Rocket Doctor AI Inc.
Scaling Virtual Care: Revenue Beat, Accelerating U.S. Expansion
Published: May 5, 2026
Author: FRC Analysts
Disclosure: Rocket Doctor AI Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Company Details
Sector – Healthcare
Industry – Health Information Services
Trading Information
Trading information – AIDR.CN : CSE
Report Highlights
- Revenue Beat: RD operates an AI-powered digital health platform and marketplace connecting physicians and patients virtually. 2025 and 2024 results are not comparable, as material revenue commenced only after the Rocket Doctor acquisition in April 2025. 2025 revenue was $1.74M, 8% above our estimate, driven by doctor subscriptions, and per-appointment fees, indicating faster-than-expected traction. The company has not disclosed appointment or physician counts; however, it reports ~350 physicians in Canada are subscribed to its platform, up from ~300 at the time of our previous report in January 2026.
- EPS Miss on Marketing Spend: Adj. EBITDA was ($7.20M) vs ($6.50M) est., and Adj. EPS was ($0.12) vs ($0.10) est. While gross margins and operating expenses were broadly in line with our estimates, marketing spend was higher than expected ($2.01M vs $1.35M). Given the highly competitive virtual care market, marketing effectiveness, and elevated budgets, are required to drive patient adoption. It is estimated that the global virtual care market will grow from US$20B in 2025, to US$248B by 2034, a CAGR of 32% (Precedence Research).
- Post-Year-End Financing Strengthens Balance Sheet: Raised $6.44M via equity and warrant exercises post year-end, with potential for $2M additional from in-the-money options. We do not foresee any need for additional capital raises this year, implying no near-term share dilution.
- Geographic Mix: Canada Core, U.S. Expansion Underway: 90% of 2025 revenue came from Canada, with the remainder from the U.S. While Canadian operations have been active since 2020, U.S. expansion began in 2025. Since our previous report, the company has added multiple insurers in New York and California, expanding access to millions of additional individuals through their health plans. RD’s network spans ~21M individuals, across ~20 insurers/payers in the U.S.
- Rural Access Partnership with Lethbridge County, Canda: While the company’s core focus remains U.S. expansion, it continues to build out its Canadian presence. It has partnered with Lethbridge county in Alberta to provide rural residents with virtual access to licensed physicians, supporting ongoing organic growth in Canada.
- Valuation: Trading at Significant Discount to Peers: RD trades at 6x forward EBITDA vs. 18x sector average, a 65% discount. We expect a material revenue increase and EPS improvement in 2026, the first full year post–Rocket Doctor acquisition. We continue to forecast profitability by 2028, unchanged from our prior outlook.
Price and Volume (1-year)
* Rocket Doctor AI has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in C$ unless otherwise specified.
Company Overview: A two-pronged business model targeting patients (B2C) and healthcare institutions (B2B)
B2C: Physician-Funded Model (Primary Revenue Driver)
B2B: Institutions license AI tools for training and care
Offers a streamlined virtual care experience from patient intake to payment
Generates revenue from doctors through monthly subscriptions and per-appointment platform fees
Target Markets
Operating in Canada since 2020; currently focused on U.S. expansion
RD’s current target pool includes ~46M people across its target regions in the U.S. and Canada
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