VitalHub Reports Second Quarter 2025 Results

Executive Summary

• VitalHub Corp. reported strong financial performance for the second quarter and first half of 2025, with Total Revenue increasing 47% year-over-year to $23.9 million for Q2 and 45% to $45.5 million for the six-month period.
• Annual Recurring Revenue (ARR) surged 55% year-over-year to $79.6 million, driven by both organic growth and significant acquisitions, including Novari Health Inc. and Induction.
• The company reported a 50% increase in Adjusted EBITDA to $6.3 million for Q2 and $11.9 million for the first half of 2025, while maintaining an 81% gross profit margin.

Key Details

• Q2 2025 Financials:
  • Total Revenue: $23,857,548 (up 47% from $16,237,605 in Q2 2024).
  • Net Income: $1,772,217 (compared to a net loss of $(335,053) in Q2 2024).
  • Net Income Before Taxes: $2,255,226 (up 63% from $1,383,605).
  • EBITDA: $3,599,683 (up 82% from $1,972,452).
  • Adjusted EBITDA: $6,304,647 (up 50% from $4,193,985), representing a 26% margin.
  • Gross Profit: $19,358,220 (81% margin).
• Six-Month 2025 Financials:
  • Total Revenue: $45,532,514 (up 45% from $31,494,396).
  • Net Income: $2,933,689 (up 198% from $983,413).
  • Adjusted EBITDA: $11,919,333 (up 45% from $8,238,917).
• ARR Metrics:
  • ARR as of June 30, 2025: $79,589,081 (up 55% YoY from $51,283,570).
  • Q2 ARR Growth Drivers: Organic growth of $1,860,849 (3%), Acquisition growth of $3,870,000 (5%), and FX gain of $170,566.
  • Pro Forma ARR: Approximately $91.6 million following the acquisition of Novari.
• Balance Sheet & Cash:
  • Cash on hand: $94,008,665 (up from $56,574,904 at Dec 31, 2024).
  • Deferred Revenue: $45,303,289.
  • The company arranged a $15,000,000 loan for an acquisition and fully repaid the balance subsequent to quarter-end.
• Acquisitions:
  • Novari Health Inc.: Acquired on July 4, 2025, for approximately $35.8 million in cash and 733,726 common shares. Novari provides referral management, surgical wait list management, and care coordination.
  • Induction: Closed earlier in the period; contributed $480,383 in revenue from closing date to June 30, 2025.
• Operational Metrics:
  • Gross profit margin remained stable at 81% for both Q2 and the first six months of 2025 compared to the prior year.
  • Term licenses, maintenance, and support revenue accounted for 83% of Q2 revenue ($19,894,544).

Notable Quotes

• “Momentum continued in the second quarter with annual organic ARR growth of 14% and 26% adjusted EBITDA margin. 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, providing the flexibility and scale to continue expanding internationally.” — Dan Matlow, CEO