WELL Health Technologies (WELL) Q1 2025 earnings summary

Executive summary

• Record Q1 2025 revenue of CAD 294.1 million (USD 294.1 million), up 32% year-over-year, driven by organic growth and acquisitions; excluding Circle Medical deferred revenue, revenue was CAD 307 million (USD 300.7 million).

• Adjusted EBITDA reached CAD 27.6 million (USD 27.6 million), up 36% year-over-year; excluding Circle Medical, Adjusted EBITDA was CAD 34.1 million (USD 34.1 million).

• Strategic focus shifting to Canadian market, with plans to divest all U.S. care delivery businesses and redeploy capital into Canadian operations; ongoing sales processes for WISP and Circle Medical.

• Four core growth engines: Canadian clinics, WELL Star (healthcare tech), HealWell (AI/data science), and CyberWell (cybersecurity), all self-funded and cash flow positive.

• Over 4,300 providers in the clinic network, 42,000+ unique providers supported by technology, and 2.5 million+ total care interactions, up 34% year-over-year.

Financial highlights

• Q1 2025 revenue: CAD 294.1 million (USD 294.1 million) (+32% YoY); adjusted EBITDA: CAD 27.6 million (USD 27.6 million) (+36% YoY).

• Excluding Circle Medical deferred revenue, Q1 revenue would have been CAD 307 million (USD 300.7 million) and adjusted EBITDA CAD 34.1 million (USD 34.1 million).

• Net loss of CAD 41.9 million (negative CAD 0.19/share) vs. net income of CAD 13.8 million (CAD 0.05/share) in Q1 2024, mainly due to fair value adjustments and deferred revenue.

• Adjusted net income: CAD 7.5 million (CAD 0.03/share) vs. CAD 17.2 million (CAD 0.07/share) in Q1 2024; prior year benefited from a CAD 11.3 million gain on IntraHealth sale.

• Adjusted Gross Profit was CAD 117.5 million, up 25% year-over-year; Adjusted Gross Margin was 39.9%, down from 42.1% in Q1 2024.

Outlook and guidance

• 2025 revenue guidance: CAD 1.40–1.45 billion; adjusted EBITDA: CAD 190–210 million.

• Excluding Circle Medical, 2025 guidance is CAD 1.35–1.40 billion revenue and CAD 140–160 million adjusted EBITDA.

• HealWell expected to contribute CAD 120 million in revenue and positive EBITDA to 2025 results.

• WELL Canada targets over 25% adjusted EBITDA growth in 2025 and a two-year target of over CAD 800 million revenue and CAD 100 million adjusted EBITDA.

• Guidance does not include unannounced acquisitions; significant M&A pipeline could boost results.