Vitalhub (VHI) Q4 2025 earnings summary

Executive summary

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

• Annual recurring revenue (ARR) reached $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, with recurring revenue comprising 75% of total.

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

• Q4 gross margin was 79%, slightly down from 81% year-over-year.

• Q4 net income was $4.07 million, up from $0.79 million in Q4 2024.

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

Outlook and guidance

• Targeting a return to pre-acquisition EBITDA margins of 27-28% and ARR growth of 10-12% as integration progresses.

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

• Expecting incremental ARR and margin expansion through cost synergies and new AI-driven revenue streams.

• Anticipates strong cash collections in Q2, driven by large renewals.

• M&A activity remains a focus, with ongoing deal flow and disciplined valuation approach.