Hello, everybody, and welcome to the Physitrack Q3 results webcast. I'm Henrik Molin, the CEO of Physitrack, and I'm joined by Charlotte Goodwin, our CFO. Let's get started. Let me just get the presentation up. Here we go. We will give you some quick highlights from Q3, followed by a business update. Then Charlotte will walk you through some of the details of the financial results. I'll look a little bit at strategy and outlook after that, and then we'll open up for Q&A. Q&A we are doing now via the Zoom platform. Use the Q&A function on your screen, please. You can start writing your questions now, copy and paste them in as the time comes. Okay, let's kick this off. Q3 in short. We're seeing some very, very nice numbers.
Year to date, 65% growth in top line revenue. Of this, 30% was organic revenue growth. Getting that combination in with both achieving growth by acquisitions and organic growth, very, very important. We'll talk more about that as the call goes on. EBITDA increased 46% to EUR 2.6 million. Some very, very nice financial KPIs here as part of the report. Charlotte will get you some more of those. A couple of highlights in terms of the business, and we'll have more details on this later, but if you wanna just ditch us and grab a cup of coffee after this, these are the things that you need to keep in mind. We have invested in the access ecosystem to be able to broaden Champion's offering.
An example of that you saw with the launch video for mental health therapy, which is a milestone for Champion, and it is a milestone for the wellness division and the strategy that we actually started about two years ago when we launched the M&A program. We'll revisit that a little bit later here in the presentation. More added to that care escalation to complement what is already physiotherapy as part of Champion's very, very strongly growing platform. Also we have undertaken the rebrand of Champion Health in several geos. As you know, from now on, the wellness division and what we do there is all gathered under the brand name Champion Health.
On Lifecare, some interesting things going on there, obviously, KPI-wise, but notable, we have been able to access some real rock stars in terms of development and in terms of, the firepower behind our technology there. We have gotten some fresh perspectives, some new, interesting initiatives. What's notable there is what we call Easy as one, two, three. We have EasyLink, Easy Print, and EasyAssign, which are three features that will really help us accelerate with healthcare providers that actually don't wanna be super tech-savvy with their patients, just to make things very, very easy for them. A lot of busy healthcare providers out there in, public healthcare, for example, that actually don't want to do tracking, they don't want their patients to be, logging into apps or downloading things off the App Store.
They just want something very, very easy. Well, we've solved that with the Easy series of features. More to come on that. Excitingly, on the PT Courses side of things, paving the way for these bundles that we see will help us accelerate into the American enterprise market, further there. To complement the platform and to actually take that to whole other levels, we have invested in a new learning management backbone to that platform, which we'll launch in the next few weeks. That will add some fuel to the fire with the subscription base there, which is accelerating nicely.
Almost 1,000 new customers on the PT Courses platform over the last few months, which is great, but there's a lot more to come, and those bundles will be very, very interesting for the American market. Now let me get you some of the business updates, but just as a reminder, we have two divisions here at Physitrack. There's Lifecare Technology there on the left, which is the heart of our offering to healthcare providers, predominantly physiotherapy customers, but it's a wide range of customers that provide care to their patients, they care for their lives and hence the name Lifecare there. Today, it's 72% of the platform. On the right side there, Virtual Wellness, which is gathered under the Champion Health brand. This is also accelerating nicely with some great growth numbers as we will see.
Current state of play, we are now at a EUR 13 million run rate across the business. The strong growth continues. Wellness has passed EUR 4 million and Lifecare EUR 9 million. More to come here. That is the continuation of the trend that we have seen. Notably, we are doing this with a nice profitability as well, which is part of our DNA. Now the newest division with Physitrack is the Wellness division. That came about because we founded our M&A program, and this is actually two years old now. I thought we'd take the time to just revisit that and just to revisit that strategy a little bit, because I think it's quite unique in terms of what we actually do there on the M&A side of things.
We are not a buy and hold strategy. We are not a company that will just buy assets and sit and just hope that they will develop without our working with them. We're actually a very active owner and we have a buy and build strategy as part of that. The build means that we go for organic growth and we go for profitability once companies are on board. This is now a couple of years old. We have made six acquisitions. As we can see just from this year to date pro forma, almost EUR 1 million of new revenue, organic revenue, and 56% growth, which is a sign that the strategy is working quite well.
