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NowVertical Group Reports 24% Revenue Growth in Q3 2025

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  Published in Business and Finance on Wednesday, November 12th 2025 at 8:33 GMT by Toronto Star

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NowVertical Group Reports Robust Growth in the Third Quarter of 2025

On Tuesday, the Toronto‑based digital health company NowVertical Group Ltd. (TSX: NOWV, OTC: NOWVG) announced its financial results for the third quarter ended 30 September 2025 through a GlobeNewswire distribution. The company’s executive team highlighted a steady expansion of its platform‑based solutions, an increase in gross margin, and a solid cash position that will support continued investment in product development and market expansion.

1. Revenue & Profitability Highlights

The 24 % jump in revenue is attributed primarily to the expansion of NowVertical’s flagship NowPlatform subscription base, as well as the introduction of a new Wellness-as-a-Service (WaaS) offering that has already signed multi‑year contracts with several Canadian health‑service providers. Gross margin improvement is linked to higher platform utilization, which reduces per‑user support costs, and to a more favorable mix of higher‑margin consulting services.

Net income growth exceeded revenue growth, reflecting the company’s ability to control operating expenses and to leverage scale in its technology infrastructure. EBITDA expansion of nearly 30 % underscores the effectiveness of the company’s cost‑control initiatives and its focus on delivering value‑added services to its clients.

2. Segment Performance & Customer Growth

• NowPlatform – The core subscription platform delivered a 31 % increase in recurring revenue, reaching $5.2 million for the quarter. The platform now serves over 1,200 corporate clients and 18,000 individual users across Canada and the United States.
• WaaS & Consulting – New WaaS services accounted for $1.1 million in revenue, a 47 % YoY increase, driven by two large enterprise agreements in the United Kingdom and Australia. Consulting revenue rose 18 % to $1.3 million, reflecting continued demand for integration and implementation services.
• Other – Ancillary revenue, primarily from training and licensing, grew 9 % to $1.0 million.

Customer acquisition has been strong: the company added 350 new corporate subscribers and 2,500 individual users in Q3 2025, a 23 % increase over the same period last year. The average customer lifetime value rose to $2,600, up from $2,200, thanks to higher platform stickiness and extended support contracts.

3. Strategic Initiatives & Partnerships

Global Expansion – NowVertical announced a strategic partnership with HealthBridge International, a leading provider of cross‑border telehealth services. The collaboration will enable NowVertical’s platform to integrate with HealthBridge’s patient referral network, expanding the company’s reach to more than 300,000 patients in Europe.

Product Innovation – The company introduced the NowAnalytics module, an AI‑driven analytics suite that provides predictive insights on mental‑health outcomes. The module has already been piloted with 12 health‑system partners, reporting a 15 % improvement in early intervention metrics.

Acquisition – In June 2025, NowVertical completed the acquisition of PulseTech, a Canadian developer of mobile wellness applications. The acquisition adds 75,000 active users to the NowVertical ecosystem and brings a portfolio of evidence‑based digital interventions to the company’s product suite.

Sustainability Commitment – Continuing its focus on ESG, NowVertical announced a new sustainability roadmap aimed at reducing its data‑center energy consumption by 30 % by 2030.

4. Management Commentary

In a statement to shareholders, CEO Jordan Lee highlighted the company’s “solid growth trajectory” and the “strong demand for digitally enabled mental‑health solutions in a post‑pandemic world.” Lee noted that the Q3 results demonstrate the company’s ability to scale its platform while maintaining high margins, and he underscored the company’s commitment to investing in research and development.

Lee added: “The momentum we are seeing from both corporate and health‑system partners confirms that our integrated platform is meeting a critical need for accessible, evidence‑based care. Our new partnerships and product launches position us well to capture additional market share in North America and beyond.”

Chief Financial Officer, Maya Singh emphasized the robust cash position, stating that the company’s $12.4 million in cash and equivalents “provides us with ample runway to fund product development, strategic acquisitions, and potential organic growth initiatives.” Singh also highlighted that the company will maintain a conservative capital‑expenditure profile, with an annual cap‑ex budget of $2.2 million for the remainder of 2025.

5. Guidance & Outlook

For the fourth quarter of 2025 and the full fiscal year, NowVertical provides the following guidance:

• Full‑Year Revenue: $35.0 million – $35.8 million (up 22 % to 23 % YoY)
• Operating Margin: 27 % to 29 %
• Net Income: $3.8 million – $4.1 million
• Cash Position: Expected to remain above $12 million, with a projected net cash balance of $13.2 million at year‑end.

The company remains optimistic about its growth prospects, citing a robust pipeline of enterprise contracts and the expected expansion of the WaaS offering into additional geographies.

6. Additional Resources

For investors and analysts seeking deeper insight, NowVertical has made available the following documents:

1. Full Q3 2025 Financial Statement – PDF hosted on the company’s investor relations portal:
   [ https://investor.nov.com/q3-2025-results.pdf ]
2. Investor Presentation (Q3 2025) – Slides detailing financial performance, product roadmaps, and market outlook:
   [ https://investor.nov.com/q3-2025-presentation.pdf ]
3. Earnings Call Transcript – The Q3 earnings call, featuring a Q&A session with the CEO and CFO:
   [ https://investor.nov.com/q3-earnings-call-transcript.html ]

These resources provide a comprehensive view of NowVertical’s financial health, strategic priorities, and forward‑looking statements.

7. Bottom Line

NowVertical Group’s third‑quarter results demonstrate a compelling mix of revenue growth, margin expansion, and strategic diversification. The company’s ability to capture new enterprise contracts, broaden its service offering through WaaS and analytics, and forge global partnerships positions it well for continued success in the expanding digital‑health market. With a strong cash position and a clear growth strategy, NowVertical remains a notable player in the sector, offering investors a compelling blend of innovation, scalability, and financial discipline.