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Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET Chairman and Chief Executive Officer - Dr. Ido Schoenberg Chief Financial Officer and Chief Operating Officer - Mark Hirschhorn Operator: Hello everyone and welcome to Amwell's conference call to discuss their Second Fiscal Quarter 2026. Joining us on the call today are Amwell's Chairman and CEO, Dr. Ido Schoenberg, and Mark Hirschhorn, Amwell's CFO and Chief Operating Officer. Earlier today, a press release was distributed detailing their announcement. The earnings report is posted on the Amwell website at investors.amwell.com and is also available through normal news sources. This conference call is being webcast live on the IR page of the website, where a replay will be archived. Before they begin prepared remarks, I'd like to take this opportunity to remind you that during the call we will make forward-looking statements regarding projected operating results and anticipated market opportunities. This forward-looking information is subject to the risks and uncertainties described in the filings with the SEC. Actual results or events may differ materially. Except as required by law, we undertake no obligation to update or revise these forward-looking statements. On this call, we'll refer to both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in the earnings release. With that, I would now like to turn the call over to Ido. Ido Schoenberg: Good evening, and thank you for joining our second quarter earnings call. As recently announced, we reached an important milestone. The Defense Health Agency issued an intent to award notice for a sole-source contract directly with Amwell. We are thrilled by the DHA's decision, which signals an opportunity to strengthen and expand our relationship for many years to come. This is a deliberate choice by the government to build its core platform around the partners it depends on. The DHA's decision aligns with its policy direction to achieve long-term improvements in cost efficiency. This transition to direct contracting ensures uninterrupted continuity of operations and ensures interagency continuum of care remains stable and undisrupted. We are honored by their trust. Our platform is already built into MHS GENESIS, which operates as the platform that anchors the unified federal health IT ecosystem. The Amwell platform has connected deployed units in combat zones to hospitals back home. We are proud to serve the 9.6 million service members, families, and retirees of the Military Health System, and we are committed to delivering for them every single day. More broadly, our strategy is simple. Everything centers on the unified Amwell platform. We give our clients the premier infrastructure for technology-enabled care. It is 1 platform, not many. Through it, government, payers, and health systems offer patients a simple, streamlined experience. Members connect to a growing range of clinical programs. And they do so with measurable improvements in both clinical and financial outcomes. This focus is showing up in our revenue mix. Subscription revenue has grown to more than half of our total revenue. That is recurring, stable, high-quality revenue. It is the foundation of a healthier, more predictable business. Throughout 2026, we are delivering a better user experience. We've also greatly enhanced our ability to engage members and activate them into care. The platform brings clinical partners online quickly, turns the data into useful insight, and runs with the reliability and compliance our customers depend on. In short, we are easier to adopt, easier to build on, and easier to trust. Let me be specific about the value we create, because it is the heart of our story. Payers are under real pressure. Premiums are not keeping pace with the rising cost of care. Technology and AI-powered care are among the best tools they have to control costs and improve outcomes. The demand is there, but acting on it has been hard. Most payers are buried in vendor sprawl, dozens of separate point solutions that are costly to connect and impossible to measure against one another. Tired of that fragmentation, payers and employers increasingly want fewer, deeper partnerships. One partner who can meet many needs through a single relationship. This is the problem Amwell solves. We give customers one unified platform, so they no longer must stitch dozens of vendors together themselves. They put a single Amwell gateway behind their own brand and their own front door. Members get 1 simple place to reach the programs they need, and our customer keeps the member relationship. Behind that gateway, customers can mix and match programs, ours, a partner's, or their own, and swap them in quickly, without disrupting the member experience. And because every program runs on the same platform, we bring all the data together. For the first time, customers can see clearly what is working, prove the clinical and financial results, and adjust in real time. We are not selling an AI feature. We are the trusted environment where AI-powered care runs. We saw a clear illustration of this in Dario's recent announcement that it will bring a new program to the Amwell Healthcare Marketplace in Arizona. One more market shift makes this even more important. Customers increasingly focus on actual use. Engagement is no longer a soft metric. It is a financial driver. Value comes from getting members into the right care, improving their health, and avoiding expensive downstream costs. That is exactly what our platform is built to do. One front door makes services easy to find and use. Our data and analytics power targeted personal outreach. And working closely with employers and health plans, we turn members into active users. And we can prove it. This quarter, a randomized trial of our SilverCloud behavioral health program was published in Nature Human Behaviour. It was funded by the National Institute of Mental Health and led by investigators from Washington University, Penn State, and UCLA. It followed more than 6,200 students for 2 years, one of the largest studies of its kind. The results were clear. Students offer SilverCloud engaged at more than double the rate of traditional care. They had lower rates of mental health disorders over 2 years, and the study pointed to about $1.2 million in avoided costs in the study group alone. Better engagement, better outcomes, lower cost, independently validated. That is exactly what payers are looking for. Our market momentum is building. Our pipeline is growing. Renewals are strong. We are engaged in encouraging discussions with new prospects across both the commercial and government sectors. This quarter, we also moved closer to a goal we have been clear about. Positive cash flow from operations by the fourth quarter of 2026. We are on track. And this is not a one-time result. It builds a durable foundation for healthy growth in 2027 and beyond. Our path here has been deliberate. In 2025, we reduced our losses by roughly $100 million. In the second quarter, our adjusted EBITDA loss of approximately $1 million is the closest we have been to breakeven as a public company and gives us increased confidence in achieving our goal of positive adjusted EBITDA in the fourth quarter. We did this while holding more than $195 million in cash and carrying no debt. We have the runway to execute and a team focused on doing it with discipline. We are achieving all of this with a linear cost structure. Our focused platform strategy and our operational discipline make that possible, including the integration of AI across our workflows. And underneath it all is something harder to replicate, a purpose-driven culture that attracts and motivates exceptional people. Let me close with why this matters now. As AI-driven care accelerates, the pressure on payers only grows. In that environment, a single, reliable infrastructure layer becomes essential. That is what Amwell is. We have completed our transformation from a telehealth vendor into the infrastructure for AI-powered care programs. We have a mature platform, a focused operation, financial stability, and independent proof that what we deliver works. We are confident in our path to adjusted EBITDA breakeven in Q4 of this year and in the coming years, and we are excited about the growth that follows. With that, I will turn the call over to Mark, who will walk you through our operational and financial metrics. Mark? Mark Hirschhorn: Thanks, Ido. And good afternoon, everyone. On today's call, I'll start with a few highlights from the second quarter, walk through our financial results in detail, and close with an update on our third quarter and full year 2026 outlook. In the second quarter, we delivered revenue results in line with our expectations, reflecting continued subscription stability and a favorable mix shift within our visit portfolio. Adjusted EBITDA was slightly ahead of our expectations, driven primarily by continued cost discipline across the organization. These results build on the momentum we discussed last quarter and reinforce our confidence in reaching cash flow breakeven in the fourth quarter of this year. Total revenue for the second quarter was $52 million, down approximately 26.6% year-over-year. Subscription revenue was $25.7 million, down approximately 36.5% year-over-year, though up approximately 3.2% sequentially from the first quarter. The year-over-year decline continues to reflect the previously disclosed churn as well as a one-time subscription revenue benefit recognized in last year's second quarter related to the deployment of our platform across the DHA. Encouragingly, sequential improvement reflects the stability we've continued to see in our core payer and government subscription base. Amwell Medical Group, or AMG, visit revenue was $24.4 million, up approximately 7.4% year-over-year. AMG paid visits totaled approximately 315,000 visits, flat year-over-year, with revenue per visit of