Annual Recurring Revenue (“ARR”)⁽¹⁾ up 14% YoY to $107.2 million
Total Revenue flat YoY at $31.9 million
Adjusted EBITDA⁽¹⁾ up 20% YoY to $8.6 million
TORONTO, Nov. 12, 2026 (GLOBE NEWSWIRE) -- VitalHub Corp. (TSX:VHI) (OTCQX:VHIBF) (the “Company” or “VitalHub”) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and nine months ended September 30, 2026 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.
“In the third quarter, we delivered 8% annual organic ARR⁽¹⁾ growth and Adjusted EBITDA⁽¹⁾ of $8.6 million, up 20% year over year. Adjusted EBITDA as a percentage of revenue⁽¹⁾ was 27%, our highest level in the last two years,” said Dan Matlow, CEO of VitalHub. “Our recurring revenue base continued to grow, with term licence, maintenance and support revenue up 9% year over year to $25.8 million, now 81% of total revenue. Services and other non-recurring revenue were seasonally lighter over the summer, against elevated project activity in the prior-year quarter.”
“During the quarter, we completed the acquisition of Buddy Healthcare, expanding our patient journey optimization capabilities and our footprint across the Nordic region in Europe. Cash provided by operating activities reached $23.9 million in the first nine months of 2026, up 69% year over year, and we ended the quarter with $129.0 million of cash and short-term investments with no debt. With ARR⁽¹⁾ of $107.2 million, we remain well positioned to continue executing on our two-pronged growth strategy.”
VitalHub’s quarterly investor conference call will take place on Friday, November 13, 2026, at 9:00am ET. To register for the conference call please visit the link here.
Third Quarter 2026 Highlights
ARR⁽¹⁾ as at September 30, 2026 was $107,194,390 as compared to $101,533,157 at June 30, 2026, an increase of $5,661,233 or 6%.
Over the previous quarter, ARR⁽¹⁾ movement in Q3 2026 from Q2 2026 was attributable to the following:- Organic growth of $815,535 or 1%.
- Acquisition growth of $4,480,000 or 4%.
- Gain of $365,698 due to fluctuations in foreign exchange rates.
ARR⁽¹⁾ as at September 30, 2026 was $107,194,390 as compared to $93,693,789 at September 30, 2025, an increase of $13,500,601 or 14%.
Over the previous year, ARR⁽¹⁾ movement in Q3 2026 from Q3 2025 was attributable to the following:- Organic growth of $7,228,813 or 8%.
- Acquisition growth of $4,480,000 or 5%.
- Gain of $1,791,788 due to fluctuations in foreign exchange rates.
Revenue of $31,913,575 as compared to $32,044,030 in the equivalent prior year period, a decrease of $130,455 or 0.4%.
Gross profit as a percentage of revenue was 79% in Q3 2026 as compared to 81% in the equivalent prior year period.
Income before income taxes of $3,396,438 as compared to $1,408,674 in the equivalent prior year period, an increase of $1,987,764 or 141%.
EBITDA⁽¹⁾ of $6,808,105 as compared to $4,599,642 in the equivalent prior year period, an increase of $2,208,463 or 48%.
Adjusted EBITDA⁽¹⁾ of $8,619,958 or 27% of revenue as compared to $7,206,257 or 22% of revenue in the equivalent prior year period, an increase of $1,413,701 or 20%.
Nine Month 2026 Highlights
- Revenue of $95,557,489 as compared to $77,576,544 in the equivalent prior year period, an increase of $17,980,945 or 23%.
- Gross profit as a percentage of revenue was 80% compared to 81% in the prior year.
- Income before income taxes of $10,642,494 as compared to $5,151,313 in the equivalent prior year period, an increase of $5,491,181 or 107%.
- EBITDA⁽¹⁾ of $19,907,871 compared to $11,349,699 in the equivalent prior year period, an increase of $8,558,172 or 75%.
- Adjusted EBITDA⁽¹⁾ of $24,772,636 or 26% of revenue, compared to $19,125,590 or 25% of revenue in the equivalent prior year period, an increase of $5,647,046 or 30%.
