Nordhealth (NORDH) Q2 & CMD 2026 earnings summary

Executive summary

• Achieved 12.5% YoY ARR growth, reaching €52.1M, with 108% net retention and 3.1% churn rate as of Q2 2026.

• Practice management software is core infrastructure for clinics, enabling automation and efficiency in veterinary and therapy verticals.

• Both business units are market leaders in their regions, with strong recurring revenue, low churn, and high customer retention.

• Group operates globally with over 17,000 practices and 75,000 daily users, focusing on reducing administrative burdens through AI-driven solutions.

• Strategic focus on deepening market penetration, expanding AI capabilities, and maintaining disciplined, profitable growth.

Financial highlights

• Q2 2026 recurring revenue grew 14.6% YoY to €13.0M; total revenue up 10.2% YoY to €14.2M.

• Veterinary ARR up 13.6% YoY to €29.7M; therapy ARR up 10.8% YoY to €17.7M.

• Group gross margin at 78%, with recurring revenue comprising over 91% of total revenue.

• Adjusted EBITDA margin at 2.5% in Q2 2026; adjusted EBITDA minus CapEx improved to EUR -0.7M, with a positive trajectory toward profitability.

• Cash position at end of Q2 was €12.5M, with no interest-bearing debt and €55M in equity.

Outlook and guidance

• 2026 full-year recurring revenue guidance remains €50–53M, with improving profitability expected through the year.

• Three-year guidance (2027–2029): 15% group CAGR (±2%), Veterinary at 20% (±3%), Therapy at 10% (±2%).

• Group expects to be adjusted EBITDA minus CapEx positive and cash flow positive from 2027 onward, self-funding organic growth.

• Continued investment in U.S. veterinary expansion and new therapy markets, while maintaining profitability.

• Full-year Adjusted EBITDA - CAPEX is estimated between -€4M and -€1M.