the midpoint, then you should be at the right spot. But these are we are talking euros. Out of this [ EUR 3 million ] to EUR 4 million, EUR 2 million have an impact on EBITDA because these are severance payments and the remaining part is below EBITDA. That's kind of onerous contracts because we have lease agreements which we have to -- due to IFRS immediately to write off, but that will be an impairment between EBITDA and EBIT.

We will adjust for that, roughly EUR 2 million. But I think the very positive effect is that we will have at least from '27 onwards, EUR 2 million -- in excess of EUR 2 million annual recurring savings because we are moving the 3.5 million parcels from Ludwigshafen to Heerlen, where we have ample of capacity. There will be better capacity utilization in Heerlen. The handling and packaging is 2x more efficient than in Ludwigshafen because we are in Helen fully automated. And therefore, I think the EUR 2 million is a baseline annual savings, but there is definitely potential for more to come. And then last but not least, current trading, I said, we have seen the positive trend from Q4 ongoing in Q3. Everything is according to plan, meaning budget. And also, I think that gives us a lot of comfort to kind of handle and managing this challenging but very exciting times ahead of us until we are free cash flow breakeven. Thank you very much for your attention, and I'm happy to hand over to also again.

Yes. Thank you, Daniel. So just before we close and open the Q&A session, -- in the last 2 years, we have not only built the platform engine, as shown before, we have also built a high-performing leadership team, as you can see here on the slide, a leadership team that bridges the gap between traditional retail excellence and disruptive health tech and AI innovation.

And I can assure you also in the name of the whole team that we are fully committed to execute the defined goals and to transform our platform into tangible shareholder value. It's not only at the level of the management, it's also a change which is mirrored at the Board of Directors. And therefore, we have informed that we nominate 3 new members of the Board that we will present to the AGM. It's Thomas Bucher, a well-known, seasoned CFO with a lot of experience in listed and private companies. It's Nicole Formica-Schiller. She's an expert in AI and digital health transformation, but also regulation on a European and the German level.

And she has also a wide network in Germany, in the health care sector and a deep understanding of the regulatory landscape in Germany. And it's Thomas Reutter, an experienced corporate and capital markets lawyer. So these board nominations ensure that management and Board is perfectly synchronized with the company's vision and AI-first platform strategy and also shall provide the necessary stability to the company.

And with that, we are at the end of the presentation. We had to tell you a lot to give you a lot of information. But now let's immediately move to the Q&A session.

[Operator Instructions]

Okay. We will share the mic.

Here is Laura Pfeifer, Octavian. I have a question on your sales outlook for this year. So what is the primary swing factor within your guidance range? Is it mainly driven by uncertainty around Rx growth? Or is it rather related to OTC performance? And maybe specifically on OTC, could you elaborate on what you are currently observing in terms of competitive dynamics?

To the first and second part.

No, I think, Laura, the swing factor is definitely Rx, which -- and as I said, we have kind of -- we play operating profit against growth. And given that the co-payment and the bonus, which have been developing not in the entire group because we only did kind of a pilot with some selected Rx customers developed very well in Q4, and we rolled out kind of this concept to the whole DocMorris just recently. That really is kind of the swing factor and also the reason for the wide range of the guidance.

I think you can assume that OTC, BPC, that's the mid-single digit, meaning something between 3% and 7%, not much deviation. Also, the absolute volume is high. The digital services, double-digit -- mid-double-digit growth and -- but on a relatively low revenue -- absolute revenue level and the swing factor is really Rx, whether that's kind of let's say, 10% or 40%. But that's not that you take that as just to show you what kind of the volatility could be on Rx.

Yes. And you mentioned the competitive landscape and the price pressure. I guess you meant there, in the course of last year, we have adapted our pricing strategy, improved our strategy. You have seen the improvement in the gross margin. That's a result of it. But in general, we don't see now a change on prices or price levels in the market. In our market, pricing, the pressure is always on, but not now a big change with new market entrants coming in.

Urs Kunz Research Partners. Regarding midterm, is that around 2030. And then on your midterm growth target of 15%, I still find that a little bit high, the OTC part is growing at mid-single digit, I guess, in your outlook in midterm. And I guess on the digital service side, I don't know if you can have this mid-double-digit range also percentage range all the way in the midterm future. So that -- if I then go back to the Rx that should be higher than 20% Rx growth to reach this 15%. Am I right about that?

Yes, you are perfectly right. And I think what you need to really consider given EBITDA breakeven and free cash flow, as said that we have to limit the growth and really play on our marketing efficiency. And that's also why we stated in the guidance that the fine print in the [indiscernible] that it's back-end loaded in '26 and '27, you will definitely see lower Rx growth than what will then come again from '28 to '30 onwards. And if you said it's substantially about 20%, and I will -- I can sign into that. But it will be 20% in the first 2 years, but then we will substantially be keeping up again.

And where do you take how this belief that it's higher than 20%. It's just that you put in more marketing again then or you see the market growing faster after 27% in online?

Yes. I think it's really kind of the -- that we then have other or once we are free cash flow positive, we can then really also not that we fall back in the old patterns that you won't see then kind of us spending all of a sudden CHF 30 million in TV again. But I think with the bonus and the co-payment that's a very strong instrument. But as said, at some point in time that you are in balance with growth and profitability, we have, for the time being, still certain limitations and there, you can definitely kind of play that even more aggressive.

