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Vitalhub
(TSX:VHI)
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Rating:74Outperform
Price Target:
C$9.00
▲(10.97% Upside)
Action:Reiterated
Date:08/17/26
The score is supported primarily by strong financial stability and profitability trends (very low leverage, strong margins, improving operating profitability) and a positive earnings update with solid ARR/revenue growth and strong cash resources. This is tempered by expensive valuation (high P/E) and only moderately favorable technicals given price remains below the 200-day average and stochastic is elevated.
Positive Factors
Recurring Revenue and ARR Growth
The high recurring-revenue mix improves visibility and customer retention economics, while low-double-digit organic ARR growth indicates continued demand for Vitalhub’s healthcare workflow and care-management software.
Negative Factors
UK Contract and Regulatory Uncertainty
The NHS procurement outcome and related break clause could affect customer commitments, sales cycles, and ARR in the UK. This creates a durable execution risk because public-sector contract decisions can materially shape regional growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue and ARR Growth
The high recurring-revenue mix improves visibility and customer retention economics, while low-double-digit organic ARR growth indicates continued demand for Vitalhub’s healthcare workflow and care-management software.
Read all positive factors
Vitalhub (VHI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$473.70M
Dividend YieldN/A
Average Volume (3M)200.88K
Price to Earnings (P/E)63.0
Beta (1Y)1.27
Revenue Growth53.79%
EPS Growth29.92%
CountryCA
Employees700
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding63,414,160
10 Day Avg. Volume136,024
30 Day Avg. Volume200,876
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)2.08
Price to Sales (P/S)5.09
P/FCF Ratio70.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.17Price Target Upside62.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.19
Revenue Forecast (FY)C$131.29M
Vitalhub Business Overview & Revenue Model
Company Description
Vitalhub Corp., through its subsidiaries, provides innovative technological solutions to health and human service providers internationally, specifically catering to markets in Canada, the United States, the United Kingdom, Australia, and Western ...
How the Company Makes Money
Vitalhub primarily makes money by selling its healthcare software products and related services to healthcare providers and public-sector or institutional care organizations. The core revenue stream is software revenue, typically earned through re...
Vitalhub Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial and operational positives: robust revenue growth (+33% YoY), exceeding the $100M ARR milestone (+10% organic ARR growth), improved adjusted EBITDA ($8.2M, +~30% YoY) and a healthy cash position (>$136M, no debt). Strategic progress includes near-complete integration of prior acquisitions, the Buddy Healthcare acquisition to expand digital patient engagement, active M&A pipeline, and ongoing AI product monetization efforts. The primary near-term headwinds are regional/regulatory uncertainty in the U.K. related to the Palantir/FTB situation that caused some suspended use and ARR reductions, modest gross margin compression (79% vs 81% prior year), and normal services revenue volatility. Overall, the highlights materially outweigh the lowlights, and the issues noted appear addressable or temporary.Positive Updates
ARR Milestone Achieved
Annual recurring revenue exceeded $100M, closing June at $101.5M, representing ~10% organic ARR growth year-over-year; pro forma ARR including Buddy Healthcare would be ~ $106M.
Negative Updates
UK Market Uncertainty Related to Palantir/FTB
Some UK customers suspended use of certain solutions pending resolution of the NHS national Palantir/FTB contract (break clause Q1 2027). Management recorded ARR reductions in the quarter related to this uncertainty; magnitude not fully quantified but identified as a material near-term wildcard for ARR in the U.K.
Read all updates
Q2-2026 Updates
Positive
Negative
ARR Milestone Achieved
Annual recurring revenue exceeded $100M, closing June at $101.5M, representing ~10% organic ARR growth year-over-year; pro forma ARR including Buddy Healthcare would be ~ $106M.
