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1. Company Snapshot

1.a. Company Description

American 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.

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1.b. Last Insights on AMWL

American Well Corporation's recent stock performance was driven by positive earnings results, with a narrower-than-expected Q4 loss of $2.77 per share, topping revenue estimates. The company's strong performance was fueled by its comprehensive SaaS-based technology-enabled healthcare platform, which continues to gain traction. Additionally, the company's Q4 earnings call highlighted key metrics that compared favorably to Wall Street estimates and year-ago numbers, suggesting ongoing strength in its business.

1.c. Company Highlights

2. Amwell's Q3 2025 Earnings: Steady Progress Towards Cash Flow Breakeven

Amwell's financial performance in Q3 2025 showed a revenue of $56.3 million, an 8% decrease year-over-year, but subscription revenue increased 18% year-over-year, representing 55% of total revenue. The adjusted EBITDA loss was $12.7 million, an improvement from the $31 million loss a year ago. The EPS came out at -$1.74, missing estimates of -$1.45681. The company's guidance for the remainder of the year expects full-year revenue to be between $245 million and $248 million, and adjusted EBITDA to be in the range of a negative $45 million to negative $42 million.

Publication Date: Nov -23

📋 Highlights
  • Cash Flow Target:: Amwell aims for cash flow breakeven by 2026, with $12.7M adjusted EBITDA loss in Q3 2025 vs. $31M loss in 2024.
  • Revenue Shift:: Subscription revenue rose 18% YoY (55% of total revenue) amid total revenue decline (-8% YoY to $56.3M in Q3 2025).
  • Guidance Update:: Full-year 2025 revenue projected at $245–248M; adjusted EBITDA loss narrowed to $45M–$42M.
  • AI & Platform Focus:: $56.3M investment in AI infrastructure and ecosystem interoperability to drive personalized care and clinical program integration.
  • Competitive Win:: Florida Blues contract win highlights Amwell’s AI-driven platform disrupting a major competitor’s market position.

Revenue Mix and Margin Profile

The increase in subscription revenue is a positive sign, indicating a shift towards a more stable and recurring revenue stream. Mark Hirschhorn, Amwell's CFO and COO, stated that the company is targeting a margin profile consistent with 2025, suggesting that the introduction of AI features won't have a meaningful impact on margins. The variation in margins from 2025 to 2026 will likely be driven by the greater ability to bring software revenues into the top line.

Strategic Focus on AI and Ecosystem Interoperability

Amwell is investing in enterprise-grade AI infrastructure and has committed substantial resources to building ecosystem interoperability. Ido Schoenberg, Amwell's Chairman and CEO, emphasized that AI is dramatically influencing everything Amwell does and its ecosystem, creating a highly personalized experience for consumers and increasing ROI for customers. The company's focus on AI-driven care programs is expected to drive financial performance and traction.

Valuation and Outlook

Amwell's valuation metrics show a P/S Ratio of 0.3 and an EV/EBITDA of 1.43, indicating a relatively low valuation compared to its revenue and EBITDA. Analysts estimate next year's revenue growth at -2.0%. Given the company's focus on achieving cash flow breakeven by the end of 2026, the current valuation may be justified. However, investors will be watching closely for progress on the company's strategic initiatives and financial performance in the coming quarters.

3. NewsRoom

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American Well Corporation (AMWL) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Compared to Estimates, American Well (AMWL) Q3 Earnings: A Look at Key Metrics

Nov -05

Source: zacks.com

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American Well Corporation (AMWL) Reports Q3 Loss, Beats Revenue Estimates

Nov -05

Source: zacks.com

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Amwell® Announces Results for Third Quarter 2025

Nov -04

Source: globenewswire.com

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Amwell® to report third quarter 2025 operating results; company leaders to attend upcoming investor conferences

Oct -27

Source: globenewswire.com

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American Well Corporation (NYSE:AMWL) Given Consensus Rating of “Hold” by Analysts

Oct -22

Source: defenseworld.net

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American Well (NYSE:AMWL) Trading 2.7% Higher – Here’s What Happened

Oct -21

Source: defenseworld.net

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From Apps to Nutrition: Health & Fitness Stocks to Buy Now

Oct -03

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.76%)

6. Segments

Visits

Expected Growth: 10%

American Well Corporation's 10% growth is driven by increasing adoption of telemedicine, expansion into new markets, strategic partnerships, and investments in digital health technologies. Additionally, growing demand for convenient and accessible healthcare, favorable regulatory environment, and increasing awareness of telehealth benefits contribute to the company's growth momentum.

Platform Subscription

Expected Growth: 12%

American Well Corporation's 12% growth in Platform Subscription is driven by increasing adoption of telehealth services, expansion into new markets, strategic partnerships, and investments in digital health technologies. Additionally, the growing need for remote patient monitoring, cost savings, and improved patient outcomes are contributing to the segment's growth.

Other

Expected Growth: 9%

American Well Corporation's 9% growth is driven by increasing adoption of telehealth services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving patient engagement, enhancing user experience, and investing in AI-powered technology are contributing to its growth momentum.

7. Detailed Products

Amwell Platform

A comprehensive telehealth platform that enables healthcare providers to deliver virtual care to patients remotely.

SilverCloud

A digital behavioral health platform that provides online cognitive behavioral therapy programs for mental health conditions.

Converge

A virtual care platform that enables healthcare providers to deliver care to patients in their homes or other remote locations.

Exchange

A platform that enables healthcare providers to exchange patient data and coordinate care across different healthcare settings.

AWV (Annual Wellness Visit)

A virtual care program that enables healthcare providers to deliver annual wellness visits to Medicare patients remotely.

8. American Well Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

American Well Corporation's telehealth services are moderately susceptible to substitutes, as patients may opt for in-person doctor visits or other digital health platforms.

Bargaining Power Of Customers

American Well Corporation's customers, primarily healthcare providers and payers, have limited bargaining power due to the company's established market presence and diversified customer base.

Bargaining Power Of Suppliers

American Well Corporation's suppliers, primarily technology and infrastructure providers, have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The telehealth market is highly competitive, and new entrants may pose a significant threat to American Well Corporation's market share, particularly from tech giants and startups.

Intensity Of Rivalry

The telehealth market is highly competitive, with multiple established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.48%
Debt Cost 9.56%
Equity Weight 97.52%
Equity Cost 9.56%
WACC 9.56%
Leverage 2.54%

11. Quality Control: American Well Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TruBridge

A-Score: 5.1/10

Value: 7.5

Growth: 3.0

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Streamline Health Solutions

A-Score: 4.1/10

Value: 8.2

Growth: 2.9

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Cue Health

A-Score: 3.6/10

Value: 10.0

Growth: 3.2

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Sharecare

A-Score: 3.6/10

Value: 8.0

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Amwell

A-Score: 3.5/10

Value: 9.6

Growth: 3.9

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Ontrak

A-Score: 2.9/10

Value: 10.0

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.01$

Current Price

4.01$

Potential

-0.00%

Expected Cash-Flows