Q2 2026 American Well Corp Earnings Call Transcript
Key Points
- American Well Corp (AMWL) received an intent to award a sole-source contract from the Defense Health Agency, signaling a long-term, stable partnership and a strong vote of confidence in its platform.
- Subscription revenue now represents more than half of total revenue and grew sequentially, providing a more predictable and stable revenue foundation.
- Adjusted EBITDA loss narrowed to approximately $1 million in Q2 2026, the closest to breakeven as a public company, with raised full-year guidance.
- A randomized trial published in Nature Human Behavior showed SilverCloud behavioral health program doubled engagement and reduced costs, providing independent validation of clinical and financial outcomes.
- The company holds over $195 million in cash with no debt, providing a strong runway to achieve its goal of positive cash flow from operations by Q4 2026.
- AMG visit revenue grew 7.4% year-over-year, driven by a shift toward higher-acuity, higher-value clinical programs and virtual primary care, which saw a 30% increase in visits.
- Total revenue declined 26.6% year-over-year, reflecting previously disclosed churn and a one-time subscription benefit in the prior year.
- Subscription revenue decreased 36.5% year-over-year, though it improved sequentially.
- Total platform visits fell 28.4% year-over-year, consistent with portfolio changes but indicating reduced overall activity.
- Gross margin contracted 310 basis points year-over-year, though it improved sequentially.
- The DHA contract negotiations are ongoing, with a deadline extended to July 2027, creating uncertainty about the timing and scope of the final agreement.
- Q3 2026 guidance projects an adjusted EBITDA loss of $5 million to $3 million, reflecting seasonality and costs from internal projects, indicating a step back from Q2's near-breakeven performance.
Hello, everyone. Welcome to Amwell's conference call to discuss their second fiscal quarter of 2026.
Joining us on the call today are Amwell's Chairman and CEO, Dr. Ido Schoenberg; and Mark Hirschhorn, Amwell's CFO and Chief Operating Officer.
Earlier today, a press release was distributed, detailing their announcement. The earnings report is posted on the Amwell website at investors.amwell.com and is also available through normal news sources.
This conference call is being webcast live on the IR page of the website, where replay will be archived.
Before they begin prepared remarks, I'd like to take this opportunity to remind you that, during this call, we will make forward-looking statements regarding projected operating results and anticipated market opportunities.
This forward-looking information is subject to the risks and uncertainties described in the filings with the SEC. Actual results or events may differ materially. Except as required by law, we undertake no obligation to update or revise these forward-looking statements.
On this call, we
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