Vitalhub Corp.

Vitalhub reported Q2 2026 revenue of $31.7 million, up 33% year over year. Adjusted EBITDA was $8.2 million, or 26% of revenue, versus $6.3 million and 26% a year ago. Gross margin was 79% compared with 81% in the prior-year period. ARR reached $101.5 million at June 30, up 10% organically year over year, and pro forma ARR including Buddy Healthcare would have been approximately $106 million. The company ended the quarter with $136.5 million of cash and investments and no debt, and cash increased by over $15 million in the quarter. Management did not provide formal quarterly or full-year guidance, but said organic growth should remain in the 10% to 11% range and above that level even with the UK FTB headwind. They also said they expect more M&A through 2026 and beyond, while the NCIB is in place and could be used if the stock remains at current levels.

Dan Matlow framed the quarter as a milestone period, emphasizing that the company passed $100 million of ARR after years of building toward that goal. He highlighted continued integration of Novari and Induction, cross-sell opportunities across the patient care coordination platform, and the addition of AI features and transcription tools as new revenue drivers. His tone was upbeat but pragmatic, repeatedly noting that there is still work to do on integration and that growth will continue to come from both organic expansion and acquisitions.

Brian Goffenberg focused on the financial execution: $31.7 million of revenue, $8.2 million of adjusted EBITDA, 26% adjusted EBITDA margin, and $136.5 million of cash and investments with no debt. He said adjusted EBITDA margin continued to improve sequentially and noted strong cash conversion, with cash up by more than $15 million due to collections and platform integration. He also said the Buddy acquisition leaves the company with over $120 million of cash available for M&A, and that pro forma ARR would have been about $106 million at June 30.

Analysts pressed on UK growth, especially whether FTB/Palantir-related disruptions are depressing net ARR and whether funding is coming from special NHS envelopes or general budgets. Management said some ARR reduction did occur in the UK, but it was offset by other products, and they expect resolution of the Palantir-related uncertainty within the next couple of quarters. Questions also focused on margins, buybacks, and M&A, with management saying further EBITDA improvement is still possible, the NCIB is intended to supplement a cash-rich balance sheet, and larger deals could still appear even if buybacks are active. On AI, management said customer input is driving product development, with transcription seen as the most near-term monetizable use case.