Vitalhub (VHI) Q4 2025 earnings summary

Executive summary

• Total revenue for 2025 reached $108.97 million (over CAD 100 million), a 59% increase year-over-year, with strong Q4 performance and successful integration of Novari and Induction acquisitions.

• Annual recurring revenue (ARR) was $96.1 million, up 35% year-over-year, with 10% net organic growth.

• Adjusted EBITDA for the year was $26.55 million (24% margin), up 49% year-over-year.

• Net income for 2025 was $6.11 million, more than doubling from the prior year.

• AI initiatives and customer-driven projects are underway, expected to contribute to revenue from mid-2026 onward.

Financial highlights

• Q4 2025 revenue was $31.39 million, up 52% year-over-year, but slightly lower sequentially due to high Q3 services revenue.

• Recurring revenue for term license maintenance/support was $23.6 million (75-78% of total revenue).

• Gross margin was 79% in Q4, compared to 81% in the prior year period.

• Adjusted EBITDA for Q4 was $7.43 million (24% margin), up 47% year-over-year.

• Cash and short-term investments at year-end totaled $119.18 million, with no debt.

Outlook and guidance

• Targeting a return to pre-acquisition margin levels (27-28%) and ARR growth (10-12%) by year-end 2026.

• Management expects further improvement in adjusted EBITDA margin in 2026 as acquisition integration continues.

• AI projects anticipated to drive incremental revenue starting mid-to-late 2026.

• Strong services backlog and robust deal pipeline, especially for Novari in Canada and the UK.

• Strong balance sheet positions the company for additional acquisitions in core and adjacent markets.