American Well Corporation (AMWL) Earnings
American Well Corporation is expected to report next earnings on November 3, 2026 (in NaN days), with a consensus EPS estimate of $-0.66. AMWL has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +19.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 4, 2026 | $-0.86 | $-0.59 | +31.4% | $52M | +4.4% |
| May 5, 2026 | $-0.77 | $-0.78 | -1.3% | $55M | +6.5% |
| Feb 12, 2026 | $-1.59 | $-1.52 | +4.4% | $55M | -4.3% |
| May 1, 2025 | $-3.09 | $-1.73 | +44.0% | $67M | +11.2% |
| Feb 12, 2025 | $-3.04 | $-2.77 | +8.9% | $71M | -4.0% |
| Oct 30, 2024 | $-3.32 | $-2.87 | +13.6% | $61M | -12.2% |
| Jul 31, 2024 | $-3.94 | $-3.36 | +14.7% | $63M | +1.9% |
| May 1, 2024 | $-3.60 | $-5.00 | -38.9% | $60M | -1.6% |
| Feb 14, 2024 | $-3.80 | $-3.40 | +10.5% | $71M | +0.7% |
| Nov 1, 2023 | $-4.00 | $-4.00 | +0.0% | $62M | -1.8% |
| Aug 2, 2023 | $-4.20 | $-4.60 | -9.5% | $62M | -5.4% |
| May 3, 2023 | $-4.00 | $-4.80 | -20.0% | $64M | -1.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 4, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Strategic Milestone & Key Partnerships - The Defense Health Agency (DHA) issued a notice of intent to award a sole source direct contract to Amwell, a major vote of confidence that deepens Amwell's position as core infrastructure for the unified federal health IT ecosystem, serving 9.6 million military service members, families, and retirees. The contract is currently under negotiation. - Amwell is already integrated into MHS Genesis, the core platform for the military health system, and the transition to direct contracting ensures uninterrupted service continuity. ### Core Business Strategy - Amwell has completed its transformation from a standalone telehealth vendor to a single unified infrastructure platform for AI-powered technology-enabled care, serving government, commercial payers, and health systems. The strategy addresses widespread industry vendor fatigue: payers can access a mix of Amwell-native, partner, and in-house clinical programs through a single branded gateway, with unified data to track clinical and financial outcomes. - A recently published independent randomized controlled trial (funded by the NIMH, published in *Nature Human Behavior*) of Amwell's Silver Cloud Behavioral Health Program found more than double the engagement rate of traditional care, lower long-term mental health disorder rates, and $1.2 million in avoided costs for the 6,200-study participant cohort, providing independent validation of Amwell's value proposition. - DarioHealth recently announced it will launch a new program on the Amwell healthcare marketplace in Arizona, demonstrating growing partner adoption of the platform model. ### Financial Operational Performance - Total Q2 2026 revenue was $52 million, in line with management expectations. Gross profit was $27.6 million (53% gross margin), up 200 basis points sequentially, with gross margins expected to improve over time as revenue mix shifts toward higher-margin SaaS subscriptions. - Total operating expenses fell 38% year-over-year to $37.1 million, reflecting prior transformation actions and ongoing cost discipline. Adjusted EBITDA loss was $1.15 million, an improvement from a $47 million loss in the year-ago quarter, and the closest Amwell has been to break-even as a public company. - Amwell ended Q2 2026 with $196 million in cash and marketable securities and zero debt, giving the company full financial runway to execute its strategy. - Amwell remains on track to hit its target of positive adjusted EBITDA and positive operating cash flow from operations by Q4 2026, building a durable foundation for growth in 2027 and beyond.
Guidance
- **Q3 2026 Guidance**: Management expects total revenue in the range of $46 million to $48 million, and an adjusted EBITDA loss between negative $5 million and negative $3 million. The sequential increase in expected loss reflects one-time costs for internal projects scheduled for completion before year-end, as well as normal summer seasonality for visit volumes. - **Full Year 2026 Guidance**: Management narrowed the full-year 2026 revenue range to $200 million to $205 million, raising the low end of the prior range of $195 million to $205 million. Management also raised the full-year adjusted EBITDA guidance to a loss between negative $9 million and negative $7 million, a meaningful improvement from the prior expected loss range of negative $16 million to negative $12 million. Full-year AMG visits are expected to land at the high end of the prior guided range of 1.32 million to 1.37 million visits. - **Long-Term Expectations**: Management's internal target is to return to double-digit year-over-year revenue growth in 2027, which it views as attainable if current pipeline opportunities (notably government contracts) close as expected. Operating margins are expected to expand by approximately 1,000 basis points between Q4 2026 and Q4 2027 as subscription revenue grows, with a largely stable headcount even under a mid-teens growth scenario.