And sorry, what we also will see is a platform dynamic kicking in. So you have seen the partnership also with Google. So where we have joint development teams also with them, developing new services, adding services to the platform. And this will drive traffic, will drive engagement, will drive loyalty. So we will see the effects there definitely within even 1 to 2 years already.

Midterm is 2030 or?

2030.

Sibylle Bischofberger, Bank Vontobel have 2 market questions. First, I remember the market share of online pharmacies was about 5, 6 years ago, about 1.3% in Germany. How has it developed? How much is the market share now? And how much do you want -- how much growth do you expect in the next couple of years? And the other interesting market, telemedicine, you mentioned 0.5% market share. Where do you expect it to be in the next couple of years?

So on the Rx, yes, it was 1.3 5, 6 years ago. It went down before eRx started to 0.75%. And since eRx was available now also for online pharmacies, it went up to roughly 1.7%. And where will it go? That's the 1 million question. So we have, for our assumptions, taken a really conservative view in our midterm plans of 5% to 6% in 5 years. But frankly speaking, we think it will be more. It will ramp faster. But in our plans, we did not go now more aggressive than 5% to 6%.

And on telemedicine, so yes, the share as shown, the penetration is lower than 0.5%. TeleClinic is roughly at 0.3% so has about 60%. And where will it go? So it depends on how fast the digital strategy of the ministry will be defined and will go live and how prominent telemedicine will be in this different kind of future care pillars. And it's too early to say where it goes. But anyway from 0.5, it will definitely go northwards, definitely. And remember, it's -- we have 2 kind of businesses. We have a retail business, but we also have a digital service business with completely different metrics, valuation, et cetera. And there is a strong growth really already going on and will continue.

And I think if you are interested, I recommend you to read Page 175 of our financial report where all the details in relation to the goodwill impairment is, which we honor past. But there you have kind of the assumption, the current market share of telemedicine and Rx and what our underlying assumptions are. It's in Rx 1.7% and in 2030, 5%, 1.7% to 5%. And that's the overall market share. I think then for the whole market. And telemedicine, it's even more astonishing, 0.5%. And in 5 years' time, the penetration should be 1.6% -- that's what we base our goodwill impairment test, and you could also assume that, that's basically then somehow reflected in our business plan.

So no more questions here in the room in Zurich. So let's move to the webcast and adding questions from there.

We have one question from Gian Marco Werro from ZKB.

Yes. Hi, Gian Marco. Please go ahead.

Hello. Thank you. I hope there's no echo on your side. So first question is the growth outlook for TeleClinics. You mentioned mid-double-digit revenue growth. Why not 80% or 90% again this year because the penetration is still so low? Do you not do more marketing also there? Because in my view, it's really so such a comfortable way to get a doctor appointment in Germany, and there must be a huge demand from the doctor and from the patient side. So from a top line perspective. And then the profitability of the overall services business, is that still fair to assume that you are meaningfully above the 55% EBITDA margin for this business?

And you mentioned you want to increase the margin for TeleClinic, but can you give us a bit more detail about your margin improvement target also for the whole services business, that would be interesting. And then just a third question, if I may, if I have the opportunity, the logistic cost is just something -- I mean, you already elaborated on it. But don't you see risk of patients ordering then less or if they have to pay really then for even more for the delivery services, especially considering your growth expectations in Rx and OTC.

To the first question, the growth rate. So you can consider that the growth in absolute values remains at more or less the same level. And then you have to take in consideration that you always have to integrate new network partners, larger ones. And once you integrated them, the growth curve starts to slow down and then you integrate new ones. At the moment, the regulator is justifying the new digital strategy. And for example, the doctor associations -- we talked to several of them. They are ready, but they just want to wait until they know now what the regulator regulates -- and so this is the dynamic of the growth that we have predicted for this year. If it comes to the margin, you mentioned 55%. So some of the services are even higher. Some of the services are below this 55%. And I think -- yes.

I think on the margin, not sure where this 55% are coming from. I think as of currently, TeleClinic has margins in the low 30s that will substantially increase over time over the next 5 years to the figure you -- you mentioned, I would say that's kind of 45%, 50%, that's kind of a reasonable run rate. And on the other hand, Retail Media, that's also very highly profitable. That one is already on higher EBITDA margins, but will also kind of in a balanced model will be somewhere around 50% EBITDA margin. And I think that's the mix.

You will see this year an overproportional increase of EBITDA contribution given that we do not have a triple-digit growth at TeleClinic. And I think it's always kind of 1 year, a little bit less growth, but then substantial improvement of profitability. The next year, strong growth, maybe a little less profitability than 1 year of consolidating everything, increasing margin. And I think that's -- but the overall pattern and growth pattern is very strong, but it's not a linear line. It's kind of some years with a little bit hold back on the top line, but push the bottom line and therefore, even faster.

And your third question about logistics, do you refer to what to the closing of Ludwigshafen or...

