Vitalhub (VHI) Q3 2025 earnings summary

Executive summary

• Achieved annual recurring revenue (ARR) of CAD 93.7 million, up 75% year-over-year as of September 30, 2025, nearing the CAD 100 million milestone, driven by acquisitions and FX.

• Q3 revenue increased 94% year-over-year to CAD 32 million, with strong execution on integration plans and a focus on enhancing margins.

• Adjusted EBITDA rose 58% year-over-year to CAD 7.2 million, representing 22% of revenue.

• Two large acquisitions now represent 30% of revenue, with integration and cost reduction programs underway.

• Focus remains on integrating recent acquisitions and pursuing organic growth and M&A opportunities.

Financial highlights

• Q3 2025 revenue was CAD 32,044,030, up from CAD 16,509,135 in Q3 2024, a 94% increase.

• Recurring revenue was CAD 23.6 million (74% of total), with virtual care term license revenue at CAD 2.5 million and petrol license revenue at CAD 500,000.

• Gross margin held steady at 81% of revenue for both Q3 2025 and Q3 2024.

• Adjusted EBITDA was CAD 7.2 million (22% of revenue), compared to CAD 4.6 million (28%) last year.

• Cash on hand as of September 30, 2025, was CAD 123.8 million, more than double the December 31, 2024 balance, with no debt.

Outlook and guidance

• Expect recurring revenue mix to return to historical levels as services revenue normalizes.

• Integration and cost reduction from acquisitions to continue into 2026, with a goal to restore adjusted EBITDA margins to 26–28%.

• Management continues to pursue organic growth and M&A opportunities, emphasizing commercial and operational alignment.

• Anticipate new revenue and cost synergies to materialize over the next few quarters.

• AI initiatives underway, with monetization expected in late 2026 or 2027.