VitalHub Reports Fourth Quarter 2025 Results

Annual Recurring Revenue (“ARR”)⁽¹⁾ up 35% YoY to $96.1 million
Total Revenue up 52% YoY to $31.4 million
Adjusted EBITDA⁽¹⁾ up 47% YoY to $7.4 million

TORONTO, March 18, 2026 (GLOBE NEWSWIRE) -- Vitalhub Corp. (TSX:VHI) (OTCQX:VHIBF) (the “Company” or “VitalHub”) announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2025 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.

“2025 was a milestone year for VitalHub, surpassing $100 million in revenue. In the fourth quarter, we achieved 10% annual organic ARR⁽¹⁾ growth and 24% adjusted EBITDA as a percentage of revenue⁽¹⁾,” said Dan Matlow, CEO of VitalHub. “We made significant acquisitions and filled in gaps in our portfolio that support our cross-selling activities globally. Our adjusted EBITDA as a percentage of revenue improved quarter over quarter as we commenced integration of the new acquisitions and we expect to realise further improvement in 2026. We are leveraging AI in our product roadmap and internally from a productivity perspective, as we continue to optimize the organization as one global team. We have a strong balance sheet as we consider acquisition opportunities of all sizes in our core and adjacent geographies. We are excited for the year ahead.”

VitalHub’s quarterly investor conference call will take place on Thursday, March 19, 2026, at 8:00am EST. To register for the conference call please visit: https://us06web.zoom.us/webinar/register/WN_k8_Av320RimXFXW0CFzQEA

Fourth Quarter 2025 Highlights

ARR⁽¹⁾ as at December 31, 2025 was $96,149,750 as compared to $93,693,789 at September 30, 2025, an increase of $2,455,961 or 3%.
Over the previous quarter, ARR movement in Q4 2025 from Q3 2025 was attributable to the following:
- Organic growth of $1,881,405 or 2%.
- Gain of $574,556 due to fluctuations in foreign exchange rates.
Revenue of $31,390,374 as compared to $20,590,779 in the equivalent prior year period, an increase of $10,799,595 or 52%.
Gross profit as a percentage of revenue was 79% in Q4 2025 as compared to 81% in the equivalent prior year period.
Net income before income taxes of $750,087 as compared to $173,000 in the equivalent prior year period.
Net income of $4,067,533 as compared to $787,244 in the equivalent prior year period.
EBITDA⁽¹⁾ of $3,285,082 as compared to $1,875,370 in the equivalent prior year period.
Adjusted EBITDA⁽¹⁾ of $7,428,508 or 24% of revenue, as compared to $5,046,758 or 25% of revenue in the equivalent prior year period, an increase of $2,381,750 or 47%.

Annual 2025 Highlights

ARR⁽¹⁾ as at December 31, 2025 was $96,149,750 as compared to $71,054,210 at December 31, 2024, an increase of $25,095,540 or 35%.
Over the previous year, ARR movement in Q4 2025 from Q4 2024 was attributable to the following:
- Organic growth of $7,231,031 or 10%.
- Acquisition growth of $15,870,000 or 22%.
- Gain of $1,994,509 due to fluctuations in foreign exchange rates.
Revenue of $108,966,918 as compared to $68,594,310 in the equivalent prior year period, an increase of $40,372,608 or 59%.
Gross profit as a percentage of revenue was 80% compared to 81% in the prior year.
Net income before income taxes of $5,901,401 as compared to $5,895,758 in the equivalent prior year period.
Net income of $6,110,963 as compared to $2,999,045 in the equivalent prior year period
EBITDA⁽¹⁾ of $14,634,782 as compared to $9,950,872 in the prior year.
Adjusted EBITDA⁽¹⁾ of $26,554,099 or 24% of revenue, as compared to $17,840,272 or 26% of revenue in the equivalent prior year period, an increase of $8,713,827 or 49%.
Cash on hand and short-term investments as at December 31, 2025 was $119,180,625 compared to $56,574,904 as at December 31, 2024.

(1) Non-IFRS or supplementary financial measure.

Selected Financial Information

	Three months ended										Year ended
	December 31, 2025		% Revenue		December 31, 2024		% Revenue		Change		December 31, 2025		% Revenue		December 31, 2024		% Revenue		Change
	$				$				%		$				$				%
Revenue	31,390,374		100	%	20,590,779		100	%	52	%	108,966,918		100	%	68,594,310		100	%	59	%

Cost of sales	6,486,447		21	%	3,841,539		19	%	(69	%)	21,378,557		20	%	13,099,877		19	%	(63	%)

Gross profit	24,903,927		79	%	16,749,240		81	%	49	%	87,588,361		80	%	55,494,433		81	%	58	%

