Amwell(US:AMWL)2025-08-05 20:10PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, segment information, revenue recognition, and other financial details for the periods ended June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets from $435.97 million at December 31, 2024, to $388.66 million at June 30, 2025, primarily driven by reductions in cash, accounts receivable, and intangible assets | Metric (in thousands) | 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) | | Intangible assets, net | $84,025 | $101,538 | $(17,513) | | 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) | Condensed Consolidated Statement of Operations and Comprehensive Loss The company significantly reduced its net loss for both the three and six months ended June 30, 2025, compared to the same periods in 2024, driven by increased revenue and substantial reductions in operating expenses | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Revenue | $70,898 | $62,790 | 13.07% | $137,731 | $122,312 | 12.61% | | Total costs and operating expenses | $91,277 | $115,166 | (20.74)% | $188,521 | $249,720 | (24.49)% | | Loss from operations | $(20,379) | $(52,376) | (61.13)% | $(50,790) | $(127,408) | (60.00)% | | Net loss | $(19,531) | $(50,579) | (61.39)% | $(37,887) | $(124,028) | (69.46)% | | Net loss attributable to American Well Corporation | $(19,696) | $(49,920) | (60.55)% | $(38,400) | $(122,025) | (68.53)% | | Net loss per share, basic and diluted | $(1.24) | $(3.36) | (63.10)% | $(2.43) | $(8.28) | (70.65)% | Condensed Consolidated Statement of Stockholders' Equity Total stockholders' equity decreased from $316.24 million at January 1, 2025, to $294.57 million at June 30, 2025, primarily due to net losses, partially offset by stock-based compensation expense and currency translation adjustments | Metric (in thousands) | Balances as of January 1, 2025 | Balances as of June 30, 2025 | | :-------------------- | :----------------------------- | :--------------------------- | | Common Stock | $156 | $161 | | Additional Paid-In Capital | $2,286,380 | $2,300,267 | | Accumulated Other Comprehensive Income (Loss) | $(15,840) | $(13,514) | | Accumulated Deficit | $(1,965,924) | $(2,004,326) | | Total American Well Corporation Stockholders' Equity | $304,772 | $282,588 | | Noncontrolling Interest | $11,472 | $11,985 | | Total Stockholders' Equity | $316,244 | $294,573 | - Stock-based compensation expense contributed $13.35 million to additional paid-in capital for the six months ended June 30, 202513 Condensed Consolidated Statement of Cash Flows Net cash used in operating activities significantly decreased from $81.55 million in H1 2024 to $29.83 million in H1 2025, largely due to reduced net loss and positive changes in working capital, with investing activities providing $19.39 million in cash in 2025 | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :----------------------------- | :----------------------------- | :----------- | | Net loss | $(37,887) | $(124,028) | $(86,141) | | Net cash used in operating activities | $(29,832) | $(81,549) | $51,717 | | Net cash provided by (used in) investing activities | $19,391 | $(9,788) | $29,179 | | Net cash provided by financing activities | $542 | $956 | $(414) | | Net decrease in cash, cash equivalents, and restricted cash | $(9,244) | $(95,130) | $85,886 | | Cash, cash equivalents, and restricted cash at end of period | $219,867 | $277,703 | $(57,836) | - Cash provided by investing activities in 2025 was primarily driven by $20.4 million in proceeds from a divestiture, contrasting with $9.8 million used in investing activities in 2024, which included capitalized software development costs and joint venture investments178179 Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering the company's organization, significant accounting policies, segment information, revenue breakdown, related-party transactions, and specific financial events 1. Organization and Description of Business American Well Corporation, founded in 2006, is a leading enterprise software company focused on digital care delivery in healthcare, completing a 1-for-20 reverse stock split effective July 10, 2024 - American Well Corporation is a leading enterprise software company enabling digital delivery of care for healthcare's key stakeholders18 - A 1-for-20 reverse stock split became effective on July 10, 2024, retroactively adjusting all common stock, stock-based instruments, and per-share data19 2. Summary of Significant Accounting Policies The company's unaudited condensed consolidated financial statements are prepared in accordance with GAAP and SEC rules, with no material changes to significant accounting policies from the 2024 Form 10-K, consolidating wholly-owned subsidiaries and VIEs - No material changes to significant accounting policies from the fiscal year ended December 31, 2024, Form 10-K20 - The company consolidates variable interest entities (VIEs) where it is the primary beneficiary, including professional corporations (PCs) and National Telehealth Network (NTN)2227 | PC Financials (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | Total assets | $29,127 | $34,050 | | Total liabilities | $281 | $2,053 | - The company made a minority investment of $1.00 million in Aingelz, Inc. on March 11, 2025, using a **Simple Agreement for Future Equity (SAFE