VitalHub Reports Fourth Quarter 2025 Results
MWN-AI** Summary
VitalHub Corp. (TSX: VHI) reported robust financial results for the fourth quarter of 2025, culminating a milestone year in which annual recurring revenue (ARR) exceeded $100 million. Arriving at $96.1 million, the ARR saw a significant year-over-year increase of 35%. Total revenue for the quarter was $31.4 million, marking an impressive 52% growth compared to the same period in the previous year.
The company's success was fueled by organic growth, which accounted for 10% of the ARR increase in Q4, alongside acquisitions that contributed 22% to the overall ARR growth. VitalHub's adjusted EBITDA also demonstrated positive momentum, increasing by 47% year-over-year to reach $7.4 million, equivalent to 24% of revenue. This represents a slight decline from 25% of revenue reported in the same quarter last year, an indication of ongoing integration costs from recent acquisitions.
CEO Dan Matlow emphasized strengthens in the company's portfolio through strategic acquisitions while leveraging AI advancements to enhance productivity. This integration is expected to further improve efficiency and financial metrics moving into 2026. The firm boasts a solid balance sheet, with $119.2 million in cash and short-term investments, providing ample opportunity for future growth through acquisitions.
Overall, VitalHub’s 2025 performance showcases its commitment to expanding its footprint in health and human services software, aiming for continued growth through both organic and inorganic strategies. The company's Q4 results reflect strong operational performance and a promising outlook, making it an appealing prospect for investors in the healthcare technology sector. A detailed investor conference call is scheduled for March 19, 2026, to discuss the results and future strategies.
MWN-AI** Analysis
VitalHub Corp. (TSX:VHI) has showcased impressive growth in its Fourth Quarter 2025 results, highlighting an Annual Recurring Revenue (ARR) increase of 35% year-over-year, reaching $96.1 million. The total revenue rose by 52% YoY, amounting to $31.4 million, underlining the company's robust operational performance and strategic acquisitions.
With a gross profit margin of 79% and an adjusted EBITDA of $7.4 million, equating to 24% of revenue, VitalHub's financial health signals strong operational leverage. The organic ARR growth of 10% in Q4 demonstrates the company’s ability to sustain growth without solely relying on acquisitions, a key factor for potential investors.
The narrative outlined by CEO Dan Matlow regarding integration and leveraging AI indicates a forward-thinking approach. As the company successfully integrates its acquisitions, one should monitor whether this results in enhanced efficiencies and continued growth in EBITDA margins. With cash on hand surpassing $119 million, VitalHub is strategically positioned to capitalize on further acquisition opportunities, both in core and adjacent markets.
Investors should note the anticipated benefits from AI initiatives in future profitability, especially as the healthcare tech sector increasingly emphasizes technology-driven solutions. Additionally, foreign exchange fluctuations contributed positively to ARR—a factor that could continue influencing financial results, given VitalHub's global footprint.
With strong growth metrics, a solid balance sheet, and an evolving product suite aimed at bolstering operational intelligence in health services, VitalHub presents a promising investment opportunity. Prospective investors should, however, consider external market factors, sector risks, and the company's ongoing integration efforts that could impact short-term performance.
In summary, VitalHub's strong quarterly performance and forward-looking strategy make it a compelling option, but careful observation of integration outcomes and market conditions will be essential for continued investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Annual Recurring Revenue (“ARR”)?¹? up 35% YoY to $96.1 million
Total Revenue up 52% YoY to $31.4 million
Adjusted EBITDA?¹? up 47% YoY to $7.4 million
TORONTO, March 18, 2026 (GLOBE NEWSWIRE) -- Vitalhub Corp. (TSX:VHI) (OTCQX:VHIBF) (the “Company” or “VitalHub”) announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2025 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.
