Redcare Pharmacy arrived at its Q3 2026 report with a stock that had cooled in the short term, down roughly 10% over seven days, yet still higher over the past quarter. The market closed today with the shares at €69.60, reflecting a business that investors already treat as a high beta ecommerce healthcare play rather than a steady utility.
The headline this quarter is not the revenue line at €846.7m. It is the squeeze in profitability. Net income from ongoing operations landed at just €0.8m, a slim result for a group of this scale and a reminder that the long term growth story still leans on future earnings improvement rather than current profit power.
Love the ecommerce reach of Redcare Pharmacy but concerned that earnings are still razor thin at €0.8m on €846.7m of revenue? Compare it with a list of solid balance sheet and fundamentals stocks (202 results).
Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs. Q3 2025): €846.7m vs. €719.234m (reported top line higher year on year)
- Net Income from Ongoing Operations (Q3 2026 vs. Q3 2025): €0.8m vs. a loss of €7.242m (shift from loss to slim profit)
- Basic EPS (Trailing Twelve Months to Q2 2026 vs. TTM to Q2 2025): a loss of €2.088252 vs. a loss of €1.738191 (reported per share loss wider over the trailing year)
- Net Income from Ongoing Operations (TTM to Q3 2026 vs. TTM to Q3 2025): a loss of €33.958m vs. a loss of €35.259m (full year loss modestly reduced)
Losses are shrinking while growth forecasts stay bold. Ask Charlie what Redcare Pharmacy’s big valuation gap really means.
Redcare’s Rx Ambition Meets Early Operating Milestones
The positive view depends on Redcare Pharmacy turning e‑prescriptions and automation into better economics, not just higher revenue.
"The main thing that has to go right is that e-prescription adoption and customer behaviour in core markets shift fast enough for Redcare Pharmacy to scale its Rx driven mixed baskets while keeping marketing spend and logistics costs in check."
Q3 developments point in that direction. Rx revenue increased 31% and helped lift total sales 18%. Adjusted EBITDA reached €29m with a margin of 3.4%, while active customers rose to 15.2m. That combination of Rx driven growth and higher profitability indicates the model starting to function at scale, although net income remains limited.
The price and this Narrative do not agree. → Uncover what this Narrative says Redcare Pharmacy is actually worth.
Redcare margins: logistics fears only partly answered
Bearish thinking focuses on the risk that Redcare Pharmacy’s large warehouse projects may not translate into wider margins.
"Although Redcare Pharmacy expects automation at the Sevenum site to double capacity and reduce labor cost per order by 70% from the end of 2026, any delay in completion, ramp up problems or failure to achieve the targeted savings would leave unit costs higher than assumed and keep EBITDA margins closer to current levels rather than expanding."
Q3 adjusted EBITDA of €29m at a 3.4% margin, together with confirmation of higher 2026 margin guidance, indicates cost progress rather than stalling. However, net income of €0.8m and a trailing twelve month loss of €33.958m indicate that the full logistics payback and clear operating leverage are not yet visible in earnings.
Hunt For Mispriced Execution Stories
Redcare Pharmacy recently highlighted how operational complexity can disconnect earnings from sentiment. The real opportunity could sit in stocks where execution progress is not yet reflected in valuations.
- Company 1 - 44% below our estimate - converts a near record construction backlog and nine mega-projects into cash while addressing costly legacy disputes.
- Company 2 - 50% below our estimate - scales an aviation parts and repair platform by integrating a major acquisition and expanding OEM repair partnerships.
- Company 3 - 42% below our estimate - wins long term tactical communications frameworks and converts headset and intercom demand into recurring high margin system orders.
Three companies from the same screener. Open all 201 potentially undervalued companies →
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com