VitalHub Reports First Quarter 2025 Results

Core Insights - VitalHub Corp. reported a strong start to 2025 with significant growth in Annual Recurring Revenue (ARR) and total revenue, indicating robust business performance and strategic positioning in the health and human services software market [3][6]. Financial Performance - ARR increased by 54% year-over-year to $73.7 million as of March 31, 2025, compared to $47.8 million in the same period last year [6][7]. - Total revenue for the first quarter of 2025 was $21.7 million, reflecting a 42% increase from $15.3 million in the prior year [6][7]. - Adjusted EBITDA rose by 39% year-over-year to $5.6 million, representing 26% of total revenue [6][7]. Growth Drivers - The ARR growth was driven by organic growth of $6.7 million (14%) and acquisition growth of $16.8 million (35%) over the past year [6]. - The company ended the first quarter with a cash balance exceeding $90 million, positioning it well for future acquisitions [3][6]. Strategic Initiatives - VitalHub is pursuing a potential cash acquisition of UK-based Induction Healthcare Group PLC, valued at approximately £9.7 million ($18 million), expected to close in Q3 2025 [3][6]. - The company maintains a disciplined approach to acquisitions, focusing on opportunities that offer strategic value and improved pricing [3]. Operational Highlights - The gross profit margin was 80% for the first quarter of 2025, slightly down from 81% in the prior year [7]. - The company serves over 1,000 clients globally, with a comprehensive product suite that includes electronic health records and operational intelligence solutions [8][9].