WELL Health Technologies (WELL) Q1 2025 earnings summary

Executive summary

• Record Q1 2025 revenue of CAD 294.1 million (USD 294.1M), up 32% year-over-year, driven by organic growth and acquisitions; excluding Circle Medical deferred revenue, revenue was CAD 300.7 million.

• Adjusted EBITDA reached CAD 27.6 million (USD 27.6M), up 36% year-over-year; excluding Circle Medical impact, adjusted EBITDA was CAD 34.1 million.

• Strategic focus shifting to Canadian market, with plans to divest all U.S. care delivery businesses, including Circle Medical and WISP, to redeploy capital into Canadian operations and technology platforms.

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

• Over 4,300 providers in the clinic network and 42,000+ unique providers supported by technology, with 2.5M+ total care interactions, up 34% year-over-year.

Financial highlights

• Q1 2025 revenue: CAD 294.1 million (+32% YoY); adjusted EBITDA: CAD 27.6 million (+36% YoY); excluding Circle Medical, revenue was CAD 300.7 million and adjusted EBITDA was CAD 34.1 million.

• Net loss of CAD 41.9 million (negative CAD 0.19/share) vs. net income of CAD 13.8 million (CAD 0.05/share) in Q1 2024, mainly due to fair value adjustments and deferred revenue.

• Adjusted net income: CAD 7.5 million (CAD 0.03/share) vs. CAD 17.2 million (CAD 0.07/share) in Q1 2024; prior year benefited from a CAD 11.3 million gain on IntraHealth sale.

• Adjusted free cash flow: CAD 11.8 million, slightly down from CAD 12.6 million YoY due to higher capex and cash taxes.

• Cash and equivalents: CAD 103.2 million; debt: CAD 340 million; fully compliant with covenants.

Outlook and guidance

• 2025 revenue guidance: CAD 1.35–1.4 billion (USD 1.35–1.4B); adjusted EBITDA: CAD 140–160 million (USD 140–160M), excluding Circle Medical impact.

• Guidance does not include unannounced acquisitions; HealWell expected to contribute CAD 120 million in revenue and positive EBITDA starting Q2 2025.

• WELL Canada targeting over CAD 100 million in adjusted EBITDA and over CAD 800 million in revenue in the next couple of years.

• Long-term goal: 10% market share of Canadian clinics, equivalent to over CAD 5 billion annual business.

• Focus remains on organic growth, operational efficiency, and Canadian market expansion.