No, to the logistic costs. And I think there, Gian-Marco, it's not that we say, I think we do it a little bit more professional, not saying that you have now to pay EUR 2 more. I think you have definitely other measures. First of all, kind of not reducing, let's say, the order that you can say, okay, if you order until 5, you get it next day, you can even lower your logistic cost if you say, okay, if you order until 4, then you get it next day because that has already another price tag on the -- with the carrier.

And you could also play then with the basket size, which is kind of then free of shipping just to balance this logistic cost. And we see it in the whole market. You see, for example, DM free of delivery charge is EUR 60, our friendly competitor and -- and thus, we are much lower. But I think you have many things to play and to optimize your logistic costs. And it's not a problem of DocMorris, it's kind of the whole online and not even Rx and OTC online, but the online industry, and we will just follow the market and to not getting -- being hit by higher logistic costs.

And we have one more question from Jan Koch from Deutsche Bank.

Two questions. The first one is on your 2026 guidance, which essentially only implies less than 4% sequential growth per quarter. Why is this the case? And given that your group guidance is quite wide this year, is there a scenario where you accelerate Rx growth in 2026? And then secondly, you mentioned a strong liquidity position of CHF 160 million. But if I take the CHF 160 million at the end of 2025 and consider that you paid back the CHF 20 million convertible and consider a negative free cash flow in probably in the mid- to high double digits in 2026, you will start 2027 with probably less than CHF 100 million.

Free cash flow is still expected to be negative next year, and you might have to refinance your 2028 convertible next year as well. So how do you plan to achieve this? Are you open to sell a minority share in TeleClinic?

Yes. Let me take the first question and then Daniel, the second one. So on the sequential growth, as we have shown before, the guidance, we have given us some space so that we can maneuver between growth and marketing spendings. And this is also what we see in the first quarter that it goes in a really good direction already. And -- if it continues like this, so we can go more to the upper end, but we want to be flexible in reacting. And for us, the priority this year is completely on becoming breakeven in the course of the second half year, possibly on the second half year in total. And therefore, we need this flexibility and we take for us this flexibility. And on the second question.

Yes. I think just to start top down, you're right with the CHF 160 million, you have to deduct the CHF 20 million or CHF 22 million, but let's deduct the CHF 20 million, that makes it easier for calculation. That's CHF 140 million. And you are also right that you can assume for this year and next year, negative free cash flows, but they will be substantially even already this year lower than last year and in '27 that the indication that in the course, of course, we aim for as low as possible negative free cash flow, but that should be not kind of the 2 figures added up should still leave us with a very comfortable remaining cushion of liquidity until we will become then for the full year free cash flow positive in '28.

In relation to the refinancing of the '28 maturity, I think once we have demonstrated and shown that we are on the right path, -- that's then something which we will tackle by then. It's clear that we do not fully redeem the CHF 200 million, and it's also clear that it does not make sense from just -- at least that's what I learned at university, okay, acknowledging that was some time ago, but that the fully debt financed balance sheet is definitely not an efficient balance sheet. And I think let's take it one step after the other, and we have ideas. And you referred to kind of -- if I'm right, selling a minority stake of TeleClinic. And I think, of course, that it's a very valuable asset, which we have in our hand, but it's extremely valuable within our platform and therefore, definitely not any or the first priority to monetize TeleClinic at this point in time.

Understood. And one follow-up, if I may. Are you going to report EBITDA in Q3 and Q4 this year again so that we can track your progress?

Let's see. I think could well be. I think that -- and I think it would be important that at least we give you a very good indication where we are heading to. And I think this nice picture, which we draw in our presentation, you can basically on a quarter-by-quarter basis, track us and see whether the 2 guys in front of you have not only overpromise, but also deliver on that. But we have to see, but most likely, yes.

Okay. Then we come.

I just want to say that's the benefit of lunchtime.

Last question.

Not going to look. No. On the AI companion digital assistant. As I understand, you're not getting any money for it. Marketing and any plan that on later stage you get some money out, because you mentioned these 100 people they got saved from cancer. At the end, I think somebody is happy to pay something..

Did anybody say we do not get any money out of it? I cannot remember. No, it's what we see and we measure very carefully, of course. We see an impact -- a positive impact on traffic already. We see a positive impact on engagement already. We see the conversion rates going up as soon as we can take someone by the hand and guide through the platform. And we see a significant increase of conversion rate. And this brings us already additional money. And as you have seen on the platform, the marketplace, this marketplace is a marketplace also for health services.

And on a marketplace, you want to earn money. And we are filling this marketplace also with health services, and we will get additional margins, revenues and margins from there as well. Okay. So with that, we come to the end. Thanks a lot. It was a little bit long. Sorry for that, but we had a lot of information for you. Thank you for joining, and we wish you all a pleasant and happy day. Bye-bye. Thank you.

Good morning, everybody, and thank you for joining today's conference call, which will be hosted by Daniel Wüest, our CFO, and me.

Let me start by giving you a quick overview of the key highlights from the first half of 2025. We delivered strong growth in our Rx business with revenues increased by 43.5%. In July, the Rx bonus was reconfirmed, which strengthens our competitive positioning in the German market. TeleClinic revenues grew by more than 150% year-on-year, while our non-Rx business in total continued to deliver steady and profitable growth of 4.4%. We also took an important step into the future by leveraging AI innovation and starting the rollout of the DocMorris Health Companion. Financially, we successfully completed the CHF 200 million capital increase with a 99% take-up rate, demonstrating strong shareholder support and confidence in our strategy. And finally, we are on track to deliver on our promises. We confirm our guidance of more than 10% revenue growth and an EBITDA in the range of minus CHF 35 million to minus CHF 55 million for the full year.

