WELL Health Reports Record Revenue in Q1-2025 with 32% YoY Growth and Record Quarterly EBITDA in Canadian Business

National Post

14-05-2025

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WELL achieved record quarterly revenues of $294.1 million in Q1-2025, an increase of 32% (2) as compared to Q1-2024 driven by organic growth and acquisitions. Revenue was negatively impacted by a net of $6.5 million related to the delay of revenue recognition for Circle Medical. Excluding this impact, quarterly revenue was $300.7 million.
WELL achieved Adjusted EBITDA (1) of $27.6 million in Q1-2025, an increase of 36% (2) as compared to Q1-2024. This figure was negatively impacted by a net of $6.5 million related to the delay of revenue recognition for Circle Medical. Excluding this impact, quarterly Adjusted EBITDA was $34.1 million.
WELL achieved a total of 1.6 million patient visits in Q1-2025, an increase of 23% as compared to Q1-2024, driven by the growth of Canadian patient services visits which grew by 29% YoY, with strong organic growth of 13% in Canada.
WELL Canada which includes our Canadian Clinics, WELLSTAR, and CYBERWELL enterprises grew Four wall Adjusted EBITDA (1) by 29% YoY to a record $18.7 million in Q1-2025.
Our positive outlook reflects continued strong organic growth from our Canadian operations as well as the addition of HEALWELL AI's results starting in Q2 2025, which is expected to contribute revenue of approximately $120 million in 2025 with positive Adjusted EBITDA.
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VANCOUVER, British Columbia — WELL Health Technologies Corp. (TSX: WELL, OTCQX: WHTCF) (the ' Company ' or ' WELL '), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its interim consolidated financial results for the quarter ended March 31, 2025.
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Hamed Shahbazi, Chairman and CEO of WELL, commented, 'We are very pleased to report a solid start to 2025, with strong performance in the first quarter which saw our revenue run rate approach the $1.2 billion per year mark. Our Canadian business inclusive of Canadian clinics and WELLSTAR continued to drive our growth, achieving a revenue run rate of slightly below half a billion dollars per year and achieving 32% year-over-year revenue growth, including 13.4% organic growth. We're particularly proud of our Canadian operations, which posted an impressive 29% YoY increase in Adjusted EBITDA (1) an acceleration over the previous year's growth rate of 23% YoY. These results demonstrate the growing strength of our platform and our ability to help support healthcare providers with our unique tech enabled platform. WELL is quickly becoming a valued and trusted place for administratively burdened physicians who want to focus on providing care and not on running operations.'
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Mr. Shahbazi further added, ' Looking ahead, we are pleased to confirm that starting in Q2 2025, as per IFRS control requirements relating to our majority position with HEALWELL AI, we will be expecting to add another approximately $40 million in quarterly revenue in 2025 with positive Adjusted EBITDA (1) contribution. Overall, both of our growth engines are executing extremely well, as we expect to maintain elevated organic growth while executing on our M&A pipeline which currently includes 11 signed LOIs worth $65M in revenues. With a solid operational foundation and an unwavering commitment to excellence, we are confident that 2025 will be another exceptional year for WELL.'
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Eva Fong, WELL's Chief Financial Officer, commented, 'We are off to a strong start in 2025, maintaining a solid financial position. We ended Q1 with a healthy balance sheet improved by our continued generation of free cashflow and prudent management of our credit lines where we continue to be in good standing. We remain well-positioned to continue funding our growth through cash flow from operations and based on the strength of our business, I am pleased to confirm that we will be re-initiating our share buyback program shortly after reporting our Q1 results. We believe our shares are undervalued and we will continue to improve our cashflow and demonstrate the power of our platform by returning value to our shareholders. Our continued focus on enhancing operational efficiency, coupled with our strategic initiatives, positions WELL for another successful year of growth and value creation for our shareholders.'
