WELL Health Technologies (WELL) Q1 2025 earnings summary

Executive summary

• Strategic focus is shifting to the Canadian market, with plans to divest all U.S. care delivery businesses and redeploy capital into Canadian operations.

• Q1 2025 revenue reached $294.1M (CAD 294.1 million), up 32% year-over-year, driven by organic growth, acquisitions, and both Canadian and U.S. operations.

• Net loss of $41.9M (negative $0.19/share) compared to net income of $13.8M in Q1 2024, mainly due to a $35.2M fair value loss on HEALWELL and higher expenses.

• Four core growth engines: Canadian clinics, WELL Star (healthcare tech), HealWell (AI/data science), and CyberWell (cybersecurity), all self-funded and cash flow positive.

• Significant business combinations and asset acquisitions completed in Q1 2025, including Harmony Anesthesia and Canadian clinics.

Financial highlights

• Q1 2025 revenue: $294.1M (+32% YoY); adjusted EBITDA: $34.1M, up from $25.0M year-over-year.

• Excluding Circle Medical deferred revenue, Q1 revenue would have been $307M and adjusted EBITDA $34.1M.

• Gross margin: $117.5M, up from $94.1M year-over-year.

• Cash and equivalents: $103.2M; debt: $340M; all covenants in compliance.

• Net loss: $41.9M vs. net income of $13.8M in Q1 2024.

Outlook and guidance

• 2025 revenue guidance: $1.35–1.4B; adjusted EBITDA: $140–160M, excluding Circle Medical impact.

• Guidance excludes unannounced acquisitions; significant M&A pipeline could boost results.

• HealWell expected to contribute $120M in revenue and positive EBITDA to 2025 results.

• Targeting over $100M in adjusted EBITDA in Canada by end of 2026, with focus on organic and inorganic growth.

• Post-quarter, HEALWELL consolidation expected to impact future results.