NYSE:AMWL
American Well Corp
A cloud-native health technology platform empowering patients to manage care while providing financial and operational tools to healthcare providers.
Key Metrics
Investment Thesis
Bull Case
Investors may consider this stock if they believe the company can leverage its shrinking losses to reach breakeven within 2-3 years given its robust $182.3M cash position and diversified revenue streams. The platform's ability to capture value from the expanding digital health market and integrate AI-driven care coordination could drive future margin expansion.
Bear Case
The company faces substantial downside risk due to a retained earnings deficit of -$2.06B and four consecutive years of declining revenue, suggesting potential market saturation or competitive pressure. Continued negative cash flow from operations and high R&D spending of $72.9M without a clear path to profitability makes the stock speculative for value-oriented investors.
About American Well Corp
American Well Corp delivers cloud-based health technology solutions connecting patients with care teams across primary care, specialty care, and hospital networks. The company serves providers in the United States through its comprehensive platform that enhances patient engagement and operational efficiency for healthcare organizations. Its core revenue streams include SaaS subscriptions, clinical support services, and data analytics derived from interoperable health records.
Analysis
Management Discussion
The company reported revenue of $249.3M in 2025, a slight decline from the previous year, while narrowing its operating loss significantly from -$212.6M in 2024 to -$95.0M in the latest period. Despite reducing losses and maintaining strong cash reserves of $182.3M, the persistent net loss and negative cash flow from operations of -$66.0M indicate ongoing challenges in achieving sustainable profitability.
Industry Overview
The digital health industry is rapidly evolving with increasing demand for telehealth platforms that integrate seamlessly with existing electronic health records. Competition is intensifying as major tech firms enter the space, yet specialized providers like American Well retain advantages through deep clinical partnerships and proprietary data networks.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $277.2M | $259.0M | $254.4M | $249.3M |
| Cost of Revenue | $160.4M | $164.3M | $155.4M | $116.5M |
| Gross Profit | $116.8M | $94.8M | $99.0M | $132.9M |
| Operating Expenses | $392.6M | $786.9M | $316.5M | $238.1M |
| Operating Income | $-275.9M | $-692.1M | $-217.5M | $-105.3M |
| R&D | $138.5M | $105.8M | $86.1M | $72.9M |
| G&A | $146.4M | $126.6M | $121.2M | $88.0M |
| Marketing | $81.6M | $86.5M | $76.3M | $43.3M |
| Stock-Based Comp | $67.7M | $72.2M | $47.5M | $22.0M |
| D&A | $26.2M | $31.5M | $33.0M | $34.0M |
| Amortization | $24.6M | $30.9M | $32.7M | $33.8M |
| Other OpEx | $26.2M | $468.0M | $33.0M | $34.0M |
| Non-Operating Income | $6.1M | $19.4M | $10.8M | $10.7M |
| Pre-Tax Income | $-269.7M | $-672.7M | $-206.8M | $-94.5M |
| Income Tax | $64.0K | $3.9M | $2.8M | $434.0K |
| Continuing Ops | $-269.8M | $-676.6M | $-209.5M | $-95.0M |
| Discontinued Ops | $-2.3M | $-2.6M | $-3.1M | $0 |
| Net Income | $-272.1M | $-679.2M | $-212.6M | $-95.0M |
| Minority Interest | $-1.6M | $-4.0M | $-4.5M | $733.0K |
| Net to Common | $-270.4M | $-675.2M | $-208.1M | $-95.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $626.6M | $449.6M | $317.0M | $246.7M |
| Cash & Equivalents | $538.5M | $372.0M | $228.3M | $182.3M |
| Accounts Receivable | $58.4M | $54.1M | $71.9M | $49.7M |
| Inventory | $8.7M | $6.7M | $2.9M | $1.2M |
| Prepaid Expenses | $19.6M | $14.5M | $11.4M | $10.8M |
| Other Current Assets | $1.4M | $2.3M | $2.5M | $2.7M |
| Long-Term Assets | $590.9M | $140.1M | $119.0M | $77.1M |
| PP&E (Net) | $1.0M | $572.0K | $376.0K | $225.0K |
| Intangibles | $135.0M | $120.2M | $101.5M | $66.1M |
| Goodwill | $435.3M | $0 | $0 | — |
| Operating Leases | $13.5M | $10.5M | $7.2M | $3.9M |
| Other LT Assets | $6.2M | $8.8M | $9.9M | $6.9M |
| Total Assets | $1.22B | $589.7M | $436.0M | $323.8M |
| Current Liabilities | $114.1M | $93.8M | $111.3M | $73.2M |
| Accounts Payable | $7.2M | $4.9M | $5.0M | $1.6M |
| Current Leases | $3.1M | $3.6M | $3.7M | $3.6M |
| Deferred Revenue | $49.5M | $46.4M | $53.2M | $22.6M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $19.6M | $15.7M | $8.5M | $2.8M |
| LT Operating Leases | $11.8M | $8.2M | $4.5M | $892.0K |
| Other LT Liab | $1.6M | $1.4M | $1.2M | $1.1M |
| Total Liabilities | $133.7M | $109.5M | $119.7M | $76.0M |
| Shareholders' Equity | $1.08B | $480.2M | $316.2M | $247.8M |
| Paid-In Capital | $2.16B | $2.23B | $2.29B | $2.31B |
| Retained Earnings | $-1.08B | $-1.76B | $-1.97B | $-2.06B |
| AOCI | $-17.0M | $-15.7M | $-15.8M | $-12.1M |
| Total L&E | $1.22B | $589.7M | $436.0M | $323.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-272.1M | $-679.2M | $-212.6M | $-95.0M |
| Non-Cash Adjustments | $85.6M | $561.7M | $50.5M | $84.1M |
| Working Capital Changes | $-5.8M | $-30.9M | $34.8M | $-55.1M |
| Cash from Operations | $-192.3M | $-148.3M | $-127.3M | $-66.0M |
| Capital Expenditures | $292.0K | $192.0K | $119.0K | $21.0K |
| Cash from Investing | $-11.6M | $-19.2M | $-18.7M | $17.1M |
| Cash from Financing | $-3.6M | $2.1M | $1.4M | $840.0K |
| FX Effect | $-305.0K | $-1.1M | $887.0K | $2.0M |
| Net Change in Cash | $-207.9M | $-166.5M | $-143.7M | $-46.0M |
| Beginning Cash | $747.2M | $539.3M | $372.8M | $229.1M |
| Ending Cash | $539.3M | $372.8M | $229.1M | $183.1M |
Frequently Asked Questions
How does American Well Corp make money?
Recurring software subscription fees from provider networks, performance-based clinical support services for chronic disease management, and data monetization through aggregated patient insights.
What are the main risks for AMWL?
High burn rate and cumulative losses exceeding $2 billion in retained earnings deficit limiting near-term profitability, sensitivity to healthcare payer reimbursement cycles affecting service revenue, and execution risk in expanding international operations and new verticals.
What is AMWL's competitive advantage?
Proprietary interoperability engine enabling seamless data exchange across disparate EHR systems, extensive network effects growing as more patients and providers join the ecosystem, and scalable SaaS model with high retention rates.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.