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First Quarter 2025 Financial Highlights:
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WELL achieved record quarterly revenue of $294.1 million in Q1-2025, an increase of 32% (2) as compared to revenue of $223.5 million generated in Q1-2024. This growth was mainly driven by organic growth and acquisitions that have occurred over the last twelve months. Excluding the impact from Circle Medical's deferred revenue adjustments, revenue would have reached $300.7 million.
Adjusted Gross Profit (1) was $117.5 million in Q1-2025, an increase of 25% as compared to Adjusted Gross Profit (1) of $94.1 million in Q1-2024. Excluding the impact from Circle Medical's deferred revenue adjustments, Adjusted Gross Profit (1) was $124.0 million.
Adjusted Gross Margin (1) percentage was 39.9% during Q1-2025 compared to Adjusted Gross Margin (1) percentage of 42.1% in Q1-2024. The decline in Adjusted Gross Margin (1) percentage is mainly attributed to revenue mix due to the addition of Provider Staffing revenue from the acquisition of Harmony Anesthesia in January 2025, which has lower margins compared to other Patient Services and SaaS and Technology Services revenue. Excluding the impact from Circle Medical's deferred revenue adjustments, Adjusted Gross Margin (1) was 41.2%.
Adjusted EBITDA (1) was $27.6 million in Q1-2025, an increase of 36% (2) as compared to Adjusted EBITDA (1) of $20.2 million in Q1-2024. Excluding the impact of Circle Medical's deferred revenue adjustments, Adjusted EBITDA (1) would have reached $34.1 million.
Adjusted EBITDA to WELL Shareholders (1) was $20.3 million in Q1-2025, an increase of 29% as compared to Adjusted EBITDA to WELL Shareholders (1) of $15.7 million in Q1-2024. Excluding the impact from Circle Medical's deferred revenue adjustments, Adjusted EBITDA to WELL Shareholders (1) would have reached $24.9 million.
Adjusted Net Income (1) was $7.5 million, or $0.03 per share in Q1-2025, as compared to Adjusted Net Income (1) of $17.2 million, or $0.07 per share in Q1-2024. The decline in Adjusted Net Income (1) is mainly attributed to $11.3 million gain on sale of Intrahealth in Q1 2024. Excluding the impact from Circle Medical's deferred revenue adjustments, Adjusted Net Income (1) would have been $10.8 million.
Adjusted Free Cash Flow Attributable to Shareholders ('FCFA2S')⁽¹⁾ was $11.8 million for Q1-2025, a decrease of 6.0%, as compared to FCFA2S of $12.6 million for Q1-2024 which benefited from a number of one-time payments to physicians. Q1-2025 FCFA2S was also impacted by higher capital expenditures and cash taxes.
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Segmented Revenue:
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Canadian Patient Services revenue was $99.7 million in Q1-2025, an increase of 32% as compared to $75.7 million in Q1-2024.
U.S. Patient Services revenue was $173.6 million in Q1-2025, an increase of 31% as compared to $132.4 million in Q1-2024.
SaaS and Technology Services revenue was $20.9 million in Q1-2025, an increase of 36% as compared to $15.4 million in Q1-2024.
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First Quarter 2025 Patient Visit Metrics:
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WELL achieved a total of 1.6 million patient visits in Q1-2025, an increase of 23% as compared to 1.3 million patient visits in Q1-2024. Canadian Patient Services visits increased 29% while US Patient Services visits increased 16%, on a year-over-year basis. Growth in patient visits over the past year was primarily driven by organic growth, including the clinic absorption program.
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In addition, WELL achieved over 2.6 million patient interactions (3) in Q1-2025, representing approximately 10.4 million patient interactions on an annualized run-rate.
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First Quarter 2025 Business Highlights:
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On January 1, 2025, the Company acquired a 65% interest in Harmony Anesthesia, LLC (' Harmony ') for aggregate consideration at $30.5 million (US$21.2 million). The purchase agreement also includes contingent consideration of $1.2 million (US$0.8 million) dependent on meeting a performance target.
