Education
About Us
Working with TipRanks
Follow Us
American Well (AMWL)
NYSE:AMWL
Top Page
American Well
(NYSE:AMWL)
50Neutral
Positive Factors
Contract prospects
The successful rollout with DHA and the pending sustainment award could serve as strong proof points, boosting Amwell's credibility which could help drive follow-on deals.
Cost management
AMWL displayed solid cost management, as it saw a 16% Q/Q reduction in OpEx, slightly ahead of our 15% estimate.
Earnings
Q1 results came in nicely ahead of expectations.
Negative Factors
Client churn
Provider visits of ~1.4M were down -13% y/y in 4Q:24 due to the churn of a few large clients.
Leadership changes
Leadership changes at the DHA are creating modest delays.
Revenue guidance
The latest earnings report showed a materially weaker than expected topline guide for FY25, coming in nearly 20% below consensus expectations.
American Well (AMWL) vs. S&P 500 (SPY)
Market Cap
$107.35M
Dividend YieldN/A
Average Volume (3M)58.76K
Price to Earnings (P/E)―
Beta (1Y)2.27
Revenue Growth2.79%
EPS Growth58.22%
CountryUS
Employees877
SectorHealthcare
Sector Strength53
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.19
Shares Outstanding14,162,309
10 Day Avg. Volume82,332
30 Day Avg. Volume58,760
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.74
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-0.81
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.90Price Target Upside60.77% Upside
Rating ConsensusHold
Number of Analyst Covering8
American Well Business Overview & Revenue Model
Company DescriptionAmerican Well Corporation operates as a telehealth software company that enables digital delivery of care for healthcare. The company products offer urgent care; scheduled visits; acute behavioral health; telestroke; pediatrics; retail health, school health, and home settings. Its application offers urgent care; pediatrics; therapy; menopause nutrition; end-stage renal disease and dialysis; dermatology care; behavioral health therapy; and musculoskeletal care. The company also provides telemedicine equipment, including telemedicine carts, peripherals, tyto care, TV kits, tablets, and kiosks. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyAmwell primarily generates revenue through a subscription-based model, where healthcare providers, health systems, and insurers pay for access to its telehealth platform. The company charges fees for its software-as-a-service (SaaS) solutions, which include telehealth infrastructure, digital care services, and enterprise solutions. Additionally, Amwell earns money by facilitating individual telehealth visits, for which it charges a fee per visit. Strategic partnerships with health systems, technology companies, and insurance providers further enhance its revenue streams by expanding its service offerings and market reach.
American Well Financial Statement Overview
Summary
American Well's financial performance exhibits significant challenges, with declining revenues and persistent losses. The income statement shows a substantial decrease in revenue and a high negative net profit margin. The balance sheet indicates a strong equity position but declining asset values. Cash flows are negative, highlighting ongoing operational cash challenges.Income Statement
American Well's income statement indicates declining revenues and persistent losses. The TTM shows a decrease in revenue with a total of $194.8 million compared to $254.4 million in the previous annual report. The company continues to operate at a loss with a negative net profit margin of -79.4% for TTM, reflecting significant challenges in achieving profitability.45
Neutral
Balance Sheet
The balance sheet shows a relatively strong equity position, with an equity ratio of 70.1% in the TTM, suggesting a low reliance on debt. However, the company has seen a reduction in total assets and equity over time, which could indicate challenges in asset management and growth.65
Positive
Cash Flow
The cash flow statement highlights negative free cash flow of -$105 million in the TTM, indicating ongoing operational cash challenges. The operating cash flow to net income ratio is negative, underscoring inefficiencies in cash generation relative to reported losses.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 254.36M | 259.05M | 277.19M | 252.79M | 245.26M | Gross Profit |
| 98.95M | 94.76M | 116.77M | 104.31M | 88.47M | EBIT |
| -217.53M | -692.14M | -275.85M | -179.15M | -227.43M | EBITDA |
| -184.56M | -225.99M | -249.69M | -162.20M | -216.93M | Net Income Common Stockholders |
| -208.14M | -675.16M | -269.79M | -173.65M | -226.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 228.32M | 372.04M | 538.55M | 746.42M | 1.04B | Total Assets |
| 435.97M | 589.71M | 1.22B | 1.45B | 1.38B | Total Debt |
| 8.20M | 11.79M | 14.84M | 16.61M | 7.65M | Net Debt |
| -220.12M | -360.25M | -523.70M | -729.80M | -933.96M | Total Liabilities |
| 119.72M | 109.52M | 133.71M | 184.96M | 130.45M | Stockholders Equity |
| 304.77M | 464.22M | 1.06B | 1.24B | 1.22B |
| Cash Flow | Free Cash Flow | |||
| -142.56M | -163.59M | -202.77M | -142.10M | -115.78M | Operating Cash Flow |
| -127.34M | -148.34M | -192.32M | -141.54M | -112.46M | Investing Cash Flow |
| -18.65M | -19.17M | -11.63M | -59.63M | -66.76M | Financing Cash Flow |
| 1.38M | 2.15M | -3.61M | 5.75M | 983.12M |
American Well Technical Analysis
Negative
6.78
Price Trends
7.71
Negative
8.70
Negative
8.89
Negative
Market Momentum
-0.22
Negative
43.09
Neutral
42.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Negative. The current price of 6.78 is below the 20-day moving average (MA) of 7.22, below the 50-day MA of 7.71, and below the 200-day MA of 8.89, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWL.