approximately $77 per visit, up approximately $4 or 6% per visit year-over-year. This is reflected by the continued shift in our visit mix toward higher acuity, higher value clinical programs, and virtual primary care. Virtual primary care visits were up approximately 30% year-over-year, continuing their strong growth trajectory. Total platform visits were approximately 835,000 visits, down approximately 28.4% year-over-year, but consistent with the portfolio changes we've previously discussed. Our gross profit was $27.6 million, with a gross margin of 53%, down approximately 310 basis points year-over-year from the 56.1% in the second quarter of 2025, but it is up approximately 200 basis points sequentially. As we've noted, our existing revenue mix is generating a margin profile broadly consistent with recent quarters, and we continue to expect our revenue mix to shift toward higher margin SaaS offerings over time. Total operating expenses, including depreciation and amortization, were $37.1 million, down approximately 38% year-over-year and down approximately 18% sequentially. As a percentage of revenue, operating expenses improved to 71.3% compared to 84.8% in the second quarter of last year, reflecting the continued benefit of our transformation actions and ongoing cost discipline across Amwell. Adjusted EBITDA for the second quarter was a loss of $1.15 million compared to a loss of $4.7 million in the second quarter of 2025. Operating loss was $9.6 million compared to $20.4 million in the second quarter of 2025, which is an improvement of approximately 53% year-over-year. Now turning to the balance sheet. We ended the second quarter with $196 million in cash and marketable securities with zero debt. Now on to guidance. For the third quarter of 2026, we expect revenue in the range of $46 million to $48 million and an adjusted EBITDA loss in the range of negative $5 million to negative $3 million. This outlook reflects normal seasonality and visit volumes as we move throughout the remaining summer months, along with the continued stability we're seeing in our subscription base. The step down in adjusted EBITDA from 2Q to 3Q reflects the impact of certain costs associated with the completion of internal projects that we expect to complete prior to the end of this year. For the full year, we are narrowing our revenue range and raising our adjusted EBITDA range to reflect our year-to-date performance. We now expect full year 2026 revenue in the range of $200 million to $205 million, raising the low end of our previously communicated range from $195 million to $205 million, and we are raising our full year adjusted EBITDA guidance to a loss in the range of negative $9 million to negative $7 million, a meaningful improvement from our prior range of a loss of $16 million to $12 million. We continue to expect full year AMG visits toward the high end of our previously communicated range of 1.32 million to 1.37 million visits. In summary, Q2 was another step forward on our path to right-sizing the company and working towards achieving profitability. Continued subscription stability, a favorable visit mix, and a leaner cost structure give us confidence that we remain on track to achieve our cash flow breakeven goal in the fourth quarter. I want to thank the entire Amwell team for their continued hard work and dedication. These results reflect their dedication and tremendous efforts. With that, I'll turn it back to Ido. Ido Schoenberg: Thank you, Mark. Before we open the call for your questions, let me leave you with the takeaways that matter most. First, the DHA's intent to award a sole-source contract directly to Amwell is a powerful vote of confidence. It deepens the partnership at the heart of the Military Health System and affirms our position as core infrastructure for the Unified Federal Health IT ecosystem, an opportunity we expect to build on for many years. Second, the quality of our business keeps improving. Subscription revenue is now more than half of total revenue and grew sequentially this quarter. That recurring, stable foundation is what makes Amwell more predictable and more valuable over time. Third, our strategy is resonating in the market. Payers want fewer, deeper partnerships. And our single unified platform is built precisely for that. And we no longer just claim results, we prove them. The independently run study, published in Nature Human Behaviour, showed more than double the engagement, better outcomes, and meaningful avoided costs. That is the evidence payers are looking for, and it's powering a growing pipeline and strong renewals. And fourth, our discipline is delivering. An adjusted EBITDA loss of roughly $1 million, the closest we have ever been to breakeven as a public company. Raised full-year adjusted EBITDA guidance. Nearly $200 million in cash and no debt. We are firmly on track for positive adjusted EBITDA and positive operating cash flow in the fourth quarter, and that milestone is not the finish line. It is the foundation for healthy, durable growth in 2027 and beyond. Amwell has completed its transformation. We have the platform, the proof, the partnerships, and the financial strength to lead as AI-powered care accelerates. I want to thank the Amwell team for their exceptional work and our shareholders for their continued trust. With that, we are now happy to open the call for your questions. Operator, please go ahead. Operator: [Operator Instructions] Our first question comes from the line of Ryan MacDonald of Needham. Matthew Shea: This is Matt Shea on for Ryan. Maybe start on the DHA contract. Not really sure what the best way to ask this is, but ultimately just help us kind of bridge the difference between the DHA's intent. Sounds like you guys are kind of in the pole position, but the bridging from the intent to actual implementation, what's left from here? What does that kind of timing look like from here to kind of close out the contract? And then I think last quarter you had talked about the opportunity for there to be an inclusion of additional programs that weren't in the prior implementation, notably the mental health program. Where does that opportunity kind of stand today and how do you kind of foresee that timeline playing out as well? Mark Hirschhorn: Hi, it's Mark. So this is where we stand with the current negotiations. The DHA in June, put out a release calling for a direct sole-source contract with Amwell and 4 other vendors. We are all currently negotiating with the DHA. They dropped the deadline of July 30th of this year with an intent to get some of those contracts live, but as is almost expected in these cases, all the parties required some additional information and some time. Their drop-dead date is July of next year, but their intention from our last conversations, even this past week, was that they need a couple more months to negotiate. So we're currently in those negotiations. They've noted that they would like to transition over as soon as possible. So we're working very closely with our trusted partners over at Leidos, and also with the DHA in order to make this as smooth of a transition as possible. And the second part of your call, I think, likely references our behavioral health SilverCloud offering, which we did have active and in force in that environment for several months last year. It was decided after the issues with DoD, and a number of other things that affected our ability to continue at that service level that we would reintroduce that offering in conjunction with having our direct sole-source contract. So that conversation also is underway and we would expect that the opportunity to turn those services on, the soonest opportunity would be in 2027. Matthew Shea: Okay, great. That's super helpful, Mark. I appreciate that. And then maybe switching gears to the payer segment, I believe it was last quarter you talked about reintroducing Amwell to several health plans and that part of the mandate is to come back into the market as you think the relevance of Amwell was lost. But with Elevance and DHA implementations, that credibility is coming back. So maybe first, how important is the DHA renewal to support that credibility narrative? And then second, and really more the meat of the question is, it sounds like there's some marketing efforts behind this reintroduction to health plans. So it would be helpful to maybe hear how you're positioning Amwell with health plans this selling season, any marketing investments you're making or what's resonating so far? And then are efforts enough to translate to Jan 1, 2027 wins or is this more of an evolving opportunity that might not take root until say next selling season? Sorry, I know there's a lot there, but just think it's an important topic. Mark Hirschhorn: I'm going to have Ido take the first part of that... Ido Schoenberg: Matt, great question, and thank you. So there is no question that the DHA relationship, which we are super proud of, is an important milestone and a great proof point. They're certainly not the only one, now that it's published and now that it's coming. So it definitely creates momentum. The infrastructure of the DHA is very common across the entire government infra system. And our ability to work so well for such large audience in such scale with such result that is demonstrated very importantly with the decision to do sole-source, which usually also means, and they said as much, very long-term agreement, 3 to 5 years at least, is an indication of how things are going and it's totally not lost on the rest of the government market. But in many ways, what government players are dealing with is very similar in some ways to commercial payers. Essentially, the problem today, more zooming out for a second, is that the cost of care is rising through the roof. Activating members to engage in technology-enabled care is extremely inefficient and ineffective. And when they do engage, the ability to understand and prove the outcomes is increasingly complicated. In