The work that we undertake is really geared towards finding interesting assets with great entrepreneurs running those companies, making those entrepreneurs work with each other, which is a great thing to do because entrepreneurs are usually a bit of a lonely breed when it comes to building their businesses and figuring out the great ideas. To put them in together to figure out where to go next and to accelerate the very exciting part of our business, that's really rocket fuel. What we have done there has really paved the way for us to emerge as a leader in Virtual Wellness. The numbers, they have been very good in that way. So just some KPIs and some key things there.
Now going back to the very start here with the acquisitions of Physiotools, that's been incredibly successful. We found some great synergies, both on the cost side and the revenue side. As we can see there, the EBITDA margin on an adjusted basis is now 48%. Now, that's a really strong number for what is a quite a big division compared to what Physitrack used to be before we IPO-ed the company. We keep expanding revenue, and we keep expanding margins there. The Physiotools has really helped us with that, and it's a sign that the strategy behind that was very, really favorable.
PT Courses, we spoke about that and, with investments that we're doing there, but that enhancement and the acceleration of our customer base is moving ahead of plan, which is very, very positive. We will see more effects on that on the revenue and also on the margin side of things, next year in the Lifecare division. Now, we spoke a lot already about the wellness division, but what I'd like to point out at the bottom there, over 500% top-line revenue growth for two of these entities. This is Champion Health Germany, which was called Wellnow when we acquired them, and obviously the mothership Champion there with the software platform.
These are exceptional numbers, and these are numbers that are being achieved in collaboration with the leaders from the Physitrack group and also the very smart entrepreneurs from the other entities there inside of the wellness division. Very active acquirers and a team that's really going for the organic growth. It's two years into this, I'm very proud of what we have achieved and what these entrepreneurs have achieved under our umbrella. Now, just very briefly, I will walk you through some of the developments here on the Lifecare side, and then I'll do the same on the wellness side. Just as a reminder, the Lifecare side, nicely diversified in terms of the product in.
We have a world-leading platform that provides tech for healthcare providers, so they can help their patients, notably as the ecosystem. We have several revenue enhancers inside of that mix of products that make this a very, very interesting play, not just because of the growth of the ecosystem in terms of the number of users, but also what we can do with that ecosystem as people become customers. So a lot of pages in our playbook here. Now, if you look at the development here of Lifecare over the last quarter, so on the top right, 9% growth in license numbers, which is nice. We have an ecosystem that is growing. If you look at below that, you can see that the churn keeps coming down.
For those of you who remember, coming into 2020, end of the fourth quarter, we were about twice the size of that chart. This is a natural effect of the sort of pandemic era and a lot of the noise in our data goes away. It's also a sign that our platform is that sticky, that very important day-to-day tool that our customers have to be able to enhance the life journey of their patients as we have it. That's a downward moving trend, and it's expected to continue, thanks to a lot of the initiatives that we have there, specifically targeting the customer value experiences and the need for our product as an everyday tool.
Now, on the left there, some nice return on investment. We spoke about the development of the in-house development team or the recruitment of in-house development team for some top firms like Zendesk. That's performed better than planned. There are almost 20 people now on board in that team, and we're very, very proud of the achievements that they've had so far. We've spoken about Easy one, two, three, which is gonna see the light of day here, starting with Easy Link over the next few weeks. As we go through the next few months here, you will see more tools that are gonna be more palatable to healthcare providers that might not have the same appetite for very, very advanced tech in the day-to-day with exercise prescriptions.
That will be a game changer in a lot of ways for new customers and also for existing customers. Of course, security, stability, very, very important, especially with enterprise sales. A lot of increased pressure there. We are able to invest time and effort and money into that in a way that our competitors can't. It's getting increasingly competitive out there, and one of the things that you compete on is the security and the stability. This is quite hard to cater to as a smaller competitor. Now size-wise, we are the biggest player in the world for exercise prescription, eclipsing MedBridge quite dramatically with what we have, which is our biggest competitor in the U.S. market. Of course, some work here on the product-led growth side.
We have introduced a free version, which is a very simple version, which allows for print only, and it's a nice new gateway into the ecosystem that is expected to drive product-led growth further. More on that to come in the coming quarter, but we are doing a lot around product-led growth. It's a very exciting part of running a business because that growth is actually quite inexpensive. The CAC cost, the customer acquisition cost is quite low. That's a rocket fuel both for the top-line revenue numbers and for the margins. That's some of the secret sauce and what we're achieving here over the period going forward.
