Vitalhub (VHI) Q4 2025 earnings summary

Executive summary

• Achieved total revenue of $108.97 million (over CAD 100 million) for 2025, with strong Q4 performance and successful integration of Novari and Induction acquisitions supporting portfolio expansion and cross-selling.

• Annual recurring revenue (ARR) reached $96.1 million, reflecting 35% year-over-year growth, with 10% net organic growth.

• Adjusted EBITDA for the year was $26.55 million (24% margin), up 49% year-over-year.

• Net income for 2025 was $6.11 million, more than doubling from the prior year.

• AI initiatives are underway, with customer-driven projects expected to contribute to revenue from mid-2026 onward.

Financial highlights

• Q4 2025 revenue was $31.39 million, up 52% year-over-year, but slightly lower sequentially due to high Q3 services revenue.

• Recurring revenue for term license maintenance/support was $23.6 million (75% of total revenue), with term licenses, maintenance, and support accounting for 78% of total revenue in 2025.

• Adjusted EBITDA for Q4 was $7.43 million (24% margin), up from $5 million (25%) in the prior year.

• Gross margin was 79% in Q4 and 80% for the year, compared to 81% in the prior year.

• Ended the year with $119.18 million in cash and no debt.

Outlook and guidance

• Targeting a return to pre-acquisition EBITDA margins of 27-28% and ARR growth of 10-12% as integration synergies are realized.

• Management expects further improvement in adjusted EBITDA margin in 2026 as acquisition integration continues.

• Expecting incremental ARR growth and margin expansion through continued cost synergies and new AI-driven revenue streams.

• Q2 is anticipated to be a strong quarter for cash collections due to major renewals.

• Ongoing focus on leveraging AI for product development and internal productivity.