VitalHub Reports Second Quarter 2025 Results

Annual Recurring Revenue (ARR)⁽¹⁾ up 55% YoY to $79.6 million

Total Revenue up 47% YoY to $23.9 million

Adjusted EBITDA⁽¹⁾ up 50% YoY to $6.3 million

TORONTO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Vitalhub Corp. (TSX:VHI) (OTCQX:VHIBF) (the "Company" or "VitalHub") announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2025 with the Canadian securities authorities. These documents may be viewed under the Company's profile at www.sedarplus.com.

"Momentum continued in the second quarter with annual organic ARR⁽¹⁾ growth of 14% and 26% adjusted EBITDA⁽¹⁾ margin," said Dan Matlow, CEO of VitalHub. "We have worked hard to integrate all 2024 acquisitions that we are building toward our targeted consolidated financial profile. We recently closed the larger acquisitions of Canada-based Novari and UK-based Induction. These add established electronic referral, surgical wait list management, and patient engagement solutions to the VitalHub patient flow suite. Inclusive of all activity to date, we have over $40 million of cash and over $90 million of ARR⁽¹⁾, providing the flexibility and scale to continue expanding internationally."

VitalHub's quarterly investor conference call will take place on Friday, August 8, 2025, at 9:00AM EST. To register for the conference call please visit: https://us06web.zoom.us/webinar/register/WN_TnJHctC-T0STDViGoHlIJw

Second Quarter 2025 Highlights

• ARR⁽¹⁾ as at June 30, 2025 was $79,589,081 as compared to $73,687,666 at March 31, 2025, an increase of $5,901,415 or 8%.
  
  Over the previous quarter, ARR⁽¹⁾ movement in Q2 2025 from Q1 2025 was attributable to the following:
  • Organic growth of $1,860,849 or 3%.
  • Acquisition growth of $3,870,000 or 5%.
  • Gain of $170,566 due to fluctuations in foreign exchange rates.
• Revenue of $23,857,548 as compared to $16,237,605 in the equivalent prior year period, an increase of $7,619,943 or 47%.
  • From the date of closing to June 30, 2025, Induction contributed revenue of $480,383.
• Gross profit as a percentage of revenue was 81% in Q2 2025 and Q2 2024.
• Net income before income taxes of $2,255,226 as compared to $1,383,605 in the equivalent prior year period, an increase of $871,621 or 63%.
• EBITDA⁽¹⁾ of $3,599,683 as compared to $1,972,452 in the equivalent prior year period, an increase of $1,627,231 or 82%.
• Adjusted EBITDA⁽¹⁾ of $6,304,647 or 26% of revenue, as compared to $4,193,985 or 26% of revenue in the equivalent prior year period, an increase of $2,110,662 or 50%.

Six Month 2025 Highlights

• ARR⁽¹⁾ as at June 30, 2025 was $79,589,081 as compared to $51,283,570 at June 30, 2024, an increase of $28,305,511 or 55%.
  
  Over the previous year, ARR⁽¹⁾ movement in Q2 2025 from Q2 2024 was attributable to the following:
  • Organic growth of $7,329,129 or 14%.
  • Acquisition growth of $18,470,000 or 36%.
  • Gain of $2,506,382 due to fluctuations in foreign exchange rates.
• Revenue of $45,532,514 as compared to $31,494,396 in the equivalent prior year period, an increase of $14,038,118 or 45%.
• Gross profit as a percentage of revenue was 81% in the first six months of 2025 and 2024.
• Net income before income taxes of $3,742,639 as compared to net income before income taxes of $3,362,500 in the equivalent prior year period, a increase of $380,139 or 11%.
• EBITDA⁽¹⁾ of $6,750,057 compared to $5,071,468 in the prior year, an increase of $1,678,589 or 33%.
• Adjusted EBITDA⁽¹⁾ of $11,919,333 or 26% of revenue, compared to $8,238,917 or 26% of revenue in the equivalent prior year period, an increase of $3,680,416 or 45%.
• Cash on hand as at June 30, 2025 was $94,008,665 compared to $56,574,904 as at December 31, 2024.
• The Company arranged a $15,000,000 loan to finance an acquisition and fully repaid the balance subsequent to quarter-end.
• On July 4, 2025, the Company acquired all of the issued and outstanding shares of Novari Health Inc. and its subsidiaries ("Novari") for total consideration of approximately $35.8 million in cash and the issuance of 733,726 common shares of VitalHub. Novari's platform offers a series of integrated software modules providing referral management, surgical wait list management, central intake, and care coordination.
• With the addition of the ARR⁽¹⁾ of Novari subsequent to the quarter, the Company's pro forma ARR⁽¹⁾ as at June 30, 2025, is approximately $91.6 million.