In summary, the first half of '25 shows clearly our core business is growing steadily. Our new value drivers are scaling fast, and we are well funded and on track to deliver on our commitments.

Let's start with the ecosystem highlights on Slide #5. And let me walk through how our company is evolving from yesterday to today and to tomorrow. Yesterday, our focus was on building and strengthening a leading online pharmacy in Germany and across Europe. We became the best known pharmacy brand in the market and are best positioned and strongly accelerating our growth in the EUR 58 billion Rx market in Germany. At the same time, we built a profitable non-Rx business. This gave us not only scale, but also the trust and recognition that are essential in health care.

The online pharmacy is our solid core foundation, the base from which everything else can grow. Today, we are building on that foundation. We don't replace it. We are expanding it. On top of this foundation, we have added new fast-growing high-value drivers. Our telemedicine and our retail media platforms and increasingly the use of AI and expansion of ecosystem partnerships are enabling us to transform.

We are moving from being a purely transactional pharmacy to becoming a one-stop health platform, one that connects patients, doctors, pharmacies and partners in entirely new ways. And here's the emotional part of it. It means we are no longer only helping people when they need to buy medication. We are helping them navigate their health more broadly with care and support. And tomorrow, which starts today is where the real opportunity lies.

Our ambition is clear: to become the trusted health companion across Europe. Imagine having a companion by your side for every step of your health journey from the first consultation to receiving medication to ongoing monitoring and all kind of health information and support. That is the seamless digital health experience we are building. We are creating not just a business that scales profitably, but one that truly redefines what health care feels like for millions of people.

Let's move to Slide #6. One of the key milestones on our path to becoming the seamless health companion and to move from our current classical chatbot to a true companion is the launch of the agentic DocMorris assistant. This assistant is built on an internally developed LLM-powered multi-agent system with a custom retrieval augmented generation architecture. This unique setup enables us to design personalized health journeys and going far beyond what generic assistants can offer.

We are starting with a beta phase right now in our DocMorris app, which will allow us to learn, iterate and continuously improve the user experience. This approach ensures that step-by-step, we can expand functionality, integrate additional services and move toward a full-scale rollout of the agentic DocMorris assistant.

You might ask why a known DocMorris agentic assistant. Of course, the big players, as you can see on the right-hand side, are also moving towards becoming personal assistants, but we have a decisive advantage. DocMorris is a trusted health brand. And we want to leverage this trust with the agentic DocMorris assistant that provides fast and trusted answer when you need them most. And unlike the generic assistants, we have the ability to connect the whole health journey from symptoms to solutions and integrate it seamlessly end-to-end. And as a result, it will lead to higher traffic, enhanced engagement and stronger customer loyalty.

Let's move to the business highlights now and turn to Slide #8. And with that to our core foundation, the online pharmacy business, which includes both prescribed medication and OTC BPC products. As you can see on this slide, we are continuing to drive sequential Rx revenue growth with Q2 revenues up to 4.6% versus Q1 and total Rx revenues growing 43.5% in the first half of 2025. With this, our eRx revenues nearly doubled year-on-year in Q2, up to 1.8x, underlining the accelerating momentum in electronic prescriptions.

The rollout of eRx in Germany is a central pillar of our strategy. It opens up a EUR 58 billion prescription drug market with around 80% of volume driven by chronic patients. While the digital uptake is still at around 1% to 1.5% right now, we are convinced that penetration will rise steadily towards 10 and more percent over time, as we have seen in other digital savvy markets such as Sweden. The digitalization of health care is unavoidable, driven by patient demand and strong dynamics in technology.

Another important development in the first half of the year was the confirmation of the Rx bonus by the German Federal Court of Justice, as you can see on Slide #9. After the European Court of Justice ruled once again at the beginning of the year, on July 17, the German Federal Court of Justice reconfirmed this decision. This provides us with full legal clarity and a solid foundation for our customer offering. With this clarity, we have launched on the same day a campaign focused on the Rx bonus and convenience of ordering digitally with DocMorris, reinforcing our positioning as the most attractive and trusted choice for our patients.

From a financial perspective, the cost of the Rx bonus are fully compensated by balancing with marketing expenses. In other words, we are able to deliver a highly compelling offer to customers without impacting our overall profitability targets. So this ruling not only strengthens our competitive positioning, but also underlines the regulatory support for our business model, which is another important building block as we continue to expand our prescription business.

On Slide #10, our non-Rx business also continued to grow steadily and profitable by revenues up 4.4% year-on-year in the first half of 2025. And this despite the negative impact of the closing of the Zur Rose pharmacy in Germany. This is driven by OTC and BPC products in Germany and our segment Europe and supported by initiatives such as growing marketplace, TeleClinic and retail media businesses. These service revenues are scaling rapidly, growing by more than 120% in the first half of 2025. And this is exactly the kind of fast-growing high-value driver that demonstrates how we are -- how we already have evolved into a holistic health platform.