Now, we spoke about the LMS and PT Courses, and we will be seeing more things there in terms of the bundles, especially in the U.S. market, cross-marketing with some things happening on screen in the Physitrack platform to introduce PT Courses and the ability to get your licenses as a physiotherapist or an occupational health professional renewed and managed with the PT Courses platform. On the Champion side of things, same idea here. It's the core ecosystem, which is the simple version. It's a plug-and-play situation with Champion, where you set that up for an employer, and you get their employees to partake in that.
Using algorithmic analysis, you come up with the content of the Netflix of wellbeing, which is the staple part of the Champion Health product. Now, for more advanced customers, we have an enhanced data analysis offering, and we have the coaching of the leadership teams of those companies. We have the ability to do live webinars and live handholding and some of these things that make this introduction of a wellness strategy to a company much easier and much more effective. As we can see here, there's a lot more in that Champion Health bag of goodies, and we keep expanding on that. As we saw with the introduction clip there, we're featuring Harry Bliss, the CEO of Champion Health, a lot more of these enhancers coming in.
It's really, really good for our customers, but it's also great for the group in terms of having diversified stable revenue flows that have an all-weather type of characteristics. Looking at the wellness segment, fantastic growth there, over 50% pro forma revenue. Year-over-year, this is organic growth. This is hard work from the members of these teams. I think this is really, really nice to see. It was a bet for Physitrack to diversify into wellness. We are very passionate about elevating the world's wellbeing, and this move here with what it's achieving is very, very satisfying to see. Bottom right there, look at this. Recurring revenue. This is subscription revenue.
The plan for this division was always to make sure that as much of this revenue as possible was put on a SaaS model. This is happening in a very, very big way, and we can continue to see this trend in this allocation between subscription and non-subscription revenue. More to come. I should say the other half of that 50%, they are made up of very sticky long-term contracts that we provide to employers, and they are recurring customers. It's quite sticky. It's not one-off revenue in that sense. We will see more of the subscription piece come in. Now looking at top left there, some great things here. We're broadening the offerings.
We want that all over the strategy. We want the widely diversified strategy with the revenue enhancers. Mental health therapy, we saw that launch today. We've had a first few successful quarter here with the physiotherapy enhancement that we had with the care escalation, and of course, the rebrand. Which could be fun for our Nordic and Swedish participants, we have now also set up a sales office in Stockholm to work with some of the Swedish multinationals, which have a great appetite for products like this, and it's also a beachhead into the rest of the Nordic markets. Lastly, Champion Health Germany with some great traction there with big multinationals, and we expect to see some further results on that going forward.
Now I'm just gonna finish off this slide with mentioning the great achievement for getting Currys on board. Currys is a GBP 10 billion electronics retailer with eight geographical locations around the globe. They have over 800 stores, 35,000 employees. If you're in Sweden, Elgiganten is part of the Currys group. We had a first substantial contract with Currys, 15,000 employees, that came on board in a long-term relationship with Currys, and it's a very significant customer. We'll see more of this. Currys was the first customer that really allowed us to speak about them publicly. We're very grateful for that.
We have other customers of notoriety in the book of business there with Champion, but a lot of them, they want to be discreet. Currys, that was a great thing to be able to talk about. Of course, Sitra Support, who has a lot of things going on there with Champion, explaining that 500% growth that we've seen there over the last year. That was the update for wellness, and this is just a little summary slide on what we saw there in the beginning with Harry Bliss talking about it. This is exciting. We are creating a more holistic product there.
It's great to have preventative components of a wellness product like that, but to be able to escalate things into actual care provision provided by actual humans, that is a very, very important part of that story and why employees will be very, very happy to work with this. It's also, of course, if you look at it from a revenue perspective, helping people aside, this is something that creates revenue enhancement, it creates more stickiness, and it's something that will really help us further accelerate the growth and the profitability of Champion Health for the rest of 2022 and in 2023. That concludes my initial remarks there on the business update, and I'm gonna hand you over to Charlotte Goodwin, our CFO.
