Vitalhub (VHI) Q2 2026 earnings summary

Executive summary

• Achieved annual recurring revenue (ARR) of CAD 101.5 million, up 10% organically and 28% year-over-year, with total revenue for Q2 2026 at CAD 31.7 million, a 33% increase year-over-year.

• Adjusted EBITDA margin improved to 26%, with adjusted EBITDA at CAD 8.2 million, up 29% year-over-year.

• Strong cash position with CAD 136.5 million and no debt at quarter-end.

• Completed the acquisition of Buddy Healthcare, expanding digital care offerings and European/Nordic presence.

• Integration of major 2025 acquisitions nearly complete, supporting improved earnings quality and scalability.

Financial highlights

• Recurring revenue was CAD 24.5 million, representing 77% of total revenue.

• Virtual care term license revenue was CAD 2.3 million; perpetual license revenue was CAD 800,000.

• Services, hardware, and other revenue reached CAD 4.1 million, up from CAD 2.7 million year-over-year.

• Gross margin was 79%, slightly down from 81% in the prior year.

• Net income before taxes for Q2 2026 was CAD 3.6 million, up 62% year-over-year; net income after tax was CAD 1.95 million, up 10%.

Outlook and guidance

• Organic ARR growth expected to remain in the 10%-11% range, with potential upside depending on U.K. contract uncertainties.

• Pro forma ARR post-Buddy Healthcare acquisition is approximately CAD 106 million, positioning for further international scaling.

• Continued focus on integrating acquisitions, cross-selling, and expanding AI-driven solutions.

• M&A remains a priority, with significant cash reserves available for future deals.

• Management emphasizes continued focus on organic growth and M&A to drive future performance.