What factors drove the changes in American Well's revenue and profit?

What is the market's earnings forecast for American Well next quarter?

What is American Well's gross profit margin?

What were the key takeaways from American Well’s earnings call?

What is the revenue and EPS growth rate for American Well year over year?

What does American Well do and what are its main business segments?

What is American Well's latest dividend and current dividend yield?

Did American Well beat or miss consensus estimates last quarter?

- **Revenue Growth**: Q3 subscription revenue up 18% YoY, driven by virtual primary care expansion. 
- **AI Impact**: AI reduces 30-day readmissions by 50% and enables $500/patient savings for payers. 
- **Financial Health**: Gross margin expands to 52%, with $201M cash on hand and no debt. 
- **2026 Target**: On track for cash flow breakeven through cost cuts and AI-driven efficiency. 
- **Customer Win**: Secured Florida Blue deal by solving vendor fragmentation challenge. 


**【CEO Summary Section】**
- **Strategic Focus**: AmWell is prioritizing two main initiatives: (1) developing a next-generation, enterprise-grade platform with AI integration and (2) optimizing operational efficiency to achieve cash flow breakeven by end-2026. 
- **Market Momentum**: Q3 2025 results reflect stronger subscription retention and visit volume in virtual primary care. AI-driven solutions are reducing 30-day readmissions by 50% and generating high customer satisfaction (NPS scores). 
- **Customer Wins**: Secured a major Florida Blue deal by offering a unified platform that reduces vendor fragmentation and complexity. 
- **Legacy Assets**: Will continue supporting legacy solutions (e.g., inpatient telehealth) but redirect resources to high-margin clinical programs like virtual primary care and behavioral health. 

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Total revenue: $56.3M (down 8% YoY, but +1.3% when excluding APC sale)
  - Subscription revenue: $30.9M (+18% YoY, 55% of total revenue)
  - Gross margin: 52% (vs. 37% YoY)
  - Adjusted EBITDA: -$12.7M (vs. -$31M YoY)
  - Cash burn: $18M (ending Q3 with $201M cash)
- **Cost Optimization**: 
  - R&D expenses down 6%
  - Sales & marketing down 46%
  - G&A expenses down 14%
- **2025 Guidance Update**: 
  - Full-year revenue: $245-248M (vs. prior $245-250M)
  - Q4 revenue: $51-54M
  - Adjusted EBITDA: -$15M to -$12M
- **2026 Outlook**: Targeting positive cash flow from operations through continued expense reduction and margin expansion.

**【Q&A Highlights】**
1. **AI Monetization**: 
   - Integrates AI into clinical programs (e.g., predictive readmission models) to reduce costs and improve outcomes. 
   - Monetizes through program referrals (e.g., 30-day readmission savings sharing) rather than direct platform fees. 
2. **Divestiture Strategy**: 
   - Actively exploring sales of non-core assets (e.g., inpatient telehealth) to focus on high-growth clinical programs. 
   - No immediate impact on 2025 guidance, but could accelerate 2026 cash flow. 
3. **Macroeconomic Impact**: 
   - Health systems prioritize value-based care solutions despite IT budget caution. 
   - Minimal tariff exposure; U.S.-based software development limits trade risks. 
4. **Customer Retention**: 
   - 79% of Gen Z now use health tech monthly, driving demand for AmWell's personalized care navigation. 
   - AI-driven program matching improves member engagement and reduces churn. 


American Well Corporation (AMWL) Q3 2025 Earnings Call Transcript

Platform Subscription

Visits

Other

AMWL

AMWL fundamentals

You can ask Aime