Thank you very much, Henrik. I'll start off here with a brief overview of the key financials for the nine months ended September 2022. Year to date, revenue has increased 65% to EUR 9 million from EUR 5.4 million in the prior year. Some of this growth is, of course, due to the acquisitions of Fysiotest, PT Courses, Wellnow, and Champion Health. On a pro forma basis, with the revenue from these entities included in the prior year comparators, revenue increased 30% in line with our medium-term targets. Year to date, the Physitrack Group has delivered adjusted EBITDA of EUR 2.6 million, up 46% from the prior year. This results in adjusted EBITDA margins of 29% for the nine-month period, down slightly from 32% in the prior year.
This fall represents the well-signaled impact of the Virtual Wellness acquisitions on the group's margins. Total EBITDA has increased 340% from the prior period to EUR 1.2 million, as we incur less costs relating to M&A and integration work. It's pleasing to see that as these costs fall away, we've returned to bottom line profitability for the quarter. Operating cash flow has doubled to EUR 0.6 million. Through to the next slide. Now on to a close look at revenue. On the left here, you can see group revenue by quarter, both on an absolute and a pro forma basis. On the right-hand side, we can see revenue split by Lifecare Technology and Virtual Wellness.
In Lifecare Technology, which currently makes up just under three-quarters of our revenue, quarter-over-quarter, an increase in underlying subscription revenue is being offset by a fall in one-off custom app setup fees. Year to date, the revenue increase has been driven by increasing user numbers and price rises. The Virtual Wellness division, which currently makes up slightly more than a quarter of the group's revenue, has experienced strong pro forma revenue growth in the quarter of 57%. It's also pleasing to note that an increasingly large portion of this division is now made up of subscription revenue, currently half, offering a more stable revenue growth profile and a move towards increasing margins. Turn to the next slide. Moving to profit. On the left-hand side here, we see the prior year figures.
Last year, EBITDA was EUR 0.3 million, with adjusting items of EUR 1.5 million stripped out. Adjusted EBITDA was EUR 1.8 million. In the current year, EBITDA has risen to EUR 1.2 million, an increase of over three times. Within this, there was EUR 1.3 million of non-recurring adjusting items, primarily relating to the acquisition of PT Courses, Wellnow, and Champion Health, and associated integration costs, as well as the unwinding of discounts on deferred consideration. With these amounts stripped out, adjusted EBITDA has increased by 46% to EUR 2.6 million. Adjusted EBITDA margins have fallen slightly from 32% last year to 29% in the current, due to the well-signaled impact of acquisitions, as well as the continued shift of the group towards Virtual Wellness revenues, which currently operate at a lower margin, plus investments into future growth.
Over the medium term, we expect these to rebound to our target EBITDA margins of 40%-45%. Through to the next slide. On the left here, we have adjusted EBITDA shown by quarter for the prior year and in the current year so far, highlighting the strong growth in this area. On the right, we have EBITDA by division, which is the first time this information is being presented. In Lifecare Technology, which is the longest established division, EBITDA margins are at 48%, an increase from the prior year of 44%, driven by increased revenue and the efficiencies implemented in the acquisitions in this division. In the Virtual Wellness divisions, margins are currently at 3%.
While we're starting to see margin expansion in some businesses which have been part of the group for longer, namely Rehabplus, which was a loss-making entity at the time of the IPO and now delivers 10% profit margins, we're also investing in these businesses in the short term to drive future growth. The gray bar represents costs, group costs such as board fees, listing fees, and associated advisory fees. As would be expected, as revenue increases, these have reduced as a percentage of revenue as the costs remain relatively stable. Through to the next slide. Now looking at cash. We opened the year with a cash position of EUR 13.3 million. Adjusted EBITDA on the period generated EUR 2.6 million and was offset by a working capital movement of EUR 0.8 million.
Intangible assets and fixed asset additions were EUR 3.2 million in the nine months and consist of development of the Lifecare Technology platform and investment in the Virtual Wellness ecosystem, plus the previously signaled spend on build fees for internal systems such as Chargebee, Rependo, and NetSuite. There was an acquisition spend in the period of EUR 6.9 million in relation to PT Courses, Wellnow, and Champion Health, plus the first consideration payments of EUR 3.4 million and related M&A and integration costs of EUR 1.2 million. On the twenty-seventh of July 2022, we entered into a GBP 5 million revolving credit facility with a three-year term. In the quarter, we drew down GBP 0.9 million from this facility to fund part of a deferred consideration payment.
