American Well (AMWL) AI Stock Analysis

• Market Cap: $89.71M
• Dividend Yield: N/A
• Average Volume (3M): 111.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• Revenue Growth: 4.33%
• EPS Growth: 50.50%
• Country: US
• Employees: 877
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.52
• Shares Outstanding: 14,904,513
• 10 Day Avg. Volume: 176,916
• 30 Day Avg. Volume: 111,120
• PEG Ratio: 0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -1.19
• Enterprise Value/Market Cap: -0.94
• Enterprise Value/Revenue: -0.34
• Enterprise Value/Gross Profit: -0.63
• Enterprise Value/Ebitda: 1.18
• 1Y Price Target: $5.33
• Price Target Upside: -7.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -4.25
• Revenue Forecast (FY): $199.57M

• Rating: 46 Neutral
• Price Target: $4.00 ▼(-30.43% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held down primarily by weak financial performance (persistent losses and negative free cash flow, plus a sharp reported 2025 annual revenue deterioration) and bearish technicals (price below key moving averages with negative MACD). The earnings call adds some support due to improved mix, major cost reductions, strong liquidity/no debt, and a stated path toward breakeven, but near-term revenue contraction and ongoing cash burn keep risk elevated; valuation is also constrained by negative earnings and no dividend.

Positive Factors

Recurring Revenue Mix

A shift to 53% subscription revenue increases durable, recurring cash flows and revenue visibility. Higher SaaS mix raises customer stickiness, supports more predictable gross margins over time, and helps management execute on a path to operational breakeven if retention and renewals hold.

Enterprise Partnership Stability

A multi-year renewal with a top-tier payer secures ongoing subscription payments and upsell channels for services and innovation. This contract reduces near-term churn risk, validates platform scale, and creates long-term revenue baselines and integration barriers for competitors.

Conservative Capital Structure

A debt-free balance sheet and substantial cash provide runway to complete transformation, fund AI/automation investments, and absorb restructuring costs. Low leverage reduces solvency risk and gives management time to pursue subscription growth and reach targeted positive operating cash flow.

Negative Factors

Persistent Negative Cash Flow

Consistent negative operating and free cash flow means the business consumes capital rather than generates it. Sustained cash burn pressures runway and forces reliance on financing or asset sales, constraining investment in growth initiatives and making execution risk materially higher over the medium term.

Ongoing Unprofitability

Persistent net losses and a negative gross profit in 2025 point to weak unit economics or reporting disruptions. Without durable improvements to margins or revenue quality, the company may struggle to reach sustainable profitability, undermining long-term value creation despite cost cuts.

Top-line Contraction & Contract Risk

A weaker revenue guide and the DHA program step-down reveal customer concentration and sensitivity to contract changes. Reduced scale limits operating leverage and makes achieving break-even harder; reliance on renewals and converting pipeline introduces structural volatility to revenue.

American Well Business Overview & Revenue Model

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.

How the Company Makes Money

American 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 Financial Statement Overview

Summary

Overall financials remain high risk: the company is deeply unprofitable with negative operating profit and net income, and operating/free cash flow are negative across all years (continued cash burn). While leverage is low and losses/cash burn improved versus 2023–2024, the reported 2025 annual revenue collapse and negative 2025 gross profit are major red flags despite a conservative debt profile.

Income Statement

Results remain deeply unprofitable across the entire period, with consistently negative operating profit and net income. Revenue trended down modestly from 2022–2024 and then fell to effectively zero in 2025 (annual), which is a major red flag for business momentum and comparability. Gross profit was positive through 2024 but turned negative in 2025, reinforcing significant pressure on unit economics and/or reporting disruption. While losses narrowed materially from 2023 to 2024, profitability is still far from breakeven and the 2025 revenue collapse outweighs the prior improvement.

Balance Sheet

Leverage is low, with total debt very small relative to equity across all years, which reduces solvency risk. However, the equity base has shrunk substantially since 2021–2022, signaling ongoing value erosion from losses and/or other balance sheet pressures. Returns on equity are meaningfully negative every year, indicating the company is not generating shareholder value despite the conservative debt profile. Overall: a relatively low-debt balance sheet, but weakening capital strength over time.

