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Core Insights - American Well Corporation (AMWL) reported a revenue of $56.29 million for Q3 2025, reflecting a year-over-year decline of 7.8% and an EPS of -$1.74, an improvement from -$2.87 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $54.37 million by 3.53%, while the EPS also surpassed the consensus estimate of -$1.83 by 4.92% [1] Revenue Breakdown - Platform subscription revenue was $30.9 million, exceeding the two-analyst average estimate of $27.74 million, with a year-over-year increase of 17.8% [4] - Other revenue amounted to $4.19 million, falling short of the two-analyst average estimate of $5.69 million, representing a year-over-year decline of 42.9% [4] - Revenue from visits was $21.2 million, slightly above the two-analyst average estimate of $20.85 million, but showed a year-over-year decrease of 22.8% [4] Stock Performance - Over the past month, American Well's shares have declined by 19.1%, contrasting with a 2.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - American Well Corporation (AMWL) reported a quarterly loss of $1.74 per share, which was better than the Zacks Consensus Estimate of a loss of $1.83, and improved from a loss of $2.87 per share a year ago, resulting in an earnings surprise of +4.92% [1] - The company generated revenues of $56.29 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.53%, although this represents a decline from year-ago revenues of $61.05 million [2] - American Well has consistently surpassed consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Financial Performance - The company has experienced a significant decline in share price, losing approximately 29.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.94, with projected revenues of $55.3 million, and for the current fiscal year, the estimate is -$6.13 on revenues of $247.42 million [7] Industry Outlook - The Medical Info Systems industry, to which American Well belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact American Well's stock performance [5][6]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $56.3 million, an 8% decrease year over year, but would have increased by 1.3% when normalizing for the sale of APC [14] - Subscription revenue increased by 18% year over year to $30.9 million, representing 55% of total revenue compared to 43% a year ago [14] - Adjusted EBITDA loss was $12.7 million, an improvement from a loss of $31 million a year ago, indicating effective cost containment initiatives [16] - GAAP gross margin expanded to 52%, up from 37% a year ago, due to a better revenue mix and the divestiture of APC [15] Business Line Data and Key Metrics Changes - Total visit volume was approximately 1.1 million, down 21% from the previous year, aligning with expectations [14] - AmWell Medical Group visit revenue decreased by 23% year over year to $21.2 million, but visits were down only 3.5% when normalizing for the sale of APC [14] Market Data and Key Metrics Changes - Mental health telehealth utilization reached 27.8% in July 2025, with 79% of Gen Z using health technology monthly [9] - Digital disease management programs have shown to reduce 30-day readmission rates by 50%, driving significant investment in the sector [9] Company Strategy and Development Direction - The company aims to achieve cash flow break-even by the end of 2026 and resume profitable growth through two main work streams: enhancing their enterprise-grade platform and improving operational efficiency [3][4] - A focus on integrating AI technologies into core workflows to enhance patient intake and clinical program matching is a key strategic initiative [5][6] - The company is divesting non-core assets to concentrate resources on high-margin growth opportunities, such as the recent sale of AmWell Psychiatric Care [8] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer demand for digital health is accelerating, and the market is shifting in favor of integrated solutions [9][10] - The company believes its unique business model positions it well to address fragmentation in the healthcare market, providing a unified platform for clients [11][12] - Management expressed confidence in the competitive advantages of the new AmWell platform and its relevance in the evolving healthcare landscape [12][19] Other Important Information - The company reported a cash burn of approximately $18 million in Q3, ending the quarter with about $201 million in cash and marketable securities, with zero debt [16] - Full-year revenue guidance was revised to between $245 million and $248 million, with adjusted EBITDA expected to be between negative $45 million and negative $42 million [16][17] Q&A Session Summary Question: Insights on the