WELLSTAR Posts Record Revenue of C$24.1 Million in First Results as a Public Company
Key Facts
WELLSTAR Technologies reported third-quarter 2026 results on November 9, posting revenue of C$24.1 million, up 33% year over year, according to the company and Cantech Letter. Revenue topped analyst Gianluca Tucci’s estimate of C$23.8 million and the average forecast of C$24 million. Adjusted EBITDA was C$5.1 million, above Tucci’s estimate of C$4.5 million and the consensus of C$4.8 million. The results marked the company’s first fiscal quarter reported after its shares began trading on the public market. Revenue growth came alongside expansion in recurring revenue and its digital health services platform businesses.
Subscription and support services revenue accounted for the bulk of sales, reaching C$21 million, up 35% from the same quarter a year earlier and representing 87% of total quarterly revenue. Annual recurring revenue was C$83.7 million as of September 30, up 27% from a year earlier and 4% from June 30. The metric provides a measure of contracted recurring revenue at period-end, alongside revenue recognized during the quarter. The company also reported that adjusted gross profit rose 30% to C$18 million. Adjusted gross margin edged down to 75% from 76% in the third quarter of 2025.
By segment, the Billing and Practice Management Group’s revenue rose to C$9 million, up 54% year over year, with the company saying growth included a contribution from acquisitions. Clinical Platform Group revenue increased 24% to C$8.4 million; the company attributed this mainly to growth in electronic medical records and adoption of Nexus AI tools. The Digital Health Network recorded revenue of C$6.7 million, up 21%, driven primarily by a full-quarter contribution from a large regional contract and higher professional services revenue. Chief Executive Amir Javidan said the company is expanding its billing and revenue cycle management capabilities across regional markets. He added that Nexus AI tools are being integrated into clinic workflows.
Revenue growth was not matched by a similar increase in adjusted EBITDA compared with last year; it was C$5.1 million, versus C$5.2 million in the third quarter of 2025, while its margin fell to 21% from 28%. The company said the comparable period’s margin benefited from a regional contract before costs associated with delivering its services increased. Sequentially, adjusted EBITDA rose 10% from C$4.6 million in the second quarter of 2026. WELLSTAR posted a net loss of C$49.5 million, attributing most of it to C$51.5 million in non-cash accounting costs related to the listing. Adjusted net income, by contrast, was C$3.6 million, or C$0.08 per share, compared with C$3.1 million and C$0.07 per share a year earlier.
The company ended the quarter with C$93 million in cash and no debt. Before trading began, a July 2026 financing raised gross proceeds of C$50 million; C$36.2 million went to the company through the issuance of subscription receipts, and C$13.8 million went to the selling shareholder through a secondary offering. The reverse takeover was completed on September 29, 2026, and subordinate voting shares began trading on the TSX Venture Exchange under the symbol WSTR on October 1. On November 11, Tucci maintained his “Buy” rating and C$10.25 price target, and raised his fiscal 2026 revenue forecast to C$92.8 million from C$92.3 million. The company had announced that its results conference call would be held on November 10 at 1 p.m. Eastern Time.