HEALWELL Reports Record Revenue Growth of 645% in Q2-2025 and Achieves First Quarter of Positive Adjusted EBITDA

Core Insights - HEALWELL AI Inc. reported a record revenue growth of 645% in Q2-2025, achieving quarterly revenue of $40.5 million compared to $5.4 million in Q2-2024, primarily driven by the acquisition of Orion Health [4][7][8] - The company achieved its first positive Adjusted EBITDA of $1.9 million in Q2-2025, a significant improvement from an Adjusted EBITDA loss of $3.7 million in Q2-2024, reflecting strong operational fundamentals [4][7][8] - HEALWELL's strategy is focused on becoming a pure-play software and services company, divesting its clinical research and patient services business units to enhance its AI and data science offerings [3][4][5] Financial Highlights - Revenue for Q2-2025 was $40.5 million, a 645% increase from $5.4 million in Q2-2024, with the Healthcare Software business experiencing a 1,064% year-over-year increase [4][7][13] - Gross Profit reached $21.3 million in Q2-2025, up 764% from $2.5 million in Q2-2024, resulting in a Gross Margin of 52.5%, compared to 45.2% in Q2-2024 [7][8][13] - The company had $19 million in cash as of June 30, 2025, an increase from $9.4 million at the end of 2024, positioning it well for future growth and acquisitions [5][7] Business and Operational Highlights - The acquisition of Orion Health, completed on April 1, 2025, is expected to contribute approximately $100 million in annual SaaS and services revenue, enhancing HEALWELL's global reach and customer base [4][7][8] - HEALWELL's AI segment achieved revenues of $5.1 million in the first half of 2025, representing a 223% year-over-year growth [8] - The company has identified several potential tuck-in M&A opportunities as part of its growth strategy [3][4] Strategic Initiatives - HEALWELL is focusing on integrating its AI solutions into public and private health systems, leveraging existing customer bases to accelerate adoption [3][4] - The company officially entered the U.S. healthcare market on June 11, 2025, launching AI-enabled tools targeting health systems and life sciences organizations [7][8] - The Board of Directors is exploring strategic alternatives for the clinical research and patient services business units to streamline operations and focus on high-margin software and services [4][5]