Nordhealth reported steady first-half growth for 2026, with total revenue rising 9.1% year-over-year to EUR 27.6 million. Underlying recurring revenue, which accounts for more than 91% of total revenue, increased 13% to EUR 25.2 million, while quarterly recurring revenue for Q2 2026 grew 10.2% to EUR 14.2 million.
The company crossed EUR 50 million in signed annual recurring revenue (ARR), a key milestone, with therapy ARR reaching EUR 17.7 million, up 10.8% year-over-year. Group adjusted EBITDA less capital expenditure improved to a negative EUR 0.7 million from negative EUR 1 million in the prior-year period. Nordhealth maintained a cash balance of EUR 12.5 million with no interest-bearing debt as of the period.
Gross margins over the last 12 months stood at 78%, supported by strong recurring revenue retention. The veterinary segment reported a net retention rate of 109.9% and churn of 2.2%, while the therapy segment posted a net retention rate of 104.7% with gross churn at 4.5%. The company serves approximately 4,320 veterinary clinics daily and 13,320 therapy clinics, with over 75,000 active users across its platforms.
Nordhealth’s shares declined 2.54% to $23, extending a year-to-date drop of 36%. The stock remains 6.6% above its 52-week low of $21.20 and roughly 40.7% below its 52-week high of $38.80.
Management reaffirmed its 2026 recurring revenue guidance of EUR 50 million to EUR 53 million. For the 2027–2029 period, Nordhealth targets a group revenue compound annual growth rate (CAGR) of 15% plus or minus 2%, with veterinary revenue expected to grow at a 20% CAGR and therapy revenue at a 10% CAGR. The company aims to achieve adjusted EBITDA less CapEx profitability and positive cash flow by 2027.
Executives highlighted ongoing AI integration, including tools such as AI Scribe and AI Billing for veterinary clients, and automated patient summaries for therapy users. Group CEO Charles MacBain emphasized the focus on automating administrative tasks to enhance core practice management software adoption.
