Vitalhub (VHI) investor relations material

Business overview and market focus

• Operates as a healthcare IT software vendor serving government-funded healthcare systems internationally, with key markets in Canada, the UK, Australia, the Middle East, and Europe.

• Focuses on enterprise solutions for hospitals and government agencies overseeing healthcare networks, emphasizing patient flow and integration across care settings.

• Differentiates through a comprehensive suite of solutions, including AI enhancements, supporting patient navigation from primary care to long-term and home care.

• Customer base is primarily hospitals and government agencies, with a growing emphasis on system integration and patient movement across care environments.

• Sales are mainly direct, with partnerships for knowledge and change management, and contracts are typically long-term and mission-critical.

Growth strategy and financial profile

• Growth is driven by both organic expansion and strategic acquisitions, with 23 acquisitions completed to date.

• Organic growth levers include upselling new modules, cross-pollination between customer bases, and achieving preferred vendor status.

• Acquisition targets are financially healthy or improvable companies with compatible technology and potential for integration and profitability.

• Offshore development in Sri Lanka supports cost-effective innovation and integration of acquired businesses.

• 80% of revenue is recurring, with CAD 94 million ARR, no debt, and CAD 120 million in cash; gross profit margin is 80-81%.

Forward-looking statements and operational goals

• Plans to continue selective acquisitions, aiming for three to four per year, with a focus on integrating recent large acquisitions and restoring adjusted EBITDA margins.

• Targets adjusted EBITDA margins of 25-27% as integration synergies are realized, aiming to return to Rule of 40 performance.

• Expects to leverage AI to add new modules and drive ARR growth, with significant impact anticipated by late 2026 and into 2027.

• Maintains a strong cash position to support ongoing M&A and operational initiatives.

• Confident in execution of the consolidation model and continued operational improvements.