Education
About Us
Working with TipRanks
Follow Us
American Well (AMWL)
NYSE:AMWL
Top Page
American Well
(NYSE:AMWL)
Rating:52Neutral
Price Target:
$9.00
▲(12.50%Upside)
Positive Factors
Cost Management
AMWL displayed solid cost management, as it saw a 16% Q/Q reduction in OpEx, slightly ahead of estimates.
Earnings
Q1 results came in nicely ahead of expectations.
Sales Pipeline
Amwell's Sales Pipeline May Also Benefit from DHA.
Negative Factors
Client Churn
Provider visits of ~1.4M were down -13% y/y in 4Q:24 due to the churn of a few large clients.
Contract Renewal
With the stock near its 52-week lows and trading at a 50% discount to its book value, not much credit is given to prospects of a DHA contract renewal.
Revenue Guidance
The latest earnings report showed a materially weaker than expected topline guide for FY25, coming in nearly 20% below consensus expectations.
American Well (AMWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$127.74M
Dividend YieldN/A
Average Volume (3M)35.82K
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth2.79%
EPS Growth58.22%
CountryUS
Employees877
SectorHealthcare
Sector Strength40
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.19
Shares Outstanding14,162,309
10 Day Avg. Volume34,379
30 Day Avg. Volume35,823
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.42
Price to Sales (P/S)0.00
P/FCF Ratio-1.20
Enterprise Value/Market Cap-0.69
Enterprise Value/Revenue-0.09
Enterprise Value/Gross Profit-0.77
Enterprise Value/Ebitda0.12
Forecast
1Y Price Target
$9.92Price Target Upside24.00% Upside
Rating ConsensusHold
Number of Analyst Covering7
American Well Business Overview & Revenue Model
Company DescriptionAmerican Well (AMWL), commonly known as Amwell, is a leading telehealth company based in the United States. It operates within the healthcare technology sector, providing a digital health platform that connects patients with healthcare professionals via video consultations. Amwell's core services include virtual doctor visits, telepsychiatry, and remote monitoring, catering to health plans, employers, healthcare systems, and individual consumers seeking convenient and accessible healthcare solutions.
How the Company Makes MoneyAmwell generates revenue primarily through its telehealth platform, which is offered on a subscription basis to healthcare providers, insurers, and employers. The company charges fees for each video consultation conducted through its platform, earning a percentage of the total consultation fee. Additionally, Amwell has partnerships with various health systems and insurers who use its platform to enhance their own telehealth offerings. Revenue is also derived from licensing its technology to healthcare providers who use the platform to deliver virtual care services. These partnerships and licensing agreements contribute significantly to Amwell's earnings by expanding its reach and integrating its platform into existing healthcare infrastructure.
American Well Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 29.24%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong software revenue growth and improved adjusted EBITDA, driven by strategic deployments like the Military Health System. However, challenges such as delayed deployments due to leadership transition and lower visit volumes were noted. Despite these challenges, the overall sentiment remains positive with strong prospects for future growth and positive cash flow.Q1-2025 Updates
Positive Updates
Strong Software Revenue Growth
Software revenue grew over 30% from Q1 of last year, driven by strategic client deployments including the Military Health System.
Improved Adjusted EBITDA
Adjusted EBITDA improved for the fourth consecutive quarter, with a negative $12.2 million compared to negative $45.6 million in Q1 2024.
Partnership with Military Health System
The platform is now live for scheduled visits across the global Military Health System, with patient and provider satisfaction reported as very high, over 90%.
Positive Cash Flow Prospects
Amwell is on track to achieving positive cash flow from operations by 2026, driven by cost reduction and revenue mix improvement.
Negative Updates
Delayed Deployment Due to Leadership Transition
Final confirmation from the new DHA Director is awaited, delaying the deployment of automated and Digital Behavioral Health programs to Q3.
Lower Visit Volumes
Completed approximately 1.3 million visits in Q1, which is approximately 23% lower than a year ago, normalizing for APC.
