American Well 2025 Q3 Earnings Reduced Net Loss Despite Revenue Decline

American Well (AMWL) reported Q3 2025 earnings on Nov 4, 2025, with revenue declining 7.8% to $56.29 million but narrowing its net loss by 27.5% year-over-year. The company exceeded revenue estimates by $1.74 million and revised full-year guidance to $245–$248 million. CEO Ido Schoenberg emphasized progress toward cash flow breakeven by 2026, driven by AI integration and operational efficiency.

Revenue

Platform subscription revenue led the way at $30.90 million, while visits contributed $21.20 million. Other segments accounted for $4.19 million, bringing the total to $56.29 million—a 7.8% decline from $61.05 million in 2024 Q3. Subscription revenue grew 17.8% year-over-year, outpacing declines in visits (-22.8%) and other categories (-42.9%).

Earnings/Net Income

American Well narrowed its loss to $2.00 per share in Q3 2025 from $2.87 in 2024 Q3 (30.3% improvement). The net loss fell to $-31.91 million, down 27.5% from $-44.04 million, though the company has sustained losses for seven consecutive years.

Post-Earnings Price Action Review

The stock edged up 0.80% during the latest trading day but dropped 5.43% for the week and plummeted 20.22% month-to-date. The mixed post-earnings reaction reflects investor skepticism about long-term profitability despite improved financial metrics.

CEO Commentary

Ido Schoenberg highlighted exceeding Q3 guidance and progress toward cash flow breakeven by 2026. Strategic priorities include AI-integrated platforms for select markets and operational efficiency, with divestitures like Amwell Psychiatric Care (APC) and headcount reductions. Schoenberg cited rising telehealth adoption (27.8% mental health usage) and demand for integrated solutions as tailwinds.

Guidance

The company revised 2025 revenue guidance to $245–$248 million, aligning with APC divestiture and market conditions. Adjusted EBITDA guidance narrowed to ($45–$42) million, with Q4 revenue projected at $51–$54 million.

Additional News

American Well divested non-core Amwell Psychiatric Care (APC) to streamline operations and focus on high-margin AI and efficiency. The company also announced rightsizing headcount and automation initiatives to reduce costs. CEO Schoenberg emphasized leveraging AI for care coordination and interoperability, positioning Amwell as a secure, scalable telehealth platform.