MedPal AI July trading update: recurring revenue run rate reaches £8.6 million

MedPal AI's July trading update delivers a striking headline: the digital health and pharmacy group says its annualised recurring revenue run rate has grown from zero to approximately £8.6 million in nine months.

July 2026 was the first month in which all three of the group's revenue streams were operating together. These comprise NHS prescriptions, private prescriptions through the New Health weight management clinic and recurring software subscriptions from eMARx.

The pace of growth is clearly encouraging. Investors should, however, distinguish between an annualised run rate and revenue already booked over a full year. The £8.6 million figure takes July's level of activity and projects it across 12 months. It is not the same as MedPal having already generated £8.6 million of revenue.

You can read the original company announcement or visit the dedicated MedPal AI PLC share page for further company coverage.

MedPal AI's July trading figures

Revenue stream	July 2026 update	Annualised run rate
NHS prescriptions	47,223 items dispensed	More than £5.5 million
Private prescriptions	More than £180,000 revenue	More than £2.2 million
eMARx SaaS subscriptions	Established monthly subscriptions	Approximately £843,000
Group total	First month with all three streams operating	Approximately £8.6 million

SaaS means software as a service, where customers pay a recurring subscription to use software. MedPal says eMARx's subscriptions generate an 82% gross margin.

That margin figure applies specifically to the software revenue stream. Gross margins for the NHS and private prescription operations were not disclosed, nor was a group-wide margin provided.

NHS dispensing reaches a monthly record

MedPal dispensed 47,223 NHS prescription items during July, setting a new monthly record for the group.

That was 11.8% above the previous record of 42,250 items achieved in May 2026. The company says its NHS prescription operation is now trading at an annualised turnover run rate of more than £5.5 million, compared with more than £5 million at 1 June.

This remains MedPal's largest disclosed revenue stream. The recurring element comes from patients nominating the group's pharmacy to handle their repeat NHS prescriptions.

For investors, the rise in dispensing volumes provides a useful operational measure alongside the revenue run rate. It shows that the reported growth is being supported by a higher number of prescription items rather than relying entirely on annualisation assumptions.

What remains unclear is the profitability of this growth. The announcement does not disclose the NHS operation's gross margin, operating costs or contribution to cash flow.

New Health makes a fast start

New Health, MedPal's dedicated GLP-1 weight management clinic, generated more than £180,000 of private prescription revenue during July. The company says this represents an annualised revenue rate of more than £2.2 million.

The notable detail is that the revenue followed only three weeks of marketing. That makes the initial uptake look strong, although it is still a short trading period from which to project a full year's performance.

MedPal describes these revenues as recurring because customers receive treatment through monthly repeat plans. The key question is whether initial demand translates into durable customer retention over a longer period.

The announcement does not provide patient numbers, average revenue per patient, customer acquisition costs, retention rates or private prescription margins. Those figures would help investors judge the quality and profitability of this early growth.

eMARx adds higher-margin software revenue

MedPal acquired eMARx, also referred to as Solid State Technologies, on 20 July 2026. Its software provides electronic medication administration records for care homes and generates monthly subscription revenue from care homes and pharmacies.

The business contributes approximately £843,000 of annualised SaaS revenue at an 82% gross margin. This gives MedPal an established subscription stream alongside its prescription activities and broadens the group's revenue mix.

Completion accounts are expected to be finalised by the end of August. Final consideration is still expected to be approximately £94,000, with 35% settled in cash and 65% through new ordinary shares.

The eventual number of consideration shares and their issue price were not disclosed in this update.

Why the recurring revenue claim matters

Management regards all three revenue streams as annualised recurring revenue because they are designed to repeat monthly rather than arise from one-off transactions.

That is an attractive characteristic if customers remain active. Recurring revenue can improve visibility and make future activity easier to plan. But a run rate remains a snapshot, and the announcement does not disclose contract lengths, cancellation rates or customer churn.

Investors will therefore need evidence that July's prescription activity and subscriptions can be sustained. This is especially important for New Health, where the annualised figure is based on an initial three-week marketing period.

MedPal also plans to cross-sell its NHS pharmacy service to New Health patients and promote at-home blood testing, its MedPal Health OS app and Juno AI health companion across the wider customer base.

The potential attraction is straightforward: one customer could support several revenue streams. For now, however, no financial contribution from those cross-selling and upselling plans has been quantified.

Fee shares create modest dilution

MedPal has issued 928,570 new ordinary shares instead of paying approximately £32,500 of advisory fees in cash. The fee shares were valued at 3.5p each and are expected to begin trading on AIM on 7 August 2026.

Following admission, MedPal will have 778,042,430 ordinary shares and voting rights in issue. The fee shares represent around 0.12% of the enlarged share count, so the immediate dilution is relatively small.

Paying fees in shares preserves cash, but it still spreads future value across a larger number of shares. Additional shares are also expected as part of the eMARx acquisition settlement, although the number has not yet been disclosed.

What investors should watch next

The strongest part of this update is the breadth of MedPal's progress. NHS dispensing volumes reached a record, New Health generated meaningful early revenue and eMARx introduced established, high-margin software subscriptions.

The main caution is that headline annualised revenue is not the same as audited annual revenue, profit or cash generation. MedPal did not disclose group profitability, cash flow, cash balances, operating expenses or margins for its prescription businesses.

Future updates will be more informative if they show sustained NHS prescription volumes, retention within New Health, stable eMARx subscriptions and evidence that cross-selling is increasing revenue per customer. Investors should also watch the final eMARx consideration and any resulting share issuance.

MedPal's growth from a standing start is impressive, but the next test is turning July's run rate into durable, profitable and cash-generative trading over a longer period.