Redcare Pharmacy’s Record Revenue Fails to Impress the Market

Despite posting record-breaking annual sales, Redcare Pharmacy's share price remains subdued. Investors appear to be looking beyond top-line growth, focusing instead on the company's path to sustainable profitability.

The online pharmacy reported full-year 2025 revenue of €2.90 billion. This figure represents a significant 21% increase compared to the €2.40 billion generated in 2024. A substantial portion of this growth was delivered in the final quarter, with Q4 revenue reaching €794 million, up from €675 million in the same period a year earlier.

Market analysts attribute this expansion primarily to the company's strengthening position in Europe's prescription medication (Rx) sector. The ongoing digital transformation within healthcare continues to provide a favorable tailwind for Redcare's business model.

Should investors sell immediately? Or is it worth buying Redcare Pharmacy?

Share Price Stalls Below Key Level

The market's reaction to these robust sales figures has been notably muted. Redcare shares are currently trading around €64.55, hovering near their 50-day moving average. The €65 price point has consistently acted as a stubborn resistance level.

This investor caution stems from the perception that strong revenue growth was already anticipated. The focus has now shifted to more fundamental questions. Concerns are mounting regarding the company's overall profitability metrics, the timeline for generating consistent positive cash flow, and its performance in the competitive non-prescription (Non-Rx) market segment.

The Profitability Challenge Ahead

The coming quarters will serve as a critical test, determining whether crossing the €2.9 billion revenue threshold is merely a milestone or the start of a genuine earnings inflection point. In the absence of concrete data on profit margins and free cash flow, the equity is likely to remain range-bound. For Redcare Pharmacy, future quarterly reports must deliver more than just sales growth to satisfy investor expectations.