Vitalhub Corp.

Good morning, everyone. And thank you for joining us for our 2026 first quarter conference call. With me on the call today are Vitalhub CEO Dan Matlow and CFO Brian Gothenburg. After our prepared remarks, we will open up the line to questions from analysts. Please press star one 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 CEDAR filings. With that, I'll hand the call over to Brian to go over the 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 first quarter of 2026. We closed the quarter with $99.1 million of ARR with 11% organic growth over the prior year. An adjusted EBITDA margin increased sequentially to 25% from 23.6% in the prior quarter. We are happy to be executing on plan on both fronts. Some of the key financial highlights for the quarter are as follows. We report a total revenue of $31.9 million, an increase of 47% year-over-year. Recurring revenue or term license rates and support segment was $23.9 million, or 75% of total revenue. Virtual care license revenue was $2.4 million. Petrol license revenue is $1 million, an increase of $200,000 over the prior period. Services, hardware and other revenue was $4.6 million compared to $3.2 million in the prior year period. Our gross margin was 82% of revenue compared to 80% in the prior year period. Adjusted EBITDA for the quarter was $8 million or 25% of revenue compared to $5.6 million or 26% of revenue in the prior year period. We closed the quarter with $121.3 million of cash and investments and no debt. With that, I'd like to hand the call over to Dan for an update on the business.

Thanks, Brian. Welcome, everyone. Thanks for joining us. I think the weather is hopefully one of these days going to pick up, but it's been one of those days. I think it was just a typical Vital Hub quarter. It was a steady quarter and we're happy with where we are. I think we're well ahead of our budgets and in our plans, and we're excited to just keep moving in the same direction. Growth in the ARR in the quarter was led by Navarre, but we did see contributions from other areas as it continued to grow there, and we're happy with how that is trending. We still see some significant things coming on the Navarre side over the next couple of years. as they keep growing their footprint across Canada. And we're seeing some really nice activity cooking in the UK. We were helped out in the quarter by some good perpetual growth. We typically see that once in a while from our induction and touch group. And they had a healthy quarter. That product continues to sell pretty nicely in Australia and in Canada, I'm sorry, and in the UK. And we are seeing contributions grow in our Australian markets where we've seen some pretty nice implementations, some creative implementations of that product. Services revenue continues to be strong. It's been strong for the last two, three quarters, and we still see a pretty large backlog, and we expect that to continue. On the expense side, we continue to work on it. We're up to 25% adjusted EBITDA. Considering we purchased 30% of our revenue towards the latter part of last year, both those acquisitions were breakeven to losing money. We're starting to get that back and we can start seeing the contributions to do that. We're back to 25% adjusted EBITDA and we continue to work on that. That's done being worked on by continuous to just streamlining operations, but we're also starting to see our new ARR, our new revenue turn into profits as we continue to add that into our mix of revenues. So, we continue to want to continue to add that ARR without increasing costs and continue to work on those costs to try to get that into that area. I just want to touch on, I know we've had some comments on our accounts receivable base balance. We're sort of excited about that. Q1 is a very big billing quarter for us at the end of March. As it's our government year end, a big, large amount of our contracts get renewed there, especially the two new acquisitions that we got. A lot of that billing was done in March, and we're actually starting to see that cash balance go pretty nicely into the month of May and June, and we expect that issue to be a lot different when we report our Q2 earnings. So there's no fear there at all. We just continue to – it's government. Sometimes it's hard to collect, but we always get it, and we do do a lot of our billings in that month. So, you know, that's what that's about. Happy to announce on the board, I think you saw that other press releases, that we did make a few changes in the quarter. Alan Brett, which those that follow the investment community would know very well, he was an instrumental part of the daycare growth over the last few years, has joined the board as chairman. We've known Alan for a while. He's helped us out on M&A over the last few years a little bit, and really nice contribution there. to our organization. He's going to join in as the chairman role. And also we have Andrew Shen who is going to join our board. Andrew has been working alongside us for the last, you know, many years and has good experience in our business. And he's there to join our board. Francis Shen is going to step off of the board formally, although he's not going very far. He's still going to be involved in our M&A transactions. going to be very near in there, and so we don't expect much change, except from a formal sense, from the way Francis is working with our company on a regular basis. So, you know, Alan's going to bring some really good insights as we continue to grow, and we're excited to have him as part of it. In terms of the AI perspective, our last quarter, we really phenomenal great progress on on ai in all areas of our company we're starting to see the adoption of it uh coming from many different groups right through development um into implementation um into our columbus romantic base group and all the way through our organization so really half of some of the opportunities that we're starting to have in some of our projects and trying to streamline some of the ways that we work to try to get productivity increases and There's some pretty interesting works that are going on. So I feel we're really at par with what that is. There's always still questions on let's see this stuff actually to the result, but I think we've got good methodologies, and we really set up our projects in a pretty organized way in trying to measure the productivity gains on that basis. We also have two of our products actively in the market now, our transcription product. that will go into our electronic health records. We have our first adopter that has given us money for that, and we expect to implement that adopter in this quarter and start to move that along. And we have lots of people waiting for that transcription module that actually listens to conversations and fill out forms within our community social services area. We're also starting to see adoption of our imaging referral protocoling system, which is part of our Navari system. But we also think there's some opportunities just for that AI component within our MedCurrent-based product set as well. So we continue to work on AI and looking for new ways to add to our customer bases to do that. In terms of the M&A front, we do have opportunities. We're actually really busy on that front. We expect to close transactions in 26 for sure. And we're excited with the opportunities that there's some new geographies potentially that could open up with some of this M&A that, you know, interesting companies that have a we've known for a while and we think will have some contribution to us. So we're there. Just again, we're continuing to do what we do. We're looking to keep growing and keep innovating as best we can. We like our markets and we continue to move forward. And I'm sure there's some holes in my remarks, but our friends with some questions probably can help fill those gaps. So we'll turn it over to Christian to take some questions.