Vitalhub (VHI) Q1 2026 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached CAD 99.1 million, with 11% organic growth and 22% from acquisitions, representing a 34% year-over-year increase.

• Total revenue was CAD 31.9 million, up 47% year-over-year, driven by both organic and acquisition-related growth.

• Adjusted EBITDA grew 42% year-over-year to CAD 8.0 million, representing 25% of revenue.

• Growth was led by Novari, with strong contributions from other segments and geographies, and integration of recent acquisitions is progressing.

• Board changes include Allan Brett as Chairman, Andrew Shen joining, and Francis Shen stepping down but remaining involved in M&A.

Financial highlights

• ARR as of March 31, 2026, was CAD 99.1 million, up from CAD 73.7 million a year earlier.

• Recurring revenue was CAD 23.9 million, accounting for 75% of total revenue.

• Gross margin improved to 82% from 80% year-over-year.

• Adjusted EBITDA was CAD 8 million (25% of revenue), compared to CAD 5.6 million (26%) last year.

• Ended the quarter with CAD 121.3 million in cash and investments, and no debt.

Outlook and guidance

• Confident in achieving lower double-digit ARR growth for 2026, aiming for Rule of 40.

• Expect steady revenue ramp from Ontario Health contract, with potential for more pathways and geographies.

• Management expects continued growth through organic initiatives and acquisitions, with operational efficiency and integration of acquisitions as key priorities.