American Well 2025 Q3 Earnings Narrows Losses with 30.3% EPS Improvement and 27.5% Net Loss Reduction

American Well (AMWL), ranked by market capitalization, reported its fiscal 2025 Q3 earnings on Nov 4, 2025. The company’s results showed a 7.8% revenue decline to $56.29 million but beat Wall Street’s revenue estimate by $1.74 million. Despite a $2.00 GAAP EPS loss (missing the $1.80 estimate), the company improved losses by 30.3% year-over-year and revised 2025 revenue guidance to $245–248 million.

Revenue

Total revenue fell 7.8% to $56.29 million in Q3 2025. Platform subscription revenue grew 17.8% to $30.9 million, while other revenue declined 42.9% to $4.19 million. Visit revenue fell 22.8% to $21.2 million. The company attributed the overall drop to the divestiture of Amwell Psychiatric Care (APC) but noted normalized revenue growth excluding APC.

Earnings/Net Income

American Well narrowed its GAAP EPS loss to $2.00 from $2.87 (30.3% improvement) and reduced its net loss to $-31.91 million from $-44.04 million (27.5% improvement). Despite these gains, the company has posted losses for seven consecutive years in the quarter, underscoring persistent financial challenges.

Price Action

The stock rose 0.80% on the day of the report but dropped 5.43% during the week and 20.22% month-to-date. Post-earnings, shares underperformed broader markets, with a 29.8% YTD decline versus the S&P 500’s 16.5% gain.

Post-Earnings Price Action Review

Amwell’s shares edged up 0.80% on the day of the earnings report, reflecting cautious optimism about the company’s revised guidance and cost-cutting measures. However, the stock has faced downward pressure, with a 5.43% decline during the week and a 20.22% drop month-to-date. Analysts attributed the volatility to mixed sentiment: while the 30.3% EPS improvement and 27.5% net loss reduction signaled progress, the 7.8% revenue decline and ongoing cash burn ($18 million in Q3) raised concerns. Amwell’s revised 2025 revenue target of $245–248 million, coupled with a projected 2026 cash flow breakeven, offered some upside, but the stock remains a “Hold” rating due to uncertainty around market adoption of its AI-driven hybrid care model.

CEO Commentary

CEO Ido Schoenberg emphasized progress toward cash flow breakeven by 2026, citing AI integration, interoperability investments, and the APC divestiture. He highlighted strategic priorities: embedding AI into core workflows, simplifying clinical program integration, and advancing data analytics. Schoenberg expressed confidence in Amwell’s position as a hybrid care backbone amid rising demand for scalable solutions.

Guidance

CFO Mark Hirschhorn revised 2025 revenue guidance to $245–248 million (prior: $245–250M) and adjusted EBITDA loss to $-45M to $-42M. Q4 2025 revenue is projected at $51–54 million, with expenses declining by >10% (R&D), >25% (sales/marketing), and ≥20% (G&A).

Additional News

Amwell’s strategic pivot toward AI-driven workflows and enterprise-grade platform enhancements dominated recent discussions. The company’s $30.9 million in subscription revenue, driven by AI integration, underscored its focus on high-margin solutions. Divesting APC, a non-core asset, aligned with its streamlined operational strategy. Management also emphasized cost discipline, with Q3 cash burn at $18 million and $201 million in remaining cash. Analysts noted the stock’s “Hold” rating, citing uncertainty around macroeconomic pressures and market adoption of hybrid care models.

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