Amwell — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $49.0 million, exceeding the previously provided guidance range.
• Subscription revenue was $23.9 million.
• Amwell Medical Group (AMG) visit revenue was $23.7 million.
• Gross margin was 53%.
• Net loss was $11.0 million, an increase from $9.6 million in the second quarter of 2026.
• Adjusted EBITDA was ($3.6) million, compared to ($1.2) million in the second quarter of 2026.
• Total visits on the platform were 0.8 million.
• For the nine months ended September 30, 2026, total revenue was $155.9 million compared to $194.0 million in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $30.9 million compared to $69.8 million in the prior year period.
• Cash and cash equivalents were $180.8 million as of September 30, 2026, down from $182.3 million as of December 31, 2025.
• Deferred revenue decreased to $21.0 million ($20.7 million current, $0.3 million non-current) from $23.4 million ($22.6 million current, $0.8 million non-current) at the end of 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $1.9 million, compared to $48.6 million in the prior year period.

Guidance and Future Outlook:

• The Company raised its full-year 2026 revenue outlook to a range of $204 million to $206 million, up from the previous range of $200 million to $205 million.
• The Company raised its full-year 2026 adjusted EBITDA outlook to a range of ($8) million to ($7) million, up from ($9) million to ($7) million.
• The Company reaffirmed its AMG visit guidance for 2026 at between 1.32 million and 1.37 million.
• Q4 2026 revenue guidance is set at $48 million to $50 million.
• Q4 2026 adjusted EBITDA is expected to be in the range of $0 million to $1 million.
• The Company reiterated its objective to achieve positive cash flow from operations in the fourth quarter of 2026.

Business Segments and Product Lines:

• The platform operates across six focus areas designed to activate members, simplify experiences, deepen clinician relationships, provide choice without sprawl, demonstrate outcomes, and utilize a common data structure.
• The Amwell Medical Group (AMG) segment generated $23.7 million in visit revenue for the quarter.
• The Company noted a net gain on divestiture of $7.0 million for the nine months ended September 30, 2026, related to the sale of its APC business.

Market and Competitive Landscape:

• The Company stated that health plans and employers are seeking engagement, outcomes, and proof, which the single platform aims to deliver.
• Management expressed confidence in being positioned as the trusted platform where AI-powered care runs.
• The press release notes that the company has served some of the largest and most sophisticated healthcare organizations in the U.S. for almost two decades.

Risks and Challenges:

• Forward-looking statements identify risks including client attrition during platform transition, renewal and upsell challenges, and the potential election by the Defense Health Agency to deploy the solution enterprise-wide.
• Risks include weak growth and volatility in the telehealth market, rapid technological changes, and increased competition.
• Regulatory risks involve changes in healthcare laws, regulations, and compliance with federal and state privacy regulations.
• Cybersecurity breaches could result in significant liability.
• The Company does not provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income due to the difficulty in forecasting certain deductions, noting that projected GAAP net loss could be materially less than projected Adjusted EBITDA.

Management Commentary and Tone:

• Dr. Ido Schoenberg, Chairman and CEO, stated that the single platform is built to deliver engagement, outcomes, and proof.
• Management highlighted the activation of more members, simplification of the customer experience, and the use of a common data structure to demonstrate efficacy.
• The tone regarding future performance is optimistic, citing the expectation of positive cash flow from operations in Q4 and a raised revenue and EBITDA outlook.

Other Key Points:

• The Company will host a conference call at 5 p.m. ET on November 3, 2026, with a webcast replay available for approximately 90 days.
• The Company provides guidance on a non-GAAP basis for all metrics except GAAP Revenue.
• Stock-based compensation expense was $2.3 million for the quarter and $6.7 million for the nine months ended September 30, 2026.
• Severance and strategic transformation costs were $0.5 million for the quarter and $4.3 million for the nine months ended September 30, 2026.
• The Company recognized a net gain on divestiture of $7.0 million for the nine months ended September 30, 2026, related to the sale of the APC business.
• Capitalized software development costs were $8.6 million for the nine months ended September 30, 2026.
• The Company reported a net decrease in cash, cash equivalents, and restricted cash of $1.5 million for the nine months ended September 30, 2026.