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American Well (AMWL)
NYSE:AMWL
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American Well (AMWL) AI Stock Analysis

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AMWL

American Well

(NYSE:AMWL)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
$7.50
▲(19.62% Upside)
American Well's overall stock score is driven by significant financial challenges, including declining revenues and persistent losses. While the earnings call provided some positive insights with improved EBITDA and strategic wins, technical indicators and valuation remain weak, reflecting ongoing operational and market challenges.
Positive Factors
Software Revenue Growth
The significant growth in software revenue indicates strong demand for Amwell's digital health solutions, enhancing its market position and potential for future profitability.
Improved EBITDA
The improvement in EBITDA reflects better operational efficiency and cost management, which strengthens Amwell's financial health and long-term sustainability.
Strategic Client Wins
Securing strategic clients like Florida Blue enhances Amwell's competitive edge and expands its reach, supporting long-term revenue growth and market penetration.
Negative Factors
Declining Visit Metrics
The decline in visit metrics suggests challenges in user engagement and retention, potentially impacting revenue and market share if not addressed.
Negative Cash Flow
Ongoing negative cash flow indicates operational inefficiencies and may hinder Amwell's ability to invest in growth opportunities, affecting long-term viability.
Revised Revenue Guidance
The downward revision in revenue guidance reflects potential challenges in achieving growth targets, which could impact investor confidence and strategic planning.

American Well (AMWL) vs. SPDR S&P 500 ETF (SPY)

American Well Business Overview & Revenue Model

Company DescriptionAmerican Well (AMWL) is a telehealth technology company that provides a platform connecting patients with healthcare professionals through video calls and other digital communication methods. The company operates primarily in the healthcare sector, offering services such as virtual visits, remote patient monitoring, and integrated telehealth solutions for health systems and insurers. American Well aims to enhance access to healthcare while improving the patient experience through innovative technology and partnerships.
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 Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
While Amwell showed significant growth in software revenue and improved EBITDA, it faced challenges such as the exclusion of certain programs from the Military Health System contract and a decline in visit metrics. Despite these challenges, the company maintained momentum with new strategic wins and cost reductions.
Q2-2025 Updates
Positive Updates
Significant Growth in Software Revenue
Software revenue grew over 47% from Q2 of last year, driven by strategic client deployments and milestones.
Extension of Military Health System Contract
Amwell received an anticipated extension of their engagement to deliver their SaaS software platform for the Military Health System's digital-first initiative.
Positive EBITDA Improvements
Adjusted EBITDA showed improvement for the fifth consecutive quarter, moving from negative $35 million in Q2 of last year to negative $4.7 million.
New Strategic Client Win
Amwell secured a strategic win with Florida Blue for a white-labeled platform providing integrated clinical programs.
Cost Reductions Achieved
R&D expenses declined by approximately 12.2% compared to last year, and sales and marketing expenses were reduced by roughly 32%.
Negative Updates
Exclusion of Behavioral Health Programs
The 2026 contract extension with the Military Health System excluded behavioral health and automated care programs due to budget restrictions.
Decline in Visit Metrics
Amwell completed approximately 1.2 million visits in the second quarter, which is about 22.3% lower than a year ago.
Lower Average Revenue per Visit
Average revenue per visit was $73, which is 9% lower compared to last year's Q2.
Revised Revenue Guidance
Revenue guidance for 2025 was revised down to $245 million to $250 million from the previous range of $250 million to $260 million.
Company Guidance
During the Amwell Second Quarter 2025 Earnings Conference Call, the company provided several key financial metrics and guidance for the upcoming periods. Amwell reported a total revenue of $70.9 million for Q2, a 13% increase from the same period last year, with subscription software revenue making up 57% of this total at $40.4 million, marking a 47% increase year-over-year. The company achieved a gross margin of 56.1%, up by 3.3 percentage points from the previous quarter, driven by a higher software mix and ongoing cost initiatives. Amwell's adjusted EBITDA improved significantly, moving from a negative $35 million in Q2 2024 to a negative $4.7 million in Q2 2025. The company revised its full-year 2025 revenue guidance to a range of $245 million to $250 million, down from the prior range of $250 million to $260 million, due to changes in government contract contributions. Amwell also narrowed its adjusted EBITDA guidance to a range of negative $50 million to negative $45 million, demonstrating a 65% improvement year-over-year. The company remains focused on achieving positive cash flow from operations by 2026.

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
45
Neutral
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
65
Positive
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue269.78M254.36M259.05M277.19M252.79M245.26M
Gross Profit132.10M98.95M94.76M116.77M104.31M88.47M
EBITDA-108.37M-184.56M-225.99M-249.69M-162.20M-216.93M
Net Income-124.52M-208.14M-675.16M-269.79M-173.65M-226.44M
Balance Sheet
Total Assets388.66M435.97M589.71M1.22B1.45B1.38B
Cash, Cash Equivalents and Short-Term Investments219.07M228.32M372.04M538.55M746.42M1.04B
Total Debt6.39M8.20M11.79M14.84M16.61M7.65M
Total Liabilities94.08M119.72M109.52M133.71M184.96M130.45M
Stockholders Equity282.59M304.77M464.22M1.06B1.24B1.22B
Cash Flow
Free Cash Flow-82.78M-142.56M-163.59M-202.77M-142.10M-115.78M
Operating Cash Flow-75.62M-127.34M-148.34M-192.32M-141.54M-112.46M
Investing Cash Flow10.53M-18.65M-19.17M-11.63M-59.63M-66.76M
Financing Cash Flow967.00K1.38M2.15M-3.61M5.75M983.12M

American Well Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.27
Price Trends
50DMA
7.25
Negative
100DMA
7.33
Negative
200DMA
8.06
Negative
Market Momentum
MACD
-0.24
Positive
RSI
35.75
Neutral
STOCH
12.91
Positive
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 6.27 is below the 20-day moving average (MA) of 6.68, below the 50-day MA of 7.25, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of 12.91 is Positive, 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 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
341.78M-34.05-17.19%25.90%46.13%
54
Neutral
1.13B-5.99-18.04%-6.71%-71.40%
52
Neutral
558.53M-1.47-74.11%-5.24%23.59%
51
Neutral
1.48B-7.04-14.58%-2.57%79.86%
50
Neutral
$101.27M-38.52%5.83%61.94%
49
Neutral
201.27M-1.89-28.81%5.55%-0.99%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMWL
American Well
6.27
-3.19
-33.72%
OPRX
OptimizeRx
18.41
10.88
144.49%
EVH
Evolent Health
9.61
-19.33
-66.79%
TDOC
Teladoc
8.40
>-0.01
-0.12%
HCAT
Health Catalyst
2.86
-5.53
-65.91%
DH
Definitive Healthcare Corp
3.92
-0.43
-9.89%

American Well Corporate Events

Executive/Board ChangesShareholder Meetings
American Well Holds Annual Stockholders Meeting
Neutral
Jun 17, 2025

On June 11, 2025, American Well Corporation held its annual meeting of stockholders, where three key proposals were voted on. The stockholders elected three Class II directors to serve until the 2028 meeting, ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025, and approved, in an advisory capacity, the compensation for the company’s named executive officers.

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.Date of analysis: Aug 19, 2025