VitalHub Reports Second Quarter 2026 Results
Annual Recurring Revenue (“ARR”)⁽¹⁾ up 28% YoY to $101.5 million
Total Revenue up 33% YoY to $31.7 million
Adjusted EBITDA⁽¹⁾ up 29% YoY to $8.2 million
TORONTO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Vitalhub Corp. (TSX:VHI) (OTCQX:VHIBF) (the “Company” or “VitalHub”) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management 's Discussion and Analysis report for the three and six months ended June 30, 2026 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.
“The second quarter was an important milestone for VitalHub as we exceeded $100 million of ARR⁽¹⁾, achieving 10% annual organic ARR⁽¹⁾ growth and 26% adjusted EBITDA as a percentage of revenue⁽¹⁾,” said Dan Matlow, CEO of VitalHub. “We have nearly completed integrating the larger businesses we acquired midway through 2025. Our strategy has driven an increase in adjusted EBITDA⁽¹⁾ from $5.6 million in the first quarter of 2025 to $8.2 million in the second quarter of 2026. Importantly, we are also converting a greater proportion of adjusted EBITDA⁽¹⁾ into operating cash flow, reinforcing the quality of our earnings and the scalability of our platform.”
“Subsequent to quarter-end, we completed the acquisition of Buddy Healthcare, expanding our patient journey optimization capabilities and our footprint across the Nordic region in Europe. With our strong balance sheet and pro forma ARR⁽¹⁾ of approximately $106.0 million following the acquisition of Buddy Healthcare, we are well positioned to continue scaling the business internationally.”
VitalHub’s quarterly investor conference call will take place on Friday, August 7, 2026, at 9:00am ET. To register for the conference call please visit the link here.
Second Quarter 2026 Highlights
- ARR⁽¹⁾ as at June 30, 2026 was $101,533,157 as compared to $99,078,809 at March 31, 2026, an increase of $2,454,348 or 2%.
Over the previous quarter, ARR⁽¹⁾ movement in Q2 2026 from Q1 2026 was attributable to the following:
- Organic growth of $1,802,495 or 2%.
- Gain of $651,853 due to fluctuations in foreign exchange rates.
- ARR⁽¹⁾ as at June 30, 2026 was $101,533,157 as compared to $79,589,081 at June 30, 2025, an increase of $21,944,076 or 28%.
Over the previous year, ARR⁽¹⁾ movement in Q2 2026 from Q2 2025 was attributable to the following:
- Organic growth of $8,124,613 or 10%.
- Acquisition growth of $12,000,000 or 15%.
- Gain of $1,819,463 due to fluctuations in foreign exchange rates.
- Revenue of $31,737,512 as compared to $23,857,548 in the equivalent prior year period, an increase of $7,879,964 or 33%.
- Gross profit as a percentage of revenue was 79% in Q2 2026 as compared to 81% in the equivalent prior year period.
- Net income before income taxes of $3,644,002 as compared to $2,255,226 in the equivalent prior year period, an increase of $1,388,776 or 62%.
- EBITDA⁽¹⁾ of $6,571,464 as compared to $3,599,683 in the equivalent prior year period, an increase of $2,971,781 or 83%.
- Adjusted EBITDA⁽¹⁾ of $8,162,917 or 26% of revenue as compared to $6,304,647 or 26% of revenue in the equivalent prior year period, an increase of $1,858,270 or 29%.
Six Month 2026 Highlights
- Revenue of $63,643,914 as compared to $45,532,514 in the equivalent prior year period, an increase of $18,111,400 or 40%.
- Gross profit as a percentage of revenue was 80% compared to 81% in the prior year.
- Net income before income taxes of $7,246,056 as compared to $3,742,639 in the equivalent prior year period, an increase of $3,503,417 or 94%.
- EBITDA⁽¹⁾ of $13,099,766 compared to $6,750,057 in the prior year, an increase of $6,349,709 or 94%.
- Adjusted EBITDA⁽¹⁾ of $16,152,678 or 25% of revenue, compared to $11,919,333 or 26% of revenue in the equivalent prior year period, an increase of $4,233,345 or 36%.
- Cash and cash equivalents and short-term investments as at June 30, 2026 were $136,508,574 compared to $119,180,625 as at December 31, 2025.
Subsequent Events
- On July 10, 2026, the Company acquired all of the issued and outstanding shares of Buddy Healthcare Ltd Oy. and its subsidiaries (“Buddy Healthcare”). Buddy Healthcare’s platform digitalizes specialized care pathways, replacing physical notes, phone calls, and unnecessary visits with automated guidance that keeps patients on track and frees up hospital resources. Total closing consideration for the acquisition, subject to any post-closing working capital adjustments, was approximately $13.4 million (€8.3 million) in cash subject to a 10% escrow for nine months, and the issuance of 75,000 common shares of VitalHub.
- With the addition of the ARR⁽¹⁾ of Buddy Healthcare subsequent to the quarter, the Company’s pro forma ARR⁽¹⁾ as at June 30, 2026 would have been approximately $106.0 million.