Florida Blue plan win - Management confirmed that the win involved deinstalling a major competitor and highlighted the need for a unified infrastructure to reduce vendor fatigue [21][22] Question: Potential further divestiture of non-core assets - Management indicated that they are actively pursuing divestitures of legacy products to focus on high-ROI opportunities, while still supporting existing customers [23][24] Question: Monetization of AI implementations - AI is expected to enhance customer experiences and outcomes, with potential revenue sharing from third-party partners, although direct charges for AI features may not be implemented immediately [25][26] Question: Impact of macroeconomic factors on sales pipeline - Management noted that their solutions address essential pain points, making them less likely to be deprioritized despite economic uncertainty [31][32] Question: Clarification on non-core asset divestitures and cash flow break-even timeline - Divestitures are not included in current guidance, and while they may provide additional resources, they are not expected to significantly alter the timeline for achieving cash flow break-even [35][36]

Revenue and Subscription Growth - Total subscription fees increased to $30.9 million for Q3 2025, up from $26.2 million in Q3 2024, and $103.6 million for the nine months ended September 30, 2025, compared to $78.6 million in the same period of 2024[114]. - Revenue for the three months ended September 30, 2025, was $56.3 million, a decrease of 8% from $61.0 million in the same period of 2024; however, revenue for the nine months increased by 6% to $194.0 million from $183.4 million[161]. - Subscription revenue increased by $4.7 million in Q3 2025 due to timing of revenue recognition with a strategic customer, while visit revenue decreased by $5.5 million due to the sale of APC[162]. - Revenue growth is attributed to increased acceptance of digital care and successful product launches, with a focus on health plans, health systems, and provider networks[144]. Visit and Service Fees - AMG-related visit fees decreased to $21.2 million for Q3 2025 from $27.5 million in Q3 2024, and $70.6 million for the nine months ended September 30, 2025, down from $87.3 million in the same period of 2024[125]. - Total visits using the enterprise software were 3.6 million in the nine months ended September 30, 2025, compared to 4.5 million in the same period of 2024, with AMG providers accounting for 27% of total visits in 2025[132]. - Fees from services and Carepoint devices were $4.2 million for Q3 2025, down from $7.3 million in Q3 2024, and $19.8 million for the nine months ended September 30, 2025, compared to $17.5 million in the same period of 2024[129]. Financial Performance and Losses - Adjusted EBITDA for Q3 2025 was $(12,669) thousand, an improvement from $(31,013) thousand in Q3 2024, while for the nine months ended September 30, 2025, it was $(29,581) thousand compared to $(111,617) thousand in the same period of 2024[140]. - The net loss for Q3 2025 was $(31,911) thousand, a decrease from $(44,041) thousand in Q3 2024, and for the nine months ended September 30, 2025, the net loss was $(69,798) thousand compared to $(168,069) thousand in 2024[140]. - Loss from operations improved to $(29.3) million in Q3 2025, a 38% reduction from $(47.4) million in Q3 2024; for the nine months, the loss was $(80.1) million, down 54% from $(174.8) million[161]. - The company reported a net loss of $(31.9) million for Q3 2025, a 28% improvement from $(44.0) million in Q3 2024; for the nine months, the net loss was $(69.8) million, down 58% from $(168.1) million[161]. Cost Management and Expenses - Total costs and operating expenses for Q3 2025 were $85.6 million, down 21% from $108.4 million in Q3 2024; for the nine months, expenses decreased by 23% to $274.1 million from $358.1 million[161]. - Research and development expenses decreased by 6% to $18.6 million in Q3 2025, and by 12% to $58.9 million for the nine months, primarily due to headcount reductions[166][167]. - Sales and marketing expenses saw a significant decrease of 46% to $9.1 million in Q3 2025, and a 44% decrease to $34.2 million for the nine months, attributed to a 49% headcount reduction[168][169]. - General and administrative expenses decreased by 14% to $21.7 million in Q3 2025, and by 24% to $66.1 million for the nine months, driven by a 36% reduction in headcount[170][171]. Cash Flow and Financial Position - Cash used in operating activities was $(48.6) million for the nine months ended September 30, 2025, compared to $(113.9) million in the same period of 2024[180][186]. - As of September 30, 2025, the company had cash and cash equivalents of $200.9 million, down from $228.3 