Listed on the Warsaw Stock Exchange, Medicalgorithmics continues to successfully implement its growth strategy. In the first quarter of 2025, the company acquired 7 new major clients and entered new markets with its innovative services leveraging advanced AI algorithms. Sales revenues amounted to PLN 6.8 million, representing a 6% year-on-year increase, while the number of conducted tests grew by 96% year-on-year. Revenues from services in the company’s key U.S. market increased by 329% year-on-year. Due to record interest in its DRAI and DRP products, Medicalgorithmics’ management expects continued, steady revenue growth in the coming quarters. In the first five months of 2025, the company signed 11 new contracts, including 4 in the USA, compared to a total of 13 and 5 in the USA in all of 2024.
“We are pleased with the acceleration of our business development in Q1, which confirms the effectiveness of our strategy and that 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 an exclusive distributor agreement that had limited our growth. At the same time, we are strengthening our presence in other markets and entering new, promising markets. In Q1, we signed 7 new contracts, and since the beginning of the year, 11 contracts, including four with partners in our key U.S. market. We are particularly pleased with the revenue growth from services in the U.S. market—importantly—generated by clients onboarded last year. This represents a 329% year-on-year increase and 52% quarter-on-quarter growth. With the launch of new contracts and growing interest in our innovative products, we expect a continued steady increase in tests and revenues in the coming quarters,” said Maciej Gamrot, Medicalgorithmics board member responsible for finance.
In Q1 2025, Medicalgorithmics reported consolidated revenues of PLN 6.8 million, compared to (adjusted for comparability) PLN 6.4 million in the same period last year. This represents a 6% year-on-year increase and 4% compared to Q4 2024. The global market (excluding the U.S.) contributed PLN 4.5 million in revenues in Q1 2025, including PLN 4.3 million from services. This confirms the effectiveness of the company’s strategy, which focuses on selling highly margin diagnostic software, while device sales remain an important optional offer for clients. During the reported period, Medicalgorithmics doubled the number of ECG tests conducted, reaching approximately 92,000 tests. This reflects a 16% quarter-on-quarter and nearly 100% year-on-year increase.
The WSE-listed medtech company significantly accelerated its pace of acquiring new clients in 2025, especially in the key U.S. market. In the second half of January, it signed an agreement with a U.S. IDTF estimated to generate revenues up to PLN 46 million in the first two years after integration launch. In mid-March, it signed a contract with leading firm Fourth Frontier, a supplier to prestigious medical centers such as Cleveland Clinic and Johns Hopkins University, enabling the innovative DRP platform with DeepRhythmAI (DRAI) artificial intelligence algorithms to be offered by the American company alongside its FDA-certified multi-day Holter wristband.
At the end of March 2025, the Group’s cash balance was PLN 5.6 million. 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 toward profitability. The additional financing will be used to increase integration capacity and accelerate onboarding of acquired clients, as well as intensify acquisition of clients interested in testing the company’s leading AI-powered software. This will enable Medicalgorithmics to further effectively implement its current strategy and achieve profitability in 2026.
“We are at a breakthrough moment and want to make the most effective use of growing interest in our products and technology. We have secured financing for further technology development and efficient client integration as well as sales support, which will allow us to generate faster revenue growth in upcoming quarters, improving our results. Consequently, we plan to achieve operational profitability between 2025 and 2026,” adds Maciej Gamrot.
Source: CEO.com.pl