- Cash and cash equivalents and short-term investments as at September 30, 2026 were $129,007,023 compared to $119,180,625 as at December 31, 2025.
(1) Non-IFRS or supplementary financial measure.
| Selected Financial Information | ||||||||||||||
| Three months ended | Nine months ended | |||||||||||||
| September 30, 2026 | % Revenue | September 30, 2025 | % Revenue | Change | September 30, 2026 | % Revenue | September 30, 2025 | % Revenue | Change | |||||
| $ | $ | % | $ | $ | % | |||||||||
| Revenue | 31,913,575 | 100% | 32,044,030 | 100% | (0%) | 95,557,489 | 100% | 77,576,544 | 100% | 23% | ||||
| Cost of sales | 6,724,559 | 21% | 6,162,109 | 19% | (9%) | 19,156,856 | 20% | 14,892,110 | 19% | (29%) | ||||
| Gross profit | 25,189,016 | 79% | 25,881,921 | 81% | (3%) | 76,400,633 | 80% | 62,684,434 | 81% | 22% | ||||
| Operating expenses | ||||||||||||||
| General and administrative | 6,327,731 | 20% | 6,485,230 | 20% | 2% | 17,181,503 | 18% | 16,433,883 | 21% | (5%) | ||||
| Sales and marketing | 3,378,727 | 11% | 2,883,744 | 9% | (17%) | 9,618,629 | 10% | 7,608,691 | 10% | (26%) | ||||
| Research and development | 7,490,494 | 23% | 9,237,648 | 29% | 19% | 24,994,218 | 26% | 20,490,859 | 26% | (22%) | ||||
| Depreciation of property and equipment | 181,395 | 1% | 155,054 | 0% | (17%) | 461,641 | 0% | 547,992 | 1% | 16% | ||||
| Depreciation of right-of-use assets | 205,217 | 1% | 175,720 | 1% | (17%) | 545,928 | 1% | 401,115 | 1% | (36%) | ||||
| Share-based compensation | 443,746 | 1% | 647,324 | 2% | 31% | 1,338,884 | 1% | 2,057,535 | 3% | 35% | ||||
| Deferred share-based compensation | 0 | 0% | 0 | 0% | 0% | 44,800 | 0% | 90,000 | 0% | 50% | ||||
| Foreign currency loss (gain) | (592,126 | ) | (2%) | 69,042 | 0% | 958% | (130,585 | ) | (0%) | (978,659 | ) | (1%) | (87%) | |
| Other expenses (income) | ||||||||||||||
| Amortization of intangible assets | 3,629,504 | 11% | 3,315,437 | 10% | (9%) | 10,147,970 | 11% | 6,674,571 | 9% | (52%) | ||||
| Business acquisition, restructuring and integration costs | 1,368,107 | 4% | 3,204,291 | 10% | 57% | 3,481,081 | 4% | 6,637,858 | 9% | 48% | ||||
| Interest income (net of interest expense) | (651,493 | ) | (2%) | (481,136 | ) | (2%) | 35% | (2,019,761 | ) | (2%) | (1,479,009 | ) | (2%) | 37% |
| Interest expense from lease liabilities | 47,044 | 0% | 25,893 | 0% | (82%) | 129,599 | 0% | 53,717 | 0% | (141%) | ||||
| (Gain) on change in fair value of contingent consideration | 0 | 0% | (1,245,000 | ) | (4%) | (100%) | 0 | 0% | (1,009,502 | ) | (1%) | (100%) | ||
| (Gain) loss on disposal of property and equipment | (35,768 | ) | (0%) | 0 | 0% | 100% | (35,768 | ) | (0%) | 4,070 | 0% | 979% | ||
| Current and deferred income taxes | 807,425 | 3% | 2,298,934 | 7% | 65% | 3,748,664 | 4% | 3,107,884 | 4% | (21%) | ||||
| Net income (loss) | 2,589,013 | 8% | (890,260 | ) | (3%) | 391% | 6,893,830 | 7% | 2,043,429 | 3% | 237% | |||
| EBITDA | 6,808,105 | 21% | 4,599,642 | 14% | 48% | 19,907,871 | 21% | 11,349,699 | 15% | 75% | ||||
| Adjusted EBITDA | 8,619,958 | 27% | 7,206,257 | 22% | 20% | 24,772,636 | 26% | 19,125,590 | 25% | 30% | ||||
| Annual recurring revenue | 107,194,390 | 93,693,789 | 14% | 107,194,390 | 93,693,789 | 14% | ||||||||
| Term licences, maintenance and support revenue | 25,783,746 | 81% | 23,627,391 | 74% | 9% | 74,252,927 | 78% | 61,865,501 | 80% | 20% | ||||
| As at | ||||||||||||||
| September 30, 2026 | December 31, 2025 | |||||||||||||
| $ | $ | |||||||||||||