Segment performance
Amwell operates two core revenue segments: 1. **Subscription Segment**: Q2 2026 revenue was $25.7 million, a 36.5% year-over-year decline, but grew 3.2% sequentially quarter-over-quarter. The year-over-year drop reflects prior disclosed churn and a one-time subscription revenue benefit in the year-ago quarter tied to DHA platform deployment. This segment contributed 49.4% of total Q2 2026 revenue. 2. **Amwell Medical Group (AMG) Visit Segment**: Q2 2026 revenue was $24.4 million, a 7.4% year-over-year increase. The segment contributed 46.9% of total Q2 2026 revenue. Total paid AMG visits were flat year-over-year at 315,000, while revenue per visit rose 6% year-over-year to $77, driven by a mix shift toward higher-acuity, higher-value virtual primary care (which grew 30% year-over-year).
Risks & headwinds
No explicit new material risks or operational failures were discussed during the call. Management noted that all forward-looking statements are subject to general risks and uncertainties disclosed in Amwell's SEC filings, which could cause actual results to differ materially from projected outcomes. Contract negotiations for the DHA sole source award are ongoing, and there is uncertainty around final contract terms, timing of execution, and final revenue levels from the agreement.
Analyst Q&A
Q: What is the timeline to finalize and implement the DHA sole source contract, and when will Amwell's Silver Cloud behavioral health program be reintroduced to the DHA? What is the impact of the DHA award on Amwell's commercial payer go-to-market, and when can we expect new wins from current payer outreach?
A: The DHA set an initial July 30, 2026 deadline for negotiations, but both parties have extended discussions to finalize terms, with a final drop-dead date of July 2027. Amwell is working closely with the DHA and existing partner Leidos for a smooth transition. Silver Cloud will be reintroduced after the contract is finalized, with commercial launch expected in 2027. The DHA award is a powerful proof point that reinforces credibility across both government and commercial markets, as it demonstrates Amwell can operate at large scale with reliable outcomes. Amwell's payer outreach focuses on solving vendor fatigue and rising care costs by consolidating multiple vendor programs onto a single platform, which resonates strongly with pressured payers. Platform deals are strategic, not seasonal purchases, so new wins will be an evolving opportunity that builds momentum into 2027 and beyond.
Q: What is the path from Q2 2026's near-breakeven adjusted EBITDA to full breakeven in Q4 2026, and do you expect 2027 revenue growth?
A: Project costs initiated at the end of 2025 will cycle down by the end of Q3 2026, giving management clear visibility into cost trends for Q4. Management's guidance is conservative, and it expects to beat the guided full-year EBITDA range, as it has done in recent quarters. The 2027 revenue guidance will be shared once current pipeline contracts (notably the DHA award) are finalized, and management internally targets a return to double-digit year-over-year revenue growth in 2027, which it views as achievable with current pipeline opportunities.
Q: Is the DHA contract a renewal, will it bring incremental revenue, and why are other vendors included in the sole source award?
A: The DHA is shifting from contracting through a pass-through integrator (Leidos) to direct contracts with five core proprietary solution providers: Amwell, Oracle Health, Philips, Solventum, and Henry Schein, each providing distinct core system capabilities. Amwell is the only telehealth/platform provider among the five vendors. Amwell expects incremental revenue from additional services it will take on directly under the new structure, alongside greater long-term contract visibility and duration.
Q: Is growth in Amwell's pipeline driven by existing customers or new logos, and how is AI incorporated into Amwell's offering?
A: Amwell is seeing growing pipeline activity from both new and existing customers, with interest driven by industry-wide vendor fatigue and demand for consolidated platforms that can accommodate new AI-powered clinical programs. Amwell uses AI across all internal workflows to drive the significant cost structure improvements seen over the past year, and invests in AI for product capabilities including data analytics and member engagement. Amwell's core AI value proposition is acting as a trusted, unified infrastructure layer that lets payers manage new AI programs without the complexity of multiple vendor integrations, rather than selling standalone AI features.