American Well (AMWL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $52.0 million, at the top end of guidance, with subscription revenue at $25.7 million and AMG visit revenue at $24.4 million; net loss improved to $9.6 million, a 51% improvement year-over-year.

• Adjusted EBITDA loss narrowed to $1.15 million from $4.7 million in Q2 2025, reflecting cost reductions and strategic transformation actions.

• Achieved a major milestone with the Defense Health Agency's intent to award a sole source contract, strengthening government partnerships and platform integration.

• Subscription revenue now exceeds half of total revenue, providing a stable, recurring foundation and sequential growth.

• On track for positive adjusted EBITDA and operating cash flow by Q4 2026, with a clear path to durable growth in 2027 and beyond.

Financial highlights

• Q2 2026 total revenue was $52.0 million, down 26.6% year-over-year; subscription revenue was $25.7 million, down 36.5% year-over-year but up 3.2% sequentially.

• AMG visit revenue reached $24.4 million, up 7.4% year-over-year; virtual primary care visits grew 30% year-over-year.

• Gross profit was $27.6 million with a 53% gross margin, down 310 basis points year-over-year but up 200 basis points sequentially.

• Operating expenses were $37.1 million, down 38% year-over-year and 18% sequentially; operating loss improved 53% year-over-year to $9.6 million.

• Ended Q2 with $195.9 million in cash and marketable securities, with zero debt.

Outlook and guidance

• 2026 revenue guidance raised to $200–$205 million; adjusted EBITDA loss guidance improved to $9 million–$7 million.

• Q3 2026 revenue expected between $46 million and $48 million; adjusted EBITDA loss projected between $5 million and $3 million.

• AMG visits expected at the high end of 1.32–1.37 million for the year.

• Confident in achieving cash flow and adjusted EBITDA breakeven in Q4 2026, with double-digit revenue growth targeted for 2027 if current pipeline materializes.

• Management expects existing cash is sufficient for at least the next 12 months.