- WELLSTAR achieved quarterly revenue of $24.1 million in Q3-2026, an increase of 33% as compared to Q3-2025, with growth across all three product lines, led by Billing and Practice Management, an increase of 54%, to $9.0 million.
- Annual Recurring Revenue (ARR)(2) reached $83.7 million as of September 30, 2026, an increase of 27% year over year.
- WELLSTAR achieved Adjusted EBITDA(1) of $5.1 million in Q3-2026, an increase of 10% from Q2-2026, representing an Adjusted EBITDA Margin(1) of 21%. Year-to-date Adjusted EBITDA(1) increased 17% to $13.5 million compared to the first nine months of 2025.
- WELLSTAR completed its reverse takeover transaction of 1587818 B.C. Ltd. (the "Transaction") on September 29, 2026 and ended the quarter with cash of $93.0 million. Its subordinate voting shares commenced trading on the TSXV under the symbol "WSTR" on October 1, 2026.
Vancouver, British Columbia--(Newsfile Corp. - November 9, 2026) - WELLSTAR Technologies Corp. (TSXV: WSTR) (the "Company" or "WELLSTAR"), a leading provider of digital health solutions for Canadian healthcare providers, is pleased to announce its interim consolidated financial results for the three and nine months ended September 30, 2026. All amounts are in Canadian dollars unless otherwise indicated.
Amir Javidan, Chief Executive Officer of WELLSTAR, commented, "The third quarter is a historic quarter for WELLSTAR as we completed our listing on the TSX Venture Exchange while delivering record revenue, up 33% year-over-year, and growing ARR(²) to $83.7 million. Each of our product lines had strong growth during the quarter, reflecting continued demand for technology that reduces administrative burden for Canadian healthcare providers. With the integration of new acquisitions Lambert Médico Factures Inc. ("Lambert"), Sherritt Services Inc. ("Sherritt") and JCL Medical Systems Ltd. ("JCL Medical"), we are broadening our billing and revenue cycle management capabilities across provincial markets, and through our Nexus AI platform we continue to embed AI-enabled workflows into the daily operations of clinics so providers can redirect more of their time towards patient care."
Darren Hoegler, Chief Financial Officer of WELLSTAR, commented, "With the completion of the Transaction, the conversion of our redeemable preferred shares and the release of proceeds from our concurrent financing, WELLSTAR ended the quarter with $93.0 million in cash, zero debt, and a simplified capital structure. Adjusted EBITDA(¹) increased 10% sequentially to $5.1 million from $4.6 million in Q2-2026. We remain focused on disciplined capital allocation as we invest in AI-related innovation, organic growth initiatives and strategic acquisitions to grow our recurring revenue base."
Third Quarter 2026 Financial Highlights
WELLSTAR achieved quarterly revenue of $24.1 million in Q3-2026, an increase of 33% compared to revenue of $18.1 million generated in Q3-2025. Revenue reflected continued organic growth together with contributions from the acquisitions of Mutuo Health, PatientSERV, Lambert, Sherritt, and JCL Medical. On a sequential basis, revenue increased by 6% from $22.8 million in Q2-2026.
Subscription and support services revenue was $21.0 million in Q3-2026, an increase of 35% compared to $15.6 million in Q3-2025, representing 87% of total revenue compared to 86% in Q3-2025.
ARR(2) was $83.7 million as at September 30, 2026, an increase of 27% compared to $66.0 million as at September 30, 2025, and an increase of 4% compared to $80.1 million as at June 30, 2026. The year-over-year increase was attributable to continued organic growth as well as incremental recurring revenue from acquired businesses.
Adjusted Gross Profit(1) was $18.0 million in Q3-2026, an increase of 30% compared to Adjusted Gross Profit(¹) of $13.9 million in Q3-2025. Consolidated Adjusted Gross Margin(1) was 75% compared to 76% in Q3-2025. Both Clinical Platform Group and Digital Health Networks delivered improved Adjusted Gross Margins(1), partially offsetting changes in hardware and service-delivery mix and lower margins on hardware sales in Billing and Practice Management.