million at the end of 2024, with no debt reported[181][182]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $0.8 million, compared to $1.4 million for the same period in 2024, both from employee stock purchase plan proceeds[189]. - The company held no investments as of September 30, 2025, and December 31, 2024, with cash and cash equivalents primarily invested in money markets[195]. Strategic Initiatives and Future Outlook - The company anticipates that future revenues will be driven by the growing adoption of digital and hybrid care, alongside maintaining and growing market share[131]. - The company divested the APC Business to streamline service offerings and focus on the Converge platform, which aligns with profitability and growth goals[158]. - The company expects research and development expenses to decrease over the next year and remain flat in future periods, with a focus on optimizing the cost structure[150]. - Sales and marketing expenses are anticipated to decrease in the current year and remain flat in future periods, reflecting a strategic focus on client engagement and market opportunities[153]. - General and administrative expenses are expected to decrease in the current year and remain relatively flat in future periods due to cost-saving measures implemented in 2024[155]. Regulatory and Market Environment - The regulatory environment remains a critical factor, with ongoing changes to Medicare and Medicaid programs enhancing access to digital care services[134]. - Visit volumes typically rise during the flu season, indicating a seasonal trend in service demand[135]. - The company does not believe that a 100 basis point change in interest rates would materially affect its financial condition or results of operations[196]. - A substantial majority of the company's revenue has been denominated in U.S. dollars, with limited exposure to foreign currency risk as of September 30, 2025[198]. - The company does not believe inflation had a material effect on its business in the last two years, but significant inflationary pressures could harm its financial condition[199].

Financial Performance - Total revenue for Q3 2025 was $56.3 million, exceeding previous guidance[7] - Subscription revenue reached $30.9 million, while Amwell Medical Group visit revenue was $21.2 million[7] - Gross margin reported at 52.4%[7] - Revenue for the three months ended September 30, 2025, was $56,286 thousand, a decrease from $61,046 thousand in the same period of 2024, representing a decline of 12.9%[15] - Total costs and operating expenses for the three months ended September 30, 2025, were $85,618 thousand, down from $108,416 thousand in 2024, a reduction of 21.0%[15] - The net loss attributable to American Well Corporation for the three months ended September 30, 2025, was $32,378 thousand, compared to a net loss of $43,464 thousand in 2024, reflecting an improvement of 25.0%[15] - Adjusted EBITDA for the three months ended September 30, 2025, was $(12,669) thousand, an improvement from $(31,013) thousand in the same period of 2024[23] Loss and Cash Flow - Net loss for the quarter was ($31.9) million, an increase from ($19.5) million in Q2 2025[7] - Adjusted EBITDA loss was ($12.7) million, compared to ($4.7) million in the previous quarter[7] - The net cash used in operating activities for the nine months ended September 30, 2025, was $(48,598) thousand, compared to $(113,903) thousand in 2024, indicating a reduction in cash outflow of 57.3%[17] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $201,683 thousand, down from $245,442 thousand at the end of September 30, 2024, a decrease of 17.8%[17] Guidance and Projections - Revised 2025 revenue guidance is now between $245 million and $248 million, down from $245 million to $250 million[7] - Q4 2025 revenue is projected to be between $51 million and $54 million[7] - Q4 adjusted EBITDA is expected to range from ($15) million to ($12) million[7] - The company aims to achieve positive cash flow from operations by the end of 2026[5] Operational Metrics - Total visits in Q3 2025 were 1.1 million[7] - Research and development expenses for the three months ended September 30, 2025, were $18,582 thousand, slightly down from $19,797 thousand in 2024, a decrease of 6.1%[15] - Sales and marketing expenses for the three months ended September 30, 2025, were $9,078 thousand, a significant decrease from $16,771 thousand in 2024, representing a decline of 45.8%[15] - The company reported a net gain on divestiture of $2,000 thousand for the three months ended September 30, 2025, compared to no gain in the same period of 2024[15] - The weighted-average common shares outstanding for the three months ended September 30, 2025, were 16,214,711, an increase from 15,135,421 in 2024[15]