Cash Flow

Cash generation remains a key concern: operating cash flow and free cash flow are negative every year, indicating the business is still consuming cash rather than funding itself. There is some improvement versus the heavier cash burn seen in 2022–2023, but free cash flow is still materially negative in 2024–2025. Cash burn generally aligns with reported losses (cash outflow is of similar magnitude to net loss), which suggests limited offset from non-cash addbacks; the core issue is that the operating model has not yet turned cash-positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	249.32M	254.36M	259.05M	277.19M	252.79M
Gross Profit	132.86M	98.95M	94.76M	116.77M	104.31M
EBITDA	-71.31M	-184.56M	-224.15M	-249.69M	-163.06M
Net Income	-95.70M	-208.14M	-675.16M	-270.43M	-176.33M
Balance Sheet
Total Assets	323.79M	435.97M	589.71M	1.22B	1.45B
Cash, Cash Equivalents and Short-Term Investments	182.33M	228.32M	372.04M	538.55M	746.42M
Total Debt	4.52M	8.20M	11.79M	14.84M	16.61M
Total Liabilities	76.00M	119.72M	109.52M	133.71M	184.96M
Stockholders Equity	235.58M	304.77M	464.22M	1.06B	1.24B
Cash Flow
Free Cash Flow	-65.97M	-142.56M	-163.59M	-202.77M	-142.10M
Operating Cash Flow	-65.95M	-127.34M	-148.34M	-192.32M	-141.54M
Investing Cash Flow	17.10M	-18.65M	-19.17M	-11.63M	-59.63M
Financing Cash Flow	840.00K	1.38M	2.15M	-3.61M	5.75M

American Well Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Positive. The current price of 5.75 is above the 20-day moving average (MA) of 4.92, above the 50-day MA of 4.85, and below the 200-day MA of 6.05, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMWL.

American Well Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	61 Neutral	$142.41M	-2,996.15	0.03%	―	24.19%	―
TDOC	53 Neutral	$805.73M	-3.63	-13.93%	―	-2.37%	77.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	51 Neutral	$196.90M	-0.84	-47.69%	―	-5.30%	46.01%
HCAT	50 Neutral	$122.36M	-1.13	-31.33%	―	4.64%	-17.17%
AMWL	46 Neutral	$89.71M	-0.91	-35.42%	―	4.33%	50.50%
EVH	46 Neutral	$285.70M	-0.61	-75.47%	―	-16.65%	-71.92%

American Well Corporate Events

American Well Extends Elevance Health Digital Care Partnership

On January 5, 2026, American Well Corporation announced it had entered into an Amended and Restated Statement of Work with Elevance Health, effective January 1, 2026, replacing their prior 2023 agreement and extending American Well’s operation of the LiveHealth Online-branded, white-labelled digital care delivery platform for Elevance Health. The renewed three-year arrangement, running through January 1, 2029 with automatic one-year renewals, establishes ongoing annual subscription payments and opportunities for American Well to provide additional professional, development, innovation and engagement marketing services, while outlining detailed termination rights that underscore both parties’ focus on contractual flexibility, operational continuity and risk management in their long-term digital health partnership.

The most recent analyst rating on (AMWL) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on American Well stock, see the AMWL Stock Forecast page.

American Well Extends Elevance Health Digital Care Partnership

On December 24–25, 2025, American Well Corporation and Elevance Health amended and extended their existing Master Services Agreement and related Statement of Work, with the updated Healthy Impact service offerings and renewed Statement of Work becoming effective January 1, 2026. The agreements, under which American Well operates the LiveHealth Online digital care platform for Elevance Health in exchange for annual subscription fees and potential professional services revenue, were extended for a three-year term from January 1, 2026 through January 1, 2029, with automatic one-year renewals thereafter unless terminated under specified conditions, including material breach, bankruptcy, change-of-control triggers, and, for Elevance Health, a convenience termination right with one year’s notice. On December 24, 2025, Online Care Group, PC, American Well’s clinical partner, also entered amendments to its provider agreements with Elevance Health-related entities, ensuring continued prioritized access to a nationwide network of clinicians who deliver digital consultations via LiveHealth Online through at least January 1, 2029, with similar automatic renewals and termination provisions, thereby reinforcing the long-term stability and scope of the digital care services offered to Elevance Health members.

The most recent analyst rating on (AMWL) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on American Well stock, see the AMWL Stock Forecast page.