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American Well (AMWL)
NYSE:AMWL
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American Well
(NYSE:AMWL)
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Rating:48Neutral
Price Target:
$3.50
▼(-23.08% Downside)
American Well's overall stock score is primarily impacted by its financial performance, which shows declining revenues and persistent losses. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The earnings call provides some positive insights into cost reduction and subscription revenue growth, but these are overshadowed by overall revenue declines.
Positive Factors
Subscription Revenue Growth
The growth in subscription revenue indicates a strong demand for American Well's platform, enhancing revenue stability and predictability, which is crucial for long-term business sustainability.
Improved Gross Margin
An improved gross margin reflects better cost management and a favorable revenue mix, indicating enhanced operational efficiency and potential for future profitability.
Strong Cash Position
A strong cash position with no debt provides financial flexibility and resilience, enabling the company to invest in growth opportunities and weather economic uncertainties.
Negative Factors
Decline in Total Revenue
A decline in total revenue suggests challenges in maintaining market share and could impact long-term growth prospects if not addressed.
Decrease in Total Visit Volume
A reduction in visit volume indicates decreased platform utilization, which could affect revenue generation and market competitiveness over time.
Negative Cash Flow
Persistent negative cash flow highlights operational inefficiencies and could limit the company's ability to invest in growth and innovation.
American Well (AMWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.49M
Dividend YieldN/A
Average Volume (3M)123.79K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth4.33%
EPS Growth50.50%
CountryUS
Employees877
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-2.00
Shares Outstanding14,723,951
10 Day Avg. Volume123,214
30 Day Avg. Volume123,788
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.36
Price to Sales (P/S)0.43
P/FCF Ratio-0.76
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$7.31Price Target Upside60.66% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-6.17
Revenue Forecast (FY)$246.76M
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 MoneyAmerican Well generates revenue through several key streams, primarily by charging health systems, insurers, and employers for access to its telehealth platform. The company typically operates on a subscription model, where clients pay for the use of the platform based on the number of virtual visits or a fixed monthly fee. Additionally, American Well may earn revenue from transaction fees for each telehealth consultation conducted via its platform. Significant partnerships with major health insurers and healthcare systems also contribute to its earnings by expanding its user base and increasing service adoption. The company may also explore other revenue opportunities through data analytics and value-added services, providing insights to healthcare providers based on telehealth usage patterns.
American Well Key Performance Indicators (KPIs)
American Well Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance. While there are significant achievements in subscription revenue growth, cost reduction, and improved margins, these are counterbalanced by declines in total revenue and visit volumes. The company is focusing on AI integration and strategic divestitures to enhance future performance.Q3-2025 Updates
Positive Updates
Increased Subscription Revenue
Subscription revenue reached $30.9 million, marking an 18% year-over-year increase and now represents 55% of total revenue compared to 43% a year ago.
Improved Gross Margin
GAAP gross margin expanded to 52% compared to 37% a year ago due to greater software and services revenue.
Significant Reduction in Operating Expenses
Operating expenses decreased by 16% compared to last year, with sales and marketing expenses dropping by 46%.
Positive Guidance Adjustment
Full-year adjusted EBITDA guidance improved to a range of negative $45 million to negative $42 million from the prior range of negative $50 million to negative $45 million.
Strong Cash Position
The company ended the quarter with approximately $201 million in cash and marketable securities with zero debt.
Negative Updates
Decline in Total Revenue
Total revenue for the quarter was $56.3 million, an 8% decrease year-over-year, affected by the step-down in contribution from Leidos and the divestiture of APC.
Decrease in Total Visit Volume
Total visit volume was approximately 1.1 million visits, down 21% from a year ago.
Lower Average Revenue per Visit
Average revenue per visit decreased by 14% compared to last year’s Q3, although when normalizing for the sale of APC, it was 3.5% higher.
Company Guidance
During Amwell's third fiscal quarter of 2025 conference call, guidance indicated a focus on achieving cash flow breakeven by the end of 2026, driven by two main work streams: enhancing their enterprise-grade platform and ensuring operational efficiency. The company reported total revenue of $56.3 million, an 8% year-over-year decrease, but noted a 1.3% increase when adjusted for the sale of Amwell Psychiatric Care (APC). Subscription revenue rose by 18% year-over-year, making up 55% of total revenue. GAAP gross margin expanded to 52%, up from 37% the previous year, due to a favorable revenue mix. The company reduced operating expenses by 16% year-over-year, with significant declines in sales and marketing (46%) and G&A expenses (14%). Adjusted EBITDA was a loss of $12.7 million, improving from a $31 million loss the prior year. Amwell ended the quarter with $201 million in cash and marketable securities and zero debt. Revised full-year guidance anticipates revenue between $245 million and $248 million and adjusted EBITDA between negative $45 million and negative $42 million.American Well Financial Statement Overview
Summary
American Well faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is supported by a strong equity base, although asset values are declining. Cash flows remain negative, indicating difficulty in turning operations into positive cash generation. Continued focus on improving operational efficiency and revenue growth is critical for financial stability.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 265.02M | 254.36M | 259.05M | 277.19M | 252.79M | 245.26M |
| Gross Profit | 105.24M | 65.98M | 63.27M | 90.61M | 88.23M | 78.32M |
| EBITDA | -74.97M | -173.34M | -640.80M | -242.96M | -162.20M | -214.79M |
| Net Income | -113.43M | -208.14M | -675.16M | -270.43M | -176.33M | -224.43M |
Balance Sheet | ||||||
| Total Assets | 359.43M | 435.97M | 589.71M | 1.22B | 1.45B | 1.38B |
| Cash, Cash Equivalents and Short-Term Investments | 200.89M | 228.32M | 372.04M | 538.55M | 746.42M | 1.04B |
| Total Debt | 5.46M | 8.20M | 11.79M | 14.84M | 16.61M | 7.65M |
| Total Liabilities | 92.06M | 119.72M | 109.52M | 133.71M | 184.96M | 130.45M |
| Stockholders Equity | 254.91M | 304.77M | 464.22M | 1.06B | 1.24B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | -64.46M | -142.56M | -163.59M | -202.77M | -142.10M | -115.78M |
| Operating Cash Flow | -62.03M | -127.34M | -148.34M | -192.32M | -141.54M | -112.46M |
| Investing Cash Flow | 15.26M | -18.65M | -19.17M | -11.63M | -59.63M | -66.76M |
| Financing Cash Flow | 839.00K | 1.38M | 2.15M | -3.61M | 5.75M | 983.12M |
American Well Technical Analysis
Neutral
4.55
Price Trends
4.55
Positive
5.60
Negative
6.56
Negative
Market Momentum
0.05
Negative
53.37
Neutral
43.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Neutral. The current price of 4.55 is above the 20-day moving average (MA) of 4.36, above the 50-day MA of 4.55, and below the 200-day MA of 6.56, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMWL.
American Well Risk Analysis
American Well disclosed 10 risk factors in its most recent earnings report. American Well reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $232.64M | -4,800.00 | 0.03% | ― | 24.19% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $171.17M | -1.53 | -31.33% | ― | 4.64% | -17.17% | |
49 Neutral | $372.55M | -1.57 | -47.69% | ― | -5.30% | 46.01% | |
48 Neutral | $74.49M | -0.63 | -38.35% | ― | 4.33% | 50.50% | |
48 Neutral | $459.80M | -2.62 | -13.63% | ― | -16.65% | -71.92% | |
47 Neutral | $1.26B | -5.56 | -15.42% | ― | -2.37% | 77.85% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.