WELL Health Technologies (WELL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached CAD 294.1 million (USD 294.1M), up 32% year-over-year, with adjusted EBITDA of CAD 27.6 million (USD 27.6M), up 36%; excluding Circle Medical deferred revenue, revenue was CAD 307 million (USD 300.7M) and adjusted EBITDA CAD 34.1 million (USD 34.1M), driven by organic growth and acquisitions.

• Strategic focus is shifting to the Canadian market, with plans to divest all U.S. care delivery businesses and redeploy capital into Canadian operations; ongoing sales processes for WISP and Circle Medical.

• 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.

• Resumption of share buyback program announced, reflecting confidence in undervalued shares and strong cash flow.

Financial highlights

• Q1 2025 revenue: CAD 294.1 million (USD 294.1M), up 32% year-over-year; adjusted EBITDA: CAD 27.6 million (USD 27.6M), up 36% year-over-year.

• Excluding Circle Medical deferred revenue, Q1 revenue would have been CAD 307 million (USD 300.7M) and adjusted EBITDA CAD 34.1 million (USD 34.1M).

• 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 attributable to shareholders: CAD 11.8 million in Q1 2025.

Outlook and guidance

• 2025 revenue guidance: CAD 1.4–1.45 billion (USD 1.4–1.45B); adjusted EBITDA: CAD 190–210 million (USD 190–210M); excluding Circle Medical, guidance is CAD 1.35–1.4 billion (USD 1.35–1.4B) revenue and CAD 140–160 million (USD 140–160M) adjusted EBITDA.

• Guidance does not include unannounced acquisitions; significant M&A pipeline could boost results.

• HealWell expected to contribute CAD 120 million (USD 120M) in revenue and positive EBITDA to 2025 results.

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

• Focus remains on operational efficiency and Canadian market expansion.