Net of arrangement fees, this resulted in a cash inflow of EUR 0.8 million. There was also a EUR 1.1 million movement on foreign exchange on our cash balances. This leaves the group exiting the quarter with cash of EUR 1.1 million, plus remaining undrawn facility of EUR 4.7 million, giving total available liquidity of EUR 5.8 million. Through to the next slide. Now moving through to the group's balance sheet. The first line here includes the internally developed technology platform, as well as intangible assets and goodwill arising on acquisitions. Cash and borrowings, we've already covered.
Trade and other receivables have increased due to the recent acquisitions, particularly Champion Health, which bills up front for 1-3-year contracts and is expanding rapidly, as well as the relative increase of our enterprise customer base in the Lifecare Technology division and the sales of custom apps in the quarter. Additionally, accrued revenue related primarily to Rehabplus has increased as this business grows rapidly. We are pleased to have seen the trade receivables balance start to reduce in Q4 as these impacts equalize. Deferred revenue is primarily generated by Physiotools and Champion Health, who bill up front for 12-month or longer contracts. Deferred tax arises on the intangible asset balances recognized on acquisitions and will unwind over the period of the amortization of these assets. Deferred consideration relates to Rehabplus, Fysiotest, Wellnow and Champion Health acquisitions.
That's all from me, so I'll pass you back to Henrik.
Thank you, Charlotte. We can obviously have the opportunity to ask some questions in the Q&A. Don't forget to put your questions in the Q&A section here. Just briefly revisiting the strategy where we find ourselves, on the left side there, the market growth dynamics are very, very favorable for us, which we see in the top line growth. Of course, we also see that in the margins, with some high margin products driving that growth and also with pricing power that we've seen on the Lifecare side of things with the price adjustments, that we did at sort of mid-year. We can continue to see that continuing. Of course, in this microclimate, things are stressful, things are a little bit difficult for companies and for employees.
In that scenario, investments in wellness technology is something that's seen as a quick solution or a quick help to that problem. The building of a long-term wellness strategy is something that has been triggered by what's going on in the macro environment. That's giving us a lot of wind in our sails, and we can see that continuing on the Champion side of things. I can mention there that what we are looking at on the Champion side of things is to start the focus on product-led growth in order to attract business from small to mid-sized customers. We have very significant interest from small to mid-sized customers on the Champion side of things.
This is, you know, over 10,000 opportunities that they have seen over the past year or so. The focus there has remained on enterprise sales, which has focused on 500 employee companies and up. What we will be seeing here in the fourth quarter and in 2023 is an increased focus on that, which would be very, very interesting for the middle part of this, the organic growth levers. The product-led growth piece with Champion, enhancing that on the Physitrack side. Remember, we spoke about the easiest one, two, three. There are a lot of other things involved there in the market expansion.
On the product-led growth sides, we'll be seeing a lot of initiatives there in terms of getting more leads in through our automated channels, higher conversion through the automated channels, and some nice tools in there in terms of our customers to get up and running with them faster, easier, and in a way that their patients would love and want what they need. It is a very favorable environment for organic growth for us, and this is something that's expected to continue. On the right side there, M&A initiative. Now we are very focused on organic growth. At the moment, we are focused on letting these fantastic entrepreneurs work together to achieve some more spectacular numbers.
We're talking about, you know, the 500% each for Wellnow, known as Champion Health Germany these days, and Champion, the mothership. Also not to forget Champion Health Plus, formerly known as Rehabplus, which has clocked in at over 180% growth in the last year. We're very focused on that work, and that's likely to continue. We do see a lot of interesting opportunities. We are keeping our powder dry at the moment, though, but the M&A program, as we've seen, has been very, very successful, and it's not something that we plan to discontinue anytime soon. Just as a final note here, we are seeing that we have a balanced portfolio of business. We have something that's achieving both organic growth and profitability.
It's very deeply rooted in our DNA. This is in this environment, even when a lot of companies are struggling with growth and of course with profitability, which is even harder, we have something that is more or less an all-weather product. The way that the world looks and the way that the world will look as we're out of these stressful times. We have true product market fit. I think Champion Health is a home run product in terms of what it's achieving, and it's being very much supported by the macro environment. We believe that we have a great formula here to achieve some amazing growth in the following quarter and in 2023. Therefore, we are reiterating our financial goals.