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On January 21, 2025, the Company subscribed for 0.5 million subscription receipts in HEALWELL for an aggregate subscription price of $1,000 which entitled the Company to receive, upon satisfaction of certain release conditions, 0.5 million Class A Subordinate Voting shares of HEALWELL and 0.25 million share purchase warrants with each warrant exercisable into one Class A Subordinate Voting share at $2.50 per share for a period of 36 months.
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On March 26, 2025, WELL exercised its 20 million share purchase warrants to acquire an aggregate of 20 million Class A Subordinate Voting Shares of HEALWELL (each, a ' SVS ') at a price of $0.20 per share and 0.3 million share purchase warrants to acquire an aggregate of 0.3 million SVSs at a price of $1.20 per share and has converted all of its convertible debentures and interest accrued thereon into an aggregate of 23.0 million SVSs at a conversion price of $0.20 per share.
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Events Subsequent to March 31, 2025:
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On April 1, 2025, the Company and the HEALWELL founders amended the terms of the conditional call option held by the Company to acquire up to 30.8 million Class A Subordinate Voting Shares of HEALWELL at $0.125 per share and 30.8 million Class B Multiple Voting shares of HEALWELL at $0.0001 per share such that it became exercisable, and the Company exercised the call option to acquire such shares for total consideration of $3.9 million. On April 1, 2025, the release conditions were satisfied related to the Company's January 21, 2025 subscription for HEALWELL shares and the Company received 0.5 million Class A voting shares and 0.25 million share purchase warrants with each warrant exercisable into one Class A Subordinate Voting share at $2.50 per share for a period of 36 months in accordance with the terms of the subscription agreement.
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As of April 1, 2025, the Company held 97.2 million Class A Subordinate Shares and 30.8 million Class B Multiple Voting shares of HEALWELL, representing approximately 37% of the economic interest and approximately 69% of the voting rights in HEALWELL on a non-diluted basis. As a result, the Company obtained control of HEALWELL under IFRS, and accordingly, began consolidating the financial results of HEALWELL as a subsidiary of the Company effective April 1, 2025.
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On May 6, 2025, the Company announced the rebranding of its cybersecurity division as CYBERWELL and the appointment of Jeffrey Engle as CEO. CYBERWELL consolidates four firms: Source44, SeekIntoo, Cycura, and Proack Security into a unified cybersecurity company. The division will focus on recurring revenue, acquisitions, and international expansion. WELL noted plans for CYBERWELL to potentially be spun out in the future and serve as another growth engine.
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On May 7, 2025, the Company announced the launch of Nexus AI, a new AI-powered clinical documentation solution available across Canada. The product is initially focused on AI scribing and will expand through partnerships across the WELL ecosystem. Nexus AI is supported by government funding for up to 10,000 providers through Canada Health Infoway's AI Scribe pilot program.
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WELL intends to continue its focus on maintaining strong performance, while strategically enhancing operations in the pursuit of organic growth and profitability. WELL is expecting its strong performance in the first quarter to continue across all its business units throughout the 2025 fiscal year. WELL's objective is to invest in and achieve significant growth while effectively managing its costs and delivering cashflow to shareholders. Management is pleased to provide its guidance for 2025 (Annual guidance only includes announced acquisitions):
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Annual revenue between $1.40 billion to $1.45 billion
Annual Adjusted EBITDA (1) between $190 million and $210 million.
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Excluding the impact of the Circle Medical deferred revenue adjustment, the Company's guidance for 2025 would be as follows:
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Annual Revenue between $1.35 billion to $1.40 billion.
Annual Adjusted EBITDA (1) between $140 million and $160 million.
