WELL Health Technologies TSE: WELL expects 2026 revenue of approximately CAD 1.58 billion, at the low end of its previous guidance range, after slowing acquisitions in the second half of the year to focus on integrating earlier deals.
On its third-quarter earnings call, Chairman and CEO Hamed Shahbazi said the revised revenue outlook primarily reflects acquisition timing and the integration of OID and UnionMD. The company maintained its adjusted EBITDA guidance of CAD 185 million to CAD 195 million.
Third-quarter revenue rose 12% to CAD 407.4 million. Adjusted EBITDA fell 15% to CAD 50.9 million, though both measures grew when compared with prior-year results normalized for a Circle Medical revenue deferral.
Canadian Clinics Drives Growth
WELL Canadian Clinics reached an annualized adjusted EBITDA run rate of approximately CAD 100 million, one quarter ahead of the company’s year-end target. The figure is based on quarterly adjusted EBITDA of CAD 25.7 million, which rose 82% from a year earlier.
The division’s quarterly revenue increased 49% to CAD 164.9 million, while its adjusted EBITDA margin expanded to 15.6% from approximately 12.8%. Shahbazi attributed the improvement to acquisitions, a shift toward higher-margin services and the company’s clinic transformation program.
Same-clinic sales grew 12%. In response to an analyst’s question, Shahbazi said retroactive reimbursement contributed to that figure; excluding it, same-clinic sales growth was just under 10%.
Canadian patient visits increased 20% to approximately 1.3 million, including 6% organic growth. WELL operated 302 clinics across 179 Canadian physical facilities at the end of September. The company revised its definition of a clinic during the quarter, allowing multiple distinct services within one facility to be counted separately, and restated historical counts on that basis.
Shahbazi said Canadian clinics remain the company’s primary destination for additional capital. WELL completed seven clinic transactions in the first nine months of 2026, adding approximately CAD 102 million in annual revenue. Its acquisition pipeline includes more than 20 targets representing CAD 390 million in total revenue, though those opportunities are at various stages and have not all been agreed upon.
Results Reflect Prior-Year Deferral and Impairments
WELL said its third-quarter revenue grew 17% and adjusted EBITDA grew 20% on a normalized basis. The comparison excludes CAD 17.6 million of Circle Medical deferral-related revenue recognized in the prior-year quarter. The company reported no Circle Medical deferral impact in the latest quarter.
WELL reported a net loss of CAD 135.5 million, compared with adjusted net income of CAD 27.3 million. CFO Evelyn Sutherland said the loss included non-cash impairment charges of approximately CAD 67.5 million and accounting charges associated with WELLSTAR’s transaction and listing.
The impairments included CAD 39.8 million related to HEALWELL. Sutherland said the charge reduced goodwill recognized after WELL obtained control of HEALWELL in 2025, but the value attributed to the investment remained above WELL’s original investment cost.
Operating adjusted free cash flow attributable to shareholders declined to CAD 13.3 million from CAD 15.1 million a year earlier. Sutherland cited investment in Canadian clinics, higher cash taxes and higher interest payments, and said improving cash conversion remains a priority.
Capital Structure and U.S. Asset Review
WELLSTAR began trading on the TSX Venture Exchange on October 1. Approximately CAD 155 million of its redeemable preferred shares converted into common equity upon listing, removing that liability from WELL’s consolidated balance sheet. WELL remains WELLSTAR’s majority controlling shareholder.
WELL also issued CAD 150 million of senior unsecured notes due in 2031 at an interest rate of 6.875%. The company used proceeds to repay CAD 70 million of convertible debentures, with the balance available for general corporate purposes.
Shahbazi said the review of strategic alternatives for U.S. care delivery assets CRH Medical, wisp and Circle Medical has advanced, with two of the three processes now involving focused counterparties. He did not identify the businesses or provide terms or timing, saying the company would disclose an outcome when an agreement is binding.
Asked about the revenue outlook, Shahbazi said weakness at the Radar staffing business had weighed on revenue, while CRH’s core anesthesia operations and the Harmony staffing business had performed strongly.
Public Sector Opportunities
WELL is pursuing more than CAD 100 million in potential public sector contracts through its OneWELL offering, which combines clinical services, technology and artificial intelligence capabilities. Shahbazi emphasized that the opportunities are a pipeline, not contracted revenue, and that procurement timing and outcomes are uncertain.
The company also reaffirmed its goal for WELL Canada, comprising WELL Clinics and WELLSTAR, to reach a CAD 1 billion annual revenue run rate by the end of 2028.
About WELL Health Technologies (TSE:WELL)
WELL Health Technologies Corp. TSX: WELL is Canada's largest outpatient healthcare company and a leading provider of technology-enabled healthcare solutions. WELL is building the infrastructure for a healthier Canada, where every patient gets better care, every provider is empowered by AI, and every piece of health data is protected. WELL owns and operates more than 250 clinics in Canada, supporting more than 5 million annual patient visits. Through its subsidiary WELLSTAR, WELL provides electronic medical records, AI-powered clinical tools, patient engagement platforms and IT management services.
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