Vitalhub Corp.

Hi, good morning everyone and thank you for joining us today for our 2025 fourth quarter conference call. 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. 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 discussion of these risks and uncertainties, please review the forward-looking statements disclosure in the earnings press release and in our CRR 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 will hand the call over to Brian 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 fourth quarter and full year of 2025. I'll provide a summary of the financial results and then pass it over to Dan for an update on the business. For the full year, we are proud to report over $100 million of total revenue, a milestone for all of us at VitalHub. At the end of 2025, we reported annual recurring revenues of $96.1 million, representing net organic growth of 10% over the prior year. And we achieved 24% adjusted EBITDA margins and increased sequentially, showing progress on integration. For the fourth quarter of 2025, we reported total revenue of $31.4 million, an increase of 52% year-over-year, and slightly lower than Q3, primarily due to the unusually high services revenue in Q3. Recurring revenue for the term license maintenance support segment was $23.6 million, or 75% of total revenue. Virtual care term license revenue was $2.4 million, down 4% sequentially. The perpetual license revenue is $500,000, an increase from $100,000 in the prior year period. Service, hardware, and other revenue normalized sequentially at $4.9 million compared to $2.8 million in the prior year period. A gross margin was 79% of revenue compared to 81% in the prior period year. An adjusted EBITDA for the quarter was $7.4 million, or 24% of revenue, compared to $5 million, or 25% of revenue in the prior year period and 22% in Q3 as we continue to gain synergies from our latest acquisitions and operations. On the balance sheet, we closed the year with $119.2 million of cash and no debt. And with that, I'd like to hand the call over to Dan for an update on the business.

Good morning, everybody. It's good to have you this early, but we're excited to be here. Before I start, I just want to appreciate it and just talk about the delay that we had. There was nothing material that came out of that at all. It was just growth pains with the new auditor. new people, new teams, getting to know the business. In some ways, we were just ahead of our skis a little bit. If you notice, we booked one week earlier than we did last year with the new auditor, probably not the smartest thing that we did. But We're really happy with the results that came out. E&Y did a great job. We're in great spirits with them, and we're off moving in the right direction. But just thank everyone for their patience to do it. I'm not going to talk that much about the year results. You know, those things all came to the quarter. We're excited of how the overall results. It's good to look at that. We did surpass the $100 million in revenue and all the metrics on a yearly basis were, you know, were as expected. And we're very excited about our performance. We're very happy with our Q4 results, especially with respect to the integration of Navari and Induction. Those integrations are going really well. pretty good contributors, you can see the cost lines and perspective of those things and how they're starting to impact with that. Again, services revenues were lower, primarily because Q3 was higher. And we called that out in Q3, that that number probably isn't sustainable, but it was a good surprise to have in Q3 and it definitely helped our numbers as we were working through getting the cost synergies from the acquisitions to do it. The same thing in our term licenses in Q3. Our term licenses For the most part, represent ARR when you try to correlate it, but we do have timing issues. For some of those ARRs, we get renewals where we do catch-ups for the RevRec perspective to do it. It's usually not that material that corresponds with it, but sometimes it's not 100% mapping to mapping on what they do. Yeah, we're pretty happy with operations. Our backlog for services is really strong as we move into the year. We're doing a great job on new deals. We're excited about the pipeline for Navarre both in Canada and in the uk there's a lot of work that's going on through provincial initiatives across all the different provinces that we're in the mix of unfortunately not all those provinces or customers allow us to announce these deals at the time of signing them in in all circumstances but we have a lot of activity to do we're moving resources across organizations really effectively at this point. And we're excited about things that are going on. We did have contribution from all the different products for the quarter. And we're excited about what the pipeline is to get the company to the rule of 40 coming into the new year a lot quicker. So we still expect to see cost synergies moving throughout our product sets. and we expect revenue to start contributing on the ARR side, which will start contributing to income as well as we continue to move forward. I also want to talk a lot about AI or a little bit about AI. We've embraced it. We've set up AI development teams, AI projects. We've seen revenue come from One of our Navari projects, I think we announced that we are close to seeing revenue going into market. We're jointly developing other AI projects with our customers. So all of our AI projects are being driven by our customers for initiatives, and we have a lot of those that are going on. And we do expect those to start contributing into the revenue line as we start moving through the middle to the end of 2026 as they start coming in through our portfolio. We've also embraced it internally. We've added AI initiatives into our development processes, into our sales processes, into our support processes. We continue to look for ways that AI can improve our productivity. And we've started to make those investments as we continue to move there. So we're excited about what AI can bring as an opportunity going forward. And that's all I have to say today. We'll look forward to getting some questions and fleshing out any details that we might get.