Net loss was $49.5 million in Q3-2026, or $1.14 per share, compared to a net loss of $1.7 million, or $0.04 per share, in Q3-2025. The net loss in Q3-2026 was primarily attributable to $51.5 million of non-cash transaction-related accounting costs related to WELLSTAR's public listing.
Adjusted EBITDA(1) was $5.1 million in Q3-2026, representing an Adjusted EBITDA Margin(1) of 21%, compared to Adjusted EBITDA(1) of $5.2 million, or an Adjusted EBITDA Margin(1) of 28%, in Q3-2025. The Q3-2025 margin benefited from the initial months of revenue under a significant provincial contract before the associated delivery costs had ramped. Those costs are now fully reflected in Q3-2026. Separately, the Q3-2026 margin also included investments made since Q4-2025 in team and infrastructure to operate as a public company and scale for growth. On a sequential basis, Adjusted EBITDA(1) increased 10% from $4.6 million in Q2-2026, and year-to-date Adjusted EBITDA(1) increased 17% to $13.5 million.
Adjusted Net Income(1) was $3.6 million, or $0.08 per share, in Q3-2026, compared to Adjusted Net Income(1) of $3.1 million, or $0.07 per share, in Q3-2025.
As at September 30, 2026, the Company had 77,223,308 shares issued and outstanding consisting of 41,620,000 multiple voting shares and 35,603,308 subordinate voting shares.
Revenue by Product Line
Clinical Platform Group (CPG) revenues were $8.4 million in Q3-2026, an increase of 24% compared to $6.8 million in Q3-2025, driven primarily by robust EMR growth together with Nexus AI adoptions.
Billing and Practice Management (BPM) revenues were $9.0 million in Q3-2026, an increase of 54% compared to $5.9 million in Q3-2025. Growth included acquisition revenue contribution from PatientSERV, Lambert, Sherritt and JCL Medical, together with growth across existing billing and IT management solutions.
Digital Health Networks (DHN) revenues were $6.7 million in Q3-2026, an increase of 21% compared to $5.5 million in Q3-2025, primarily due to a full quarter of revenue contribution from a large provincial contract compared to Q3-2025, and higher professional services revenue. DHN Adjusted Gross Margin(¹) increased to 92% from 90% in Q3-2025.
Third Quarter 2026 Key Business Highlights
On July 1, 2026, WELLSTAR acquired JCL Medical for total payments of up to $8.5 million, subject to customary adjustments, inclusive of $2.7 million contingent on performance targets.
On July 30, 2026, WELLSTAR completed a financing for aggregate gross proceeds of $50.0 million, consisting of a brokered private placement of subscription receipts for gross proceeds to the Company of $36.2 million and a secondary offering with gross proceeds to the selling shareholder of $13.8 million.
On September 29, 2026, WELLSTAR completed its amalgamation with 1587818 B.C. Ltd. pursuant to the Transaction. Immediately prior to the Transaction, WELLSTAR converted all outstanding Series A and Series B redeemable preferred shares into subordinate voting shares, and completed a share consolidation using a ratio of one (1) post-consolidation multiple voting share or subordinate voting share for each six (6) pre-consolidation multiple voting shares or subordinate voting shares. The Transaction was accounted for as a reverse asset acquisition, with WELLSTAR as the accounting acquirer.
Events Subsequent to September 30, 2026
On October 1, 2026, the Company's subordinate voting shares commenced trading on the TSXV under the symbol "WSTR".
Outlook
Management expects to continue executing its strategy of expanding WELLSTAR's healthcare technology platform through a combination of organic growth, cross-selling and upselling across its existing customer base, increased adoption within the WELL Health clinic network, provincial procurement opportunities and selected strategic acquisitions. The Company intends to continue investing in AI-enabled solutions, interoperability, billing and revenue cycle management, clinic workflow solutions and healthcare IT infrastructure to enhance its integrated platform and strengthen recurring revenue streams.
Key operational priorities include:
- the continued integration of recent acquisitions, including PatientSERV, Mutuo, Lambert, Sherritt and JCL Medical;
- expansion of billing and revenue cycle management capabilities across Canadian provincial markets;
- the continued rollout of AI-powered clinical documentation and workflow automation through Nexus AI
- continued growth of OceanMD and other patient engagement offerings, including working with provincial health authorities for eReferral expansion; and
- ongoing investment in platform scalability, cybersecurity and customer support.
