American Well (NYSE:AMWL) Issues Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• American Well beat quarterly expectations: It reported a loss of $0.67 per share, $0.11 better than consensus, and revenue of $48.99 million versus estimates of $47.28 million.
• Management raised its 2026 outlook to $204 million–$206 million in revenue and an adjusted EBITDA loss of $6.9 million–$7.9 million, and expects fourth-quarter adjusted EBITDA to reach break-even or better.
• Performance remained mixed: subscription revenue fell 22.5% year over year and platform visits declined 30.5%, while Amwell received a nonbinding VA letter of intent for a potential enterprise-wide rollout that still requires a definitive contract.

American Well (NYSE:AMWL - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.67) EPS for the quarter, topping analysts' consensus estimates of ($0.78) by $0.11, FiscalAI reports. The company had revenue of $48.99 million during the quarter, compared to analyst estimates of $47.28 million. American Well had a negative return on equity of 30.12% and a negative net margin of 35.75%.

Here are the key takeaways from American Well's conference call:

• Q3 results exceeded guidance: Revenue was $49 million, $1 million above the high end of guidance, while adjusted EBITDA loss improved to $3.6 million from $12.7 million a year ago. Management cited stronger visit volumes and continued cost discipline.
• Amwell raised its full-year 2026 outlook to $204 million–$206 million in revenue and an adjusted EBITDA loss of $6.9 million–$7.9 million, versus the prior loss outlook of $12 million–$16 million. It expects fourth-quarter adjusted EBITDA to reach break-even to positive $1 million and operating cash flow to turn positive.
• The company reported strong growth in higher-value services, including a 41% year-over-year increase in virtual primary care visits and an 11% increase in AMG revenue per visit. Management said the improved member experience, activation tools and faster partner integration could support greater engagement and utilization.
• Amwell received a nonbinding letter of intent from the Department of Veterans Affairs to deploy its platform enterprise-wide across more than 9 million veterans, while negotiations continue on a longer-term direct contract with the Defense Health Agency. However, the VA agreement still requires a definitive contract, and timing and revenue contributions remain uncertain.
• Subscription revenue declined 22.5% year over year and 6.8% sequentially, reflecting previously disclosed customer churn, while total platform visits fell 30.5% year over year. Management expects less health-plan-related churn going forward but acknowledged some natural churn will continue in de-emphasized businesses.

American Well Stock Performance

Shares of NYSE AMWL traded up $0.37 during mid-day trading on Tuesday, hitting $12.89. 131,011 shares of the stock traded hands, compared to its average volume of 101,083. American Well has a 52 week low of $3.71 and a 52 week high of $15.16. The company has a market cap of $213.26 million, a price-to-earnings ratio of -2.70 and a beta of 1.67. The stock has a fifty day moving average price of $12.93 and a 200-day moving average price of $8.95.

Wall Street Analysts Forecast Growth

AMWL has been the subject of several research reports. Weiss Ratings restated a "sell (d-)" rating on shares of American Well in a report on Thursday, October 15th. Wells Fargo & Company lifted their target price on shares of American Well from $9.00 to $16.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Needham & Company LLC reiterated a "hold" rating on shares of American Well in a research report on Wednesday, August 5th. Finally, Truist Financial set a $12.00 price target on shares of American Well and gave the stock a "hold" rating in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $9.50.

Insider Buying and Selling at American Well

In other American Well news, insider Dmitry Zamansky sold 8,442 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $13.00, for a total value of $109,746.00. Following the completion of the transaction, the insider owned 224,178 shares in the company, valued at approximately $2,914,314. This represents a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Phyllis Gotlib sold 6,677 shares of the firm's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $13.00, for a total value of $86,801.00. Following the transaction, the insider directly owned 142,504 shares of the company's stock, valued at $1,852,552. This represents a 4.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 19,457 shares of company stock worth $248,519. 12.84% of the stock is owned by insiders.

American Well Company Profile

American Well, doing business as Amwell, is a digital healthcare company that provides technology and services for virtual care. Its platform connects patients with healthcare professionals through video and other digital channels, supporting services such as urgent care, behavioral health, primary care and specialty consultations.

Amwell primarily serves health systems, health plans, employers and other healthcare organizations. Its offerings include the Amwell Converge platform, which is designed to help organizations develop, manage and integrate digital care programs with existing clinical workflows and healthcare systems.

Founded in 2006 by brothers Ido and Roy Schoenberg, the company was formerly known as American Well and adopted the Amwell brand in 2020.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.