VitalHub Reports Second Quarter 2026 Results

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Postmedia has not reviewed the content. by GlobeNewswire VitalHub Reports Second Quarter 2026 ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Annual Recurring Revenue (“ARR”)⁽¹⁾ up 28% YoY to $101.5 millionTotal Revenue up 33% YoY to $31.7 millionAdjusted EBITDA⁽¹⁾ up 29% YoY to $8.2 millionTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountTORONTO, 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.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“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 HighlightsARR⁽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%.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Six Month 2026 HighlightsRevenue 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.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 endedSix months ended June 30, 2026% RevenueJune 30, 2025% RevenueChangeJune 30, 2026% RevenueJune 30, 2025% RevenueChange $ $ %$ $ %Revenue31,737,512 100%23,857,548 100%33%63,643,914 100%45,532,514 100%40% Cost of sales6,570,566 21%4,499,328 19%(46%)12,432,297 20%8,730,001 19%(42%) Gross profit25,166,946 79%19,358,220 81%30%51,211,617 80%36,802,513 81%39% Operating expenses General and administrative5,089,308 16%4,677,904 20%(9%)10,853,772 17%9,948,653 22%(9%)Sales and marketing3,224,616 10%2,695,935 11%(20%)6,239,902 10%4,724,947 10%(32%)Research and development8,466,655 27%6,033,028 25%(40%)17,503,724 28%11,253,211 25%(56%)Depreciation of property and equipment141,404 0%250,861 1%44%280,246 0%392,938 1%29%Depreciation of right-of-use assets172,132 1%105,499 0%(63%)340,711 1%225,395 0%(51%)Share-based compensation470,181 1%644,811 3%27%895,138 1%1,410,211 3%37%Deferred share-based compensation0 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 assets3,246,005 10%1,437,740 6%(126%)6,518,466 10%3,359,134 7%(94%)Business acquisition, restructuring and integration costs1,121,272 4%1,970,153 8%43%2,112,974 3%3,433,567 8%38%Loss on change in fair value of contingent consideration0 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 liabilities44,523 0%12,921 0%(245%)82,555 0%27,824 0%(197%)Loss on disposal of property and equipment0 0%0 0%0%0 0%4,070 0%100% Current and deferred income taxes1,694,302 5%483,009 2%(251%)2,941,239 5%808,950 2%(264%) Net income1,949,700 6%1,772,217 7%10%4,304,817 7%2,933,689 6%47% EBITDA6,571,464 21%3,599,683 15%83%13,099,766 21%6,750,057 15%94% Adjusted EBITDA8,162,917 26%6,304,647 26%29%16,152,678 25%11,919,333 26%36% Annual recurring revenue101,533,157 79,589,081 28%101,533,157 79,589,081 28% Term licences, maintenance and support revenue24,542,042 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 investments136,508,574 119,180,625 Deferred revenue61,042,705 45,434,654 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.Christian Sgro, CPA, CA, CFAHead of IR and M&A Specialist(365) 363-6433christian.sgro@vitalhub.comDan MatlowChief Executive Officer, Director(416) 727-9061dan.matlow@vitalhub.comCertain 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 MeasuresVitalHub 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 endedSix months ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025 $$$$Net income 1,949,700 1,772,217 4,304,817 2,933,689 Add: Interest (632,079)(449,643)(1,285,713)(970,049)Add: Depreciation and amortization 3,559,541 1,794,100 7,139,423 3,977,467 Add: Current and deferred tax expense 1,694,302 483,009 2,941,239 808,950 EBITDA 6,571,464 3,599,683 13,099,766 6,750,057 Adjusted EBITDA and Adjusted EBITDA as a percentage of revenueAdjusted EBITDA is a non-IFRS measure used by management to evaluate cash flows and the Company’s ability to service debt. Adjusted EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. Adjusted EBITDA as a percentage of revenue expresses Adjusted EBITDA as a percentage of total revenue. The following chart reflects the Company’s calculation of Adjusted EBITDA: Three months endedSix months ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025 $$$$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 costs1,121,272 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 Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.