Economic Uncertainty and Tariff Concerns
Macro noise, tariffs, and economic uncertainty are affecting sales timelines as health systems evaluate IT budgets.
Company Guidance
During Amwell's Q1 2025 earnings call, the company provided several key metrics and guidance points. Total revenue for the quarter was $66.8 million, a 12% increase year-over-year, with a notable 30% growth in software revenue compared to Q1 2024. The company emphasized its progress toward achieving positive cash flow from operations by 2026, driven by a strategic shift towards a higher mix of subscription software revenues, which accounted for 48% of total revenue in Q1. The gross margin improved to 52.8%, reflecting a higher software mix and ongoing cost reduction initiatives. Adjusted EBITDA showed significant improvement, with a loss of $12.2 million in Q1, compared to a loss of $45.6 million in the previous year. Amwell reiterated its full-year 2025 revenue guidance of $250 million to $260 million, excluding expected revenue from the divested Amwell Psychiatric Care, and maintained its adjusted EBITDA guidance of a loss between $55 million and $45 million, indicating a 60% year-over-year improvement. The company remains focused on expanding its software revenue mix to nearly 60% by the end of the year and anticipates ending 2025 with approximately $190 million in cash.American Well Financial Statement Overview
Summary
American Well's financial performance is under pressure 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.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.45
Neutral
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.65
Positive
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.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 254.36M | 259.05M | 277.19M | 252.79M | 245.26M |
| Gross Profit | 98.95M | 94.76M | 116.77M | 104.31M | 88.47M |
| EBITDA | -184.56M | -225.99M | -249.69M | -162.20M | -216.93M |
| Net Income | -208.14M | -675.16M | -269.79M | -173.65M | -226.44M |
Balance Sheet | |||||
| Total Assets | 435.97M | 589.71M | 1.22B | 1.45B | 1.38B |
| Cash, Cash Equivalents and Short-Term Investments | 228.32M | 372.04M | 538.55M | 746.42M | 1.04B |
| Total Debt | 8.20M | 11.79M | 14.84M | 16.61M | 7.65M |
| Total Liabilities | 119.72M | 109.52M | 133.71M | 184.96M | 130.45M |
| Stockholders Equity | 304.77M | 464.22M | 1.06B | 1.24B | 1.22B |
Cash Flow | |||||
| Free Cash Flow | -142.56M | -163.59M | -202.77M | -142.10M | -115.78M |
| Operating Cash Flow | -127.34M | -148.34M | -192.32M | -141.54M | -112.46M |
| Investing Cash Flow | -18.65M | -19.17M | -11.63M | -59.63M | -66.76M |
| Financing Cash Flow | 1.38M | 2.15M | -3.61M | 5.75M | 983.12M |
American Well Technical Analysis
Positive
8.00
Price Trends
7.40
Positive
7.73
Positive
8.58
Negative
Market Momentum
0.30
Positive
52.80
Neutral
18.03
Positive
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 8 is above the 20-day moving average (MA) of 7.83, above the 50-day MA of 7.40, and below the 200-day MA of 8.58, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $238.58M | ― | -140.82% | ― | -48.37% | -44.70% | |
55 Neutral | $125.34M | ― | -24.73% | ― | -1.02% | -8.59% | |
52 Neutral | $127.74M | ― | -44.04% | ― | 2.79% | 58.22% | |
52 Neutral | $7.53B | 0.20 | -63.81% | 2.31% | 16.15% | 0.40% | |
46 Neutral | $202.90M | ― | -32.97% | ― | ― | ― | |
46 Neutral | $153.57M | ― | -304.05% | ― | 28.24% | -334.39% |
* Healthcare Sector Average
Performance Comparison
AMWL
American Well
8.00
-0.54
-6.32%
EDIT
Editas Medicine
2.75
-2.97
-51.92%
LNSR
LENSAR
12.90
7.59
142.94%
SEER
Seer
2.10
0.24
12.90%
FDMT
4D Molecular Therapeutics
4.16
-14.04
-77.14%
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.
The most recent analyst rating on (AMWL) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on American Well stock, see the AMWL Stock Forecast page.
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.