Conference Call
WELLSTAR will hold a conference call and simultaneous webcast to discuss its Third Quarter 2026 financial results for the period ended September 30, 2026, on Tuesday, November 10, 2026 at 1:00 pm EST (11:00 am PCT). The call will be hosted by Amir Javidan, Chief Executive Officer and Director, and Darren Hoegler, Chief Financial Officer. Please dial in 10 minutes prior to the start of the call.
Please use the following dial-in numbers: 1-800-717-1738 (Toll Free) or 1-289-514-5100 (Toronto Local/International Toll).
The conference call will also be simultaneously webcast. To attend the webcast, register here or visit https://investors.wellstar.health/news-events/ for details.
Selected Unaudited Financial Highlights
Please see SEDAR+ for complete copies of the Company's condensed interim consolidated financial statements (unaudited) and interim MD&A for the three and nine months ended September 30, 2026.
| In thousands of Canadian dollars, except per-share amounts. | Quarter ended | Nine months ended | |||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenue | 24,129 | 22,765 | 18,146 | 68,415 | 51,869 | ||||||||||
| Cost of sales (excluding depreciation and amortization) | 6,108 | 5,988 | 4,280 | 17,457 | 13,362 | ||||||||||
| Adjusted Gross Profit(1) | 18,021 | 16,777 | 13,866 | 50,958 | 38,507 | ||||||||||
| Adjusted Gross Margin(1) | 75% | 74% | 76% | 74% | 74% | ||||||||||
| Adjusted EBITDA(1) | 5,062 | 4,597 | 5,163 | 13,540 | 11,569 | ||||||||||
| Net loss and total comprehensive loss | (49,549 | ) | (6,827 | ) | (1,706 | ) | (64,587 | ) | (5,788 | ) | |||||
| Adjusted Net Income(1) | 3,565 | 2,515 | 3,125 | 8,178 | 7,616 | ||||||||||
| Loss per share, basic (in $) | $ | (1.14 | ) | $ | (0.16 | ) | $ | (0.04 | ) | $ | (1.51 | ) | $ | (0.15 | ) |
| Loss per share, diluted (in $) | $ | (1.14 | ) | $ | (0.16 | ) | $ | (0.04 | ) | $ | (1.51 | ) | $ | (0.15 | ) |
| Adjusted Net Income per Share (in $)(1) | $ | 0.08 | $ | 0.06 | $ | 0.07 | $ | 0.19 | $ | 0.18 | |||||
Basic and diluted loss per share, including comparative periods, have been retrospectively adjusted to reflect a share consolidation using a ratio of one (1) post-consolidation multiple voting share or subordinate voting share for each six (6) pre-consolidation multiple voting shares or subordinate voting shares, which was completed as part of the Transaction.
| In thousands of Canadian dollars. | Quarter ended | Nine months ended | |||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Reconciliation of net loss to Adjusted EBITDA(1): | |||||||||||||||
| Net loss | (49,549 | ) | (6,827 | ) | (1,706 | ) | (64,587 | ) | (5,788 | ) | |||||
| Income tax (recovery) expense | (49 | ) | 122 | 1,111 | 623 | 1,118 | |||||||||
| Depreciation and amortization | 2,847 | 2,294 | 1,699 | 7,437 | 4,677 | ||||||||||
| Interest income | (663 | ) | (402 | ) | (108 | ) | (1,591 | ) | (335 | ) | |||||
| Interest expense | 28,033 | 6,683 | 2,116 | 41,010 | 6,122 | ||||||||||
| Changes in fair value of financial assets | - | - | - | 833 | - | ||||||||||
| Rent expense on right-of-use assets | (191 | ) | (173 | ) | (105 | ) | (533 | ) | (354 | ) | |||||
| Share-based compensation | 1,183 | 1,440 | 156 | 4,407 | 478 | ||||||||||
| Foreign exchange loss (gain) | (1 | ) | 3 | 4 | 5 | (2 | ) | ||||||||
| Time-based earnout expense | 767 | 380 | 1,782 | 1,491 | 4,576 | ||||||||||
| Transaction, restructuring and integration costs | 451 | 387 | 214 | 1,521 | 1,077 | ||||||||||
| Reverse takeover and listing expenses | 23,755 | 690 | - | 24,445 | - | ||||||||||
| Gain on expiry of broker warrants | (1,521 | ) | - | - | (1,521 | ) | - | ||||||||
| Adjusted EBITDA(1) | 5,062 | 4,597 | 5,163 | 13,540 | 11,569 | ||||||||||
| Adjusted EBITDA attributable to WELLSTAR shareholders(1) | 4,626 | 4,471 | 4,869 | 12,881 | 10,611 | ||||||||||
| Adjusted EBITDA attributable to non-controlling interests(1) | 436 | 126 | 294 | 659 | 958 | ||||||||||