(1) Non-IFRS measure. Disclaimers and reconciliations can be found in SEDAR filings.

Selected Financial Information
	Three months ended										Six months ended
	June 30, 2025		% Revenue		June 30, 2024		% Revenue		Change		June 30, 2025		% Revenue		June 30, 2024		% Revenue		Change
	$				$				%		$				$				%
Revenue	23,857,548		100	%	16,237,605		100	%	47	%	45,532,514		100	%	31,494,396		100	%	45	%
Cost of sales	4,499,328		19	%	3,068,801		19	%	(47	%)	8,730,001		19	%	6,042,493		19	%	(44	%)
Gross profit	19,358,220		81	%	13,168,804		81	%	47	%	36,802,513		81	%	25,451,903		81	%	45	%
Operating expenses
General and administrative	4,677,904		20	%	3,260,964		20	%	(43	%)	9,948,653		22	%	6,452,821		20	%	(54	%)
Sales and marketing	2,695,935		11	%	1,821,834		11	%	(48	%)	4,724,947		10	%	3,518,298		11	%	(34	%)
Research and development	6,033,028		25	%	3,675,359		23	%	(64	%)	11,253,211		25	%	7,093,481		23	%	(59	%)
Depreciation of property and equipment	250,861		1	%	81,174		0	%	(209	%)	392,938		1	%	159,004		1	%	(147	%)
Depreciation of right-of-use assets	105,499		0	%	111,245		1	%	5	%	225,395		0	%	218,007		1	%	(3	%)
Share-based compensation	644,811		3	%	675,674		4	%	5	%	1,410,211		3	%	1,024,253		3	%	(38	%)
Deferred share-based compensation	90,000		0	%	0		0	%	(100	%)	90,000		0	%	0		0	%	(100	%)
Foreign currency loss (gain)	(353,294	)	(1	%)	216,662		1	%	263	%	(1,047,701	)	(2	%)	148,386		0	%	806	%
Other expenses (income)
Amortization of intangible assets	1,437,740		6	%	1,114,299		7	%	(29	%)	3,359,134		7	%	2,220,841		7	%	(51	%)
Business acquisition, restructuring and integration costs	1,970,153		8	%	1,199,964		7	%	(64	%)	3,433,567		8	%	1,797,301		6	%	(91	%)
Loss on change in fair value of contingent consideration	0		0	%	345,895		2	%	100	%	235,498		1	%	345,895		1	%	32	%
Interest expense (net of interest income)	(462,564	)	(2	%)	(729,595	)	(4	%)	(37	%)	(997,873	)	(2	%)	(914,402	)	(3	%)	9	%
Interest expense from lease liabilities	12,921		0	%	11,724		0	%	(10	%)	27,824		0	%	25,518		0	%	(9	%)
Loss on disposal of property and equipment	0		0	%	0		0	%	0	%	4,070		0	%	0		0	%	(100	%)
Current and deferred income taxes	483,009		2	%	1,718,658		11	%	(72	%)	808,950		2	%	2,379,087		8	%	(66	%)
Net income	1,772,217		7	%	(335,053	)	(2	%)	(629	%)	2,933,689		6	%	983,413		3	%	198	%
EBITDA (Non-IFRS measure)	3,599,683		15	%	1,972,452		12	%	82	%	6,750,057		15	%	5,071,468		16	%	33	%
Adjusted EBITDA (Non-IFRS measure)	6,304,647		26	%	4,193,985		26	%	50	%	11,919,333		26	%	8,238,917		26	%	45	%
Annual recurring revenue (Non-IFRS measure)	79,589,081				51,283,570				55	%	79,589,081				51,283,570				55	%
Term licences, maintenance and support revenue	19,894,544		83	%	13,039,369		80	%	53	%	38,238,110		84	%	25,504,431		81	%	50	%
							As at
							June 30, 2025		December 31, 2024
							$		$
	Cash balance						94,008,665		56,574,904
	Deferred revenue						45,303,289		35,636,002

About VitalHub

VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,000 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 500 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX:VHI) (OTCQX:VHIBF), please visit www.vitalhub.com and LinkedIn.

Contact Information

Christian Sgro, CPA, CA, CFA

Head of IR and M&A Specialist

(365) 363-6433

christian.sgro@vitalhub.com

Dan Matlow

Chief Executive Officer, Director

(416) 727-9061

dan.matlow@vitalhub.com

Cautionary Statement

Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.