The picture is clear. Today, we are not only maintaining profitable growth in our core non-Rx business, but we are also unlocking entirely new revenue streams through our services. And together, they prove that our platform is expanding from a transactional pharmacy into a broader, more connected health ecosystem.

Let me go now one level deeper into one of our fast-growing high-value drivers, TeleClinic. TeleClinic shows an extraordinary momentum with revenues up more than 150% year-on-year with highly attractive margins. Looking ahead, TeleClinic is expected to contribute around 10% of total DocMorris gross profit already in full year 2025, underlining how impactful this business is becoming for the group.

What makes TeleClinic unique is its extraordinary competitive position built on strong network effects and high partner satisfaction. We already handled over 3.5 million treatments. We work with more than 4,500 doctors, and we have built more than 60 strategic partnerships with leading health insurers and doctor associations. And just recently, we signed a second landmark agreement with the doctor association. This time, it's Westfalen-Lippe, representing more than 16,000 doctors. This is another great success and an important proof point. It shows not only how valuable our platform is for patients and insurers, but also how much it is trusted and valued by doctors and their associations. And with that, TeleClinic is becoming a permanent part of the standard of care in Germany. All of that creates a sustainable competitive edge that is very difficult for others to replicate.

And importantly, the growth opportunity doesn't stop here. In 2025 and beyond, we expect further strong growth from TeleClinic, driven by the expansion of existing and new partnerships and the increase in reimbursed telemedicine treatments for doctors rising from 30% to 50% today. So TeleClinic is a perfect example of how we are successfully expanding beyond the pharmacy into services that are scalable, profitable and strategically differentiating. And it shows how these new services can significantly expand the overall growth, profitability profile and company value of DocMorris.

Finally, let me introduce a second high-value driver with our retail media business, which we have started a few years ago only. Retail media means that brands and manufacturers advertise their products directly in a retailer's ecosystem where the purchase decisions are actually made. This happens both on-site, for example, directly on the DocMorris platform when customers search or browse and off-site, where we use digital channels beyond our own site to reach and engage potential customers. With our own retail media agency named dmr Advertising, we have built a key player in retail media for health care. What this means in practice is that we offer advertising and sponsored content for relevant health products placed with high precision and relevance on on-site and off-site platforms. We are leveraging our deep market know-how and unique access to customer insights to provide highly targeted, high-precision ad solutions for pharmaceutical manufacturers and health brands, for example.

This creates real value for partners and a very attractive margin profile for us. The business is also scaling rapidly. Already this year, we expect mid-single-digit million EBITDA contribution, and this is just the beginning. Over time, we see this business as another highly profitable growth driver that is structurally very complementary to our pharmacy and platform strategy.

And with this ecosystem and business highlights and updates, I would like to hand over now to Daniel for the financial updates.

Thank you, Walter, and also a warm welcome from my side. In the next few minutes, I would like to provide you with some further insights on DocMorris financial performance in the first half of the year.

If we turn to Slide #14. Revenue growth, as Walter already mentioned it for the group was 10.2% in local currencies with all business units contributing positively to this growth. You have realized that the growth in Q2 with 7.1% was lower than in Q1 with 13.4%. Reason for that was, first of all, the focus on profitability, especially on the OTC, BPC segment product offering, but also, as already mentioned in the past, not only by us that Q2 had significantly less working days than Q1 and the other -- last year, it was the other way around.

From a financial and a CFO point of view, very important, we have seen an improvement of the gross margin by 70 basis points year-on-year even 130 basis points compared to the second half of '24. And that's just the start and not the end of the journey. The increase of the gross margin is a mixture of the contribution of OTC BPC, where we see the first effects of our focus on pricing and the kind of distinctive channel distribution management as well as the growing weight of our service businesses, which, as you know, have very high gross margins. And therefore, with the strong growth they're experiencing and will experience in the past will also support the expansion of our gross margin.

Adjusted EBITDA came in with minus CHF 28.8 million. That's lower or worse than what you have seen in the first half of '24. Reason for that is that we have compared to the first half '24, CHF 13 million, 1-3 million, of additional marketing spend, which comes mainly from three sources. First of all, the setup costs for the new DocMorris TV campaign, which started beginning of March. Secondly, the increased Rx marketing spending. And last but not least, we also have a base effect because you know in Q1 '24, everyone waited for the launch of CardLink, which then happened in the second half of April. And therefore, by definition, the marketing spending was naturally lower than usually given that the CardLink was not ready at that point in time.

Very important is that we have seen between Q1 and Q2, a structural improvement of the EBITDA from -- with a difference of additional positive CHF 3.4 million, i.e., from minus CHF 16.1 million to minus CHF 12.7 million. This structural improvement will be ongoing, not only for the remaining of the year, for Q3 and Q4 first-movers and which will help there is further gross margin improvement, then the seasonality effect in the second half, usually volumes and therefore, also the leverage -- operational leverage is much better than in the first half of the year. And I think with that and additional cost measures, which you have -- which are already reflected in Q2 will go ongoing, and you will see a substantial improvement in absolute terms of quarterly EBITDA, but also on the relative level.

