American Well (NYSE:AMWL – Get Free Report) released its earnings results on Tuesday. The company reported ($0.67) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.78) by $0.11, FiscalAI reports. American Well had a negative net margin of 35.75% and a negative return on equity of 30.12%. The firm had revenue of $48.99 million during the quarter, compared to analyst estimates of $47.28 million.
Here are the key takeaways from American Well’s conference call:
- Q3 results exceeded guidance: Revenue was $49 million, $1 million above the high end of guidance, while adjusted EBITDA loss improved to $3.6 million from $12.7 million a year ago. Management cited stronger visit volumes and continued cost discipline.
- Amwell raised its full-year 2026 outlook to $204 million–$206 million in revenue and an adjusted EBITDA loss of $6.9 million–$7.9 million, versus the prior loss outlook of $12 million–$16 million. It expects fourth-quarter adjusted EBITDA to reach break-even to positive $1 million and operating cash flow to turn positive.
- The company reported strong growth in higher-value services, including a 41% year-over-year increase in virtual primary care visits and an 11% increase in AMG revenue per visit. Management said the improved member experience, activation tools and faster partner integration could support greater engagement and utilization.
- Amwell received a nonbinding letter of intent from the Department of Veterans Affairs to deploy its platform enterprise-wide across more than 9 million veterans, while negotiations continue on a longer-term direct contract with the Defense Health Agency. However, the VA agreement still requires a definitive contract, and timing and revenue contributions remain uncertain.
- Subscription revenue declined 22.5% year over year and 6.8% sequentially, reflecting previously disclosed customer churn, while total platform visits fell 30.5% year over year. Management expects less health-plan-related churn going forward but acknowledged some natural churn will continue in de-emphasized businesses.
American Well Stock Performance
Shares of NYSE:AMWL traded up $0.37 during trading on Tuesday, reaching $12.89. 131,011 shares of the stock traded hands, compared to its average volume of 101,083. The stock has a market cap of $213.26 million, a P/E ratio of -2.70 and a beta of 1.67. The stock has a 50-day moving average of $12.93 and a two-hundred day moving average of $8.95. American Well has a 52-week low of $3.71 and a 52-week high of $15.16.
Analysts Set New Price Targets
Several analysts recently weighed in on the company. Truist Financial set a $12.00 price target on American Well and gave the stock a “hold” rating in a research note on Thursday, August 13th. Wells Fargo & Company lifted their price objective on American Well from $9.00 to $16.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of American Well in a report on Thursday, October 15th. Finally, Needham & Company LLC reissued a “hold” rating on shares of American Well in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $9.50.
View Our Latest Stock Report on AMWL
Insider Buying and Selling
In other American Well news, insider Phyllis Gotlib sold 6,677 shares of American Well stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $13.00, for a total value of $86,801.00. Following the completion of the sale, the insider owned 142,504 shares of the company’s stock, valued at approximately $1,852,552. This trade represents a 4.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Dmitry Zamansky sold 8,442 shares of American Well stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $13.00, for a total value of $109,746.00. Following the completion of the sale, the insider directly owned 224,178 shares of the company’s stock, valued at approximately $2,914,314. The trade was a 3.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 19,457 shares of company stock valued at $248,519. 12.84% of the stock is owned by company insiders.
American Well Company Profile
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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