WELL Health Technologies Corp (WHTCF) Q2 2025 Earnings Call Highlights: Record Revenue and ...
Adjusted EBITDA: $49.7 million, a 231% increase year over year.
Gross Margin: 44.5% for the quarter.
Free Cash Flow: $11.7 million, a 34% increase year over year.
Canadian Clinics Revenue: $131.4 million, a 40% increase year over year.
Canadian Clinics Adjusted EBITDA: $23 million, a 76% increase year over year.
Patient Visits: 1.6 million in Q2, a 21% increase year over year.
HEALWELL AI Revenue: $40.5 million, a 645% increase year over year.
HEALWELL AI Adjusted EBITDA: $1.9 million, marking the first quarter of positive adjusted EBITDA.
WISP Revenue: $28 million, a 15% increase year over year.
CRH Revenue: $122.8 million, a 32% increase year over year.
CRH Adjusted EBITDA: $24 million, a 22% increase year over year.
Cash and Cash Equivalents: $98.9 million as of June 30, 2025.
Annual Revenue Guidance: $1.4 billion to $1.45 billion for 2025.
Annual Adjusted EBITDA Guidance: $190 million to $210 million, with an improvement of approximately $10 million.
Warning! GuruFocus has detected 3 Warning Signs with WHTCF.
Release Date: August 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
WELL Health Technologies Corp (WHTCF) achieved record quarterly revenues of $356.7 million in Q2 2025, marking a 57% increase year-over-year.
The company reported an impressive 231% year-over-year increase in adjusted EBITDA, reaching $49.7 million.
WELL Health's Canadian Clinics Network experienced significant growth, with patient visits surpassing 1 million in a single quarter for the first time.
The company has a robust M&A pipeline with 15 signed LOIs representing $134 million in annualized revenue, indicating strong future growth potential.
WELLSTAR, a subsidiary of WELL Health, delivered exceptional performance with $16.8 million in revenue and a 26% adjusted EBITDA margin, positioning it as a strong IPO candidate.
Negative Points
The strategic review and divestiture processes for WELL Health's US care delivery assets, including WISP, Circle Medical, and CRH, indicate potential operational shifts and uncertainties.
Circle Medical's deferred revenue recognition has impacted financial results, with expectations of continued effects in the coming quarters.
Despite strong performance, the company faces elevated cash taxes and capital expenditures, which have impacted free cash flow.
The competitive environment for larger M&A assets in Canada is increasing, potentially affecting acquisition strategies and costs.
WELL Health's focus on divesting US care delivery assets may limit its growth opportunities in the US market for patient services.
Q & A Highlights
Q: Could you talk more about WELLSTAR's leverage in terms of outstanding RFPs, acquisitions, and growth as an international player versus a domestic player? A: Hamed Shahbazi, Founder, Chairman, & CEO: WELLSTAR has been participating in significant RFPs across Canada and is expected to share positive results soon. E-referrals are a priority for public health, and WELLSTAR's Ocean platform is well-positioned to win business. While currently focused on Canada, WELLSTAR is exploring international expansion opportunities, particularly in the Commonwealth, which shares similar healthcare ecosystems.
Q: Have you seen any changes in the competitive environment around M&A in the Canadian clinical market? A: Hamed Shahbazi, Founder, Chairman, & CEO: There is some competition for larger assets, but smaller assets, which are more fragmented, remain less competitive. WELL Health's existing scale and technology stack provide a competitive advantage, allowing the company to continue acquiring high-quality assets at favorable multiples.
Q: Are there opportunities to cross-sell WELLSTAR products, such as Ocean, into Orion Health's client base? A: Hamed Shahbazi, Founder, Chairman, & CEO: There are opportunities for Orion to resell WELLSTAR products globally, but the focus has been on integration and cost management. Collaboration between WELLSTAR and Orion is expected to grow over time, leveraging their complementary positions in the healthcare ecosystem.
Q: What contributed to the strong profitability of the MyHealth business this quarter, and how should we view its margin profile going forward? A: Hamed Shahbazi, Founder, Chairman, & CEO: MyHealth's strong performance is due to excellent execution in cost management and patient base development. A recent tuck-in acquisition under the MyHealth banner has also contributed to improved profitability. The business is expected to continue strong performance with more tuck-in acquisitions planned.
Q: How are you prioritizing resources for M&A integrations, and what is the cadence of these integrations? A: Hamed Shahbazi, Founder, Chairman, & CEO: WELL Health is focused on automation and AI to drive productivity in M&A processes. The company is investing in back-office automation to ensure long-term success. Integration activities are structured and intentional, with a focus on maintaining high-quality business operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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