Reported EBITDA was better than adjusted EBITDA, that's mainly due to the sale of the two real estate assets, which we have classified as assets-for-sale and which has successfully been sold in the first half of the year for CHF 6 million, and that resulted in a book gain of CHF 3.4 million, which is a positive contribution to the reported EBITDA. Against that, we have CHF 1.7 million of additional provisions, which then made kind of a reported EBITDA, which came in with minus CHF 27.1 million and which is CHF 1.7 million better than the adjusted EBITDA we are usually focusing on.

Importantly, the non-Rx business is well on track to generate positive EBITDA contribution. You remember last year, it was EBITDA breakeven. And this year, it will start really contributing EBITDA to the whole group, and that's kind of a prerequisite to also achieve them and build the base to achieve and become EBITDA positive in the course of next year.

Overall results are according to management expectation, and we are well on track to deliver our guidance for 2025 and also then setting the base for the midterm guidance, which we have communicated.

Let us go discuss the two segments. We will start with the bigger one with Germany. Basically, and not surprisingly, given the relative size, you can see more or less the pattern of the group. Revenues increased 10.5% in local currency. And that's definitely also true for the group results. But given that the effect is with Germany, already mentioned the closure of Zur Rose Germany by the end of last year, had kind of a mid-single-digit percentage point impact on the growth given that it's pretty difficult to keep your clients when you close down a brand due that you are not in a position to refer existing client to another brand or another company, and that's the reason why we assume and can see that we had a substantial loss of revenue, but also clients coming from the closure of Germany.

Rx contributed 43.5% in local growth to the 10.5%, while non-Rx 4.4%. Also here, the same pattern, non-Rx minus 0.3% growth in Q2 versus 7.3% in Q1 showing the focus on profitability, which was kind of put in Q2. And on Rx, we had 52.3% growth in Q1 and then 36.2% in Q2.

TeleClinic really stands out with 150% of growth, but also the other services are doing extremely well. They are together growing with over 70%. And altogether, our service subsegment, not official segment, but subsegment has contributed with over 120% growth in the first half of the year and is expected to significantly contribute to growth also in the future.

Gross margins in Germany even improved by 75% or 140 basis, so 75% would be nice basis points and 140 basis points year-on-year. That's, as I mentioned, mainly due to better pricing or smarter pricing or selective pricing and higher contribution of services, which have high gross margins. So the lower EBITDA translates directly into the additional CHF 13 million additional marketing spend.

Segment A did also a good job. They grew revenue by 5.7%. Also here, same pattern, 7.6% in Q1 growth and then lower growth in Q2 also with the aim to focus on profitability with [indiscernible] only 3.9%. Adjusted EBITDA, they came in with minus CHF 0.7 million and are well on track to achieve EBITDA breakeven in '25.

Let's move to the KPIs. On the active customers, you see we have on a half year basis, we have -- we gained 200,000 new customers. Having said this, the gain of Rx customers was over proportional compared to OTC, BPC customers. Where does this come from? As I mentioned, the closure of the Zur Rose brand that had an impact of a few hundred thousand customers, which over time in the first half phased out. And therefore, on a like-for-like basis, this CHF 10.5 million should be a higher number, and that also explains why in the beginning, in Q1, we had the increase of 200,000 and Q2 was more or less flat, meaning that Rx customers still growth, but on the counterbalance, there was kind of a stable to negative development on the OTC, BPC customer base also due to pricing and more selective channel mix.

On the app downloads, there also a nice development. The app downloads in the first half almost doubled compared to the second -- to the half a year ago to 1.2 million in the first half.

Basket size also, even it shows somehow a negative trend, but I think there are two reasons and kind of positive reasons for this negative trend because, first of all, new Rx customers usually do not fill up the basket as much as they could, but they do a first test, and that's the reason and only order one instead of two, three medications, even if they could to see how that works. And if it works, then they will come again. That's one explanation that the new Rx customers are usually driving has much lower basket and that drives the overall basket down.

And then secondly, and that's explained in the footnote two, sometimes it's important to read the footnotes. I think here, we define the basket size, the average size of the basket size that if an Rx customer has purchased one medication, for example, at day one, and the next day, given that because the service was so perfect that, okay, let's also order a sun cream with DocMorris and with a much lower basket and is ordering that, that also is counted into this average basket calculation. Therefore, you see it's a double effect, first of all, lower basket at the beginning. And then secondly, if non-Rx clients and as soon as he has once ordered Rx, if an non-Rx client is ordering an OTC basket only or mixed basket, that also counts into the basket size. Therefore, you have to take that with that in mind and do not think that the basket size is deteriorating on Rx basket only.

Order frequency remained stable at the close to the full level. And then also kind of a very positive trend, the repeat order rate, which increased from 76% by the end of last year to 78% by mid of this year. And you see that this repeat order rate is continuously raising since the introduction of CardLink in the -- which is reflected in the June '24 with 75%.

Now let's have a closer look at the profit and loss statement. I do not elaborate on the top line because I've already mentioned that. Let's go into the costs, margins, you've seen 70 basis points increase on CM1 level. Personnel expenses, that's also notably have come down by 40 basis points. That's showing first effects of the indirect cost management, but there's definitely much more to come. Marketing expenses, you see that the CHF 13 million, which I referred earlier on. And then distribution and other operating income, that's some increase, which is especially on the distribution with increased freight rates. But there, having said this, in distribution, but also operating income and expenses, we see still a lot of potential to further reduce that and especially on the distribution expenses to come in our target corridor, which we have communicated for the midterm guidance on this KPI.

