Nord Health (NRDHF) Cut Its Team 4% While Shipping 130% More Code With AI

Nord Health (NRDHF) said on its 2026-08-18 earnings call that almost all of its code is now generated by AI and that the team shrank 4% this year without a drop in output. Revenue from AI cannot be separated out [1].

Nord Health is a Nordic healthcare software company listed in Oslo. It sells clinic management systems, the back office that veterinary and mental health practices use for scheduling, clinical notes and billing, on annual subscriptions. The therapy line covers about 13,000 clinics and 27,000 therapists, and group contracted annual recurring revenue is slightly above EUR 50 million [2].

AI entered two unrelated places

Inside the product, an AI scribe generates clinical notes, patient history summaries and discharge records while the clinician sees the patient. A data question-answering agent called AskProVet sits alongside it. Six AI features have shipped in total, sold as paid add-on modules on top of the existing system.

Inside the company's own engineering, engineers use AI to write code and the release cadence has moved from roughly monthly to roughly hourly [1].

The engineering numbers are the firmest

The CTO said all engineers use AI tools to generate code, that code shipped to production increased 130%, and that the 2026 team shrank 4% while each member delivered more than before [1]. That line is continuous across the company's three disclosures: headcount rose from 411 to 464 during 2025, then fell 2% in the first quarter of 2026 and 4% by the half-year report, roughly 18 people in absolute terms [3]. The basis and the direction are consistent, but every figure is self-reported and the headcount base is small [3].

The revenue side is much weaker

Management stated plainly at this event that it is hard to say which part of revenue is AI revenue, and the company does not disclose it separately. The one metric it does attach to AI is moving the wrong way: net retention in the therapy business fell from about 106% to 104.7%, and ARR growth slowed from 11.2% to 10.8% [2].

Only 1,400 to 1,500 therapy customers pay for AI modules, against a base of 27,000 therapists. In the veterinary business, of roughly EUR 570 in average annual revenue per clinic, about EUR 500 is the system itself and the remaining EUR 70 is shared between payments and AI. The company wants to raise that figure above EUR 1,100. Management describes the business as still early [2].

What is confirmed, and what attribution is missing

The change in engineering efficiency is confirmed. Code generation, release frequency and headcount agree with one another and have been disclosed three times running, and the company's 2027 profitability target rests on costs no longer expanding.

Attribution and amount are not confirmed. Describing the team reduction, the CFO placed it inside a list of margin actions that also included retiring two legacy platforms and controlling customer acquisition cost. The CTO attributed faster delivery to team rebuilding and talent density as well as to AI. Production code volume is itself a crude output proxy, since generated code naturally produces more lines.

This company has no third-party financial, share price or headcount data in public databases. Every figure comes from its own materials, and this disclosure was made at a capital markets day rather than in an audited quarterly report.

Application: Revenue and cost Stage: Scaled Value realized: Moderate Confidence: Medium

Sources

[1] Drillr · Nord Health (NRDHF) · 2026-08-18 · earnings call

"100% of engineers now are using AI tools to generate code. Almost 100% of our code is generated now. We don't write code anymore. ... we had a 130% increase, over double the amount of lines of code shipped to production, and doing it basically hourly or less compared to what used to be monthly releases. ... in 2026, we've had a 4% reduction in the size of team, but without any reduction in productivity or output, because really each team member has been delivering more than they ever have"

[2] Drillr · Nord Health (NRDHF) · revenue trend verification

[3] Drillr · Nord Health (NRDHF) · headcount and efficiency verification