Annual Recurring Revenue (“ARR”)⁽¹⁾ up 34% YoY to $99.1 million
Total Revenue up 47% YoY to $31.9 million
Adjusted EBITDA⁽¹⁾ up 42% YoY to $8.0 million
TORONTO, May 07, 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 months ended March 31, 2026 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.
“We are pleased to report a strong start to the year, achieving 11% annual organic ARR⁽¹⁾ growth and 25% adjusted EBITDA as a percentage of revenue⁽¹⁾,” said Dan Matlow, CEO of VitalHub. “Our recent acquisitions are supporting growth, and integration work is progressing well as we drive operational efficiency. We are pleased with first quarter billings and renewals across the entire organization. We continue to strengthen our balance sheet and increase our capacity for acquisitions.”
VitalHub’s quarterly investor conference call will take place on Friday, May 8, 2026, at 9:00am EST. To register for the conference call please visit: https://us06web.zoom.us/webinar/register/WN_whpHyhutQhyBxYBelYnzDA#/registration
First Quarter 2026 Highlights
- ARR⁽¹⁾ as at March 31, 2026 was $99,078,809 as compared to $96,149,750 at December 31, 2025, an increase of $2,929,059 or 3%.
Over the previous quarter, ARR movement in Q1 2026 from Q4 2025 was attributable to the following:- Organic growth of $2,729,378 or 3%.
- Gain of $199,681 due to fluctuations in foreign exchange rates.
- ARR⁽¹⁾ as at March 31, 2026 was $99,078,809 as compared to $73,687,666 at March 31, 2025, an increase of $25,391,143 or 34%.
Over the previous year, ARR movement in Q1 2026 from Q1 2025 was attributable to the following:- Organic growth of $8,182,967 or 11%.
- Acquisition growth of $15,870,000 or 22%.
- Gain of $1,338,176 due to fluctuations in foreign exchange rates.
- Revenue of $31,906,402 as compared to $21,674,966 in the equivalent prior year period, an increase of $10,231,436 or 47%.
- Gross profit as a percentage of revenue was 82% in Q1 2026 as compared to 80% in the equivalent prior year period.
- Net income before income taxes of $3,602,054 as compared to $1,487,413 in the equivalent prior year period.
- Net income of $2,355,117 as compared to $1,161,472 in the equivalent prior year period.
- EBITDA⁽¹⁾ of $6,528,302 as compared to $3,150,374 in the equivalent prior year period.
- Adjusted EBITDA⁽¹⁾ of $7,989,761 or 25% of revenue as compared to $5,614,686 or 26% of revenue in the equivalent prior year period, an increase of $2,375,075 or 42%.
- Cash and cash equivalents and short-term investments as at March 31, 2026 was $121,266,957 compared to $119,180,625 as at December 31, 2025.
(1) Non-IFRS or supplementary financial measure.
| Selected Financial Information | ||||||||||
| Three months ended | ||||||||||
| March 31, 2026 | % Revenue | March 31, 2025 | % Revenue | Change | ||||||
| $ | $ | % | ||||||||
| Revenue | 31,906,402 | 100% | 21,674,966 | 100% | 47% | |||||
| Cost of sales | 5,861,731 | 18% | 4,230,673 | 20% | (39%) | |||||
| Gross profit | 26,044,671 | 82% | 17,444,293 | 80% | 49% | |||||
| Operating expenses | ||||||||||
| General and administrative | 5,764,464 | 18% | 5,270,749 | 24% | (9%) | |||||
| Sales and marketing | 3,015,286 | 9% | 2,029,012 | 9% | (49%) | |||||
| Research and development | 9,037,069 | 28% | 5,220,183 | 24% | (73%) | |||||
| Depreciation of property and equipment | 138,842 | 0% | 142,077 | 1% | 2% | |||||
| Depreciation of right-of-use assets | 168,579 | 1% | 119,896 | 1% | (41%) | |||||
| Share-based compensation | 424,957 | 1% | 765,400 | 4% | 44% | |||||
| Deferred share-based compensation | 44,800 | 0% | – | 0% | (100%) | |||||
| Foreign currency gain (loss) | 238,091 | 1% | (694,407 | ) | (3%) | 134% | ||||
| Other expenses (income) | ||||||||||
| Amortization of intangible assets | 3,272,461 | 10% | 1,921,394 | 9% | (70%) | |||||
| Business acquisition, restructuring and integration costs | 991,702 | 3% | 1,463,414 | 7% | 32% | |||||
| Loss on change in fair value of contingent consideration | – | 0% | 235,498 | 1% | 100% | |||||
| Interest income (net of interest expense) | (691,666 | ) | (2%) | (535,309 | ) | (2%) | 29% | |||
| Interest expense from lease liabilities | 38,032 | 0% | 14,903 | 0% | (155%) | |||||
| Loss on disposal of property and equipment | – | 0% | 4,070 | 0% | 100% | |||||
| Current and deferred income taxes (recoverable) | 1,246,937 | 4% | 325,941 | 2% | (283%) | |||||
| Net income (loss) | 2,355,117 | 7% | 1,161,472 | 5% | 103% | |||||
| EBITDA | 6,528,302 | 20% | 3,150,374 | 15% | 107% | |||||
| Adjusted EBITDA | 7,989,761 | 25% | 5,614,686 | 26% | 42% | |||||
| Annual recurring revenue | 99,078,809 | 73,687,666 | 34% | |||||||
| Term licences, maintenance and support revenue | 23,927,139 | 75% | 18,343,566 | 85% | 30% | |||||
| As at | ||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||
| $ | $ | |||||||||
| Cash and cash equivalents and short-term investments | 121,266,957 | 119,180,625 | ||||||||
| Deferred revenue | 53,319,927 | 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 | ||||
| March 31, 2026 | March 31, 2025 | |||
| $ | $ | |||
| Net income | 2,355,117 | 1,161,472 | ||
| Add: Interest | (653,634 | ) | (520,406 | ) |
| Add: Depreciation and amortization | 3,579,882 | 2,183,367 | ||
| Add: Current and deferred tax expense | 1,246,937 | 325,941 | ||
| EBITDA | 6,528,302 | 3,150,374 | ||
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 | ||||
| March 31, 2026 | March 31, 2025 | |||
| $ | $ | |||
| EBITDA | 6,528,302 | 3,150,374 | ||
| Add: Share and deferred-based compensation expense | 469,757 | 765,400 | ||
| Add: Business acquisition, restructuring and integration costs | 991,702 | 1,463,414 | ||
| Add: Loss on change in fair value of contingent consideration | – | 235,498 | ||
| Adjusted EBITDA | 7,989,761 | 5,614,686 | ||