I think on EBITDA, we have this discussed. Maybe just one quick note on financial results, the CHF 10.6 million, that's the, let's say, the normal financial result compared to the plus CHF 6.2 million last year. The reason for that deviation is just FX, while we had last year CHF 40 million noncash profit on the financial income, it was kind of the slightly other way -- the other way down in this half year, where we had minus CHF 2.5 billion of FX changes and the remaining or mainly the costs and the interest costs for the convertible bond.

Group balance sheet, I think, looks even nicer than it has already looked given the CHF 200 million inflow of the capital increase. You see there's kind of a now even stronger balance sheet with an equity ratio of CHF 53 million, net debt of CHF 90 million and by mid of the year, CHF 230 million cash at hand, which allows us to comfortably to bridge the time until we become cash flow positive in 2027.

A key topic which was still pursued despite the full focus on the capital increase is managing our indirect cost base and also the net working capital. You see despite some slight distraction due to the capital increase, we were further able to manage costs down the indirect cost. And it's a clear ambition and target to have kind of a further decrease on an annual basis. Last year, we had 7.7%, and we aim to come as close to 7% and then in the following years, much further decrease. And you will see, especially in '26, a huge kind of drop in indirect costs given measures we have started to implement and which we will implement to reduce the cost base and substantially increase revenues, and that will have a substantial impact on the indirect cost ratio.

The same is true for net working capital. Also there, we -- you see the net working capital ratio goes down despite higher revenues. With the half year '25 with the CHF 45.8 million, I think we somehow not as deliberately by the year-end managed the net working capital. And therefore, starting from this CHF 46 million base by mid of the year, we are very confident that we can extract in the second half of the year a few million additional savings in net working capital, first of all, just by doing our usual job, but then also secondly, by further implementing the big measures like the accounts payable. It's not yet -- not yet fully executed, but we are on good track to get there. And we are also hoping and are confident that we can report on that when we meet not next time, that's in October, but the time after that this mechanism should be implemented.

That's the insight to the financials. Then it's important that based on the half year figures and the current trading, the management team of DocMorris is very confident to confirm the short and midterm guidance.

And with that, I think we open the Q&A. Thank you very much for your attention so far.

[Operator Instructions] And the first question comes from Sebastian Vogel, UBS.

I have three questions. I would ask them one by one, if I may. The first one is with regard to your EBITDA guidance, the minus CHF 35 million to minus CHF 55 million. So what would happen for you that you would rather end up at the CHF 35 million? And what would need to happen that rather end up at the CHF 55 million? If you can shed some light, that would be my first question.

Okay. I think to say just one, we have it basically in our own hands, whether we end up at CHF 35 million or CHF 55 million. And I think the decisive factor is kind of the marketing spend, which we can steer towards one or the other direction.

I think currently expect that the -- as I mentioned, that there will be definitely without any compromise being better quarterly EBITDA in Q3 and Q4 than what we have seen in Q1 and Q2. And then marketing would be -- the marketing expenses for the second half would then be kind of the, let's say, the steering wheel to drive it more towards the CHF 35 million or towards the CHF 55 million. I think that's all what we can say so far.

Got it. My second question would be on the ramp-up of the Rx bonus that you have started since mid-July, as you were alluding to in your slide deck. Can you share some thoughts on how that sort of ramp-up was going? Any anecdote that you can share there?

Yes. So what we already can say or see is there is a certain impact, a positive impact, of course. But to really share a view is far too early because it was mid of July. Now we are mid of August. We are in the midst of the vacation season in all the German states. And we have planned the majority of our marketing activities starting next week and then throughout September, October and following months.

I think it's important that, first of all, as Walter mentioned, we have a good feelings, but good feelings also need to be seen in good numbers. And that's much too early that one can see anything. And it's very important that's not additional marketing, that's kind of marketing. We just guided into a new channel viz-a-viz to the Rx bonus instead of, for example, doing TV campaigns. And then it's not additional marketing expenses, but we stick to our marketing budget, but just reallocate it from other sources, marketing sources to the bonus. Much impact, of course, because if someone gets a bonus, he yes. And I think that's a much more efficient channel than kind of the other channels.

Got it. And then quickly for the second half year on the free cash flow side of things, do you have any sort of flying altitude that you're aiming for that you can share?

Yes. I think if you look at the first half, then it would be wrong to just double it up, as I said, given that EBITDA will substantially improve and then you will also have a positive effect on the net working capital, as I mentioned, with some high million or even a little bit more. And these are -- if you adjust the first half with these elements, then you should have a good guidance for free cash flow then would come out at the end of the year.

The next question comes from Gian-Marco Werro at KB.

Two questions from my side. The first one is on the OTC growth. If I look at that and also compare it with your key peers and also considering that you are in the online channel, we have my questions why despite now focusing your marketing spending on Rx, you cannot really accelerate this top line there. What are the key hurdles? Is the market very competitive in which product categories it is in OTC and personal care? What is the market growth in the first half year from your perspective? That would be my first question.

