Nordhealth’s shares declined 2.54% to $23.00 on Tuesday after the company outlined its artificial intelligence roadmap at its Q2 2026 Capital Markets Day, despite reporting a 12.5% year-over-year increase in annual recurring revenue (ARR) to €52 million.
The Helsinki-based provider of veterinary and therapy practice management software introduced six live AI agents, including automated clinical note-taking, billing conversion, and patient history summarization tools. More than 1,400 paying AI users in the therapy segment have been onboarded, with average revenue per user doubling to €100 per month when AI features are attached. Over 600,000 journal notes in therapy alone have been generated by AI since deployment.
Financially, Nordhealth reported €25.2 million in recurring revenue for the first half of 2026, up 13% year-over-year and representing 91.3% of total revenues of €27.6 million. Adjusted EBITDA minus CAPEX remained negative at €2.2 million for H1 2026, though the company guided to a full-year range of negative €4 million to negative €1 million. Adjusted EBITDA improved from a negative €5.4 million in fiscal 2022 to a positive €1.4 million in fiscal 2025.
The veterinary segment, which serves 4,320 practices with 21,300 active veterinarians, reported €29.7 million in ARR, up 13.6% year-over-year. Market penetration stands at 6% of the €570 million total addressable market, with strongholds in Norway (77%), Finland (70%), and Sweden (56%). The therapy segment, covering 13,320 practices with 27,000 therapists, posted €17.7 million in ARR, up 10.8% year-over-year against a €64 million Nordic TAM. Gross churn was 3.1% group-wide, while lifetime value to customer acquisition cost ratios reached 26.7x in veterinary and 14.8x in therapy.
Management emphasized reinvestment in AI and infrastructure, with 100% of engineers using AI coding tools and over 90% of code generated by AI, enabling hourly release cycles. Group CFO Alexander Cram noted that the platform shift is "worth far more than a point of margin," while veterinary CTO James Stanier highlighted the company’s transition to an AI-native model. Nordhealth also confirmed the sunset of legacy platforms Sanimalis and VetVision, with Aspit migrations continuing into the second half of 2026.
The company projects group recurring revenue to grow at a 15% ±2% compound annual rate through 2029 and anticipates achieving profitability and positive cash flow in 2027, though near-term EBITDA guidance remains negative.
