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.
Current ARR (June 2026)
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. 2025 figure confirmed at €902,775 (16 deals).
The 3 revenue layers
How these add up: Layers 1 and 3 are recognised 2025 revenue (€398.6K + €205.9K = €604K). Layer 2 (€726K) is committed multi-year backlog (TCV), not recognised revenue, so it is not additive to the €604K.
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 grew +90% YoY (2024 to 2025), and a further +34% to June 2026. The €1M bar is the Series A-unlock milestone: a target the plan builds toward, not a year-end forecast.
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 | % of 2025 revenue | Category |
|---|---|---|
| Care providers (hospital + telemedicine) | 34% | Recurring |
| Insurance | 32% | Recurring |
| Pharmaceutical (single studies + frames) | 34% | Committed / Project |
| Total | ~66% recurring / ~34% project |
Bookings (TCV) 2025
€903K in contracts signed across 16 deals in 2025, spanning 7 markets. The largest engagements, by logo:
- Pharma / CRO: Johnson & Johnson (Psoriasis Phase 3, part of a multi-year programme, plus Oncoderm Brazil), ICON (Alopecia Phase 3), Boehringer Ingelheim (sponsored app plus calculators), Eli Lilly.
- Public health & hospitals: SESPA (via Telefónica), CHU Rennes.
- Insurance: Sanitas (additional licences), IMQ, Cigna, Lux Med.
Deal-by-deal contract values are available in due diligence.
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?" | €401K (June 2026) · €300K (Dec 2025 close) | Recurring ARR · +34% since Dec 2025 close · +90% YoY through 2025 |
| "What's your revenue?" | €604K (FY2025) · €878K (FY2026 forecast) | +49% YoY 2025 · hybrid model |
| "What did you bill / book?" | €848K billed · €903K TCV signed | +145% YoY billings · multi-year backlog €244K+ |
| "Path to €1M ARR?" | The milestone that opens the Series A | €401K today; growth plan to €1M, funded by capital already secured |
| "Retention?" | 92% gross top-customer retention (11 of 12 largest 2025 deals) | NRR being measured on the recurring base |
- Path to €1M ARR: detailed growth plan from current ARR to €1M
- Commercial Metrics: customer cohort, sales cycle, pipeline