Nordhealth (NORDH) Q1 2025 earnings summary

Executive summary

• Signed ARR reached EUR 44.9 million at Q1 2025, reflecting 21.5% organic year-over-year growth, driven by strong net retention and lower churn.

• Revenue for Q1 2025 was EUR 12.5 million, up 23% compared to Q1 2024, with recurring revenues comprising 88.6% of the total.

• Adjusted EBITDA-CAPEX margin improved to -6.9% in Q1 2025 from -9.1% in Q1 2024, with adjusted cash flow rising to EUR 2.8 million from EUR 0.8 million year-over-year.

• Maintained a strong cash position of EUR 22.2 million and no interest-bearing debt at quarter-end.

Financial highlights

• Net retention rate improved to 115.5%, churn rate decreased to 4.6%.

• Adjusted EBITDA was EUR 0.41 million, with an adjusted EBITDA margin of 3.3% in Q1 2025.

• Adjusted EBITDA minus CapEx was EUR 0.9 million for Q1 2025, broadly flat year-over-year.

• Net loss for Q1 2025 was EUR 2.82 million, compared to EUR 2.47 million in Q1 2024.

• No material equity transactions, treasury share movements, or external financing in Q1 2025.

Outlook and guidance

• Organic recurring revenue growth expected at 12%-17% for veterinary and therapy segments in 2025, at constant currency.

• EBITDA minus CapEx expected to remain within EUR 2 million breakeven, plus or minus EUR 2 million, excluding acquisitions.

• Growth in veterinary expected to moderate due to pilot phase rollouts; therapy focus remains on migration, impacting short-term growth.