We, as a group, will be achieving 30% or more growth, organic growth. We are expanding margins. We have the tools in the toolbox. We have the history of it, even looking at the Lifecare division today with 48% EBITDA growth. EBIT margin, sorry. This is something that's very much part of what we do every day, and it's something that we are doing in the wellness division as well, with these really, really hungry, smart entrepreneurs. Over time, we don't have any expectation of lowering our goals with the EBIT margin. You can expect us to hover around where we are now, around 30%. It will take over time.
It's a very, very buoyant climate as an investor in that, in people, processes, technology, et cetera, and we want to be, really, really good at that. So, we have no reason to believe that, we will expand significantly, that around 30% margin in 2024. But over time, definitely, you can see that in our KPIs. That's very much part of the playbook. Lastly, dividends. Love them. Not just right now. Cash is better spent on investing in tech teams and really smart companies. But sooner or later, it will be part of what we do as well. It's a natural effect of running a successful business that spits out a good level of cash. That concludes our presentation of this morning.
Now we will look at our screen and we will answer some of the questions that have come in here on the Q&A. Let's get to it. First question here is for Charlotte. Is there a reason you put your midterm financial targets on pause in this noisy environment?
Yes. Thank you, Henrik. No, we don't see a reason to put our midterm financial targets on pause. You know, they were always targets that were to be delivered in the midterm, so we are able to do things like invest in investments which drive future growth and sort of have short-term EBITDA contractions, and we're doing that where it makes sense. But as Henrik says, we reiterate our medium-term targets, and we're happy with the level that they're set at.
I'll reiterate that. From a business standpoint, very important to remember, you can't starve your way to growth. You can achieve it profitably, which is an important part of running a business. If you step on the brakes too much, then you're not gonna achieve that top line growth. I think we found a perfect balance. Of course, we could have a situation where we had higher margins, but I think that would come at the cost of growth. Again, we will continue to hover there around the 30%, and in the medium term, we will be hitting those targets, be sure, because that's what the data tells us here.
Second question here: What can we expect in terms of improving Op FCF over the coming quarters? So that's one for Charlotte. There's a second question. Have you reached a trough in the M&A-driven margin contraction? And is the EUR 1 million quarterly CapEx level seen in Q1, Q2, Q3 the best way to think of this going forward? Over to you, Charlotte.
Yeah, of course. I'll take those in order. Well, I'll answer the second two because that sort of answers the first. Have we reached a trough in the M&A-driven margin contractions? Yes, we have, you know, had a full impact of the acquisitions in the latest quarter. We've seen the sort of trough of those coming in at a lower margin. We will expect now to see the acquisitions that we put in slowly expand their margins. The sort of counteracting factor is that we're seeing the Virtual Wellness division grow rapidly, and that does still operate at those smaller margins than the Lifecare Technology. You've sort of got those two factors counteracting each other.
That growth in the Wellness division and that becoming a bigger part of the group, I think could see us still drop a couple of percentage points on the EBITDA, potentially. You know, EBITDA is still increasing, but the margins contracting slightly just because that becomes a bigger portion of the group, before we start to see the whole lot coming up through the margin expansion, and revenue growth and the efficiencies put in and move towards subscription revenue and all the good things we're doing there. Yes, in relation to the M&A coming in, we've reached a trough, but we will still see, I expect, Virtual Wellness growing quicker than Lifecare Technology.
Yeah, sorry, Charlotte.
No.
No, I was just gonna say, when we acquire companies and we do these deals with these entrepreneurs, they come in on earn-outs. They get a portion of the acquisition consideration upfront, and then they have portions of it that comes out over time that's contingent on them reaching growth and profitability goals. Those profitability goals have been defined in a way that they will harmonize with the profitability goals of the whole group. There's some very strong incentives for those teams to achieve the margin expansion. This is very much something that's in play. We expect that to actually signal the trough there in the M&A-driven margin contraction.
We see that as a very positive thing. These are very ambitious people, and I think they've done a great job so far with top-line growth and some profitability. I think they will be hitting home runs like the Physitrack company in terms of achieving both profitability and growth over time.
Through to the sort of third question of the three, the is the EUR 1 million quarterly CapEx level seen in Q2 and Q3 the best way to think of this going forward? Actually, as part of the acquisition, we have put some investments into the business, so I'd actually expect CapEx to drop slightly through to next year to around the sort of point seven, point eight million EUR a quarter level. We'll see a little bit of a drop off and certainly not an increase in CapEx in 2023, which I think pretty much answers the Operating Free Cash Flow question that we'll see. We expect to see cash flow increase into next year and for that to partially fund the earn-out payments.
