Vitalhub Corp.

With me on the call today are Vital Hub CEO Dan Matlow and CFO Brian Gothenburg. After our prepared remarks, we will open up the line to questions from analysts. Please press star 1 or use the raise hand function to indicate that you would like to ask a question. Now before we begin, I will read our cautionary note regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, please review the forward-looking statements disclosure in the earnings press release and in our CDAR filings. As well, our commentary today will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS measures. Reconciliations between the two can be found in our CDAR filings. With that, I'll hand the call over to our CFO, Brian Goffenberg, to go over financial highlights for the quarter. Over to you, Brian.

Good morning, everyone, and thank you for joining the call today. We are pleased to report results for the third quarter of 2025. I'll provide a summary of the financial highlights from the quarter and then hand it over to Dan for an update on the business. At the end of September, our annual recurring revenue was $93.7 million. Organic growth was 15% of the previous year and total growth was 75%, including the acquisitions and foreign exchange. Total revenue in the quarter was $32 million, an increase of 94% year over year. Recurring revenue or term license maintenance support segment was $23.6 million or 74% of total revenue. Virtual care term license revenue was $2.5 million. This was the first full quarter contribution from the virtual care segment. Virtual license revenue was $500,000 in the quarter and increased from $300,000 in the prior year period. Services, hardware, and other revenue is $5.5 million in the quarter, compared to $2.3 million in the prior year period. Our services and other non-recurring revenues were higher than expected due to timing of project delivery and revenue recognitions. We expect our recurring revenue mix to steadily increase to historical levels. Our gross margin was 81% of revenue, consistent with prior year period. Adjusted EBITDA for the quarter was $7.2 million, or 22% of revenue, compared to $4.6 million, or 28% of the prior year period. We closed the quarter with $123.8 million of cash and no debt. We closed a small asset purchase in the UK subsequent to the quarter end, $140,000 a pound, and are otherwise generating cash and building on this balance. With that, I'd like to hand the call over to Dan for an update on the business.

Thanks, Brian. I'll make my remarks brief. I know we got a lot of analysts that are potentially out there and ready to ask some questions. I think with what I have to say and the questions, you guys should be able to get a complete picture of the quarter. uh yeah we're excited about the results um you know just based on the fact that we came across uh you know the two large acquisitions that now represent 30 of our revenue and both of those companies uh came in to not meeting our part you know our profile in terms of uh what we want in terms of the rule of 40 but we're working on it but we're We're close to 94 million of ARR and I always thought, hey, can we get this thing to 100? And we're really just knocking on the door of that 100 million ARR company. Services helped us a fair bit in the quarter due to a couple of factors. Both Zesty and Navari do come with a significant amount of services attached in their implementations. And so they did make a contribution to that and Treat has always continuously added into from a services perspective. And then we had some milestones that were met on services that allowed us to recognize some services. So with the new company services is a different element of our game. And we're excited to have that as part of our revenue mix going forward. On terms of ARR, again, contributions from all products that were coming into the equation, none that really stood out relative to the other one. We are seeing a little bit of headwinds for the shrewd-based products in the NHS, not due to COVID. anything except that they're changing all their structures in terms of ICS and ICBs. And while that's going on, I don't think they'll be making many purchases, although we are still selling that product in other areas of it. But that was always a big part that will settle down at some point in 2026. And we do expect that to start opening up again and start seeing that, you know, start seeing that to contribute. In terms of the integration, it's going great. We're starting to see that all coming together. We really got some great people with those acquisitions. We had a planning session last week where 50 people of the management team got together for planning, and it was just really nice to see how all these different groups are coming together. And we're excited about the synergistic aspects of how we're gonna be able to integrate products and integrate sales campaigns and how these products fit into really a cohesive fashion. So we're excited to do that. We immediately after the acquisition started working on cost reduction programs and that's in progress. There's a little bit of that in the quarter for sure. Really that would have just came in for the last month of that quarter. But we're continuing through that process and that's going to take into 2026 till we start working that through the complete system. But we expect to steadily through the next few quarters start to see the results of both new revenue coming in and cost reductions to get us into our profile that we're proud of and we always want to get to. We do have acquisitions in play. We continue to look at acquisitions. We've recently noticed over the last month or so, lot more heated stuff in the smaller bay stuff and we continuously look at and explore the larger acquisitions that are out there and continue to work through. So it's still a big part of our program and we continue to work through that every day and we're getting to the point that we think we can be able to digest some small ones and continue to work through that. We are working through our 2026 budgets right now. We're excited about what we can do and that's where we're at. It was really one of those bridge quarters after those two acquisitions and we're excited about how we were bridging it. And I think it was better than expected for a lot of people. So we're excited about that. And I'll turn it over to any questions anyone has. Thanks, Dan.