Read all positive updates
Company Guidance
Guidance from the call emphasized continued low double‑digit organic ARR growth (running ~10–11% this year), with ARR at $101.5M as of June 30 (pro forma ~$106M including Buddy Healthcare), Q2 revenue of $31.7M (+33% YoY), recurring revenue $24.5M (77% of sales), virtual care term license $2.3M, perpetual license $0.8M, services/hardware $4.1M, gross margin ~79%, adjusted EBITDA $8.2M (26% margin) and a goal to push adjusted EBITDA into the high‑20s; strong cash position ($136.5M cash & investments, no debt, cash up >$15M in the quarter and >$120M available post‑Buddy) supports both continued M&A activity and a NCIB (board signaled potential buybacks up to ~5%), while AI/transcription products are expected to begin contributing revenue late 2026 into 2027.Vitalhub Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.08M | 108.97M | 68.59M | 52.51M | 39.97M | 24.66M |
| Gross Profit | 94.96M | 76.51M | 55.49M | 42.81M | 32.94M | 19.43M |
| EBITDA | 26.80M | 17.05M | 11.90M | 10.38M | 5.25M | 1.12M |
| Net Income | 7.48M | 6.11M | 3.00M | 4.55M | 1.21M | -1.95M |
Balance Sheet | ||||||
| Total Assets | 381.84M | 352.71M | 207.19M | 118.78M | 106.19M | 72.77M |
| Cash, Cash Equivalents and Short-Term Investments | 136.51M | 119.18M | 56.57M | 33.48M | 17.45M | 16.39M |
| Total Debt | 2.86M | 2.51M | 608.76K | 541.09K | 882.20K | 792.51K |
| Total Liabilities | 107.63M | 86.78M | 62.33M | 36.88M | 30.79M | 17.95M |
| Stockholders Equity | 274.22M | 265.93M | 144.86M | 81.91M | 75.40M | 54.82M |
Cash Flow | ||||||
| Free Cash Flow | 20.71M | 7.90M | 14.24M | 20.18M | 5.83M | -309.58K |
| Operating Cash Flow | 21.34M | 8.32M | 15.13M | 20.47M | 6.12M | -49.97K |
| Investing Cash Flow | -101.23M | -111.11M | -31.39M | -4.15M | -21.84M | -10.06M |
| Financing Cash Flow | 56.71M | 104.59M | 39.09M | -287.89K | 16.40M | 3.17M |
Vitalhub Technical Analysis
Negative
8.11
Price Trends
7.53
Negative
7.49
Negative
7.91
Negative
Market Momentum
0.05
Positive
41.71
Neutral
2.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VHI, the sentiment is Negative. The current price of 8.11 is above the 20-day moving average (MA) of 8.02, above the 50-day MA of 7.53, and above the 200-day MA of 7.91, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 2.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VHI.
Vitalhub Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$473.70M | 62.98 | 2.79% | ― | 53.79% | 29.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$54.19M | -10.90 | 9999.00% | ― | -36.92% | 13.03% | |
45 Neutral | C$2.89M | -16.67 | -49.83% | ― | -100.00% | 42.39% | |
45 Neutral | C$11.45M | -1.92 | 64.52% | ― | 7.63% | -106.03% | |
42 Neutral | C$8.64M | -2.49 | 6239.15% | ― | ― | 68.00% |
* Healthcare Sector Average
TSE:VHI
Vitalhub
7.47
-3.54
-32.15%
TSE:ADK
Diagnos
0.45
0.19
73.08%
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nDatalyze Corp
0.07
0.06
366.67%
TSE:CHS
Comprehensive Healthcare Systems Inc
0.40
-0.16
-28.18%
TSE:UDOC
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0.10
-0.10
-50.00%
Vitalhub Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
VitalHub Tops $100 Million ARR and Expands Nordic Reach With Buddy Healthcare Deal
Positive
Aug 6, 2026
VitalHub reported a robust second quarter of 2026, crossing the $100 million mark in annual recurring revenue and posting 33% year-over-year total revenue growth to $31.7 million. Adjusted EBITDA rose 29% to $8.2 million, maintaining a 26% margin,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.