The Warsaw Stock Exchange-listed medtech company is consistently and successfully executing its growth strategy. In the first quarter of 2025, Medicalgorithmics acquired 7 new major clients and entered new markets with its innovative services powered by advanced AI algorithms. Sales revenue amounted to PLN 6.8 million, marking a 6% year-over-year increase, and the number of examinations performed rose by 96% YoY. Revenue from services in the company’s key U.S. market surged by 329% YoY. Due to record-high interest in DRAI and DRP, Medicalgorithmics’ Management Board anticipates continued and steady revenue growth in the coming quarters. In just the first five months of 2025, the company has already signed 11 new contracts, including 4 in the U.S., compared to 13 total (with 5 in the U.S.) for all of 2024.
“We are pleased with the accelerated development of our business in Q1, which confirms the effectiveness of our strategy and shows we are on a clear growth path. We are rebuilding our position and sales in the U.S. market after a sharp decline caused by the termination of a growth-inhibiting exclusive distribution agreement. At the same time, we are strengthening our presence in other markets and entering new, promising ones. In Q1, we signed 7 new contracts, bringing the year-to-date total to 11, including four with partners in our key U.S. market. We are especially pleased with the growth in U.S. service revenue – crucially, generated by clients launched last year. Year-over-year, this represents a 329% increase, and 52% quarter-over-quarter. With new contracts coming online and growing interest in our innovative products, we expect continued, steady increases in both examination volumes and revenues in the coming quarters,” said Maciej Gamrot, Management Board Member responsible for finance at Medicalgorithmics.
In Q1 2025, Medicalgorithmics recorded consolidated revenue of PLN 6.8 million, compared to PLN 6.4 million (adjusted for comparative purposes) in the same period of the previous year, representing a 6% YoY increase and a 4% rise compared to Q4 2024. The global market (excluding the U.S.) generated PLN 4.5 million in revenue in Q1 2025, including PLN 4.3 million from services. This confirms the effectiveness of the company’s strategy, which focuses on high-margin diagnostic software sales, while device sales remain an important optional offering for clients. During the reporting period, Medicalgorithmics doubled the number of ECG tests conducted, reaching approximately 92,000 tests – a 16% increase quarter-over-quarter and nearly 100% YoY growth.
In 2025, the medtech company has significantly accelerated the pace of acquiring new clients, particularly in the key U.S. market. In the second half of January, it signed a contract with a U.S.-based IDTF (Independent Diagnostic Testing Facility), with estimated revenue of up to PLN 46 million within the first two years following integration. In mid-March, the company signed a contract with leading firm Fourth Frontier, a supplier to prestigious medical institutions such as the Cleveland Clinic and Johns Hopkins University. Thanks to this deal, Medicalgorithmics’ innovative DRP platform, along with DeepRhythmAI (DRAI) artificial intelligence algorithms, will be offered by the U.S. firm integrated with its FDA-certified multi-day wearable Holter monitor.
As of the end of March 2025, the Group’s cash balance stood at PLN 5.6 million. Furthermore, thanks to an agreement signed in mid-April with BioFund for additional development financing of up to PLN 9 million (USD 2.4 million), Medicalgorithmics has secured funding to execute its strategy through to profitability. The additional funding is earmarked for expanding integration capacity, accelerating client onboarding, and intensifying the acquisition of clients interested in testing the Polish medtech’s leading AI-powered software. This will enable Medicalgorithmics to continue effectively implementing its current strategy and to achieve profitability in 2026.
“We are at a breakthrough moment and want to make the most of the growing interest in our products and technology. We have secured funding to further develop our technology, ensure smooth client integration, and support sales efforts – allowing us to accelerate revenue growth in the coming quarters and improve our performance. As a result, we aim to achieve operational profitability by the turn of 2025 and 2026,” adds Maciej Gamrot.