What American Well (AMWL) Said on Its Q3 Earnings Call

Key Points

• Amwell beat Q3 guidance with $49 million in revenue, while its adjusted EBITDA loss narrowed to $3.6 million from $12.7 million a year earlier. AMG visit revenue rose 11.7%, helping offset a 22.5% decline in subscription revenue.
• The company raised its 2026 outlook to $204 million–$206 million in revenue and an adjusted EBITDA loss of $6.9 million–$7.9 million. For Q4, it expects adjusted EBITDA to reach break-even to positive $1 million, supporting its goal of positive adjusted EBITDA and operating cash flow.
• A potential VA platform deployment could provide new revenue, but the agency’s letter of intent is nonbinding and a final agreement remains subject to negotiations and federal procurement rules. Amwell also continues talks on a longer-term Defense Health Agency contract.

American Well NYSE: AMWL, known as Amwell, reported third-quarter 2026 revenue above its guidance range and narrowed its adjusted EBITDA loss as stronger visit volumes and cost controls helped support its target of reaching positive adjusted EBITDA and operating cash flow in the fourth quarter.

Total revenue for the quarter was $49 million, down 12.9% from a year earlier but $1 million above the high end of the company’s outlook. Adjusted EBITDA was a loss of $3.6 million, compared with a $12.7 million loss in the third quarter of 2025. The company also reported an operating loss of $11.7 million, improving from a $29.3 million operating loss a year earlier.

“We beat our guidance for the quarter on both revenue and adjusted EBITDA,” Chairman and CEO Dr. Ido Schoenberg said. “That makes nine quarters in a row of delivering our commitments to you.”

Visit Revenue Supports Quarterly Results

Subscription revenue totaled $23.9 million, down 22.5% year over year and 6.8% sequentially. CFO and Chief Operating Officer Mark Hirschhorn said the decline continued to reflect previously disclosed customer churn.

Amwell Medical Group, or AMG, visit revenue increased 11.7% year over year to $23.7 million, though it declined 3.1% sequentially due to what Hirschhorn described as normal seasonal patterns. AMG paid visits were approximately 301,000, essentially unchanged from the prior-year period. Revenue per visit rose about 11% to approximately $79, aided by favorable urgent-care pricing and a shift toward higher-value clinical programs.

Virtual primary care visits increased approximately 41% from a year earlier. Total platform visits, meanwhile, declined 30.5% to about 760,000, which management said was consistent with prior portfolio changes.

Gross profit was $26 million, producing a gross margin of 53%, up from 52.4% in the prior-year quarter. Operating expenses, including depreciation and amortization, fell 36.1% year over year to $37.6 million. The company ended the quarter with approximately $181 million in cash and investments and no debt.

Fourth-Quarter Outlook Raised

For the fourth quarter, Amwell forecast revenue of $48 million to $50 million and adjusted EBITDA ranging from break-even to positive $1 million. Hirschhorn said the outlook incorporates the seasonal increase in visit volumes typically seen during winter and stability in the subscription base.

The company raised its full-year 2026 outlook, now expecting:

• Revenue of $204 million to $206 million, compared with prior guidance of $195 million to $205 million.
• An adjusted EBITDA loss of $6.9 million to $7.9 million, improved from prior guidance for a loss of $12 million to $16 million.
• AMG visits at the high end of its earlier range of 1.32 million to 1.37 million.

Hirschhorn said management has “good visibility” into fourth-quarter adjusted EBITDA and expects results to land toward the positive end of its guidance range. He added that the company expects its year-end cash balance to remain near $180 million.

VA Letter of Intent Remains Nonbinding

Amwell also discussed its government-business opportunities, including a September letter of intent from the Department of Veterans Affairs to deploy the company’s platform across the agency’s enterprise. Schoenberg emphasized that the letter is not a binding contract and that a definitive agreement remains subject to negotiation and federal procurement rules.

The VA serves more than 9 million veterans. Schoenberg said the agency’s evaluation cited the platform’s video consultation capabilities, interoperability, cybersecurity compliance and support for integrated care delivery. He said Amwell is preparing for a potential implementation but did not provide a timetable for a final agreement or launch.

“We are fairly optimistic that you’re not going to wait too long for this project,” Schoenberg told analysts, adding that a detailed implementation could begin early next year if an agreement is completed. Hirschhorn said any VA revenue would be additive because Amwell has not previously generated revenue from the department.

The company continues to operate its platform for the Military Health System through the Defense Health Agency. Amwell said it is negotiating a longer-term, potentially direct contract with the agency, while current services continue without interruption. Management said the timing and financial effect of a VA agreement and a DHA contract will be important factors in determining its 2027 performance.

Platform Strategy Focuses on Engagement and Outcomes

Schoenberg said health plans and employers are increasingly focused on digital-health engagement, clinical outcomes and financial returns as healthcare costs rise. He positioned Amwell’s platform as a way for customers to manage multiple digital-health programs through one branded experience, integration and data structure.

The company said it has introduced an updated member experience to most key customers, reducing the number of screens for returning members from 12 to three. Schoenberg said members rate visits 4.9 out of five, though he noted the upgrade was recent and its broader effect was not yet reflected in reported results.

Management also highlighted its member-engagement efforts. According to Schoenberg, customers that fully activate Amwell’s always-on outreach use the platform at more than three times the rate seen when such outreach is not enabled. The company’s platform supports its own clinical services as well as third-party programs, with management expecting clinical-service and partner-program utilization to become increasingly important contributors to future revenue.

Amwell said it does not expect significant headcount growth even if large government contracts are secured, citing ongoing efficiency measures, dedicated teams and the company’s effort to simplify operations around a single platform.

About American Well (NYSE:AMWL)

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.

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