All right. Very good. I think what Joachim is also after, implicitly, he's asking if we see a need to raise capital on the basis of us needing our liquidity to support operating cash flow. The answer to that is that we see no need to raise any capital. There's a forecast that cash flow positivity will do away with our needs for anything like that. We're actually very, very confident of our cash position plus the RCF, sometimes the credit line. We'll see here in the coming quarters in terms of what that does to it. Things are looking very, very positive for us here. Next question.
Given the cash flow trend and EUR 1 million in cash available, excluding EUR 6 million RCF, based on sizable earn-out payments ahead, what are the key inputs and outputs and takes regarding how well-capitalized you are at this stage and potential need for further liquidity over the coming year? I believe I answered a part of that in the question, Joachim. It's all part of that plan because you have the growth with the profitability. Then you have a cash flow situation that actually takes care of the earn-out situation as well. Again, there are no needs there. We don't see any liquidity challenges going ahead, even based on the earn-out situation. Charlotte, do you wanna add anything to that?
No, I think you've pretty much covered that. Yeah, no plans for capital raise for anything, business as usual or earn-outs.
Right. Next question here. When it comes to Virtual Wellness from a geographical point of view, what are the core markets as of today? U.K., Germany are by far the biggest markets there. We have a slice of business there in Sweden that we are enhancing. We spoke about that office in Stockholm, which is gonna be really good for that. There's potential to do things across the Nordic region on that. Have you seen any changes to the competitive environment? I would say on the wellness side specifically, we have seen changes.
We've seen our competitors probably have gone weaker because of what's been going on with cost increases and the pressures to actually achieve things on a profitable basis. We've seen initiatives scaled back in terms of enhancing and expanding. We've seen the cut of staff, and that's something that's created a more of a favorable environment to us because we've seen we keep enhancing, we keep hiring, we keep pushing in a way that others aren't able to do at the moment. I think the signal value of what we're up to has shifted the competitive landscape in our favor, actually. The thoughts on Mindler's UK expansion plans together with Carasent, any comments on those? I think competition is healthy.
I think competition is positive because it means that there's product market fit for things that you do. It's great to have in cases where a competitor can knock on a door before us and get a company nice, warm, and ready for a better pitch and a better product. I think that's always positive. We can see that. I mean, we always have a bit of competition for everything that we do, but we have a unique way with what we do in the way that we have these product enhancements and the diversifications of the product offering that you're seeing both on the Champion Health and the Lifecare solution. That's very hard to beat.
As you get up to size with the investments that you can make in your technology and people, it's very, very difficult for competitors to meet and beat that. I think we definitely have a few aces up our sleeves. Again, I think it's great with competition if they can prepare the market for Harry Bliss and his team, that's all good. Last question here from Mr. Grinnell of DNB. What are the key delivery mechanisms to ignite organic growth in Fysiotest and PT Courses? Starting on the latter, the PT Courses, product-led growth is the most important part of that. That's something that's based on attracting initial interest from a target market electronically.
You have your SEO, and you have your Google ads and so on, making sure you end up at the top of the heap. Favorable pricing there is very important alongside a very strong product. You have people come into that product-led growth conversion chain, it's very important that you have the processes and the technology to be able to get as high conversion as possible. It's definitely an edge with the group. A lot of Physitrack's success has been based on product-led growth, and it's something that we're making sure that we are also injecting into PT Courses alongside a revamped platform. Fysiotest will remain a combination between enterprise sales and product-led growth throughout 2023.
We hope that we can have more of a tilt towards product-led growth, especially with the Nightingale-powered product there that makes it possible to actually work with companies remotely and virtually. We have some new firepower in that team that is going to help us with some of these journeys. Looking at Fysiotest, which is Champion Health Nordic now, looking at the Champion Health product, this is something that is very, very interesting to Swedish multinationals. It's a combination between working with an enhanced version of the existing product that Champion Health Nordic has, and of course, working with the Champion Health platform itself. Some very exciting things going on there, actually.