“2025 was a milestone year for VitalHub, surpassing $100 million in revenue. In the fourth quarter, we achieved 10% annual organic ARR?¹? growth and 24% adjusted EBITDA as a percentage of revenue?¹?,” said Dan Matlow, CEO of VitalHub. “We made significant acquisitions and filled in gaps in our portfolio that support our cross-selling activities globally. Our adjusted EBITDA as a percentage of revenue improved quarter over quarter as we commenced integration of the new acquisitions and we expect to realise further improvement in 2026. We are leveraging AI in our product roadmap and internally from a productivity perspective, as we continue to optimize the organization as one global team. We have a strong balance sheet as we consider acquisition opportunities of all sizes in our core and adjacent geographies. We are excited for the year ahead.”
VitalHub’s quarterly investor conference call will take place on Thursday, March 19, 2026, at 8:00am EST. To register for the conference call please visit: https://us06web.zoom.us/webinar/register/WN_k8_Av320RimXFXW0CFzQEA
Fourth Quarter 2025 Highlights
- ARR?¹? as at December 31, 2025 was $96,149,750 as compared to $93,693,789 at September 30, 2025, an increase of $2,455,961 or 3%.
Over the previous quarter, ARR movement in Q4 2025 from Q3 2025 was attributable to the following:- Organic growth of $1,881,405 or 2%.
- Gain of $574,556 due to fluctuations in foreign exchange rates.
- Revenue of $31,390,374 as compared to $20,590,779 in the equivalent prior year period, an increase of $10,799,595 or 52%.
- Gross profit as a percentage of revenue was 79% in Q4 2025 as compared to 81% in the equivalent prior year period.
- Net income before income taxes of $750,087 as compared to $173,000 in the equivalent prior year period.
- Net income of $4,067,533 as compared to $787,244 in the equivalent prior year period.
- EBITDA?¹? of $3,285,082 as compared to $1,875,370 in the equivalent prior year period.
- Adjusted EBITDA?¹? of $7,428,508 or 24% of revenue, as compared to $5,046,758 or 25% of revenue in the equivalent prior year period, an increase of $2,381,750 or 47%.
Annual 2025 Highlights
- ARR?¹? as at December 31, 2025 was $96,149,750 as compared to $71,054,210 at December 31, 2024, an increase of $25,095,540 or 35%.
Over the previous year, ARR movement in Q4 2025 from Q4 2024 was attributable to the following:- Organic growth of $7,231,031 or 10%.
- Acquisition growth of $15,870,000 or 22%.
- Gain of $1,994,509 due to fluctuations in foreign exchange rates.
- Revenue of $108,966,918 as compared to $68,594,310 in the equivalent prior year period, an increase of $40,372,608 or 59%.
- Gross profit as a percentage of revenue was 80% compared to 81% in the prior year.
- Net income before income taxes of $5,901,401 as compared to $5,895,758 in the equivalent prior year period.
- Net income of $6,110,963 as compared to $2,999,045 in the equivalent prior year period
- EBITDA?¹? of $14,634,782 as compared to $9,950,872 in the prior year.
- Adjusted EBITDA?¹? of $26,554,099 or 24% of revenue, as compared to $17,840,272 or 26% of revenue in the equivalent prior year period, an increase of $8,713,827 or 49%.
- Cash on hand and short-term investments as at December 31, 2025 was $119,180,625 compared to $56,574,904 as at December 31, 2024.
(1) Non-IFRS or supplementary financial measure.
