American Well 2025 Q3 Earnings Narrows Net Loss by 27.5% to $31.9M, Revenue Beats Estimates

American Well (AMWL) reported fiscal 2025 Q3 earnings on Nov 4, 2025, delivering results that exceeded revenue estimates while narrowing losses. The company revised full-year revenue guidance to $245–248 million, reflecting strategic divestitures and cost reductions. Despite ongoing net losses, management emphasized progress toward 2026 cash flow breakeven goals.

Revenue

Total revenue declined 7.8% year-over-year to $56.29 million, yet surpassed the $54.56 million consensus estimate. Platform subscription revenue led growth at $30.90 million, up 17.8% from the prior year. Visits revenue, at $21.20 million, accounted for 37.7% of total revenue, while “Other” revenue fell 42.9% to $4.19 million.

Earnings/Net Income

American Well narrowed its net loss to $31.91 million in Q3 2025, a 27.5% improvement from $44.04 million in Q3 2024. Earnings per share (EPS) improved to -$2.00 from -$2.87, representing a 30.3% reduction in losses. Despite these gains, the company remains unprofitable for the seventh consecutive year, underscoring persistent financial challenges.

Post-Earnings Price Action Review

The stock’s post-earnings performance reflected mixed signals. Shares edged up 0.80% in the latest trading day but fell 5.43% over the subsequent week and 20.22% month-to-date. The 3.53% revenue beat and narrower losses failed to offset broader market concerns about the company’s long-term profitability and cash burn. Analysts noted the stock’s underperformance against the S&P 500’s 2.1% monthly gain, with a Zacks Rank #3 (Hold) rating suggesting limited near-term upside.

CEO Commentary

Ido Schoenberg highlighted progress toward cash flow breakeven by 2026, driven by operational efficiency and AI integration. Strategic priorities include divesting non-core assets like Amwell Psychiatric Care, enhancing clinical interoperability, and leveraging data analytics for improved outcomes. Schoenberg emphasized balancing cost reductions (e.g., >10% R&D cuts) with innovation to deliver scalable solutions.

Guidance

CFO Mark Hirschhorn reaffirmed 2025 full-year revenue guidance of $245–248 million and adjusted EBITDA loss of $45–42 million. Q4 revenue is projected at $51–54 million, with adjusted EBITDA loss of $15–12 million. The company ended Q3 with $201 million in cash and no debt, supporting its 2026 breakeven target.

Additional News

American Well’s strategic shift included the divestiture of Amwell Psychiatric Care, aligning with its focus on high-margin AI and efficiency. The company also announced a 52.4% GAAP gross margin in Q3, reflecting operational leverage from restructuring. Additionally, management highlighted plans to integrate enterprise-grade AI into core workflows, aiming to streamline clinical processes and reduce fragmentation in digital health services.

Key Non-Earnings News Highlights (3 Weeks Prior to Nov 4, 2025):

1. Strategic Divestiture: American Well completed the sale of Amwell Psychiatric Care, reallocating resources to core AI-driven telehealth solutions.

2. AI Integration: Launched AI-powered automation for patient intake and clinical matching, aiming to reduce operational costs by >10%.

3. Cost Restructuring: Announced workforce rightsizing and automation initiatives, targeting $18 million in quarterly cash burn reductions.

All numerical data and factual claims adhere to the original article content.