Amwell(AMWL) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update This section provides an overview of Amwell's Q2 2025 financial performance, strategic achievements, and updated financial guidance, highlighting progress towards profitability Second Quarter 2025 Highlights Amwell reported Q2 2025 revenue of $70.9 million, 56.1% gross margin, and improved Adjusted EBITDA to ($4.7) million, revising full-year guidance Q2 2025 Financial and Operational Highlights (in millions) | Metric | Value | | :-------------------------------- | :------------------- | | Total Revenue | $70.9 million | | Subscription Revenue | $40.4 million | | Amwell Medical Group (AMG) Visit Revenue | $22.8 million | | Gross Margin | 56.1% | | Net Loss | ($19.5) million | | Adjusted EBITDA | ($4.7) million | | Total Visits | 1.2 million | Revised Financial Guidance (in millions) | Guidance Type | Previous Guidance | Revised Guidance | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | 2025 Revenue | $250 million to $260 million | $245 million to $250 million | | 2025 Adjusted EBITDA | ($55) million to ($45) million | ($50) million to ($45) million | | Q3 2025 Revenue | N/A | $53 million - $56 million | | Q3 2025 Adjusted EBITDA | N/A | ($15) million – ($13) million | - Net loss increased slightly to ($19.5) million in Q2 2025, compared to ($18.4) million in Q1 2025[6] CEO Commentary CEO Ido Schoenberg highlighted strategic client additions and contract extensions, validating the platform's value and driving improved EBITDA towards 2026 positive cash flow - Amwell added Florida Blue, a large health plan, to its list of strategic clients[2] - The company announced an extension award from the US Defense Health Agency, continuing to enable connected and seamless in-person and virtual care for the Military Health System[2] - Significant progress was made in revenue quality and cost alignment measures, resulting in another strong quarter of EBITDA improvement[2] - The company is advancing toward its goal of achieving positive cash flow from operations in 2026[2] Financial Outlook and Guidance Amwell provided Q3 2025 financial guidance, reaffirmed its 2026 positive cash flow objective, and explained its non-GAAP guidance approach Q3 2025 Financial Guidance (in millions) | Metric | Range | | :---------------- | :------------------- | | Revenue | $53 million - $56 million | | Adjusted EBITDA | ($15) million – ($13) million | - The company reiterated its objective to achieve positive cash flow from operations in 2026[4] - Guidance is provided on a non-GAAP basis due to the inherent difficulty in forecasting and quantifying certain amounts necessary for GAAP reconciliation[5] Company Information This section provides an overview of Amwell's business, outlines forward-looking statement disclaimers, and lists contact information About Amwell Amwell provides a comprehensive SaaS-based technology-enabled healthcare platform to payers and health systems, offering unified access to diverse clinical programs - Amwell provides a comprehensive SaaS-based technology-enabled healthcare platform to payers and health systems[1][7] - The platform enables unified, personalized, and simple access to diversified clinical programs across the care continuum[7] - Amwell has served major healthcare organizations in the U.S. and worldwide for almost two decades[7] Forward-Looking Statements This section details forward-looking statements, highlighting substantial risks and uncertainties that could cause actual results to differ materially, with no obligation to update - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[9] - Key risks include client transition, renewal and upsell, DHA relationship continuation, telehealth market volatility, technological changes, competition, regulatory shifts, and cybersecurity breaches[9] - The company assumes no obligation to update these forward-looking statements unless required by law[9] Contacts This section provides essential contact information for media and investor inquiries - Media inquiries can be directed to Press@amwell.com[10] - Investor inquiries can be directed to Sue Dooley at sue.dooley@amwell.com[10] Financial Statements This section presents Amwell's condensed consolidated balance sheets, statements of operations, and cash flows, detailing financial position and performance Condensed Consolidated Balance Sheets The balance sheets show Amwell's financial position as of June 30, 2025, with decreases in cash, total current assets, and total liabilities Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $219,072 | $228,316 | -$9,244 | | Accounts receivable | $53,557 | $71,885 | -$18,328 | | Total current assets | $289,653 | $316,993 | -$27,340 | | Total assets | $388,656 | $435,968 | -$47,312 | | Total current liabilities | $87,916 | $111,263 | -$23,347 | | Total liabilities | $94,083 | $119,724 | -$25,641 | | Total stockholders' equity | $294,573 | $316,244 | -$21,671 | - Total assets decreased by $47.3 million from December 31, 2024, to June 30, 2025[12] - Total liabilities decreased by $25.6 million over the same period[12] Condensed Consolidated Statements of Operations and Comprehensive Loss The statements of operations show Amwell's Q2 and H1 2025 financial performance, with increased revenue and significantly reduced operating expenses, leading to lower net loss Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $70,898 | $62,790 | $137,731 | $122,312 | | Costs of revenue (excluding D&A) | $31,143 | $39,294 | $62,717 | $80,447 | | Research and development | $18,237 | $20,806 | $40,339 | $47,486 | | Sales and marketing | $12,518 | $18,386 | $25,094 | $44,112 | | General and administrative | $21,155 | $28,464 | $44,347 | $61,221 | | Total costs and operating expenses | $91,277 | $115,166 | $188,521 | $249,720 | | Loss from operations | ($20,379) | ($52,376) | ($50,790) | ($127,408) | | Net loss | ($19,531) | ($50,579) | ($37,887) | ($124,028) | | Net loss per share (basic and diluted) | ($1.24) | ($3.36) | ($2.43) | ($8.28) | - Revenue increased by 12.9% year-over-year for Q2 2025 and by 12.6% for H1 2025[14] - Loss from operations significantly decreased from ($52,376) thousand in Q2 2024 to ($20,379) thousand in Q2 2025, and from ($127,408) thousand in H1 2024 to ($50,790) thousand in H1 2025[14] Condensed Consolidated Statements of Cash Flows The cash flow statements detail cash movements for H1 2025, showing significantly reduced cash used in operations and positive investing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net loss | ($37,887) | ($124,028) | | Net cash used in operating activities | ($29,832) | ($81,549) | | Net cash provided by (used in) investing activities | $19,391 | ($9,788) | | Net cash provided by financing activities | $542 | $956 | | Net decrease in cash, cash equivalents, and restricted cash | ($9,244) | ($95,130) | | Cash, cash equivalents, and restricted cash at end of period | $219,867 | $277,703 | - Net cash used in operating activities decreased by 63.4% from ($81,549) thousand in H1 2024 to ($29,832) thousand in H1 2025[16] - Investing activities generated $19,391 thousand in H1 2025, a significant improvement from ($9,788) thousand used in H1 2024, primarily driven by $20,400 thousand in proceeds from divestiture[16] Non-GAAP Financial Measures This section explains Amwell's use of non-GAAP financial measures, specifically Adjusted EBITDA, and provides its reconciliation to GAAP net loss Explanation of Non-GAAP Measures Amwell uses Adjusted EBITDA to clarify operating performance by excluding non-core items, detailing adjustments and limitations of this non-GAAP metric - Adjusted EBITDA is used to clarify and enhance understanding of past performance by excluding items not representative of the core business[17] - Adjusted EBITDA is calculated by adjusting net loss for interest income, tax benefit, depreciation, gain on divestiture, stock-based compensation, severance, and capitalized software costs[18] - Limitations of Adjusted EBITDA include not reflecting future capital commitments or capital expenditures, and potential incomparability with similarly titled measures from other companies[20] Adjusted EBITDA Reconciliation This section provides a detailed reconciliation of Adjusted EBITDA to Net Loss for Q2 2025, Q2 2024, H1 2025, H1 2024, and Q1 2025, showing significant improvement Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | :-------------------------------- | | Net loss | ($19,531) | ($50,579) | ($37,887) | ($124,028) | ($18,356) | | Depreciation and amortization | $8,224 | $8,216 | $16,024 | $16,454 | $7,800 | | Interest income and other income (expense), net | ($845) | ($2,668) | ($3,533) | ($6,452) | ($2,688) | | Gain on divestiture | — | — | ($10,713) | — | ($10,713) | | Benefit (Expense) from income taxes | ($725) | $97 | ($157) | $1,372 | $568 | | Stock-based compensation | $5,662 | $9,838 | $13,348 | $26,066 | $7,686 | | Severance and strategic transformation costs | $2,541 | $5,297 | $6,006 | $13,956 | $3,465 | | Capitalized software costs | — | ($5,154) | — | ($7,972) | — | | Adjusted EBITDA | ($4,674) | ($34,953) | ($16,912) | ($80,604) | ($12,238) | - Adjusted EBITDA improved significantly from ($34,953) thousand in Q2 2024 to ($4,674) thousand in Q2 2025, demonstrating a positive trend in operational performance[22] - For the six months ended June 30, Adjusted EBITDA improved from ($80,604) thousand in 2024 to ($16,912) thousand in 2025[22]