a scenario where there are so many vendors, there is vendor fatigue, piecing together data is so hard and so on and so forth, and that's exactly where we come in. The reason we see this market receptivity is fairly simple. One, almost all our customers and potential customers have vendor sprawl and vendor fatigue. They hire more and more people to manage more and more relationships. They don't always pan out. And the pressure because of rising cost of care and inability to raise premium accordingly, where the margins are distressed, is very much to try to improve efficiency of care and that's really our business. The technology in Amwell Care is a fantastic experience for members, so it's also a way to attract and retain members and comfort clients. So the fact that the platform is built inside their infrastructure and it's inside the trusted brand is very important. So essentially, they are very open in this time of distress to talk about consolidation and simplification of what could be an important lifeline for them to try to improve financial and clinical outcomes. That's exactly us. Less integration under a known brand, which is their brand, not losing the patient-member relationship to anyone. We've proven at the DHA and elsewhere that you're fairly effective in attracting people to their digital door, to their infrastructure. But we're not only there. We are activating members using technology and clinical measures. The infrastructure of AMG, for example, is a very important technology-enabled care piece of what we do that allows to form long-standing recurring relationship between doctors and patients that is not a dead end, but rather an orchestration layer to growing array of AI-powered care. And that works really, really well as a gateway, as an enabler. When we talk about this care, we are offering our own native programs and there are so many of them, urgent care, primary care, behavioral health. Mark talked about the growth there, nutrition, psychiatry and so on. But also a rapidly growing roster of partners, Sword, Hello Heart, Vida, Dario, DermatologistOnCall, to name a few. But much more importantly, the pressure is to prove outcome. So we build a data infrastructure that allows to piece together the results and really understand what's working and not working. And when something doesn't work or doesn't work as well, we have the ability to switch over programs very easily. So our customers are able to accommodate their own client very dynamically in an era where new programs show up every day. So this entire solution of Amwell is very differently received from the way that traditional telehealth was received. And it's working. And I'm not going to name all the names because most of the people on the call know our clients. They are very, very big. You mentioned the marketing to those payers and government. We have a very seasoned team and our customers are sizable. We don't need an army in order to engage in those platforms and no one buys those platform in a seasonal way. You don't buy an infrastructure for a database in the summer. What we do is a strategic solution for our customers that is essential today more than ever and is working. Our 2 decades of experience is showing. They know they can trust us. They know they can trust us to take off a lot of weight they have off their shoulders and manage this zoo, this dynamic array of clinical programs without new integrations, without multiple contracts, without piecing different pieces of data together, and with protecting their data outside in areas like cybersecurity and privacy and compliance, which are also very, very important. So I know it was a mouthful. It was a relatively long answer to a short question. But these are the reasons why you see the results you see, and this is the reason why I said, I'm so optimistic about our growth in '27 and beyond. We are seeing it right now. There is good receptivity. The pipeline is growing. There is a lot of activity on the sales side. But much more importantly, we see the impact on our existing customers. When you think about some of them, we're talking about people with tens of millions of potential members. And across the board today, only few members actually enroll, less than half in some cases, and only 4% or 5%, and I'm optimistic, actually engage and bring outcomes. We are changing that. And the financial impact and value to payers and their customers is enormous. So I don't think we've ever been as optimistic as we are. I don't think we've ever been as focused as we are. And it's a delightful experience to be in the market today with our existing customers and with new ones and see the twinkle in their eyes as we solve something that is a high-priority problem for them. Operator: Our next question comes from the line of David Larsen of BTIG. David Larsen: Can you talk about the progression of EBITDA from 2Q to breakeven 4Q, sort of, how you're planning to get there and just sort of maybe an update on your cost restructuring efforts? Mark Hirschhorn: Yes, certainly. We communicated at the beginning of the year that we would have a cycle of costs that would end or would bring us to the point where we would have a number of quarters working towards a breakeven at the end of the year. There's some project work that we had commenced at the end of last year. It brought us through to the beginning of this year. It's cycling down now in the third quarter. While we will have a quarter that's going to have a small degree of losses, we have great visibility and a certain degree of conviction around where those costs will be over the next several months. And that's why we are very confident that we will hit our cash flow breakeven and adjusted EBITDA breakeven in Q4. As you likely just saw with the release, we came very close to that this quarter. So conservatively, we've given a range for full year EBITDA. Obviously, it's our internal goal to beat that. We've been successful over the last several quarters doing that and coming in with better bottom line and top line results, and I believe we're very conservative in the top line as well. Assuming we have a status quo with our existing clients, we have not incorporated any new revenues, just a little bit of seasonality in Q4 for visit volume. David Larsen: Okay. And then as we think about, like, 2027, can you provide us some color around maybe like backlog metrics? Is that a number you sort of track, bookings, anything around expected retention levels in '27 basically at a high level without guiding. Is your revenue going to grow year-over-year in '27? Mark Hirschhorn: Yes, we will obviously share much more visibility on expected 2027, perhaps earlier than the end of this year, if the prospects that we're currently speaking to on the government side do in fact come to fruition and we have signed contracts, that will give us a great degree of visibility into revenue growth for 2027. Internally, again, we would like to see the company return to a level of double-digit growth. We think that is very attainable with the consummation of the contracts that are currently under discussion with those clients that form the majority of our pipeline. David Larsen: One more quick one for me, please. With the DHA contract, the intent to award Amwell a sole-source deal, #1, was that a renewal? So will there be any incremental revenue tied to that? And then #2, I think I heard you say there were 4 other vendors included in that. Can you sort of correct me? When I hear sole-source, it sounds to me, like, Amwell is the only vendor that was awarded something, but then I heard you say that there were 4 other vendors who may have been awarded something. And then do you know what the revenue is that you will realize under that deal or is that all kind of getting worked through? Mark Hirschhorn: Yes. So the release I'm referring to is under the new model, the DHA stated they're going to contract directly with proprietary solution providers for their core system capabilities rather than going through pass-through entities and in these cases or in this particular case that was Leidos. Now Leidos has been a wonderful partner. We may end up obviously working with Leidos and a number of other things. But in relation to this particular contract, these services are provided by 4 distinct companies. Amwell, Oracle Health, Philips -- oh, 5 actually, Solventum, which was that former 3M subsidiary, and Henry Schein. So the DHA's intent prior to the end of July next year is to create and execute contracts with each of these 5 companies. Will we end up seeing a little more revenue for additional services that we may have to take on in lieu of the third-party systems integrators and others? That's absolutely a likelihood. David Larsen: Okay. So you're the only sort of telehealth platform of those handful that you mentioned. These other ones are important, but they are basically providing different pieces of the overall project. Okay, thanks very much. Ido Schoenberg: Absolutely, David. Absolutely. Operator: [Operator Instructions] Our next question comes from the line of Jailendra Singh of Truist Securities. Jailendra Singh: So just to make sure I understand that the DHA contract, so is there any change to the annual revenue compared to what the current arrangement is or is the primary benefit here is that we have now greater contract visibility and duration? Just trying to understand the change here. Mark Hirschhorn: Yes, there is obviously an opportunity to create more services being directly provided by Amwell to the DHA. There are a number of things that are currently in discussion. So we would expect that there will be opportunity for a broader scope of services. Jailendra Singh: And then my follow-up on your comment about strong renewal and a growing pipeline. Anything you can share in terms of is the current pipeline is expanding with your existing customers versus you are seeing now new logos, new customers coming through? And how much of these pipeline