WELL Health Technologies (WELL) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of CAD 919.7 million ($919.7M) in 2024, up 19% year-over-year, despite significant IFRS-driven revenue deferrals and cyberattack impacts.

• Net income grew 75% year-over-year to CAD 29.1 million, with free cash flow attributable to shareholders rising 16% to CAD 49.3 million.

• Patient visits increased 32% year-over-year to 5.7 million, with Canadian visits up 35% and U.S. visits up 28%.

• Expanded global footprint to 11 countries after acquiring a 69% voting interest in HEALWELL and Orion Health.

• Strategic focus on Canadian market, M&A pipeline, and divestment of U.S. digital assets (WISP and Circle Medical) to redeploy capital.

Financial highlights

• Revenue negatively impacted by CAD 56.6 million ($56.6M) Circle Medical and CAD 24.5 million ($24.5M) CRH Medical revenue deferrals, both expected to be recognized in future periods.

• Excluding these impacts, revenue would have reached CAD 1 billion ($1.0B), a 29% increase year-over-year.

• Adjusted EBITDA for 2024 was CAD 46.7 million ($46.7M), down from CAD 113.4 million in 2023, due to deferred revenue; would have been CAD 127 million ($127M) excluding deferrals.

• Free cash flow per share was CAD 0.20.

• Cash and cash equivalents at year-end were CAD 131.7 million; debt on credit lines was CAD 292.4 million.

Outlook and guidance

• 2025 revenue guidance: CAD 1.4–1.45 billion ($1.40B–$1.45B); adjusted EBITDA: CAD 190–210 million ($190M–$210M).

• Guidance includes over 90% of deferred Circle Medical revenue but excludes CRH Medical delayed earnings until collections are confirmed.

• Full consolidation of HEALWELL financials from Q2 2025, expected to add $120 million in annual revenue.

• Targeting CAD 800 million ($800M) revenue and CAD 100 million ($100M) adjusted EBITDA in Canada alone by end of 2025/2026.

• No unannounced acquisitions included in guidance; strong M&A pipeline could boost results.