Operating expenses
General and administrative	6,024,677		19	%	5,442,656		26	%	(11	%)	22,458,560		21	%	15,451,016		23	%	(45	%)
Sales and marketing	2,672,840		9	%	1,685,221		8	%	(59	%)	10,281,531		9	%	6,766,434		10	%	(52	%)
Research and development	8,459,901		27	%	4,189,941		20	%	(102	%)	28,950,760		27	%	15,227,119		22	%	(90	%)
Depreciation of property and equipment	165,796		1	%	123,147		1	%	(35	%)	713,788		1	%	375,838		1	%	(90	%)
Depreciation of right-of-use assets	156,655		0	%	111,156		1	%	(41	%)	557,770		1	%	438,068		1	%	(27	%)
Share-based compensation	500,277		2	%	684,034		3	%	27	%	2,557,812		2	%	2,344,464		3	%	(9	%)
Deferred share-based compensation	0		0	%	0		0	%	0	%	90,000		0	%	0		0	%	(100	%)
Foreign currency loss (gain)	316,191		1	%	384,805		2	%	18	%	(662,469	)	(1	%)	209,733		0	%	416	%

Other expenses (income)
Amortization of intangible assets	3,135,396		10	%	1,730,224		8	%	(81	%)	9,809,967		9	%	5,149,018		8	%	(91	%)
Business acquisition, restructuring and integration costs	2,173,149		7	%	2,588,292		13	%	16	%	8,811,007		8	%	5,213,044		8	%	(69	%)
(Gain) loss on change in fair value of contingent consideration	1,470,000		5	%	(100,938	)	(0	%)	1,556	%	460,498		0	%	331,892		0	%	(39	%)
Interest income (net of interest expense)	(939,481	)	(3	%)	(270,367	)	(1	%)	247	%	(2,418,490	)	(2	%)	(1,950,815	)	(3	%)	24	%
Interest expense from lease liabilities	16,629		0	%	8,210		0	%	(103	%)	70,346		0	%	43,005		0	%	(64	%)
Loss on disposal of property and equipment	1,810		0	%	(141	)	(0	%)	1,384	%	5,880		0	%	(141	)	(0	%)	4,270	%

Current and deferred income taxes (recoverable)	(3,317,446	)	(11	%)	(614,244	)	(3	%)	(440	%)	(209,562	)	(0	%)	2,896,713		4	%	107	%

Net income (loss)	4,067,533		13	%	787,244		4	%	417	%	6,110,963		6	%	2,999,045		4	%	104	%

EBITDA	3,285,082		10	%	1,875,370		9	%	75	%	14,634,782		13	%	9,950,872		15	%	47	%

Adjusted EBITDA	7,428,508		24	%	5,046,758		25	%	47	%	26,554,099		24	%	17,840,272		26	%	49	%

Annual recurring revenue	96,149,750				71,054,210				35	%	96,149,750				71,054,210				35	%

Term licences, maintenance and support revenue	23,577,363		75	%	17,673,596		86	%	33	%	85,442,864		78	%	57,070,350		83	%	50	%


							As at
							December 31, 2025		December 31, 2024
							$		$
	Cash and short-term investments balance						119,180,625		56,574,904

	Deferred revenue						45,434,654		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 1,300 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 700 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.

Non-IFRS and Other Measures

VitalHub uses certain financial and operating performance measures that management believes provide meaningful information in assessing the Company's underlying performance. Readers are cautioned that these measures may not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Definitions, reconciliations, and an explanation of how the Company's non-IFRS and supplementary financial measures provide useful information to an investor are included below.

Annual recurring revenue (“ARR”)

Annual recurring revenue is a supplementary financial measure defined as annual renewable software license fees and maintenance services. The Company defines ARR as the recurring revenue that is expected based on yearly subscriptions of the renewable software license fees and maintenance services.

Earnings before interest, taxation, depreciation, and amortization (“EBITDA”)

EBITDA is a non-IFRS measure used by management to evaluate operational performance. It is also a common measure that is reported on and used by investors in determining a company’s ability to incur and service debt, as well as a valuation methodology. EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. The following chart reflects the calculation of the Company’s EBITDA:

	Three months ended				Year ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
	$		$		$		$
Net income	4,067,533		787,244		6,110,963		2,999,045
Add: Interest	(922,852	)	(262,157	)	(2,348,144	)	(1,907,810	)
Add: Depreciation and amortization	3,457,847		1,964,527		11,081,525		5,962,924
Add: Current and deferred tax expense	(3,317,446	)	(614,244	)	(209,562	)	2,896,713
EBITDA	3,285,082		1,875,370		14,634,782		9,950,872

Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue

Adjusted EBITDA is a non-IFRS measure used by management to evaluate cash flows and the Company’s ability to service debt. Adjusted EBITDA is a non-IFRS measure and should not be considered an alternative to operating income or net income (loss) in measuring the Company’s performance. Adjusted EBITDA as a percentage of revenue expresses Adjusted EBITDA as a percentage of total revenue. The following chart reflects the Company’s calculation of Adjusted EBITDA:

	Three months ended			Year ended
	December 31, 2025	December 31, 2024		December 31, 2025	December 31, 2024
	$	$		$	$
EBITDA	3,285,082	1,875,370		14,634,782	9,950,872
Add: Share and deferred-based compensation expense	500,277	684,034		2,647,812	2,344,464
Add: Business acquisition, restructuring and integration costs	2,173,149	2,588,292		8,811,007	5,213,044
Add: (Gain) loss on change in fair value of contingent consideration	1,470,000	(100,938	)	460,498	331,892
Adjusted EBITDA	7,428,508	5,046,758		26,554,099	17,840,272

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