Selected Financial Information
| Three months ended | Year ended | |||||||||||||||||||
| December 31, 2025 | % Revenue | December 31, 2024 | % Revenue | Change | December 31, 2025 | % Revenue | December 31, 2024 | % Revenue | Change | |||||||||||
| $ | $ | % | $ | $ | % | |||||||||||||||
| Revenue | 31,390,374 | 100 | % | 20,590,779 | 100 | % | 52 | % | 108,966,918 | 100 | % | 68,594,310 | 100 | % | 59 | % | ||||
| Cost of sales | 6,486,447 | 21 | % | 3,841,539 | 19 | % | (69 | %) | 21,378,557 | 20 | % | 13,099,877 | 19 | % | (63 | %) | ||||
| Gross profit | 24,903,927 | 79 | % | 16,749,240 | 81 | % | 49 | % | 87,588,361 | 80 | % | 55,494,433 | 81 | % | 58 | % | ||||
| Operating expenses | ||||||||||||||||||||
| General and administrative | 6,024,677 | 19 | % | 5,442,656 | 26 | % | (11 | %) | 22,458,560 | 21 | % | 15,451,016 | 23 | % | (45 | %) | ||||
| Sales and marketing | 2,672,840 | 9 | % | 1,685,221 | 8 | % | (59 | %) | 10,281,531 | 9 | % | 6,766,434 | 10 | % | (52 | %) | ||||
| Research and development | 8,459,901 | 27 | % | 4,189,941 | 20 | % | (102 | %) | 28,950,760 | 27 | % | 15,227,119 | 22 | % | (90 | %) | ||||
| Depreciation of property and equipment | 165,796 | 1 | % | 123,147 | 1 | % | (35 | %) | 713,788 | 1 | % | 375,838 | 1 | % | (90 | %) | ||||
| Depreciation of right-of-use assets | 156,655 | 0 | % | 111,156 | 1 | % | (41 | %) | 557,770 | 1 | % | 438,068 | 1 | % | (27 | %) | ||||
| Share-based compensation | 500,277 | 2 | % | 684,034 | 3 | % | 27 | % | 2,557,812 | 2 | % | 2,344,464 | 3 | % | (9 | %) | ||||
| Deferred share-based compensation | 0 | 0 | % | 0 | 0 | % | 0 | % | 90,000 | 0 | % | 0 | 0 | % | (100 | %) | ||||
| Foreign currency loss (gain) | 316,191 | 1 | % | 384,805 | 2 | % | 18 | % | (662,469 | ) | (1 | %) | 209,733 | 0 | % | 416 | % | |||
| Other expenses (income) | ||||||||||||||||||||
| Amortization of intangible assets | 3,135,396 | 10 | % | 1,730,224 | 8 | % | (81 | %) | 9,809,967 | 9 | % | 5,149,018 | 8 | % | (91 | %) | ||||
| Business acquisition, restructuring and integration costs | 2,173,149 | 7 | % | 2,588,292 | 13 | % | 16 | % | 8,811,007 | 8 | % | 5,213,044 | 8 | % | (69 | %) | ||||
| (Gain) loss on change in fair value of contingent consideration | 1,470,000 | 5 | % | (100,938 | ) | (0 | %) | 1,556 | % | 460,498 | 0 | % | 331,892 | 0 | % | (39 | %) | |||
| Interest income (net of interest expense) | (939,481 | ) | (3 | %) | (270,367 | ) | (1 | %) | 247 | % | (2,418,490 | ) | (2 | %) | (1,950,815 | ) | (3 | %) | 24 | % |
| Interest expense from lease liabilities | 16,629 | 0 | % | 8,210 | 0 | % | (103 | %) | 70,346 | 0 | % | 43,005 | 0 | % | (64 | %) | ||||
| Loss on disposal of property and equipment | 1,810 | 0 | % | (141 | ) | (0 | %) | 1,384 | % | 5,880 | 0 | % | (141 | ) | (0 | %) | 4,270 | % | ||
| Current and deferred income taxes (recoverable) | (3,317,446 | ) | (11 | %) | (614,244 | ) | (3 | %) | (440 | %) | (209,562 | ) | (0 | %) | 2,896,713 | 4 | % | 107 | % | |
| Net income (loss) | 4,067,533 | 13 | % | 787,244 | 4 | % | 417 | % | 6,110,963 | 6 | % | 2,999,045 | 4 | % | 104 | % | ||||
| EBITDA | 3,285,082 | 10 | % | 1,875,370 | 9 | % | 75 | % | 14,634,782 | 13 | % | 9,950,872 | 15 | % | 47 | % | ||||
| Adjusted EBITDA | 7,428,508 | 24 | % | 5,046,758 | 25 | % | 47 | % | 26,554,099 | 24 | % | 17,840,272 | 26 | % | 49 | % | ||||
| Annual recurring revenue | 96,149,750 | 71,054,210 | 35 | % | 96,149,750 | 71,054,210 | 35 | % | ||||||||||||
| Term licences, maintenance and support revenue | 23,577,363 | 75 | % | 17,673,596 | 86 | % | 33 | % | 85,442,864 | 78 | % | 57,070,350 | 83 | % | 50 | % | ||||
| As at | ||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Cash and short-term investments balance | 119,180,625 | 56,574,904 | ||||||||||||||||||
| Deferred revenue | 45,434,654 | 35,636,002 | ||||||||||||||||||
About VitalHub
VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,300 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 700 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX:VHI) (OTCQX:VHIBF), please visit www.vitalhub.com and LinkedIn.
