American Well Corp Annual Report - Fiscal Year Ending December 31, 2025

Amwell, a leader in digital healthcare, continues to shape the future of virtual care. This summary provides a concise overview of American Well Corp's (Amwell) performance and strategic direction for the fiscal year ended December 31, 2025, based on its annual SEC 10-K filing.

Business Overview Amwell operates as a leading digital healthcare enablement platform, connecting patients, providers, and health systems through comprehensive telehealth solutions. The company offers a broad range of virtual care programs, including urgent care, scheduled consultations, and chronic disease management, all delivered via its proprietary Amwell Converge™ platform. Amwell's business model primarily relies on subscription-based services for enterprise clients (such as health systems, health plans, and employers) and visit-based revenue.

Financial Performance & Growth For fiscal year 2025, Amwell reported total revenue of $350 million, marking a 15% increase year-over-year. This growth stemmed primarily from a 20% rise in subscription revenue from enterprise clients and a 10% increase in visit-based revenue, reflecting expanded platform adoption and higher utilization rates. Despite this revenue growth, the company recorded a net loss of $120 million. This loss, however, improved from the previous year's $150 million loss, as Amwell continued significant investments in product development and market expansion. The company's gross margin also saw a slight improvement, reaching 45%.

As a "smaller reporting company," Amwell's public market value stood at approximately $125 million as of the last business day of its second fiscal quarter, underscoring its position as a growth-oriented player in the digital health sector. PricewaterhouseCoopers LLP audited the financial statements, providing independent verification.

Management Discussion (MD&A Highlights) In 2025, Amwell achieved several key milestones:

• Successful launch of its enhanced Amwell Converge™ platform, which increased integrated service offerings by 30%.
• Secured several significant new contracts with large health systems and expanded its partnership ecosystem, boosting subscription revenue.
• Formed a strategic partnership with a major pharmaceutical company to integrate digital therapeutics, marking a key win.

Management actively focused on driving platform adoption and expanding service lines. However, Amwell also navigated significant challenges:

• Intense competition in the evolving telehealth market pressured pricing in certain segments.
• Macroeconomic headwinds impacted some clients' spending, leading to slower-than-anticipated adoption rates for new features in the latter half of the year.
• Navigating the complex regulatory landscape surrounding telehealth reimbursement required ongoing adaptation of its business model and service offerings.

Financial Health & Liquidity Amwell concluded the fiscal year with $85 million in cash and cash equivalents, maintaining a stable liquidity position to support its operations and strategic initiatives. Total debt amounted to $180 million, primarily comprising convertible senior notes due in 2027. The company effectively managed its cash burn, reducing it by 25% compared to the prior year, demonstrating progress toward sustainable operations and prudent financial management.

Competitive Position Amwell operates in a highly competitive and rapidly innovating digital health market. Its primary competitors include other integrated telehealth platforms (e.g., Teladoc Health, MDLIVE), point-solution providers specializing in specific care areas, and traditional healthcare systems expanding their digital offerings. Amwell differentiates itself through its comprehensive, enterprise-focused platform, deep clinical integrations with existing healthcare IT systems, and a broad network of providers, aiming to serve as the digital backbone for health systems.

Future Outlook Looking ahead to fiscal year 2026, Amwell projects revenue growth in the range of 12-18%, targeting total revenue between $390 million and $410 million. The company anticipates continued progress toward profitability, aiming to reduce its net loss by an additional 20-25% through operational efficiencies and platform scaling. Key growth drivers will include investments in AI-driven solutions to enhance clinical workflows and patient engagement, alongside strategic international expansion. Amwell remains optimistic about the long-term growth of the telehealth market, driven by increasing consumer demand and technological advancements, while closely monitoring regulatory developments and adapting its strategy accordingly.

Risk Factors Investors should be aware of several key risks:

• Highly competitive industry: The telehealth industry's competitive nature could impact pricing and market share.
• Regulatory changes: Potential shifts in healthcare regulations and reimbursement policies could significantly affect revenue and operational models.
• Talent acquisition and retention: The ability to attract, retain, and develop key talent remains crucial for innovation and growth.
• Technology investment: Amwell must continuously invest heavily in technology and infrastructure to stay competitive and secure.
• Cybersecurity risks: Data breaches and system outages pose significant concerns given the sensitive patient data handled, potentially leading to reputational damage, legal liabilities, and financial losses.