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, cyberattack impacts, and strong Canadian and US growth.

• 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.

• Delivered 5.7 million patient visits in 2024, a 32% increase, with Canadian visits up 35% and US visits up 28%.

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

• Expanded international footprint to 11 countries following the acquisition of a 69% voting interest in HEALWELL and Orion Health.

Financial highlights

• Revenue negatively impacted by CAD 56.6 million Circle Medical and CAD 24.5 million CRH Medical revenue deferrals, both expected to be recognized in future periods; excluding these, revenue would have reached CAD 1 billion (+29% YoY).

• Adjusted EBITDA for 2024 was CAD 46.7 million, down from CAD 113.4 million in 2023 due to deferred revenue; would have been CAD 127 million (+12%) excluding deferrals.

• Free cash flow per share was CAD 0.20, with FCFA2S up 16% year-over-year.

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

• Adjusted Gross Margin was 39.5% (down from 48.0% in 2023); would have been 44.3% excluding one-time impacts.

Outlook and guidance

• 2025 revenue guidance: CAD 1.4–1.45 billion ($1.40–$1.45B); adjusted EBITDA: CAD 190–210 million ($190–$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 revenue and CAD 100 million adjusted EBITDA in Canada alone by end of 2025/2026.

• WELLSTAR IPO planned for early 2026, targeting over $100M in revenue.