Should you sell your Vitalhub stock?

Raymond James analyst Michael W. Freeman lowered his price target on Vitalhub (Vitalhub Stock Quote, Chart, News, Analysts, Financials TSX:VHI) to C$11.00 from C$15.00 while maintaining an “Outperform” rating after the company’s year-end results showed solid reported growth but softer underlying organic momentum and free cash flow trends.

As reported by the Globe and Mail, the analyst maintained an “Outperform” rating on the shares.

“While VHI will need to prove 4Q25’s somewhat soft organic growth and free cash flow prints were ephemeral with stronger 1Q and 2Q results, which we do anticipate, we continue to believe VHI is well-situated to execute its M&A-focused growth strategy…”

In a March 24 note, Freeman said the fourth-quarter headline numbers looked solid, with strong acquisition-driven growth, but weaker organic annual recurring revenue growth and free cash flow trends may have unsettled investors.

“While VHI will need to prove 4Q25’s somewhat soft organic growth and free cash flow prints were ephemeral with stronger 1Q and 2Q results, which we do anticipate, we continue to believe VHI is well-situated to execute its M&A-focused growth strategy,” he said.

Freeman noted the company remains well funded for further acquisitions, with $119-million in cash and short-term investments and $75-million of available credit, and said demand for recently acquired products, particularly Novari, remains encouraging. He also pointed to evidence of cross-selling and early success expanding revenue per user through new AI add-ons.

Vitalhub reported fourth-quarter revenue of $31.4-million, up 52% from a year earlier, while Adjusted EBITDA rose 47% to $7.4-million, or 24% of revenue. Annual recurring revenue at Dec. 31, 2025 was $96.1-million, up 35% year-over-year, including 10% organic growth.

For full-year 2025, revenue increased 59% to $109.0-million, while Adjusted EBITDA climbed 49% to $26.6-million, also representing 24% of revenue.

CEO Dan Matlow said 2025 was a milestone year for the company as it surpassed $100-million in revenue and continued expanding its product portfolio through acquisitions.

“We made significant acquisitions and filled in gaps in our portfolio that support our cross-selling activities globally,” he said, adding that the company expects further margin improvement in 2026 as integration work continues.

Vitalhub ended 2025 with $119.2-million in cash and short-term investments, up from $56.6-million a year earlier, supporting what management described as a strong balance sheet and continued acquisition capacity.

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