WELL Health Technologies (WELL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $368.3M (CAD 368.3 million), up 25% year-over-year, with adjusted EBITDA of $43.1M, up 56%, and adjusted net income doubling to $15.5M.

• Patient visits reached 1.9M in Q1 2026, up 17% year-over-year, with Canadian visits up 33% and 253 clinics in Canada.

• Canadian clinics exceeded a $500M annualized run rate, with 30% revenue growth and 13% organic growth.

• The company is positioning itself as the operating system for Canadian healthcare modernization, leveraging AI, policy, and procurement tailwinds.

• Strategic focus on disciplined capital allocation, prioritizing Canadian clinics, robust M&A pipeline, and spinning out technology platforms.

Financial highlights

• Adjusted gross profit was $163.2M, up 39% year-over-year, with adjusted gross margin rising 440 basis points to 44.3%.

• WELL Canada segment revenue grew 26% year-over-year to $151.7M, with adjusted EBITDA up 15%.

• Canadian clinics revenue reached $130.3M, with adjusted EBITDA of $17M, up 28%.

• WELLSTAR revenue was $21.8M, up 27% year-over-year, with adjusted EBITDA margin of 23%.

• HEALWELL AI revenue surged 316% year-over-year to $33.2M, with positive adjusted EBITDA of $0.7M.

• Operating adjusted free cash flow was $1.6M, down from $11.8M due to growth investments.

Outlook and guidance

• Fiscal 2026 revenue guidance is $1.55–1.65B, with adjusted EBITDA guidance of $175–185M and expectations for margin expansion in the second half of 2026 and into 2027.

• WELL Canada targets over $800M in revenue and $100M in adjusted EBITDA on a run rate basis within 12 months.

• Guidance is sensitive to timing of M&A, divestitures, and Circle Medical deferrals; updates will be provided as needed.

• Strategic alternatives underway for US assets and WELLSTAR spin-out.