WELL Health Technologies (WELL) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $919.7M (CAD 919.7 million) in 2024, up 19% year-over-year, despite significant IFRS-driven revenue deferrals and cyberattack impacts.

• Net income grew 75% year-over-year to $29.1M, with free cash flow attributable to shareholders rising 16% to $49.3M.

• Delivered 5.7M patient visits in 2024, a 32% increase, with Canadian visits up 35% and U.S. visits up 28%.

• Strategic focus on Canadian market, robust M&A pipeline, and divestment of U.S. digital assets to redeploy capital.

• Expanded international footprint to 11 countries through HEALWELL and Orion Health acquisitions.

Financial highlights

• Revenue negatively impacted by $56.6M Circle Medical and $24.5M CRH Medical revenue deferrals, both expected to be recognized in future periods.

• Excluding these impacts, adjusted EBITDA for 2024 would have been $127M (+12% YoY); reported adjusted EBITDA was $46.7M.

• Free cash flow per share was $0.20.

• Cash and cash equivalents at year-end were $131.7M; debt on credit lines was $292.4M.

• Canadian clinics revenue grew at a 50% CAGR, with adjusted EBITDA up 44% CAGR since 2021.

Outlook and guidance

• 2025 revenue guidance: $1.40B–$1.45B; adjusted EBITDA: $190M–$210M.

• Guidance includes over 90% of deferred Circle Medical revenue but excludes CRH Medical delayed earnings until collections are confirmed.

• Full consolidation of HEALWELL financials from Q2 2025, expected to add $120M in annual revenue.

• Targeting $800M revenue and $100M adjusted EBITDA in Canada alone by end of 2025/2026.

• WELLSTAR IPO planned for early 2026, targeting over $100M in revenue.