Redcare Pharmacy Shares Face Investor Doubt Despite Strong Revenue Growth

Redcare Pharmacy NL0012044747

While Redcare Pharmacy has reported a significant surge in annual revenue, a cloud of investor skepticism hangs over the online pharmacy specialist. The market's focus has shifted from celebrating top-line growth to scrutinizing a specific operational weakness, overshadowing the company's otherwise positive sales trajectory.

The preliminary financial figures for 2025 tell a story of robust expansion. For the full year, Redcare Pharmacy generated revenue of 2.9 billion euros, a notable increase from the 2.4 billion euros reported in the prior year. This growth momentum was sustained in the final quarter, with Q4 2025 sales reaching 794 million euros, up from 675 million euros in the same period a year earlier.

Despite these impressive numbers, the company's stock performance tells a different tale. Shares have faced sustained pressure, trading well below their previous highs, as the market reacts to underlying business challenges.

Over-the-Counter Segment Emerges as Key Worry

The primary source of investor caution stems from the company's performance in the non-prescription (OTC) medication division. Reports of disappointing revenue in this segment during the crucial cold and flu season have dampened sentiment. This area is particularly important to analysts and investors because it is typically associated with strong profit margins. Consequently, any perceived softness there raises immediate concerns about overall profitability.

Although Redcare confirmed it met its targets for electronic prescriptions, that success was insufficient to alleviate the broader market unease triggered by the OTC figures.

Key Financial Data at a Glance:

• Full-Year 2025 Revenue: 2.9 billion euros
• Q4 2025 Revenue: 794 million euros
• Core Concern: Weaker-than-expected sales of over-the-counter medicines
• Market Sentiment: Negative reaction to preliminary results

Share Price Reflects Underlying Tensions

The divergence between strong revenue growth and operational disappointment is clearly visible in the equity's performance. Over a twelve-month period, the stock has lost nearly 47% of its value. The start of the current year has also been muted, with shares declining over 4%. Recent news has tempered hopes for a sustained recovery, indicating that market participants are currently prioritizing profitability risks over pure sales expansion.

All eyes are now on March 4th, when Redcare Pharmacy is scheduled to release its complete audited financial results. This detailed report is anticipated to provide clarity on the exact impact the Non-Rx segment's performance has had on the company's margins.