| Cash and cash equivalents and short-term investments | 129,007,023 | 119,180,625 | ||||||||||||
| Deferred revenue | 50,553,871 | 45,434,654 | ||||||||||||
About VitalHub
VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,300 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 700 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX:VHI) (OTCQX:VHIBF), please visit www.vitalhub.com and LinkedIn.
Contact Information
Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(365) 363-6433
christian.sgro@vitalhub.com
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
Cautionary Statement
Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Non-IFRS and Other Measures
VitalHub uses certain financial and operating performance measures that management believes provide meaningful information in assessing the Company's underlying performance. Readers are cautioned that these measures may not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Definitions, reconciliations, and an explanation of how the Company's non-IFRS and supplementary financial measures provide useful information to an investor are included below.
Annual recurring revenue (“ARR”)
Annual recurring revenue is a supplementary financial measure defined as annual renewable software licence fees and maintenance services. The Company defines ARR as the recurring revenue that is expected based on yearly subscriptions of the renewable software licence fees and maintenance services.
Earnings before interest, taxation, depreciation, and amortization (“EBITDA”)
EBITDA is a non-IFRS measure used by management to evaluate operational performance. It is also a common measure that is reported on and used by investors in determining a company’s ability to incur and service debt, as well as a valuation methodology. EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. The following chart reflects the calculation of the Company’s EBITDA:
| Three months ended | Nine months ended | |||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||
| $ | $ | $ | $ | |||||||
| Net income (loss) | 2,589,013 | (890,260 | ) | 6,893,830 | 2,043,429 | |||||
| Add: Interest | (604,449 | ) | (455,243 | ) | (1,890,162 | ) | (1,425,292 | ) | ||
| Add: Depreciation and amortization | 4,016,116 | 3,646,211 | 11,155,539 | 7,623,678 | ||||||
| Add: Current and deferred tax expense | 807,425 | 2,298,934 | 3,748,664 | 3,107,884 | ||||||
| EBITDA | 6,808,105 | 4,599,642 | 19,907,871 | 11,349,699 | ||||||
Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue
Adjusted EBITDA is a non-IFRS measure used by management to evaluate cash flows and the Company’s ability to service debt. Adjusted EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. Adjusted EBITDA as a percentage of revenue expresses Adjusted EBITDA as a percentage of total revenue. The following chart reflects the Company’s calculation of Adjusted EBITDA:
| Three months ended | Nine months ended | |||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||
| $ | $ | $ | $ | |||||||
| EBITDA | 6,808,105 | 4,599,642 | 19,907,871 | 11,349,699 | ||||||
| Add: Share-based and deferred share-based compensation | 443,746 | 647,324 | 1,383,684 | 2,147,535 | ||||||
| Add: Business acquisition, restructuring and integration costs | 1,368,107 | 3,204,291 | 3,481,081 | 6,637,858 | ||||||
| Add: Change in fair value of contingent consideration | 0 | (1,245,000 | ) | 0 | (1,009,502 | ) | ||||
| Adjusted EBITDA | 8,619,958 | 7,206,257 | 24,772,636 | 19,125,590 | ||||||
