Vitalhub (OTCPK:VHIB.F) FY Conference Transcript

Summary of Vitalhub FY Conference Call (January 15, 2026) Company Overview - Company Name: Vitalhub - Ticker Symbols: VHIBF (OTCPK, U.S.), VHI (TSX, Canada) - Industry: Healthcare IT Software - Market Focus: Government-funded healthcare systems in Canada, UK, Australia, Europe, and the Middle East - Growth Strategy: Combination of organic growth and strategic acquisitions, with 23 acquisitions completed to date [4][5] Core Business and Solutions - Primary Focus: Patient flow-based solutions that integrate various healthcare pathways, including hospitals, long-term care, and home care [6] - Customer Base: - 35% of revenue from Canadian operations - 33% from the UK - Remaining revenue from Australia, the Middle East, and Europe [8] - Sales Model: Direct sales with some partnerships for advisory services; contracts are typically long-term, averaging 5-10 years [10][12] Financial Performance - Annual Recurring Revenue (ARR): Approximately CAD 94 million, with 80% of business being recurring [20] - Cash Position: CAD 120 million in cash, no debt on the balance sheet [20] - Gross Margin: Typically around 80%-81% [20] - Adjusted EBITDA Target: Aiming for 25%-30% with organic growth of 10%-15% [20] Growth Drivers - Organic Growth: Driven by product expansion, pricing opportunities, and cross-selling among existing customers [16] - M&A Strategy: Focus on acquiring financially healthy companies that can be integrated into Vitalhub's existing operations; emphasis on technology compatibility and potential for innovation [17][18] Future Outlook - 2026 Goals: - Continue with selective acquisitions, aiming for 3-4 per year - Improve financial metrics post-acquisition to align with the Rule of 40 [22][23] - Focus on integrating larger acquisitions and enhancing operational structures [23] - AI Integration: Plans to leverage AI to enhance product offerings and increase ARR, with expectations for growth in 2026 and 2027 [25][26] Key Takeaways for Investors - Vitalhub presents a secure investment opportunity with a strong recurring revenue model and a solid cash position - The company is well-positioned to capitalize on AI advancements in healthcare solutions, which could drive future growth [25][26]