Redcare Pharmacy Posts 55% Rx Growth, Yet Shares Plunge 65% – Can the Half-Year Report Reverse the Slide?

Redcare Pharmacy's German Rx sales jumped 55% YoY and total revenue rose 18.4% in Q1 2026, yet shares fell 35% since January. OTC growth accelerates, but a thin 1.7% EBITDA margin tests investor patience.

Redcare Pharmacy’s e-prescription engine is firing on all cylinders, but the stock market is not buying the narrative. In the first quarter of 2026, prescription drug sales in Germany surged 55% year-on-year, while revenue across the DACH region climbed 35.5%. Total group revenue rose 18.4% to €849.5 million. Yet the shares have lost around 35% since January and between 64% and 65% over the past twelve months, trading at €43.63 — a far cry from the 52-week high of €122.80.

The disconnect between operational momentum and market sentiment was the elephant in the room on Wednesday, when management presented at the dbAccess European Champions Conference in Frankfurt. With the stock hovering just above its 50-day moving average of €42.95 — a technical floor that has been tested repeatedly in recent weeks — the presentation offered a chance to refocus investors on the fundamentals rather than the share price slide.

Beyond the prescription boom, the over-the-counter business is regaining its footing. Non-Rx German sales accelerated to 9% growth in Q1, up from 5% in the prior quarter, and momentum strengthened further in April to roughly 11%. That diversification is welcome news, because it means Redcare is no longer solely reliant on the e-prescription tailwind. Both growth engines are now running, a dynamic that was not a given a few months ago.

The company’s margin profile remains a work in progress. Adjusted EBITDA reached €14.4 million in the first quarter, compared with €9.1 million a year earlier, translating into a margin of 1.7%. That figure is seasonally low and still below the full-year target of at least 2.5%, but management has confirmed its 2026 guidance: total sales growth of 13-15%, German Rx volume above €670 million, and an adjusted EBITDA margin of minimum 2.5%. The balance sheet also strengthened after the repayment of €64.5 million in convertible bonds, leaving €135 million in cash and short-term investments as of March 31.

The conference did not unveil new financial targets; it was a forum to discuss already published numbers. The next hard data point comes on July 29, when the half-year report lands. That will reveal whether the Q1 growth pace carried into the second quarter — or whether the market’s scepticism reflects deeper doubts that management has yet to address. For now, Redcare is caught between an accelerating prescription business and a stock price that suggests investors are still waiting for proof of sustainable profitability.