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Vitalhub (VHI) AI Stock Analysis
Vitalhub
(TSX:VHI)
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.
Vitalhub (VHI) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 494.05M
- Dividend Yield
- ―
- Average Volume (3M)
- 182.31K
- Price to Earnings (P/E)
- 65.8
- Beta (1Y)
- 1.10
- Revenue Growth
- 53.79%
- EPS Growth
- 29.92%
- Country
- Canada
- Employees
- 700
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Healthcare Information Services
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 Asi...
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 recur...
Vitalhub Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Overall fundamentals are solid: strong gross margins (~74.7% TTM), improving operating profitability (EBIT margin ~9.9% TTM vs ~5.5% in 2025), and an exceptionally low-leverage balance sheet (debt-to-equity ~0.01). Offsetting factors include moderating revenue growth (+6.6% TTM), modest ROE (~2.8% TTM), and historically volatile cash flow despite a strong recent rebound and good earnings-to-cash conversion (FCF/NI ~0.97).
Income Statement
78PositiveBalance Sheet
92Very PositiveCash Flow
74Positive| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VHI, the sentiment is Positive. The current price of 8.00 is above the 20-day moving average (MA) of 7.48, above the 50-day MA of 7.66, and above the 200-day MA of 7.63, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VHI.
Vitalhub Peers Comparison
Overall Rating
- TSE:VHI74Outperform
TSE:NDAT45Neutral
TSE:CHS41Neutral
TSE:UDOC41Neutral
TSE:ADK40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:VHI | 74Outperform | CAD 494.63M | 65.77 | 2.79% | ― | 53.79% | 29.92% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| TSE:NDAT | 45Neutral | CAD 2.89M | -16.67 | -49.83% | ― | ― | 0.00% |
| TSE:CHS | 41Neutral | CAD 10.29M | -1.76 | 64.52% | ― | 7.63% | -106.03% |
| TSE:UDOC | 41Neutral | CAD 5.18M | -1.59 | 355.56% | ― | 614.03% | 51.97% |
| TSE:ADK | 40Underperform | CAD 40.34M | -8.11 | 9999.00% | ― | -36.92% | 13.03% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:VHI | Vitalhub Corp. | 7.80 | -3.07 | -28.24% | |
| TSE:ADK | Diagnos Inc | 0.34 | -0.01 | -1.47% | |
| TSE:NDAT | nDatalyze Corp | 0.07 | 0.06 | 366.67% | |
| TSE:CHS | Comprehensive Healthcare Systems Inc | 0.35 | -0.27 | -42.74% | |
| TSE:UDOC | Unidoc Health Corp. | 0.06 | -0.13 | -68.42% |
Vitalhub Corporate Events
VitalHub Tops $100 Million ARR and Expands Nordic Reach With Buddy Healthcare Deal
PositiveVitalHub 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, wh...
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.
Date of analysis: Aug 17, 2026