| In thousands of Canadian dollars. | Quarter ended | Nine months ended | |||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Reconciliation of net loss to Adjusted Net Income(1): | |||||||||||||||
| Net loss | (49,549 | ) | (6,827 | ) | (1,706 | ) | (64,587 | ) | (5,788 | ) | |||||
| Amortization of acquired intangible assets | 1,753 | 1,674 | 1,381 | 5,037 | 4,143 | ||||||||||
| Interest and remeasurement of redeemable preferred shares | 28,801 | 6,372 | 2,047 | 41,321 | 5,927 | ||||||||||
| Share-based listing expense | 22,721 | - | - | 22,721 | - | ||||||||||
| Time-based earnout expense | 767 | 380 | 1,782 | 1,491 | 4,576 | ||||||||||
| Share-based compensation | 1,183 | 1,440 | 156 | 4,407 | 478 | ||||||||||
| Change in fair value of financial assets | - | - | - | 833 | - | ||||||||||
| Gain on expiry of broker warrants | (1,521 | ) | - | - | (1,521 | ) | - | ||||||||
| Non-controlling interest included in net loss, exclusive of other adjustments | (126 | ) | (88 | ) | (162 | ) | (189 | ) | (601 | ) | |||||
| Tax effect of adjustments | (464 | ) | (436 | ) | (373 | ) | (1,335 | ) | (1,119 | ) | |||||
| Adjusted Net Income(1) | 3,565 | 2,515 | 3,125 | 8,178 | 7,616 | ||||||||||
Footnotes:
1. Non-IFRS Financial Measures
In addition to results reported in accordance with IFRS Accounting Standards ("IFRS"), the Company uses certain non-IFRS financial measures and ratios as supplemental indicators of its financial and operating performance. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA attributable to WELLSTAR Shareholders, Adjusted EBITDA attributable to non-controlling interests, Adjusted Net Income and Adjusted Net Income Per Share. These performance measures do not have a standard meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other healthcare technology companies. These measures are provided to complement IFRS measures by providing further understanding of the Company's results from management's perspective and should not be considered in isolation or as substitutes for financial information prepared in accordance with IFRS.
Adjusted Gross Profit and Adjusted Gross Margin
The Company defines Adjusted Gross Profit as revenue less cost of sales, excluding depreciation and amortization, and Adjusted Gross Margin as Adjusted Gross Profit as a percentage of total product line or consolidated revenue, as applicable. Adjusted Gross Profit and Adjusted Gross Margin should not be construed as alternatives for revenue or net income (loss) determined in accordance with IFRS. The Company believes that Adjusted Gross Profit and Adjusted Gross Margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services.
Adjusted EBITDA and Adjusted EBITDA Margin
The Company defines Adjusted EBITDA as net income (loss) before interest income and expense, taxes, depreciation and amortization less net rent expense on premises leases accounted for as right-of-use leases under IFRS 16, and before share-based compensation expense, time-based earnout expense, foreign exchange gains and losses, changes in the fair value of financial assets, impairment charges, transaction, restructuring, integration and go-public costs, legal settlements and defence costs, and gains/losses that are not reflective of ongoing operating performance. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenue. The Company uses Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures to assess its operating performance, evaluate period-to-period trends and support comparisons across its businesses by excluding items that management does not consider indicative of ongoing operating performance.
Adjusted EBITDA Attributable to WELLSTAR Shareholders
The Company defines Adjusted EBITDA attributable to WELLSTAR Shareholders (or Shareholder EBITDA) and Adjusted EBITDA attributable to non-controlling interests as the sum of the Adjusted EBITDA for each relevant legal entity multiplied by WELLSTAR's or the non-controlling interests' equity ownership, respectively.
