Canada's Vitalhub Q4 revenue beats estimates

Overview

• Canada health software provider's Q4 revenue rose 52% yr/yr, beating analyst expectations

• Q4 adjusted EBITDA increased 47% yr/yr, margin improved sequentially with acquisition integration

• Annual recurring revenue grew 35% yr/yr, driven by organic growth and acquisitions

Outlook

• Company expects further improvement in adjusted EBITDA margin in 2026 from acquisition integration

Result Drivers

• ACQUISITIONS - Co said acquisitions contributed to ARR and revenue growth, with integration supporting margin improvement

• ORGANIC GROWTH - Organic expansion contributed to ARR and revenue increases

Company press release: ID:nGNX3SNdVl

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Vitalhub Corp is C$15.00, about 94.6% above its March 18 closing price of C$7.71

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 42 three months ago

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