And then the second question is on Rx growth. If I consider your reorder rate of 78%, then I do just the back of the envelope calculation and consider that this reorder rate also applies for the Rx business. I just see that the revenues that you generate with new customers is not really picking up significantly. So what could you do there better to really also increase these revenues with new customers and gain a quicker pace here?

Yes. Thank you, Gian-Marco, for your questions. Maybe on the first one, if you compare Q2 to Q1, there were several effects. One was -- is the seasonality. So Q2 is always lower than Q1 in every year, then the vacation days as other competitors also already have explained, had an impact Q1 against Q2 with less working days. But then it's also very clear our decision in which channels we steer the marketing investment and into which customers, be it the new customers of Rx or also repeat customers in Rx. And yes, with that, we can really very much and very well steer the OTC top line and CM2 and CM3 numbers.

And yes, with regard to the second question, the 78%, yes, of course, we could most probably grow much more with new customers. But we see the investment on the marketing -- the marketing investment on the Rx side also very much with regard to reasonable customer acquisition costs and draw us. And there, we see from our side just limits where we do not invest additional marketing money and in additional growth so that it really also reflects the customer lifetime value and remains in a good relation to it.

[Operator Instructions] And the next question for now comes from Urs Kunz, Research Partners.

I have several questions. The first is regarding the marketing. When you spent CHF 48 million in the first half, are you supposed to -- or will you spend less on that since you're going more on the bonus side? Or can you elaborate on that?

Thank you. I can answer this question. As I mentioned, it would be nice if it would be less. I just wanted to make sure that people do not think that the bonus is on top of the marketing spend, which we already have communicated and which we have in our budget for '25. It will be unchanged. And as said when Sebastian Vogel asked me, the marketing is somehow the number which we can steer. But at this point in time, just assume that the marketing spend remains as foreseen for '25, but with the optionality to adjust it down or upward if it's needed and useful.

Okay. Then on Rx, you're keeping your hope that the Rx growth is in 2025 over 40% despite Q2 was only 36%.

Yes. No, I think that -- first of all, it's not an official. It is not the -- above 40%, it's not part of the official guidance. However, we communicated that orally, and that's still the ambition of the management team to achieve more than 40%. And as said, we have kind of good indications on the bonus. And if the bonus is kicking in and then has kind of the effect which we are expecting, then I think the growth above 40% should definitely be achievable.

Okay. Then my last question about adjusted EBITDA that in the end got worse if I compare half year '24 and half year of first half year '25 by CHF 9 million. If I add up this CHF 30 million spend more marketing spend, so it's about CHF 4 million better than the year before. I guess, most of this CHF 4 million comes anyway from your services like TeleClinic and retail media. So I wonder a little bit on the OTC BPC side, for example, where you said that you concentrate on margin and profitability, didn't anything come in there? Or is there an improvement on that side?

I think I would not phrase it as drastic as you did it, but you're right. I think services had a fair share of this, if you extract the marketing of this incremental better EBITDA compared to the half year 2024.

But having said this, and I think we were in non-Rx in Q1, we had kind of, let's say, a growth rate, which is what was above our communicated mid-single to high single-digit growth rate and which, as Walter explained, the high growth always means kind of compromising the margins. And therefore, that's what I wanted to explain that in Q3 and Q4, we will really steer the OTC BPC growth around mid-single-digit growth, but with substantially improved gross margin, and that will be a combination of services further growing and overproportionately contributing to EBITDA and OTC BPC also kind of increasing their share in the EBITDA contribution in the second half.

The next question comes from Volker Bosse, Baader Bank.

Volker Bosse, Baader Bank. I have one question left. I would like to dig deeper into the non-Rx sales, CHF 428.9 million, which you reported for the first half. What would have been the figures if you exclude the other sales? So what is the OTC BPC sales here? And historically, over the last quarters, you broke that out. Perhaps you can provide us here with a clean figure what would be OTC BPC sales, so excluding TeleClinic and Retail Media basically?

I think TeleClinic, we stated that in the presentation, it's CHF 11 million. Then on the other services are retail media and marketplace, and that's kind of mid-single-digit million revenue contribution. which brings you to mid-teens if you aggregate all these three services.

Okay. So at this point, there seem to be no further questions. I'll just wait for a couple more seconds. But there are no further questions. So back to you, Mr. Hess, for some closing remarks.

Okay. Thank you very much. Yes. So just to summarize, I think the company is really developing well in the right direction. We manage our core foundation, the online pharmacy business well. And we have given us close guardrails within we manage the core business. At the same time, as you see, we build and develop new businesses, complementary businesses, which -- and that's a good thing, already show this year relevant results. and will show much more significant results year-by-year in the future. And that's really exciting. It's not just talking about, it's really results that are coming and that are visible also to you all.

And at the same time, we also, again, can show our strong innovation power of the company with the launch of the agentic DocMorris assistant, the beta launch. But also this will -- you will see impact in the future, be it with higher traffic, be it with engagement, loyalty. And these are important steps that we take. We take them now to be visible, let's say, in two or three years in combination with the foundation, with the services and as I said, with this innovation.

And yes, with that, thank you very much for joining and looking forward to meeting you either in person or with the next call. Have a good day.