American Well (NYSE:AMWL) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

American Well (NYSE:AMWL) posted its quarterly earnings data on Tuesday. The company reported ($0.67) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.78) by $0.11, FiscalAI reports. American Well had a negative return on equity of 30.12% and a negative net margin of 35.75%. The company had revenue of $48.99 million for the quarter, compared to analysts’ expectations 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. The stock had a trading volume of 131,011 shares, compared to its average volume of 101,083. The business’s 50-day moving average price is $12.93 and its 200-day moving average price is $8.95. American Well has a fifty-two week low of $3.71 and a fifty-two week high of $15.16. The company has a market cap of $213.26 million, a P/E ratio of -2.70 and a beta of 1.67.

Analyst Upgrades and Downgrades

A number of analysts have commented on AMWL shares. Needham & Company LLC reiterated a “hold” rating on shares of American Well in a report on Wednesday, August 5th. Truist Financial set a $12.00 price target on shares of American Well and gave the stock a “hold” rating in a report on Thursday, August 13th. Weiss Ratings reiterated a “sell (d-)” rating on shares of American Well in a report on Thursday, October 15th. Finally, Wells Fargo & Company raised their target price on American Well from $9.00 to $16.00 and gave the stock an “overweight” rating in a research note on Friday, July 17th. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $9.50.

Insider Transactions at American Well

In other news, insider Dmitry Zamansky sold 8,442 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $13.00, for a total value of $109,746.00. Following the completion of the transaction, the insider owned 224,178 shares of the company’s stock, valued at approximately $2,914,314. This trade represents a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Phyllis Gotlib sold 6,677 shares of American Well stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $13.00, for a total transaction of $86,801.00. Following the completion of the transaction, the insider owned 142,504 shares of the company’s stock, valued at $1,852,552. This trade represents a 4.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 19,457 shares of company stock worth $248,519 over the last quarter. Insiders own 12.84% of the company’s stock.

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.