Vitalhub (VHI) Q2 2025 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached $79.6 million, up 55% year-over-year, with 14% organic growth.

• Total revenue was $23.9 million for Q2 2025, a 47% increase year-over-year, with recurring revenue comprising 83% of total revenue.

• Adjusted EBITDA grew 50% year-over-year to $6.3 million, maintaining a 26% margin.

• Net income before taxes was $2.3 million, up 63% year-over-year.

• Recent acquisitions, including Novari and Induction, expanded the product suite and international presence, with four major acquisitions in the last six months.

Financial highlights

• Gross margin remained strong at 81% of revenue, consistent with the prior year.

• Cash balance as of June 30, 2025, was $94 million, up from $56.6 million at year-end 2024.

• Adjusted EBITDA for Q2 2025 was $6.3 million (26% of revenue), up 50% year-over-year.

• Six-month revenue totaled $45.53 million, a 45% increase from the prior year period.

• Deferred revenue increased to $45.3 million as of June 30, 2025.

Outlook and guidance

• Management is focused on integrating recent acquisitions and right-sizing operations, especially for Induction.

• Confident in maintaining double-digit ARR growth, though acknowledges potential for quarter-to-quarter variability.

• Pro forma ARR, including the Novari acquisition, is approximately $91.6 million as of June 30, 2025.

• Targeting a return to 26-27% adjusted EBITDA margin as integration progresses.

• Novari expected to contribute significantly to ARR in 2026 and beyond.