Healwell AI (AIDX) Q3 2026 earnings summary

Executive summary

• Strategic shift from episodic, Canada-focused life sciences revenue toward recurring, higher-margin global enterprise contracts, accelerated by MFN pricing changes.

• Global HIE combines healthcare systems, life sciences, AI and data infrastructure; early agreements are signed, with 19 near-term opportunities across five markets.

• Q3 continuing-operations revenue rose 7% YoY to CAD 32.6M and Adjusted EBITDA rose 144% to CAD 1.6M; recurring revenue reached 70% of total.

• 9M operating cash flow improved CAD 26.0M to positive CAD 5.9M.

Financial highlights

• Q3 continuing-operations revenue was CAD 32.6M, up 7% YoY; subscription, support and maintenance revenue rose 9% to CAD 22.8M, or 70% of total revenue.

• Q3 Adjusted EBITDA was CAD 1.6M versus CAD 0.7M; operating expenses fell 7% to CAD 23.3M and operating loss improved to CAD 6.3M from CAD 8.6M.

• Q3 gross profit rose 3% to CAD 17.1M; gross margin was 52%, versus 54% in Q3 2025.

• 9M revenue rose 38% to CAD 98.7M and Adjusted EBITDA was CAD 3.5M versus CAD 0.9M.

• Q3 net loss from continuing operations was CAD 16.0M, effectively unchanged YoY.

Outlook and guidance

• Annual revenue growth of 10% is considered a reasonable expectation; quarterly results may vary with deal timing and revenue recognition.

• The 10% Adjusted EBITDA margin target for exiting 2026 depends on contracted revenue recognition after delivery milestones are met.

• Procurement feedback on 19 near-term opportunities is expected through Q1 2027; 2027 guidance is planned by March.

• Converge Health Iowa is expected to contribute over CAD 1M annually; HIE SaaS fees may start in Q4, while SMART AI deployment revenue is expected no earlier than early 2027.

• Gross margins are expected to expand gradually from Q4 as revenue mix shifts toward AI and Amadeus SaaS.