American Well 2025 Q2 Earnings Narrowed Losses, but Revenue Growth and Declining Visits Pose Challenges

American Well reported its 2025 Q2 earnings on August 6, 2025, showing a 12.9% revenue increase to $70.90 million, though the company narrowed its losses by 61.4%. It also revised its full-year revenue guidance downward due to the divestiture of its psychiatric care business. The results reflect a mix of strategic cost-cutting and declining platform usage.

Revenue
The total revenue of American Well increased by 12.9% to $70.90 million in 2025 Q2, up from $62.79 million in 2024 Q2. Platform subscription revenue emerged as the primary growth driver, reaching $40.46 million, a robust performance that signaled the strengthening of the core enterprise software-as-a-service model. The Visits segment, meanwhile, generated $22.75 million, though the broader context of declining digital care utilization remains a concern. Additional revenue came from other segments at $7.69 million, rounding out the total revenue figure.

Earnings/Net Income
American Well narrowed losses to $1.24 per share in 2025 Q2 from a loss of $3.36 per share in 2024 Q2 (63.1% improvement). Meanwhile, the company successfully narrowed its net loss to $-19.53 million in 2025 Q2, reducing losses by 61.4% compared to the $-50.58 million net loss reported in 2024 Q2. Despite this improvement, the EPS and net income results remain negative, indicating that the company is still in a loss-making position, albeit at a slower rate.

Price Action
The stock price of American Well has jumped 12.77% during the latest trading day, has edged up 2.66% during the most recent full trading week, and has edged down 0.35% month-to-date.

Post Earnings Price Action Review
The strategy of buying American Well (AMWL) shares after a revenue raise quarter-over-quarter on the financial report released date and holding for 30 days resulted in a significant underperformance. Over the past three years, the strategy delivered a return of -91.81%, vastly underperforming the benchmark return of 49.40%. The excess return was -141.20%, and the strategy's CAGR was -56.95%, indicating substantial losses over the period. Additionally, the strategy had a maximum drawdown of 0.00%, which suggests that while the strategy avoided further losses during a market downturn, it did not capitalize on any potential gains, as the Sharpe ratio was -0.73% and the volatility was high at 78.18%.

CEO Commentary
Ido Schoenberg, MD, Chairman and CEO, highlighted Q2 strategic execution with the addition of Florida Blue as a strategic client and a contract extension with the U.S. Defense Health Agency. The CEO noted progress in revenue quality and cost alignment, contributing to a narrowing adjusted EBITDA loss and advancing the company toward its goal of positive operating cash flow by 2026. He emphasized operational focus and strong execution, reflecting an optimistic tone regarding the Amwell platform’s value and future performance.

Guidance
The company revised 2025 full-year revenue guidance to $245–$250 million (down from $250–$260 million) due to the divestiture of Amwell Psychiatric Care, with AMG visits expected between 1.3–1.35 million. Adjusted EBITDA guidance was narrowed to ($50)–($45) million from ($55)–($45) million. Q3 2025 revenue is forecasted at $53–$56 million, with adjusted EBITDA between ($15)–($13) million. The company reiterated its objective of achieving positive cash flow from operations in 2026.

Additional News
American Well has taken strategic steps to streamline operations and focus on its higher-margin core business. The company successfully completed the divestiture of the APC (Amwell Psychiatric Care) business, which generated $20.4 million in cash proceeds and a $10.7 million gain. Additionally, the planned wind-down of the CCAW joint venture reflects a strategic pivot toward the Converge platform. The CEO emphasized the completion of “peak development” for the Converge platform, marked by zero capitalized software development costs in the first half of 2025 compared to $8 million in the prior year. This shift underscores the company’s focus on leveraging its existing platform for growth, rather than investing in large-scale feature development. These actions are part of a broader initiative to improve operating efficiency and reduce cash burn.