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WELL is expecting a greater focus on leveraging product and corporate synergies in 2025, with an emphasis on the depth of product and technology offerings from WELLSTAR and HEALWELL AI. The Company also continues to focus the majority of its M&A and capital allocation activity in Canada where it is experiencing its strongest returns. Management will continue to pursue its focus on optimizing its operations for organic growth and profitability.
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Conference Call:
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WELL will release its First Quarter 2025 financial results for the period ended March 31, 2025, on Wednesday, May 14, 2025. The Company will hold a conference call and simultaneous webcast to discuss its results on the same day at 1:00 pm ET (10:00 am PT).
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Please use the following dial-in numbers:
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1-289-514-5100 (International).
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Quarter ended
March 31,
2025
December 31,
2024
March 31,
2024
(Restated)
$'000
$'000
$'000
Revenue
294,137
234,758
223,483
Cost of sales (excluding depreciation and amortization)
(176,665)
(152,082)
(129,342)
Adjusted Gross Profit (1)
117,472
82,676
94,141
Adjusted Gross Margin (1)
39.9%
35.2%
42.1%
Adjusted EBITDA (1)
27,577
(3,749)
20,235
Net (loss) income
(41,886)
(1,835)
13,783
Adjusted Net Income (loss) (1)
7,508
(17,354)
17,207
(Loss) earnings per share, basic (in $)
(0.19)
0.03
0.05
(Loss) earnings per share, diluted (in $)
(0.19)
0.03
0.04
Adjusted Net Income (loss) per share, basic (in $)
0.03
(0.07)
0.07
Adjusted Net income (loss) per share, diluted (in $)
0.03
(0.07)
0.07
Reconciliation of net income (loss) to Adjusted EBITDA (1):
Net (loss) income for the period
(41,886)
(1,835)
13,783
Depreciation and amortization
19,546
20,963
16,560
Income tax recovery
(1,229)
(7,429)
(2,440)
Interest income
(519)
(500)
(238)
Interest expense
11,406
9,283
9,541
Rent expense on finance leases
(4,688)
(3,594)
(4,114)
Stock-based compensation
2,465
2,887
5,477
Foreign exchange loss (gain)
84
(528)
(32)
Time-based earnout expense
215
3,502
2,112
Change in fair value of investments
35,235
(48,292)
(13,957)
Gain on disposal of assets and investments
(24)
(500)
(11,284)
Share of net loss of associates
2,380
1,622
1,064
Transaction, restructuring & integration costs expensed
3,870
1,924
3,482
Legal settlements and defense (recovery) costs
(31)
18,748
281
Other items
753
–
–
Adjusted EBITDA (1)
27,577
(3,749)
20,235
Attributable to WELL shareholders
20,293
(479)
15,705
Attributable to Non-controlling interests
7,284
(3,270)
4,530
Adjusted EBITDA (1)
WELL Corporate
(6,519)
(5,403)
(4,767)
Canada and others
18,671
14,771
14,474
US operations
15,425
(13,117)
10,528
Adjusted EBITDA (1) attributable to WELL shareholders
WELL Corporate
(6,519)
(5,403)
(4,767)
Canada and others
17,209
14,209
14,247
US operations
9,603
(9,285)
6,225
Adjusted EBITDA (1) attributable to Non-controlling interests
Canada and others
1,462
562
227
US operations
5,822
(3,832)
4,303
Reconciliation of net income (loss) to Adjusted Net income (1):
Net (loss) income for the period
(41,886)
(1,835)
13,783
Amortization of acquired intangible assets
13,034
14,885
11,520
Time-based earnout expense
215
3,502
2,112
Stock-based compensation
2,465
2,887
5,477
Change in fair value of investments
35,235
(48,292)
(13,957)
Share of net loss of associates
2,380
1,622
1,064
Other items
753
–
–
Non-controlling interest included in net income (loss)
(4,688)
9,877
(2,792)
Adjusted Net Income (loss) (1)
7,508
(17,354)
17,207
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Footnotes:
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Non-GAAP financial measures and ratios.