Adjusted Net Income and Adjusted Net Income Per Share
The Company defines Adjusted Net Income as net income (loss), after excluding the effects of share-based compensation expense, amortization of acquired intangible assets, interest accretion and remeasurement of redeemable preferred shares, share-based listing expenses, time-based earnout expense, changes in the fair value of financial assets, impairment charges, gains/losses that are not reflective of ongoing operating performance and non-controlling interests. Adjusted Net Income Per Share is Adjusted Net Income divided by the weighted average number of shares outstanding. The Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELLSTAR shareholders.
Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA attributable to WELLSTAR Shareholders, Adjusted EBITDA attributable to non-controlling interests, Adjusted Net Income and Adjusted Net Income Per Share are not recognized measures under IFRS and do not have standardized meanings. As such, these measures are unlikely to be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS. Reconciliations of these measures to their most directly comparable IFRS measures are provided in the Company's interim MD&A for the three and nine months ended September 30, 2026, available on SEDAR+.
2. ARR
ARR is a supplementary financial measure representing the annualized value of recurring subscription, support, maintenance, platform access and recurring billing or revenue cycle management arrangements in effect at the end of the reporting period. ARR includes usage-based and transaction-based fees arising from ongoing customer arrangements that are recurring in nature. ARR excludes non-recurring implementation, onboarding, hardware, project-based professional services and other one-time revenue. ARR is an operating measure and does not represent contractually committed revenue or a forecast of future revenue.
Management uses ARR to assess the scale and growth of the Company's recurring revenue base, the visibility of future revenue and the impact of new customer wins, customer expansions, pricing changes, churn and acquisitions. ARR is not a standardized financial measure under IFRS, may not be comparable to similar measures used by other issuers and should not be considered a substitute for revenue recognized in accordance with IFRS.
WELLSTAR TECHNOLOGIES CORP.
Per: "Amir Javidan"
Amir Javidan
Chief Executive Officer and Director
About WELLSTAR Technologies Corp.
WELLSTAR Technologies Corp. (TSXV: WSTR) is a leading healthcare technology company dedicated to reshaping healthcare through digital enablement. The Company provides a comprehensive, holistic solution for healthcare providers across Canada, with over 40% of practitioners currently using its products and services. Its solutions serve primary care and specialist physicians, health systems and public-sector organizations through a complete suite of AI-enabled offerings, including billing and practice management systems, EMR systems, digital health applications and digital health network solutions. As a majority-owned subsidiary of WELL Health, WELLSTAR continues to drive innovation and transformation in the Canadian healthcare landscape, reducing administrative burden and empowering providers to deliver better patient outcomes through advanced technology solutions. Learn more at wellstar.health.
Forward-Looking Information
This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: the continued demand for technology that reduces administrative burden for Canadian healthcare providers; information regarding the Company's goals, strategies and growth plans; expectations regarding continued revenue, ARR and Adjusted EBITDA growth; the expected benefits of completed acquisitions, including Lambert, Sherritt, and JCL Medical, and their integration; the development, deployment and commercialization of Nexus AI and other AI-enabled solutions; the expansion of OceanMD and provincial eReferral programs and procurement opportunities; increased adoption of the Company's solutions within the WELL Health clinic network; the Company's acquisition strategy and pipeline; and information in the "Outlook" section herein. Forward-Looking Information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information is not a guarantee of future performance. Forward-Looking Information is qualified in its entirety by inherent risks and uncertainties, including, without limitation, the factors discussed under "Risks and Uncertainties" in the Company's interim MD&A dated November 9, 2026 and under "Risk Factors" in the Company's filing statement dated September 25, 2026, and as discussed in other documents filed by WELLSTAR under its profile at www.sedarplus.ca. These factors are not intended to represent a complete list of factors that could affect the Company; however, these factors should be considered carefully. Except as required by securities law, WELLSTAR does not assume any obligation to update or revise any Forward-Looking Information, whether as a result of new information, events or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Pardeep Sangha
Vice President, Investor Relations
investor@wellstar.health
604-628-7266
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323154
