Nordhealth (NORDH) Q2 2025 earnings summary

Executive summary

• Achieved a 49% CAGR in ARR since 2018, with most growth from organic sources and some M&A, though no acquisitions since 2022.

• Implemented ARR reached €42.3M in June 2025, up 9.5% year-over-year at constant currency.

• Major enterprise rollouts (AmeriVet, Vets4Pets) are scheduled for H2 2025 and 2026, expected to drive future growth.

• Investments are focused on DACH region localization, AI feature development, and R&D to accelerate growth.

• Increased investment in product development and client migrations, especially in the therapy business.

Financial highlights

• H1 2025 revenue reached €25.3M, up 13.4% year-over-year; recurring revenue up 17% to €22.3M, comprising 88% of total revenue.

• Q2 2025 revenue was €12.9M, up 5.4% year-over-year; recurring revenue grew 13.5% to €11.3M.

• Adjusted EBITDA margin for Q2 2025 was 0.5%; adjusted EBITDA minus CapEx for Q2 2025 was €-1M, a €1M reduction year-over-year.

• Free cash flow (adjusted) improved to €1.66M from -€1.74M; cash at June 2025 was €20.5M, with no interest-bearing debt.

• Total equity at June 2025 was €68.2M.

Outlook and guidance

• Full-year 2025 recurring revenue growth guidance for Vet and Therapy BUs is reiterated at 12%-17% (constant currency, excluding acquisitions).

• Adjusted EBITDA minus CapEx guidance for 2025 updated to between -€4M and -€2M, reflecting increased investment.

• Large enterprise rollouts expected to drive strong revenue growth in H2 2025 and 2026.