In addition to results reported in accordance with IFRS, the Company uses certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include Adjusted Net Income, Adjusted Net Income Per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
Adjusted Net Income and Adjusted Net Income per Share
The Company defines Adjusted Net Income as net income (loss), after excluding the effects of stock-based compensation expense, amortization of acquired intangible assets, time-based earnout expense, change in fair value of investments, non-controlling interests, and revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships. Adjusted Net Income Per Share is Adjusted Net Income divided by weighted average number of shares outstanding. The Company believes that these non-GAAP financial measures provide useful information to analyze our results, enhance a reader's understanding of past financial performance and allow for greater understanding with respect to key metrics used by management in decision making. More specifically, the Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELL shareholders.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, share of loss of associates, foreign exchange gain/loss, and stock-based compensation expense, (iii) revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships, and (iv) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA a financial metric that measures cash that the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance in accordance with IFRS.
Adjusted EBITDA Attributable to WELL Shareholders/Non-Controlling Interests
The Company defines Adjusted EBITDA attributable to WELL Shareholders (or Shareholder EBITDA) and Adjusted EBITDA attributable to Non-controlling interests as the sum of the Adjusted EBITDA for each relevant legal entity multiplied by WELL's or the non-controlling interests' equity ownership, respectively.
Adjusted Gross Profit and Adjusted Gross Margin
The Company defines Adjusted Gross Profit as revenue less cost of sales (excluding depreciation and amortization) and Adjusted Gross Margin as adjusted gross profit as a percentage of revenue. Adjusted gross profit and adjusted gross margin should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company does not present gross profit in its consolidated financial statements as it is a non-GAAP financial measure. The Company believes that adjusted gross profit and adjusted gross margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services.
Adjusted Free Cash Flow Attributable to Shareholders
The Company defines Adjusted Free Cash Flow Attributable to Shareholders as Adjusted EBITDA Attributable to Shareholders, less cash interest, less cash taxes and less capital expenditures, and before the impacts of the revenue deferral at Circle Medical and the revenue impact at CRH Medical resulting from impaired revenue cycle management services after the Change Healthcare cyberattack.
Adjusted Net income, Adjusted Net Income per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow Available to Shareholders are not recognized measures for financial statement presentation under IFRS and do not have standardized meanings. As such, these measures may not be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS.
These growth rates are comparing periods between Q1 2025 and Q1 2024 where both periods have been impacted by the CM Deferred revenue adjustments. Excluding the impact from Circle Medical deferred revenue adjustments in both Q1-2025 and Q1-2024, WELL achieved revenue of $300.7 million in Q1-2025, an increase of 30% compared to $231.6 million in Q1-2024. Similarly, Adjusted EBITDA in Q1-2025 would have been $34.1 million, an increase of 21% compared to $28.3 million in Q1 2024.
Total Care Interactions are defined as Total Visits plus Technology Interactions plus Billed Provider Hours.
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WELL HEALTH TECHNOLOGIES CORP.
Per: 'Hamed Shahbazi'
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
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WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 42,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 200 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol 'WELL' and on the OTC Exchange under the symbol 'WHTCF'. To learn more about the Company, please visit: www.well.company.
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Forward-Looking Statements
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This news release may contain 'Forward-Looking Information' within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company's goals, strategies and growth plans; expectations regarding continued revenue and EBITDA growth; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions or share repurchases along with their expected revenue contributions; expected patient encounters; the expected financial performance as well as information in the 'Outlook' section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as 'may', 'should', 'will', 'could', 'intend', 'estimate', 'plan', 'anticipate', 'expect', 'believe' or 'continue', or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: adverse market conditions and the ability to complete acquisitions; risks inherent in the primary healthcare sector in general; continued patient and consumer demand for WELL's products and services; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
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This news release contains future-oriented financial information and financial outlook information (collectively, 'FOFI') about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
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