Core Insights - Amwell, a leading provider of a comprehensive SaaS-based software platform for technology-enabled healthcare, announced its financial results for the third quarter ended September 30, 2025 [1] Company Overview - Amwell offers a single, comprehensive, technology-enabled care platform for payers and health systems, enhancing patient access to convenient, affordable, and effective care [3] - The platform includes software and services that support various clinical programs, providing unified, personalized access to diversified clinical programs across the care continuum [3] - Amwell has been operational for almost two decades, serving some of the largest healthcare organizations in the U.S. and worldwide, enabling care for millions of patients [3]

Core Viewpoint - Amwell is set to report its third quarter 2025 operating results on November 4, 2025, after market hours, followed by a live conference call to discuss the results and provide a business update [1]. Company Overview - Amwell provides a comprehensive SaaS-based software platform aimed at technology-enabled healthcare, facilitating better access to convenient, affordable, and effective care for patients [3]. - The platform integrates various clinical programs and is designed to offer personalized access across the care continuum, serving millions of patients and healthcare organizations globally [3]. Upcoming Events - The earnings report and live audio webcast will be accessible through the Investors section of Amwell's website, with a replay available for approximately 90 days [2]. - Company executives, including CFO and COO Mark Hirschhorn, will participate in investor conferences, including one-on-one meetings at the UBS Global Healthcare Conference on November 11 and a panel discussion at the BTIG Digital Health Forum on November 24 [4].

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - Most recommendations will be holds, indicating a cautious approach to investment, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Industry Overview - The health and fitness industry has transitioned from a niche market to a global growth engine, driven by a cultural emphasis on healthier living and proactive self-care [2] - Consumers are increasingly seeking balanced nutrition, structured fitness routines, and comprehensive wellness solutions, leading to a growing demand for gyms, supplements, and tailored programs [2] - The global health and wellness market is projected to reach $11 trillion by 2034, with a compound annual growth rate (CAGR) of 5.4% from 2025 [4] Role of Technology - Technology giants like Apple and Amazon are significantly influencing the health and fitness landscape through innovations such as the Apple Watch, Fitness+ platform, and One Medical [3] - These technologies are merging fitness, healthcare, and daily life, enhancing consumer engagement and driving industry growth [3] Key Companies United Natural Foods (UNFI) - UNFI offers a diverse portfolio of nearly 230,000 products focused on health and wellness, including natural, organic, and personal care items [7] - The company has invested in organic certification and sustainability, with 33 U.S. distribution centers registered as Organic Handlers [8] - UNFI's digital platforms support emerging wellness brands, and its foundation promotes regenerative agriculture and nutrition education [9] American Well Corporation (Amwell) - Amwell is a digital healthcare platform that provides telehealth services and integrates various healthcare offerings through its Converge platform [10] - The company has evolved from traditional telehealth to a holistic digital care model, focusing on chronic disease management and wellness initiatives [11] - Amwell has improved its financial position through cost reductions and innovation, aiming to be a leader in digital wellness [12] SunOpta - SunOpta specializes in plant-based and fruit-based products, catering to the demand for minimally processed foods [13] - The company has shifted towards higher-margin categories and emphasizes sustainability in its sourcing and production practices [15] - Recent innovations include expanding its plant-based and organic product portfolio to align with consumer health values [15] Peloton Interactive - Peloton has developed a connected fitness platform that combines advanced equipment with immersive digital content and community engagement [16] - The company has transitioned from a hardware-centric model to a balanced approach of product sales and recurring subscription revenues [17] - Peloton continues to innovate by expanding its content library and exploring international markets, positioning itself for long-term growth in the fitness sector [19]