discussions are involving some of your AI focus and investment you're doing? Just trying to understand the AI focus versus non-AI and also the existing versus new customers. Ido Schoenberg: Hi, Jailendra. Yes. Yes to all. So basically many of the market players are now in search of platforms. Vendor fatigue, cost of engagement, things I discussed earlier. So the market is definitely alive and kicking to change platforms. They want to change platform also because they want or sometimes are forced to add more programs because some of the new programs are just very effective. Some of them are dangerous and ineffective, and it's hard to tell which is which. One thing for sure, managing yourself is incredibly taxing, super expensive, super complicated, super hard, and that's what we've done for a really long time, and that's what our platform does. So there is enormous interest by new players in what we have, but their interest is really driven very much because of the success we see with our existing customers. The DHA, Elevance, are -- there are quite a few others that are basically performing and performing very well, you see it in renewal. As it relates to AI, AI changes everything. It's hard for me to overstate the enormity of the revolution that touches everything, not only in healthcare, of course. So first, we -- and boringly, we're using AI across the company in everything we do. Better deliverables, better workflows, better data-driven strategy, better everything. And you saw the dramatic change in our cost structure that was simply not possible without AI. And we are nowhere near done. We are going to be dramatically more effective only because we have AI. And I assume that many companies are doing the same. It's not a great necessarily differentiator, but not doing it is existentially dangerous in our opinion. Much more importantly in way of our infrastructure and product. Of course, we have also AI investment in our own product in managing data analytics, data science engagement, and all those things. But zooming out on the big picture, our biggest contribution is to basically free our customers from the need to diligence, to integrate, to piece together a lot of new programs. They turn to us to do their job. And our platform is designed to do that. And we do it quite well. The fact that we have a national network of thousands of doctors around the clock with short wait times that are extremely experienced and high clinical quality with very, very high NPS, that are all connected and engaged to this platform is incredibly important. You need a clinical human in the loop in order to enable a lot of the greatness that new and existing clinical programs are offering. So the fact that we saw recent renewals on very large audiences, and the fact that we are much better in marketing to individuals, members, patients, beneficiaries, employees, regardless of how you call them, and we are able to dramatically improve the engagement per individual that results in measurable outcomes that we can prove and the ability to switch over and monitor is something that is fairly basic, and fundamental to our customers and could drive and is already driving, and you saw some of the numbers today, drive a higher utilization with our existing customers. The white space of same-store growth is hard to exaggerate on. And that growth and that success will definitely have already have and will continue to have a great impact in our ability to sell. We sell what works and what works, works with our existing customers. So our priority is to maximize the value to them. And that's the best sales and marketing tool for new ones in a time where there is great distress and great need. We are not viewed as extra SaaS expense. We are viewed as a tool to consolidate, save, simplify, and achieve results in a very meaningful way. Operator: Our next question comes from the line of Craig Hettenbach of Morgan Stanley. Craig Hettenbach: Understanding the opportunity set has been kind of shifting to the government programs you've been talking about. Can you just touch on what you're seeing at your health system customers? What's resonating with them today? What are some areas that they're focused on most versus maybe cutting back? Ido Schoenberg: Sure, Craig. So essentially everybody is trying to do what I said, right? Everybody has addressable population that they need to engage to use more technology-enabled care powered by AI to improve the outcome and prove them. And then if it doesn't work, fix that. That's true across the board. The government obviously is a huge infrastructure or huge container of a lot of people that is very impacted by the value that we can create. And you see the momentum there, but it's almost the same momentum with commercial payers. We see it very clearly. Their interests are the same. Their clients, employers, especially self-insured employers, are demanding that type of infrastructure, that type of agility and ability to improve. The health systems issue is different. We used to have a very wide net of products across different areas. Some of them are growingly occupied by the traditional EHR players. Urgent care, for example, telepsychiatry that we sold recently and so on and so forth. So while we see and we have a loyal base of customers in health systems and we are proud of that relationship, and we believe the providers have a very important role in -- also in the future in enabling AI-enabled care, the financial opportunity right now that moves our needle is very much in the government and payer sector as priorities. But we are certainly not discounting the health systems. Per design, they are smaller, they move in different dynamics, and our focus area today is much better defined than it was before, which I think is very positive for everybody. We're not doing things that we are not great at. We do one thing and we think we are very, very good at that. It has a very clear implication on all players, but our priorities were [ as I said it was ]. Craig Hettenbach: Got it. And then just to follow up for Mark, in a scenario where you are able to get back to double-digit revenue growth, can you talk about just the operating leverage in the model at this point? I know you guys have done a lot of kind of cost reductions and have tightened up. So, in that double-digit revenue scenario, how would you envision OpEx in terms of headcount or just things, even if it's at kind of a high level? Mark Hirschhorn: Yes, Craig, we've completed the vast majority of our cost reductions coming to the latter half of this year. Our margin profile will likely pick up about 1,000 basis points between where we are today and run rate Q4 of 2027 as we achieve a significant improvement on the subscription revenue line. The costs to manage and to continue to grow and support that line are considerably less than where we had been with services creating the larger component. So we would likely look at our headcount to be somewhat similar between years with, I would say, mid-teens growth projections if all came, if all of our prospects that we believe have a high probability of coming in between now and the end of next year do materialize. Operator: Our next question comes from the line of Stan Berenshteyn of Wells Fargo Securities. Stanislav Berenshteyn: I apologize if I'm re-asking anything. I did hop on a little late here. But given your comments related to the pipeline growth, are there any changes in R&D or sales or marketing focus for you or reinvestment as we think about the next 6 to 12 months? And then, furthermore I'd just wanted to get a follow-up. Are you looking at any opportunities to further rationalize any of your non-core assets? Ido Schoenberg: Hi, Stan. I think the 2 parts of your question really complement each other perfectly. We are laser-focused. We have 1 platform that does what I said earlier on the call, and that means that we are divesting assets that are non-core and are going to reinvest our efforts in doing what I said earlier on the call. So our R&D team is much more efficient today. It's much smaller than it was, but it's more productive in many ways, mostly because of the strategic focus, but also because of the layering and reorganization in different processes and liberal use of AI and other tools. And that's really what's going to continue to allow us to be very effective. Some of the contracts that we are looking at or some of the opportunities may require some investment, but these are going to be accretive investment that are not going to change our position as we talk about growth and profitability. So we are very, very disciplined now, much more than before, in only engaging in opportunities that do not require us to defocus and do not require us to do any custom development or things that their profitability is unclear. It's one engine. It does something very specific. It is customizable, but we are not creating any different variation of it for different customers. They're all using the same backbone in the same way and that allows us just to be much more impactful. And I think in many ways, some of the pipeline growth that we see, some of the reason our story is resonating is the fact that it's truly trustworthy. There are so many casualties right now, also different programs, especially new AI programs and so on that are not necessarily panning out, that experimenting with them is a must, but experimenting with them on a trusted platform that does consistent member experience, that spits consistent reports in the same format, that requires 1 integration, that reduces the number of contracts and relationships that you have to manage. And in addition to that, enables a flywheel where the same patient can actually get multiple types of service that reinforce each other and work in harmony is the reason why the revenue per employee, the impact of the company, its profitability is going to, in our opinion, continue to grow over the next few years. Stanislav Berenshteyn: Appreciate the color, Ido. It seems like you agreed that perhaps there might be some non-core assets that might be divested. Is there anything from a timing standpoint that you can cut here and suggest that maybe there's something on the horizon, or is this more of just a theoretical thing that may or may not happen? Ido Schoenberg: I wouldn't call it theoretical. We did divest quite a few things already and we care deeply about our customers. So that's our #1 priority. Whatever we do, we're going to do in a responsible way to make sure that we maintain important relationships in the market and not leave anyone in trouble in any type of an issue. So we are actively working on that. You should expect us to continue to defocus. It may come with some revenues. We're beginning -- or income, not revenues, I'm sorry. But the main benefit is the laser focus of the company. Our plan is to be left with 1 platform, 1 product, 1 type of service for everyone that we serve. Operator: I am showing no further questions at this time. I would now like to turn it back to Ido for closing remarks. Ido Schoenberg: Thank you, operator, and thank you, everyone, for joining. Have a good evening. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in American Well, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Well wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. American Well (AMWL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in American Well Corporation? Here are five stocks we like better. Amwell’s second-quarter revenue fell 26.6% to $52 million, but its adjusted EBITDA loss narrowed to $1.15 million from $4.7 million a year earlier. The company ended the quarter with $196 million in cash and no debt. The company is pursuing a potential direct Defense Health Agency contract that could expand its role within the Military Health System and create opportunities for additional services, including the possible reintroduction of SilverCloud behavioral health offerings. Amwell raised its full-year adjusted EBITDA outlook to a loss of $7 million to $9 million and maintained its goal of reaching adjusted EBITDA and positive operating cash-flow breakeven in the fourth quarter of 2026. Can the New CEO Revive This Struggling Telehealth Stock? American Well (NYSE:AMWL), which operates as Amwell, reported second-quarter 2026 revenue of $52 million, down 26.6% from a year earlier, while narrowing its adjusted EBITDA loss and raising its full-year profitability outlook as the company pursues operating and cash-flow breakeven in the fourth quarter. The virtual-care technology company said its adjusted EBITDA loss was $1.15 million, compared with a $4.7 million loss in the second quarter of 2025. Operating loss improved 53% year over year to $9.6 million. Amwell ended the quarter with $196 million in cash and marketable securities and no debt. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Doximity is the Facebook and LinkedIn of the Medical Community Chairman and CEO Dr. Ido Schoenberg said the company has shifted from being primarily a telehealth vendor to providing infrastructure for technology-enabled and AI-powered care programs. He said subscription revenue now accounts for more than half of total revenue and described recurring subscription revenue as a more stable foundation for the business. A key development during the quarter was the Defense Health Agency’s intent to award Amwell a direct sole-source contract. Schoenberg called the notice an important milestone that could expand and strengthen Amwell’s relationship with the Military Health System, which serves 9.6 million service members, families and retirees. → Why Rare Earth Processing Could Be the Real 2027 Opportunity LifeMD Shares Come Back to Life on GLP-1 Business Growth Amwell’s platform is integrated with MHS GENESIS, the federal health IT platform used by the Military Health System. Schoenberg said the platform has connected deployed military units in combat zones with hospitals in the U.S. Chief Financial Officer and Chief Operating Officer Mark Hirschhorn said the DHA is negotiating direct contracts with five companies that provide separate core capabilities: Amwell, Oracle Health, Philips, Solventum and Henry Schein. The DHA had initially targeted July 30, 2026, for some contracts to become active, but Hirschhorn said parties needed additional information and time for negotiations. The DHA’s deadline to execute the contracts is July 2027, though it intends to transition as soon as possible. → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Hirschhorn said a direct contract could create opportunities for Amwell to provide a broader scope of services previously handled through third parties. He also said Amwell is discussing the potential reintroduction of its SilverCloud behavioral health offering within the DHA environment, with the earliest opportunity to activate those services expected in 2027. Subscription revenue was $25.7 million, down 36.5% from the prior-year period but up 3.2% sequentially. Hirschhorn attributed the year-over-year decline to previously disclosed customer churn and a one-time subscription-revenue benefit recognized in the second quarter of 2025 related to the DHA platform deployment. He said the sequential increase reflected stability among core payer and government subscription customers. Amwell Medical Group visit revenue rose 7.4% year over year to $24.4 million. Paid visits totaled about 315,000, flat from the year-earlier period, while revenue per visit increased approximately 6% to about $77. The company attributed the higher revenue per visit to a mix shift toward higher-acuity clinical programs and virtual primary care, where visits rose about 30% year over year. Total platform visits declined 28.4% to approximately 835,000, which Hirschhorn said was consistent with previously discussed portfolio changes. Gross profit was $27.6 million, producing a 53% gross margin, down from 56.1% a year earlier but up about 200 basis points sequentially. The company said it expects its revenue mix to move toward higher-margin software-as-a-service offerings over time. Total operating expenses, including depreciation and amortization, fell 38% year over year to $37.1 million. Expenses represented 71.3% of revenue, compared with 84.8% in the prior-year quarter, reflecting the company’s restructuring efforts and cost controls. For the third quarter, Amwell forecast revenue of $46 million to $48 million and an adjusted EBITDA loss of $3 million to $5 million. Hirschhorn said the outlook reflects normal summer seasonality in visit volumes and costs tied to internal projects expected to be completed before year-end. For full-year 2026, Amwell narrowed its revenue outlook to $200 million to $205 million, raising the lower end of its prior $195 million to $205 million range. The company raised its adjusted EBITDA outlook to a loss of $7 million to $9 million, from prior guidance for a loss of $12 million to $16 million. Second-quarter revenue: $52 million, down 26.6% year over year. Second-quarter adjusted EBITDA loss: $1.15 million, versus a $4.7 million loss a year earlier. Second-quarter cash and marketable securities: $196 million, with no debt. 2026 revenue guidance: $200 million to $205 million. 2026 adjusted EBITDA guidance: loss of $7 million to $9 million. Management reiterated its goal of reaching adjusted EBITDA breakeven and positive operating cash flow in the fourth quarter. Hirschhorn said the company expects the majority of its planned cost reductions to be completed in the second half of 2026. Looking beyond 2026, Hirschhorn said Amwell would provide more detail on 2027 expectations later in the year. He said the company internally aims to return to double-digit revenue growth if contracts currently under discussion, particularly with government customers, are completed. Schoenberg said Amwell is concentrating its commercial efforts on government and payer customers, while continuing to support its health-system customer base. He said the company is also divesting non-core assets and intends to operate around a single platform and product framework rather than developing customized solutions for individual customers. American Well, operating under the trade name Amwell, is a Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients. Through its cloud-based platform, the company enables secure virtual visits, remote patient monitoring and integrated care coordination across a range of medical disciplines, including primary care, behavioral health, chronic disease management and urgent care. The company's core offering, the Amwell Telehealth Platform, facilitates live video consultations, asynchronous messaging, e-prescribing and electronic health record integration. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Well Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $52 million in Q2 2026, down approximately 26.6% year over year. Subscription Revenue: $25.7 million, down approximately 36.5% year over year, but up approximately 3.2% sequentially from Q1 2026. AMG Visit Revenue: $24.4 million, up approximately 7.4% year over year. AMG Paid Visits: Approximately 315,000 visits, flat year over year, with revenue per visit of approximately $77, up approximately $4 or 6% year over year. Total Platform Visits: Approximately 835,000 visits, down approximately 28.4% year over year. Gross Profit: $27.6 million, with gross margin of 53%, down approximately 310 basis points year over year but up approximately 200 basis points sequentially. Total Operating Expenses: $37.1 million, down approximately 38% year over year and down approximately 18% sequentially. Adjusted EBITDA: Loss of $1.15 million, compared to a loss of $4.7 million in Q2 2025. Operating Loss: $9.6 million, compared to $20.4 million in Q2 2025, an improvement of approximately 53% year over year. Cash and Marketable Securities: $196 million at end of Q2 2026, with zero debt. Full-Year 2026 Revenue Guidance: Narrowed to a range of $200 million to $205 million. Full-Year 2026 Adjusted EBITDA Guidance: Raised to a loss in the range of negative $9 million to negative $7 million. Warning! GuruFocus has detected 2 Warning Signs with AMWL. Is AMWL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. American Well Corp (NYSE:AMWL) received an intent to award a sole-source contract from the Defense Health Agency, signaling a long-term, stable partnership and a strong vote of confidence in its platform. Subscription revenue now represents more than half of total revenue and grew sequentially, providing a more predictable and stable revenue foundation. Adjusted EBITDA loss narrowed to approximately $1 million in Q2 2026, the closest to breakeven as a public company, with raised full-year guidance. A randomized trial published in Nature Human Behavior showed SilverCloud behavioral health program doubled engagement and reduced costs, providing independent validation of clinical and financial outcomes. The company holds over $195 million in cash with no debt, providing a strong runway to achieve its goal of positive cash flow from operations by Q4 2026. AMG visit revenue grew 7.4% year-over-year, driven by a shift toward higher-acuity, higher-value clinical programs and virtual primary care, which saw a 30% increase in visits. Total revenue declined 26.6% year-over-year, reflecting previously disclosed churn and a one-time subscription benefit in the prior year. Subscription revenue decreased 36.5% year-over-year, though it improved sequentially. Total platform visits fell 28.4% year-over-year, consistent with portfolio changes but indicating reduced overall activity. Gross margin contracted 310 basis points year-over-year, though it improved sequentially. The DHA contract negotiations are ongoing, with a deadline extended to July 2027, creating uncertainty about the timing and scope of the final agreement. Q3 2026 guidance projects an adjusted EBITDA loss of $5 million to $3 million, reflecting seasonality and costs from internal projects, indicating a step back from Q2's near-breakeven performance. Q: Can you bridge the difference between the DHA's intent to award a sole-source contract and actual implementation? What's left from here, and what does the timing look like to close out the contract? Also, where does the opportunity for additional programs, notably mental health, stand today?A: Mark Hirschhorn (CFO & COO): The DHA issued a release in June calling for a direct sole-source contract with Amwell and four other vendors. We are currently negotiating with the DHA, which had a deadline of July 30 of this year, but all parties required additional information and time. Their drop-dead date is July of next year, but they've indicated they need a couple more months to negotiate. We're working closely with our partners at Leidos and the DHA to ensure a smooth transition. Regarding the behavioral health SilverCloud offering, which was active in that environment last year, we plan to reintroduce it in conjunction with the direct sole-source contract, with the earliest opportunity to turn those services on being in 2027. Q: How important is the DHA renewal to support the credibility narrative with health plans, and how are you positioning Amwell with health plans this selling season? Are these efforts enough to translate to Jan 1, 2027 wins?A: Ido Schoenberg (Chairman & CEO): The DHA relationship is an important milestone and proof point, creating significant momentum. The infrastructure is common across the entire government system, and the sole-source decision indicates a long-term agreement of three to five years. This is not lost on the commercial market. Payers are under pressure from rising care costs and vendor sprawl, and they want fewer, deeper partnerships. Our unified platform solves this by providing one gateway behind their brand, allowing them to mix and match programs without disruption. We're seeing strong receptivity, a growing pipeline, and significant activity on the sales side. The value we provide is enormous, and we've never been as optimistic or focused as we are now. Q: Can you talk about the progression of EBITDA from 2Q to breakeven in 4Q, and how you're planning to get there? Also, any update on cost-restructuring efforts?A: Mark Hirschhorn (CFO & COO): We communicated at the beginning of the year that we would have a cycle of costs ending this year. There's project work that commenced at the end of last year that is cycling down in the third quarter. While we will have a quarter with a small degree of losses, we have great visibility and conviction around where costs will be over the next several months. We are very confident we will hit cash-flow and adjusted-EBITDA breakeven in Q4. We've given a conservative range for full-year EBITDA, and our internal goal is to beat it. We have not incorporated any new revenues, just a little seasonality in Q4 for visit volume. Q: As we think about 2027, can you provide color around backlog metrics or bookings? At a high level, without guiding, is revenue going to grow year over year in '27?A: Mark Hirschhorn (CFO & COO): We will share much more visibility on expected 2027, perhaps earlier than the end of this year. If the prospects we're currently speaking to on the government side come to fruition and we have signed contracts, that will give us great visibility into revenue growth for 2027. Internally, we would like to see the company return to double-digit growth. We think that is very attainable with the consummation of contracts currently under discussion with clients that form the majority of our pipeline. Q: With the DHA contract, was that a renewal, so will there be any incremental revenue tied to it? Also, when I hear sole source, it sounds like Amwell is the only vendor, but you mentioned four other vendors. Do you know the revenue you will realize under the deal?A: Mark Hirschhorn (CFO & COO): Under the new model, the DHA stated they will contract directly with proprietary-solution providers for core system capabilities rather than going through pass-through entities like Leidos. The services are provided by five distinct companies: Amwell, Oracle Health, Phillips, Solventum, and Henry Schein. The DHA's intent is to create and execute contracts with each of these five companies. We may end up seeing a little more revenue for additional services we may have to take on in lieu of third-party systems integrators, which is absolutely a likelihood. Q: Is there any change to the annual revenue compared to the current arrangement with the DHA, or is the primary benefit greater contract visibility and duration?A: Mark Hirschhorn (CFO & COO): There is an opportunity to create more services being directly provided by Amwell to the DHA. There are a number of things currently in discussion, and we would expect there will be an opportunity for a broader scope of services. Q: Is the current pipeline expanding with existing customers versus new logos? How much of these pipeline discussions involve your AI focus and investment?A: Ido Schoenberg (Chairman & CEO): Yes to all. Many market players are in search of platforms due to vendor fatigue and the cost of engagement. The market is alive and kicking to change platforms. There is enormous interest from new players, driven by the success we see with existing customers like the DHA and Elevance. Regarding AI, it changes everything. We're using AI across the company in everything we do, which has driven dramatic changes in our cost structure. Our biggest contribution is freeing customers from the need to integrate and piece together new programs. Our platform is designed to do that, and we do it quite well. The white space for same-store growth is hard to exaggerate, and our success drives higher utilization with existing customers and is the best sales tool for new ones. Q: What are you seeing at your health-system customers? What's resonating with them today versus what they're cutting back on?A: Ido Schoenberg (Chairman & CEO): Everybody is trying to engage their addressable population to use more technology-enabled care powered by AI to improve outcomes. The government is a huge container of people impacted by the value we create, and we see the same momentum with commercial payers. The health-systems issue is different. We used to have a wide net of products, some of which are now occupied by traditional EHR players. While we have a loyal base of health-system customers and believe providers have an important role in enabling AI care, the financial opportunity that moves our needle right now is very much in the government and payer sectors. Our focus area For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BOSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Amwell® (NYSE: AMWL), a leading provider of a comprehensive SaaS-based technology-enabled healthcare platform, today announced financial results for the second quarter ended June 30, 2026. “The DHA’s intent to make Amwell a prime contractor is a powerful endorsement of our platform and our people,” said Dr. Ido Schoenberg, Chairman and CEO of Amwell. “With subscription revenue now approaching half our total revenue, independently validated behavioral clinical outcomes, no debt, and positive cash flows from operations projected for the fourth quarter this year, we have never been better positioned to lead the era of AI-powered care.” Amwell Second Quarter 2026 Highlights: Recorded Total Revenue of $52.0 million at the top end of the previously provided financial guidance range for Q2 Reported gross margin of 53% Net loss was ($9.6) million, compared to ($10.3) million in the first quarter of 2026, continuously moving from quarter to quarter in a favorable trajectory Adjusted EBITDA of ($1.2) million compared to ($3.1) million in the first quarter of 2026 Total visits on the platform were 0.8 million. Financial Outlook The Company is significantly improving Adjusted EBITDA, reaffirming its AMG visit guidance, and raising the low end of its 2026 revenue outlook: Revenue in the range of $200 million to $205 million increased from $195 million to $205 million AMG visits between 1.32 million and 1.37 million Adjusted EBITDA in the range between ($9) million to ($7) million increased from ($16) million to ($12) million. The Company also provided financial guidance for Q3 2026 Revenue and adjusted EBITDA: Q3 revenue in the range of $46 million to $48 million Q3 adjusted EBITDA expected to in the range of ($5) million to ($3) million. The Company also reiterated its objective to achieve positive cash flow from operations in the fourth quarter of 2026. Amwell will host a conference call to discuss its financial results today at 5 p.m. ET. The call can be accessed via a live audio webcast at https://edge.media-server.com/mmc/p/b826q95x/. A webcast replay will be available for approximately 90 days at investors.amwell.com. Other than with respect to GAAP Revenue, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because other deductions used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP). About Amwell Amwell offers payers and health systems a single, comprehensive, technology-enabled care platform. We use technology to provide patients with better access to more convenient, affordable and effective care. The Amwell platform includes software and services that power many clinical programs from Amwell and our growing number of partners. Our platform allows patients to experience unified, personalized and simple access to diversified clinical programs across the care continuum. As more people seek care online and more clinical programs become available, we offer integrated, future-ready, consistent solutions. The Amwell platform is proven, operating at a large scale, enabling care for millions of patients and their sponsors while delivering dependable outcomes. For almost two decades, Amwell has proudly served some of the largest and most sophisticated healthcare organizations in the U.S. . For more information, visit business.amwell.com or LinkedIn. ©2026American Well Corporation. All rights reserved. Amwell®, SilverCloud®, Amwell Platform™, Amwell Converge®, Carepoint™ and the Amwell Logo are registered trademarks or trademarks of American Well Corporation. Forward-Looking Statements This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations, financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our beliefs and assumptions only as of the date of this release. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: our ability to successfully transition our clients to our current platform without significant attrition; our ability to renew and upsell our client base; the election by the Defense Health Agency to deploy our solution across their entire enterprise; the continuation of the DHA relationship beyond Q3 2026 with comparable financial terms; weak growth and increased volatility in the telehealth market; our ability to adapt to rapid technological changes; increased competition from existing and potential new participants in the healthcare industry; changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; our ability to comply with federal and state privacy regulations; the significant liability that could result from a cybersecurity breach; our ability to commence and complete and strategic transformation initiatives and the impact of such initiatives; and other factors described under ‘Risk Factors’ in our most recent form 10-K filed with the SEC. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission. These filings, when available, are available on the investor relations section of our website at investors.amwell.com and on the SEC’s website at www.sec.gov. Contacts Media: [email protected] Investors:Asher [email protected] Non-GAAP Financial Measures: To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, of US GAAP, we use adjusted EBITDA, which is a non-U.S GAAP financial measure to clarify and enhance an understanding of past performance. We believe that the presentation of adjusted EBITDA enhances an investor’s understanding of our financial performance. We further believe that adjusted EBITDA is a useful financial metric to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize adjusted EBITDA as the primary measure of our performance. We calculate adjusted EBITDA as net loss adjusted to exclude (i) interest income and other income, net, (ii) tax benefit and expense, (iii) depreciation and amortization, (iv) gain on divestiture, (v) stock-based compensation expense and (vi) severance and strategic transformation costs. We believe adjusted EBITDA is commonly used by investors to evaluate our performance and that of our competitors. However, our use of the term adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net loss before taxes, net loss, loss per share or any other performance measures derived in accordance with U.S. GAAP as measures of performance.Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these capital expenditures. Our adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. In evaluating adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. Adjusted EBITDA should not be considered as an alternative to loss before benefit from income taxes, net loss, earnings per share, or any other performance measures derived in accordance with U.S. GAAP. When evaluating our performance, you should consider adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results. The following table presents a reconciliation of adjusted EBITDA from the most comparable GAAP measure, net loss, for the three and six months ended June 30, 2026 and 2025 and the three months ended March 31, 2026:

Amwell reported Q1 revenue of $54.9 million, down ~18% year-over-year, but narrowed adjusted EBITDA loss to $3.1M (versus $12.2M a year ago), cut operating expenses ~31%, ended the quarter with roughly $179–182M in cash and no debt, and targets cash-flow breakeven in Q4. The company is pushing a unified telehealth platform focused on payers and government, citing a three-year renewal with Elevance Health and an expected Defense Health Agency (DHA) renewal around July that could later restore an automated behavioral-health program worth an estimated >15–20% of platform value. Management highlighted regulatory tailwinds (permanent Medicare telehealth expansions and new reimbursement codes) and growing demand for AI-enabled care, positioned Amwell as the infrastructure for "agentic AI," while raising full-year adjusted EBITDA guidance to a loss of $16M–$12M with revenue guidance of $195M–$205M. Interested in American Well Corporation? Here are five stocks we like better. Can the New CEO Revive This Struggling Telehealth Stock? American Well (NYSE:AMWL) executives highlighted progress toward profitability and described what they see as rising demand for a unified telehealth platform during the company’s first-quarter fiscal 2026 earnings call. Chairman and CEO Dr. Ido Schoenberg pointed to large customer renewals, government deployments, and a regulatory environment he said is increasingly supportive of telehealth. Schoenberg said the company spent the past year focusing on “solving clear, urgent customer needs” by consolidating around a unified platform. He argued that payers, facing margin pressure as “premiums are not keeping pace with the total cost of care,” are increasingly turning to technology-enabled care and “AI-powered clinical programs” as a cost and outcomes lever. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Doximity is the Facebook and LinkedIn of the Medical Community He also emphasized what he called a key adoption barrier for customers: vendor sprawl and fragmented tech stacks that make it difficult to integrate point solutions and measure performance across programs. Amwell’s approach, he said, is to provide a “trusted, proven technology-enabled care infrastructure” that customers can white label and embed into their own digital front doors, along with unified engagement, navigation, and analytics capabilities. Schoenberg said the platform is positioned for a shift from generative AI toward “agentic AI,” describing Amwell as “the infrastructure layer where AI-powered care becomes operational and measurable.” He added that a unified data structure across programs could be a competitive advantage by enabling information sharing before care begins and consolidating outcomes data after delivery. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches LifeMD Shares Come Back to Life on GLP-1 Business Growth Schoenberg said Elevance Health renewed its relationship with Amwell for three more years, calling it “a strong vote of confidence in our platform.” On the government side, he cited the Military Health System contract extension in August 2025, which he said put Amwell’s platform in front of 9.6 million military beneficiaries globally. During Q&A, management addressed questions about the Defense Health Agency (DHA) relationship and renewal timing. Schoenberg said Amwell’s focus is on meeting DHA’s “very specific and high expectations,” adding that while “many other players” are involved, Amwell’s integration into DHA’s backbone “remains constant.” He said the company is “fairly confident and hopeful” about continuing to serve the customer, while noting it cannot be taken for granted. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries CFO and COO Mark Hirschhorn said the DHA renewal is expected to be “completed at the end of the quarter, start of the third quarter, perhaps July.” He added that any expansion would likely come after the base renewal and said Amwell feels “very confident that that renewal is going to commence within that timeframe.” On potential scope expansion, Schoenberg said Amwell is “laser-focused” on renewing the current scope and does not have specific information “as to the if and when” for expansion. Hirschhorn later addressed a lapsed component of the DHA relationship, saying the company expects that portion would represent “in excess of 15%–20% of the total value of the platform today,” based on DHA’s usage in early 2025. He said discussions around reintroducing those services are ongoing but would likely take place after renewal of base services. Schoenberg described that additional program as an “automated behavioral health program,” which he said had been integrated and proven in the DHA environment but was deferred by the customer for its own reasons. He added that if the customer chooses to add it back, deployment would be quick. He also referenced use in the U.K.’s National Health Service, saying studies showed the program could improve the therapist-to-patient ratio and accelerate access. Schoenberg said the regulatory environment is “working in our favor,” citing CMS actions that he said make telehealth “permanently accessible,” including the removal of rural geographic restrictions, home-based telehealth extended through at least 2027, and virtual behavioral health as a permanent part of Medicare. He also pointed to new reimbursement codes for advanced primary care management and behavioral health integration as additional incentives to shift care to virtual and community-based settings. He also described internal changes, saying the company has made “meaningful operational improvements” and “significant organizational changes.” Hirschhorn echoed that theme, citing continued cost discipline and transformation actions. Hirschhorn reported total revenue of $54.9 million for the first quarter, down about 18% year-over-year. Subscription revenue was $24.9 million, down about 23% year-over-year, which he attributed primarily to “previously disclosed churn.” However, he said renewals and retention were higher than budgeted in the quarter, improving confidence in subscription stability. Amwell Medical Group (AMG) visit revenue was $28.9 million, up about 9% year-over-year. Hirschhorn said AMG paid visits were approximately 382,000, up slightly year-over-year, with revenue per visit of about $76, up roughly $5 per visit from the prior year. He attributed the change to a growing contribution from clinical programs and a shift toward “higher acuity, higher value care.” Virtual primary care visits grew about 57% year-over-year, which he said reflects increasing adoption among clients. Total platform visits were 1 million, down about 19% year-over-year, which Hirschhorn said was in line with previously discussed portfolio changes. Gross profit was $28 million and gross margin was 51%, down about 180 basis points year-over-year. Hirschhorn said the existing revenue mix is likely to generate a similar near-term margin profile, while a longer-term shift toward higher-margin SaaS offerings could support margin expansion over several years. Operating expenses were $45.4 million, down about 31% year-over-year. As a percentage of revenue, operating expenses improved to 82.6% from 98.3% in the prior-year quarter. Adjusted EBITDA loss narrowed to $3.1 million versus a $12.2 million loss in Q1 2025, a $9.1 million improvement. Operating loss was $17.4 million, compared with $30.4 million in the prior-year period. On liquidity, Hirschhorn said cash burn was about $3.1 million, down from $19 million last quarter, and the company ended the quarter with $179 million in cash and investments and “zero debt.” Schoenberg separately referenced $182 million in cash and no debt in his prepared remarks and reiterated a goal of reaching cash flow breakeven in the fourth quarter. For the second quarter of fiscal 2026, Hirschhorn guided to revenue of $48 million to $52 million and an adjusted EBITDA loss of negative $4 million to negative $2 million. He said the outlook reflects normal seasonality in visit volumes and a continued step-down in subscription revenue tied to previously discussed churn. For the full year, he reiterated the revenue outlook of $195 million to $205 million and raised expectations for adjusted EBITDA, now projecting a loss of $16 million to $12 million compared with a prior range of a loss of $24 million to $18 million. Hirschhorn said Q1 performance increased confidence in the goal of achieving positive cash flow from operations in Q4. On volume trends, Hirschhorn told analysts Amwell saw “high-single-digit growth in volume” and did not experience softness cited by some providers, instead seeing a seasonal boost through the end of the quarter, supported in part by additional ASO clients participating in offerings the company introduced. He added that seasonality is now setting in as expected. Discussing AI, Schoenberg said some AI-related modules tied to navigation and analytics are not universally adopted, with some customers cautious. However, he said customers are “eager and ready to test AI-driven clinical programs” on the platform because integration is fast and replacement is even faster, enabling risk management while evaluating innovations. On pipeline commentary, Schoenberg said the company’s platform is resonating across payers, health systems, and government, with the “most pressing need” among large payers. Hirschhorn added that the pipeline is “a multiple of what it had been last year,” describing it as “closer to triple digit,” and said it is “primarily” aligned with government opportunities. He also said 2026 churn has been “immaterial,” and that while low-single-digit churn is expected in a competitive market, the company has “significant expectations for revenue growth,” including what he described as potential meaningful improvement in 2027 from new government contracts. American Well, operating under the trade name Amwell, is a Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients. Through its cloud-based platform, the company enables secure virtual visits, remote patient monitoring and integrated care coordination across a range of medical disciplines, including primary care, behavioral health, chronic disease management and urgent care. The company's core offering, the Amwell Telehealth Platform, facilitates live video consultations, asynchronous messaging, e-prescribing and electronic health record integration. The article "American Well Q1 Earnings Call Highlights" was originally published by MarketBeat.

Management is repositioning Amwell from a collection of point solutions to a unified digital infrastructure stack that allows health care sponsors to act as their own system integrators. The strategic pivot addresses 'vendor sprawl' and fragmented member experiences by providing a governed environment for clinical programs and future agentic AI operations. Performance in 2025 was characterized by a $100 million reduction in losses and a shift toward a higher-margin subscription revenue mix, which now stands at 53% of total revenue. The company is leveraging its 'GovCloud' capabilities and military health system success to validate the platform's security and reliability for large-scale commercial and government entities. Management attributes the growing pipeline to the platform's ability to provide unified analytics and data structures, which are critical for payers facing intense margin pressure. The regulatory environment is cited as a tailwind, with CMS making telehealth flexibilities permanent and introducing new reimbursement codes for integrated behavioral health. Amwell maintains a clear path to achieving positive cash flow from operations in the fourth quarter of 2026, supported by a leaner cost structure. Full-year 2026 adjusted EBITDA guidance was improved to a loss of $16 million to $12 million, reflecting faster-than-anticipated progress on cost discipline. Management expects meaningful revenue growth in 2027, driven by the conversion of a government-heavy pipeline that is currently a 'multiple' of the prior year's size. The revenue mix is projected to continue shifting toward higher-margin SaaS offerings, which is expected to support margin expansion over the next several years. Q2 2026 guidance assumes normal seasonality in visit volumes and the continued step down in subscription revenue impacted by previously disclosed churn. Operating expenses decreased 31% year-over-year, reflecting significant organizational changes and more efficient ways of working. The company maintains a strong liquidity position with $179 million in cash and investments and zero debt, providing the runway to execute the current strategy. Subscription revenue was down 23% year-over-year, primarily due to previously disclosed churn, though management noted that Q1 renewals were higher than budgeted. A $7 million sequential increase in deferred revenue was attributed to the timing of renewals for several large clients in the first quarter. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management expects the base contract renewal to be completed by late Q2 or early Q3 (July), describing the process as straightforward. Potential expansion into automated behavioral health services is expected to be discussed only after the base renewal is finalized. The behavioral health component previously represented approximately 15% to 20% of the total platform value for this client. The current pipeline is described as 'triple digit' growth compared to last year, with a heavy concentration in large government and payer opportunities. Growth is expected to come from both new logos and 'same-store growth' as existing payers deploy the platform to more members to drive engagement. Clients are currently most interested in using the platform as a 'safe, reproducible' environment to test AI-driven clinical programs rather than buying AI as a standalone feature. Management noted that while some customers are cautious about AI modules, all are eager to test AI-driven clinical programs to improve financial and clinical outcomes. Q1 visit volumes outperformed internal expectations, driven by a 57% year-over-year increase in Virtual Primary Care (VPC) visits. Revenue per visit increased by $5 to $76, reflecting a strategic shift toward higher-acuity, higher-value clinical programs over standard urgent care. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.