MedPal AI plc (LSE:MPAL) has delivered another significant milestone in its rapid growth story, reporting a record trading month in July as all three of its recurring revenue streams contributed simultaneously for the first time. Just nine months after launching its dispensing operations, the AI-native digital health and pharmacy group has built an annualised recurring revenue run rate of more than £8.6 million, underlining the speed at which its integrated healthcare model is scaling.
The latest update demonstrates that MedPal is evolving beyond a traditional pharmacy business into a diversified digital healthcare platform, combining NHS pharmacy services, private healthcare and software-as-a-service (SaaS) into a business built around recurring, predictable income.
From Standing Start to Multi-Million Pound Revenue
Perhaps the most striking aspect of the update is the pace of execution.
Since beginning dispensing operations in October 2025, MedPal has grown from zero revenue to an annualised run rate exceeding £8.6 million. Even more impressive is the acceleration in recent months, with recurring revenue increasing by more than 70% since the beginning of June, when the Group reported an annualised run rate of over £5 million.
For investors, this highlights management’s ability to execute on its strategy while successfully integrating multiple revenue-generating businesses.
NHS Pharmacy Continues to Break Records
The Group’s NHS prescription business remains a key growth engine.
During July, MedPal dispensed 47,223 NHS prescription items, setting a new company record and representing an 11.8% increase over the previous monthly high achieved in May.
That operational momentum has lifted the NHS pharmacy business to an annualised turnover run rate exceeding £5.5 million, demonstrating continued patient acquisition and growing prescription volumes.
The recurring nature of NHS prescriptions also provides a solid foundation for future revenue visibility, as patients typically remain with their nominated pharmacy for ongoing medication needs.
Private Healthcare Showing Early Success
While the NHS business continues to expand, MedPal’s private healthcare offering is already making an encouraging contribution.
The Group’s New Health GLP-1 weight management clinic generated more than £180,000 of revenue during July, despite marketing activity having been live for only three weeks.
This equates to an annualised revenue run rate exceeding £2.2 million, suggesting strong early demand for the service and providing another recurring revenue stream through monthly treatment plans.
With obesity treatment and preventative healthcare remaining major themes across the healthcare sector, New Health gives MedPal exposure to one of the fastest-growing areas of digital medicine.
SaaS Adds High-Margin Revenue
The acquisition of eMARx (Solid State Technologies) introduces another attractive dimension to MedPal’s business model.
The software platform contributes approximately £843,000 in annualised recurring subscription revenue, while generating an impressive 82% gross margin.
Unlike dispensing operations, SaaS revenues typically require relatively low incremental costs as customer numbers grow, potentially supporting improving profitability over time.
The addition also broadens MedPal’s customer base across care homes and pharmacies while complementing its wider healthcare ecosystem.
The Power of Multiple Recurring Revenue Streams
One of the most attractive features of MedPal’s update is that every revenue stream shares one common characteristic: repeat business.
Rather than relying on one-off transactions, the Group generates ongoing income from:
• Monthly NHS prescription renewals
• Recurring private GLP-1 treatment plans
• Monthly SaaS software subscriptions
This creates greater revenue visibility while reducing dependence on continual customer acquisition.
As recurring revenues increase, investors often view businesses as having stronger earnings quality and improved long-term scalability.
Cross-Selling Creates Further Opportunity
Management believes the current growth trajectory represents only the beginning.
The next phase of expansion focuses on increasing the lifetime value of each customer by connecting MedPal’s various healthcare services.
Private patients using New Health will be encouraged to nominate MedPal for their everyday NHS prescriptions, while the wider customer base will gain access to additional products including:
• At-home blood testing
• The MedPal Health OS platform
• Juno, the Group’s AI-powered health companion
This strategy of delivering multiple services to each customer could significantly increase recurring revenue without requiring the same pace of new customer acquisition.
Building an Integrated Digital Healthcare Platform
Chief Executive Officer Jason Drummond summed up the progress by noting that every pound of July’s revenue is recurring, spanning NHS prescriptions, private treatment plans and software subscriptions.
Perhaps equally important is his emphasis that the Group is only beginning to unlock the opportunities created by integrating these businesses.
With three revenue engines now operational, high-margin software added to the mix, and cross-selling initiatives still to come, MedPal appears to be building a healthcare ecosystem rather than a single-service business.
Outlook
July’s trading update highlights a company delivering rapid operational execution across multiple fronts.
Record NHS prescription volumes, strong early traction from New Health, the addition of high-margin SaaS revenue and a recurring revenue base now exceeding £8.6 million annualised all point towards a business gaining momentum.
If MedPal can continue successfully cross-selling services across its growing customer base while maintaining its pace of customer acquisition, the Group could be well positioned to build further scale in the expanding digital healthcare market.
For more information visit https://www.medpal.ai/
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