ARR & Revenue Mix
Legit.Health operates a hybrid revenue model: recurring SaaS-like contracts with care providers and insurance companies, combined with project-based engagements with pharmaceutical companies and CROs. This page reconciles the SaaS metric VCs ask for (ARR) with the broader economic reality of the business.
Headline 2025
- ARR (Annual Recurring Revenue) = EoP MRR × 12. The SaaS metric. Only counts recurring contracts (hospital + insurance).
- Recognised revenue = revenue earned during the period under accounting standards (Spanish PGC).
- Billings = amounts invoiced during the period. Includes multi-year contracts paid in advance.
- Bookings (TCV) = Total Contract Value of contracts signed during the period across all years. Pending reconciliation contract-by-contract.
The 3 revenue layers
The hybrid model means each revenue layer commands a different multiple. Pure SaaS comparables (Slack, Zoom) trade at high revenue multiples but don't reflect our reality. Hybrid healthcare AI comparables (Tempus, Veracyte, Owkin) trade at high multiples because their recurring layer is valued like SaaS while project revenue is valued for the strategic relationships it represents. Our path: grow the ARR layer aggressively while preserving pharma project income as committed multi-year frames.
ARR trajectory
ARR doubled in 2024-2025 (+83% YoY). The bridge round funds the acceleration from Budget (€404K) to Model (€1.01M) trajectory in 2026.
Quality of revenue: the 3 multipliers
ARR alone doesn't capture the quality of the underlying business. Three factors compound on top of the headline metric:
Revenue mix by segment (2025 recognised)
Diversification across 3 segments reduces concentration risk. Care providers + Insurance = 66% recurring. Pharma = 34% project/committed.
| Segment | 2025 recognised | % | Category |
|---|---|---|---|
| Care providers (hospital + telemedicine) | €204,187 | 33.8% | ARR |
| Insurance | €194,394 | 32.2% | ARR |
| Pharmaceutical (single studies + frames) | €205,913 | 34.1% | Committed / Project |
| Total recognised | €604,495 | 100% |
Billings vs Recognised: where the gap comes from
Of €848K billed in 2025, €244K (29%) is contracted future revenue that will be recognised in 2026-2027. This is the multi-year backlog, primarily from pharma framework deals signed in 2025.
Reconciling with VC expectations
| VC question | Headline answer | Context |
|---|---|---|
| "What's your ARR?" | €300K (Dec 2025) | +83% YoY · doubled in 12 months |
| "What's your revenue?" | €604K (FY2025) | +47% YoY · hybrid model |
| "What did you bill / book?" | €848K billed · TCV TBD | +145% YoY billings · multi-year backlog €244K+ |
| "Path to €1M ARR?" | EoY 2026 with bridge | Budget €404K, Model €1.01M, bridge funds the gap |
| "Net revenue retention?" | 92% top customers · 0% pharma multi-year churn | Enterprise SaaS-grade |
| "Burn multiple?" | ~10x in 2025 | Inflated by clinical/regulatory investment (permanent moats); target 3-5x post-bridge |
- Path to €1M ARR: detailed plan from current to €1M ARR
- Bridge Thesis: why a bridge round and what it unlocks
- Commercial Metrics: customer cohort, sales cycle, pipeline
- Key Financials: full P&L, balance sheet, formulated accounts