American Well Risk Analysis
American Well disclosed 67 risk factors in its most recent earnings report. American Well reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Well Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $163.32M | ― | -95.42% | ― | 26.87% | -104.94% | |
52 Neutral | $5.23B | 3.70 | -41.86% | 2.84% | 16.58% | -0.16% | |
50 Neutral | $107.35M | ― | -44.04% | ― | 2.79% | 58.22% | |
50 Neutral | $112.99M | ― | -23.91% | ― | -13.92% | -2.86% | |
39 Underperform | $111.33M | ― | -98.10% | ― | -58.64% | -40.05% | |
39 Underperform | $142.68M | ― | -25.95% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
AMWL
American Well
6.78
-3.47
-33.85%
EDIT
Editas Medicine
1.33
-4.23
-76.08%
LNSR
LENSAR
13.83
10.01
262.04%
SEER
Seer
1.85
-0.21
-10.19%
FDMT
4D Molecular Therapeutics
3.12
-22.52
-87.83%
EUDA
EUDA Health Holdings
3.73
1.88
101.62%
American Well Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 9.53%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong software revenue growth and improved adjusted EBITDA, driven by strategic deployments like the Military Health System. However, challenges such as delayed deployments due to leadership transition and lower visit volumes were noted. Despite these challenges, the overall sentiment remains positive with strong prospects for future growth and positive cash flow.Q1-2025 Updates
Positive Updates
Strong Software Revenue Growth
Software revenue grew over 30% from Q1 of last year, driven by strategic client deployments including the Military Health System.
Improved Adjusted EBITDA
Adjusted EBITDA improved for the fourth consecutive quarter, with a negative $12.2 million compared to negative $45.6 million in Q1 2024.
Partnership with Military Health System
The platform is now live for scheduled visits across the global Military Health System, with patient and provider satisfaction reported as very high, over 90%.
Positive Cash Flow Prospects
Amwell is on track to achieving positive cash flow from operations by 2026, driven by cost reduction and revenue mix improvement.
Negative Updates
Delayed Deployment Due to Leadership Transition
Final confirmation from the new DHA Director is awaited, delaying the deployment of automated and Digital Behavioral Health programs to Q3.
Lower Visit Volumes
Completed approximately 1.3 million visits in Q1, which is approximately 23% lower than a year ago, normalizing for APC.
Economic Uncertainty and Tariff Concerns
Macro noise, tariffs, and economic uncertainty are affecting sales timelines as health systems evaluate IT budgets.
Company Guidance
During Amwell's Q1 2025 earnings call, the company provided several key metrics and guidance points. Total revenue for the quarter was $66.8 million, a 12% increase year-over-year, with a notable 30% growth in software revenue compared to Q1 2024. The company emphasized its progress toward achieving positive cash flow from operations by 2026, driven by a strategic shift towards a higher mix of subscription software revenues, which accounted for 48% of total revenue in Q1. The gross margin improved to 52.8%, reflecting a higher software mix and ongoing cost reduction initiatives. Adjusted EBITDA showed significant improvement, with a loss of $12.2 million in Q1, compared to a loss of $45.6 million in the previous year. Amwell reiterated its full-year 2025 revenue guidance of $250 million to $260 million, excluding expected revenue from the divested Amwell Psychiatric Care, and maintained its adjusted EBITDA guidance of a loss between $55 million and $45 million, indicating a 60% year-over-year improvement. The company remains focused on expanding its software revenue mix to nearly 60% by the end of the year and anticipates ending 2025 with approximately $190 million in cash.American Well Corporate Events
Executive/Board Changes
Amwell Appoints Dan Zamansky as New CTO
Neutral
Mar 3, 2025
On February 25, 2025, Amwell entered into a separation agreement with Vaughn Paunovich, EVP of Enterprise Platforms, whose employment will end on March 2, 2025. Paunovich will receive a one-time bonus and reimbursements as part of the agreement. On March 3, 2025, Amwell announced the appointment of Dan Zamansky, a former Amazon executive, as the new chief product and technology officer. Zamansky’s extensive experience in innovation and technology is expected to enhance Amwell’s platform and drive profitable growth, succeeding Paunovich’s contributions to the company’s re-platforming efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.