We're being patient with the turnaround in the top-line revenue there, 'cause we know that this is something that will render some great results there in the future. Here's a question from Hanser and Hugo Leysser. "What's the reason for slightly lower revenue quarter on quarter in Lifecare?" Well, this is something that we have been quite open about in terms of why we expanded into wellness and why it's so important to have a division there with a large total addressable market. As the size of a business grows, the percentage growth numbers, if you have a relatively inexpensive product in a narrow niche, those are harder and harder to achieve.
Although we can achieve a similar type of absolute size of revenue in our Lifecare division on a percentage basis as that division is now over EUR 9 million, while the percentage numbers are naturally smaller just because of the acceleration dynamics that you have there. This is according to plan, part of the plan, which is why it was such a great journey for us to start that acquisition journey with Rehabplus on the wellness side of things, in order to accelerate our way into this very buoyant and very dynamic segment, which is wellness. Of course, over time as a group, you know, you have the 30% top-line revenue growth goals.
Of course, if we play our cards right there with wellness, it's not unreasonable to think that we might be able to beat those. Let's just have that unsaid for the time being. Here's a question from ABG, Oscar Rundqvist. "Can you elaborate on the magnitude of the financial impact from the contract with Currys?" Well, we don't actually disclose the exact details of contracts with customers. They are not comfortable with doing that. Some of our customers actually don't wanna talk about their relationship with us at all, not that they're not super proud of it, but it's because they see that as a competitive advantage.
In terms of Currys, it was great that they wanted to communicate that they are working with Champion Health, that they are a significant customer, but the extent of that we're not able to disclose. It represents a very, very substantial part of Champion's top-line revenue. It's a double-digit size of it, without going into detail. But the exact nature of it's not something that we are able to disclose. Continuing here with the questions from ABG. "How should we think about the cash flow going forward, and can you elaborate on how you are thinking about the current cash balance?" I'm gonna bounce that over to Charlotte.
Yes. I think we've probably covered this with earlier questions, but the cash flow going forward, you know, we have a decent liquidity buffer with our existing cash and the Santander RCF. But to make those earn-out payments, as Henrik says, we need to have profitable growth, so they will fund plus the Lifecare Technology division's profitability, that will fund earn-outs. With that all in the mix, we expect our existing liquidity to be more than sufficient for our needs.
All right, next question here. You had EUR 1.1 million in the last quarter of cash versus EUR 1.1 million this quarter. Maybe you mentioned something earlier, but is it activations? No, actually all of that is earn-out payments to very successful entrepreneurs that are reaching their earn-outs and their profitability goals. It's a natural part of the M&A program that as you see these fantastic results, then that additional acquisition consideration is paid out for that. Yeah, we will be seeing more cash payments to these clever entrepreneurs going forward as they reach their goals. That's a nice segue into the next question from ABG here.
Can you give any color on timing regarding the margin expansion in the wellness division?" Now, we don't have an exact timeline that we are sharing publicly, but we are budgeting for substantial margin expansion in 2024 for wellness. And why is that? Well, it's because it's part of our DNA. That's what we do. You accelerate based on high margin products, and as you grow your revenue, well, then your margins will also expand. The entrepreneurs are very incentivized to achieve that profitability because that's part of their deals with us for the acquisitions, for the M&A side of things.
There's some really, really strong drives there to achieve what, for example, Rehabplus, Champion Health Plus now has achieved with coming in as an unprofitable company and together with us as a leadership team and also with other entrepreneurs, accelerating that profitability up to over 10% and counting. We'll see more of that over the next quarters. Yeah, things will continue to look rosier and rosier as we get into that Physitrack mindset of growth with profitability. Last question here. "Do you have the infrastructure now for Swedish Mobile BankID, for example?" That's a good question. We have it fully on the Lifecare side of things. We have a fully localized Swedish platform. Check it out on physitrack.com, set the language to Swedish. Fully localized.
We have some great exercises there from the Physitrack side of things, with our Bossa robot speaking Swedish. We've added our Mobilus platform and the Physiotools' excellent library on there as well. Fully functional. Mobile BankID specifically, it is something that we are developing, and it's something that is actually part of the transition plan for some of our Mobilus customers into the Physitrack platform, which is a very interesting move that we're doing here in the coming quarters. Yes, we have to play the game according to the local rules. Sweden is no exception. If there are no further questions, I will just like to thank everybody for joining the Q3 results call here from Physitrack.
On behalf of myself, Charlotte, and the whole team, thank you so much. Thanks for following the story, and we'll speak to you again soon.