American Well Corporation

What they do

Amwell sells the Amwell Platform, a SaaS-based software and services solution that enables digital care across in-person, virtual, and automated modalities. The platform supports use cases such as urgent care, primary care, behavioral health, chronic disease management, and virtual nursing for health systems and health plans. The company also offers professional services, Carepoint devices, and access to Amwell Medical Group (AMG), a nationwide network of clinical providers. AMG provides clinical services on a fee-for-service basis, typically through multi-year contracts.

Revenue drivers

• Subscription revenue — Recurring fees from the Amwell Platform; in Q2 2026, subscription revenue was $25.7 million.
• Amwell Medical Group (AMG) visit revenue — Fee-for-service clinical consults provided by AMG providers; Q2 2026 visit revenue was $24.4 million.
• Professional services and Carepoint devices — Fee-based implementation services and hardware sales that support platform deployment; these are smaller relative to subscription and visit revenue.

Recent performance

In Q2 2026, total revenue was $52.0 million, at the top end of guidance and down sequentially from $54.9 million in Q1 2026. Net loss improved to $9.6 million in Q2 2026 from $10.3 million in Q1 2026, and adjusted EBITDA improved to -$1.2 million from -$3.1 million. Total visits on the platform were 0.8 million in Q2 2026. For the full year 2025, revenue was $249.3 million with a net loss of $95.7 million, a narrower loss than in prior years. The company ended Q2 2026 with $195.9 million in cash and no debt.

Strategy

Amwell is focused on growing subscription revenue, which is approaching half of total revenue, and achieving profitability. Management has streamlined service offerings, including divesting the telepsychiatry business (APC) and dissolving the Cleveland Clinic joint venture, to concentrate on the core Amwell Platform and strategic customers. The company is also emphasizing AI-powered care and has highlighted a positive relationship with the Defense Health Agency (DHA), which intends to make Amwell a prime contractor. The stated goal is to achieve positive cash flow from operations in the fourth quarter of 2026.

Risks

• Dependence on significant clients — A limited number of significant clients, including a possible concentration with the Defense Health Agency, could cause material revenue loss if relationships end or are not renewed.
• History of losses and uncertain profitability — Amwell has incurred net losses every year from 2021 through 2025, and management acknowledges the risk of not achieving profitability.
• Market volatility and adoption — Weak growth or increased volatility in the digital care market, and slower than expected patient or client adoption, could harm results.
• Regulatory and cybersecurity compliance — The company must comply with extensive healthcare and privacy regulations, and a cybersecurity breach could result in significant liability.

Outlook

For 2026, management raised the low end of revenue guidance to a range of $200 million to $205 million, and improved adjusted EBITDA guidance to between -$9 million and -$7 million. AMG visits for 2026 are expected to be between 1.32 million and 1.37 million. For Q3 2026, revenue is guided to $46 million to $48 million, with adjusted EBITDA between -$5 million and -$3 million. The company reiterated its objective to achieve positive cash flow from operations in Q4 2026.