Contact Information
Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(365) 363-6433
christian.sgro@vitalhub.com
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
Cautionary Statement
Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Non-IFRS and Other Measures
VitalHub uses certain financial and operating performance measures that management believes provide meaningful information in assessing the Company's underlying performance. Readers are cautioned that these measures may not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Definitions, reconciliations, and an explanation of how the Company's non-IFRS and supplementary financial measures provide useful information to an investor are included below.
Annual recurring revenue (“ARR”)
Annual recurring revenue is a supplementary financial measure defined as annual renewable software license fees and maintenance services. The Company defines ARR as the recurring revenue that is expected based on yearly subscriptions of the renewable software license fees and maintenance services.
Earnings before interest, taxation, depreciation, and amortization (“EBITDA”)
EBITDA is a non-IFRS measure used by management to evaluate operational performance. It is also a common measure that is reported on and used by investors in determining a company’s ability to incur and service debt, as well as a valuation methodology. EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. The following chart reflects the calculation of the Company’s EBITDA:
| Three months ended | Year ended | |||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||
| $ | $ | $ | $ | |||||||||
| Net income | 4,067,533 | 787,244 | 6,110,963 | 2,999,045 | ||||||||
| Add: Interest | (922,852 | ) | (262,157 | ) | (2,348,144 | ) | (1,907,810 | ) | ||||
| Add: Depreciation and amortization | 3,457,847 | 1,964,527 | 11,081,525 | 5,962,924 | ||||||||
| Add: Current and deferred tax expense | (3,317,446 | ) | (614,244 | ) | (209,562 | ) | 2,896,713 | |||||
| EBITDA | 3,285,082 | 1,875,370 | 14,634,782 | 9,950,872 | ||||||||
Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue
Adjusted EBITDA is a non-IFRS measure used by management to evaluate cash flows and the Company’s ability to service debt. Adjusted EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. Adjusted EBITDA as a percentage of revenue expresses Adjusted EBITDA as a percentage of total revenue. The following chart reflects the Company’s calculation of Adjusted EBITDA:
| Three months ended | Year ended | ||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||
| $ | $ | $ | $ | ||||||||||
| EBITDA | 3,285,082 | 1,875,370 | 14,634,782 | 9,950,872 | |||||||||
| Add: Share and deferred-based compensation expense | 500,277 | 684,034 | 2,647,812 | 2,344,464 | |||||||||
| Add: Business acquisition, restructuring and integration costs | 2,173,149 | 2,588,292 | 8,811,007 | 5,213,044 | |||||||||
| Add: (Gain) loss on change in fair value of contingent consideration | 1,470,000 | (100,938 | ) | 460,498 | 331,892 | ||||||||
| Adjusted EBITDA | 7,428,508 | 5,046,758 | 26,554,099 | 17,840,272 | |||||||||
FAQ**
How does the increase in Annual Recurring Revenue (ARR) to $96.1 million in 2025 reflect Vitalhub Corp Ordinary Shares VHIBF's market positioning compared to competitors?
What strategies contributed to the 35% year-over-year growth in ARR for Vitalhub Corp Ordinary Shares VHIBF, and how do they plan to sustain this momentum?
Given the reliance on ARR for future revenue, how does Vitalhub Corp Ordinary Shares VHIBF plan to address potential fluctuations in foreign exchange rates impacting revenue?
How does the adjusted EBITDA performance relate to the increased ARR, specifically for Vitalhub Corp Ordinary Shares VHIBF, as they leverage acquisitions and organic growth?
**MWN-AI FAQ is based on asking OpenAI questions about Vitalhub Corp. (TSXC: VHI:CC).
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