• 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.

 

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.