(1) Non-IFRS or supplementary financial measure.
| Selected Financial Information | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30, 2026 | % Revenue | June 30, 2025 | % Revenue | Change | June 30, 2026 | % Revenue | June 30, 2025 | % Revenue | Change | ||||||
| $ | $ | % | $ | $ | % | ||||||||||
| Revenue | 31,737,512 | 100% | 23,857,548 | 100% | 33% | 63,643,914 | 100% | 45,532,514 | 100% | 40% | |||||
| Cost of sales | 6,570,566 | 21% | 4,499,328 | 19% | (46%) | 12,432,297 | 20% | 8,730,001 | 19% | (42%) | |||||
| Gross profit | 25,166,946 | 79% | 19,358,220 | 81% | 30% | 51,211,617 | 80% | 36,802,513 | 81% | 39% | |||||
| Operating expenses | |||||||||||||||
| General and administrative | 5,089,308 | 16% | 4,677,904 | 20% | (9%) | 10,853,772 | 17% | 9,948,653 | 22% | (9%) | |||||
| Sales and marketing | 3,224,616 | 10% | 2,695,935 | 11% | (20%) | 6,239,902 | 10% | 4,724,947 | 10% | (32%) | |||||
| Research and development | 8,466,655 | 27% | 6,033,028 | 25% | (40%) | 17,503,724 | 28% | 11,253,211 | 25% | (56%) | |||||
| Depreciation of property and equipment | 141,404 | 0% | 250,861 | 1% | 44% | 280,246 | 0% | 392,938 | 1% | 29% | |||||
| Depreciation of right-of-use assets | 172,132 | 1% | 105,499 | 0% | (63%) | 340,711 | 1% | 225,395 | 0% | (51%) | |||||
| Share-based compensation | 470,181 | 1% | 644,811 | 3% | 27% | 895,138 | 1% | 1,410,211 | 3% | 37% | |||||
| Deferred share-based compensation | 0 | 0% | 90,000 | 0% | 100% | 44,800 | 0% | 90,000 | 0% | 50% | |||||
| Foreign currency loss (gain) | 223,450 | 1% | (353,294 | ) | (1%) | 163% | 461,541 | 1% | (1,047,701 | ) | (2%) | 144% | |||
| Other expenses (income) | |||||||||||||||
| Amortization of intangible assets | 3,246,005 | 10% | 1,437,740 | 6% | (126%) | 6,518,466 | 10% | 3,359,134 | 7% | (94%) | |||||
| Business acquisition, restructuring and integration costs | 1,121,272 | 4% | 1,970,153 | 8% | 43% | 2,112,974 | 3% | 3,433,567 | 8% | 38% | |||||
| Loss on change in fair value of contingent consideration | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 235,498 | 1% | 100% | |||||
| Interest income (net of interest expense) | (676,602 | ) | (2%) | (462,564 | ) | (2%) | 46% | (1,368,268 | ) | (2%) | (997,873 | ) | (2%) | 37% | |
| Interest expense from lease liabilities | 44,523 | 0% | 12,921 | 0% | (245%) | 82,555 | 0% | 27,824 | 0% | (197%) | |||||
| Loss on disposal of property and equipment | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 4,070 | 0% | 100% | |||||
| Current and deferred income taxes | 1,694,302 | 5% | 483,009 | 2% | (251%) | 2,941,239 | 5% | 808,950 | 2% | (264%) | |||||
| Net income | 1,949,700 | 6% | 1,772,217 | 7% | 10% | 4,304,817 | 7% | 2,933,689 | 6% | 47% | |||||
| EBITDA | 6,571,464 | 21% | 3,599,683 | 15% | 83% | 13,099,766 | 21% | 6,750,057 | 15% | 94% | |||||
| Adjusted EBITDA | 8,162,917 | 26% | 6,304,647 | 26% | 29% | 16,152,678 | 25% | 11,919,333 | 26% | 36% | |||||
| Annual recurring revenue | 101,533,157 | 79,589,081 | 28% | 101,533,157 | 79,589,081 | 28% | |||||||||
| Term licences, maintenance and support revenue | 24,542,042 | 77% | 19,894,544 | 83% | 23% | 48,469,181 | 76% | 38,238,110 | 84% | 27% | |||||
| As at | |||||||||||||||
| June 30, 2026 | December 31, 2025 | ||||||||||||||
| $ | $ | ||||||||||||||
| Cash and cash equivalents and short-term investments | 136,508,574 | 119,180,625 | |||||||||||||
| Deferred revenue | 61,042,705 | 45,434,654 | |||||||||||||
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 licence fees and maintenance services. The Company defines ARR as the recurring revenue that is expected based on yearly subscriptions of the renewable software licence 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 | Six months ended | ||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||
| $ | $ | $ | $ | ||||||
| Net income | 1,949,700 | 1,772,217 | 4,304,817 | 2,933,689 | |||||
| Add: Interest | (632,079 | ) | (449,643 | ) | (1,285,713 | ) | (970,049 | ) | |
| Add: Depreciation and amortization | 3,559,541 | 1,794,100 | 7,139,423 | 3,977,467 | |||||
| Add: Current and deferred tax expense | 1,694,302 | 483,009 | 2,941,239 | 808,950 | |||||
| EBITDA | 6,571,464 | 3,599,683 | 13,099,766 | 6,750,057 | |||||
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 | Six months ended | ||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||
| $ | $ | $ | $ | ||||||
| EBITDA | 6,571,464 | 3,599,683 | 13,099,766 | 6,750,057 | |||||
| Add: Share and deferred-based compensation expense | 470,181 | 734,811 | 939,938 | 1,500,211 | |||||
| Add: Business acquisition, restructuring and integration costs | 1,121,272 | 1,970,153 | 2,112,974 | 3,433,567 | |||||
| Add: Change in fair value of contingent consideration | 0 | 0 | 0 | 235,498 | |||||
| Adjusted EBITDA | 8,162,917 | 6,304,647 | 16,152,678 | 11,919,333 | |||||
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