Amwell Narrows Losses by 58% Amid Revenue Growth, Cost Cuts

TL;DR

**Amwell's massive loss reduction and cost-cutting are positive signs, but watch that quarterly revenue dip – it's a mixed bag for now.**

AI Summary

American Well Corp (AMWL) reported a significant reduction in net loss for the nine months ended September 30, 2025, decreasing to $69.798 million from $168.069 million in the prior year, representing a 58.59% improvement. Revenue for the nine-month period increased by 5.81% to $194.017 million from $183.358 million. However, for the three months ended September 30, 2025, revenue declined by 7.79% to $56.286 million from $61.046 million in the same period of 2024. Operating expenses saw substantial reductions, with total costs and operating expenses falling to $274.139 million for the nine months ended September 30, 2025, a 23.33% decrease from $358.136 million in 2024. This was driven by a 24.76% decrease in costs of revenue and a 43.90% decrease in sales and marketing expenses. The company also recorded a net gain on divestiture of $8.713 million for the nine-month period, contributing to the improved net loss. Cash and cash equivalents decreased to $200.888 million as of September 30, 2025, from $228.316 million at December 31, 2024, reflecting net cash used in operating activities of $48.598 million. The company completed a 1-for-20 reverse stock split effective July 10, 2024, to address its stock price.

Why It Matters

Amwell's substantial reduction in net loss by 58.59% for the nine months ended September 30, 2025, signals a potential turning point for investors, indicating improved operational efficiency and a clearer path towards profitability. The 5.81% revenue growth over nine months, despite a quarterly dip, suggests some market traction in a competitive telehealth landscape dominated by players like Teladoc Health. For employees, this could mean greater job security and a more stable future for the company. Customers might benefit from a more financially robust Amwell, potentially leading to enhanced service offerings and platform stability. The broader market will watch if Amwell can sustain this loss reduction and revenue growth, impacting sentiment for other digital health providers.

Risk Assessment

Risk Level: medium — While Amwell significantly reduced its net loss by 58.59% to $69.798 million for the nine months ended September 30, 2025, the company still reported a net loss of $31.911 million for the three months ended September 30, 2025. Additionally, cash and cash equivalents decreased by $27.428 million during the nine-month period, indicating continued cash burn from operating activities, which used $48.598 million. The quarterly revenue decline of 7.79% also presents a concern for sustained growth.

Analyst Insight

Investors should monitor Amwell's next quarter closely for sustained revenue growth and further reductions in operating cash burn. While cost-cutting is positive, the quarterly revenue decline is a yellow flag. Consider a 'wait and see' approach to confirm a consistent trend towards profitability and positive cash flow before making significant investment decisions.

Financial Highlights

debt To Equity

N/A

revenue

$194.017M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$69.798M

eps

N/A

gross Margin

N/A

cash Position

$200.888M

revenue Growth

+5.81%

Revenue Breakdown

Key Numbers

• $194.017M — Revenue for nine months ended Sept 30, 2025 (Increased by 5.81% from $183.358M in 2024)
• $56.286M — Revenue for three months ended Sept 30, 2025 (Decreased by 7.79% from $61.046M in 2024)
• $69.798M — Net loss for nine months ended Sept 30, 2025 (Reduced by 58.59% from $168.069M in 2024)
• $31.911M — Net loss for three months ended Sept 30, 2025 (Reduced from $44.041M in 2024)
• $274.139M — Total costs and operating expenses for nine months ended Sept 30, 2025 (Decreased by 23.33% from $358.136M in 2024)
• $48.598M — Net cash used in operating activities for nine months ended Sept 30, 2025 (Improved from $113.903M used in 2024)
• $8.713M — Net gain on divestiture for nine months ended Sept 30, 2025 (Contributed to reduced net loss)
• $200.888M — Cash and cash equivalents as of Sept 30, 2025 (Decreased from $228.316M at Dec 31, 2024)
• 1-for-20 — Reverse stock split ratio (Approved by Board of Directors on June 28, 2024, effective July 10, 2024)

Key Players & Entities

• American Well Corporation (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (regulator) — exchange where AMWL is listed
• Chief Executive Officer (person) — Company's chief operating decision maker
• Delaware (company) — State of incorporation for American Well Corporation
• National Telehealth Network (company) — entity in which American Well controls fifty percent or more of the voting shares

FAQ

Risk Factors

• Liquidity and Going Concern [high — financial]: The company has a history of net losses and negative cash flows from operations, with $48.598 million used in operating activities for the nine months ended September 30, 2025. While cash and cash equivalents stood at $200.888 million as of September 30, 2025, continued losses and cash burn could impact future operations.
• Healthcare Regulations [high — regulatory]: As a telehealth provider, AMWL is subject to complex and evolving healthcare regulations at federal and state levels, including those related to data privacy (HIPAA), licensing, and reimbursement. Non-compliance can lead to significant penalties and reputational damage.
• Competition and Market Adoption [medium — market]: The telehealth market is highly competitive, with numerous established players and new entrants. AMWL's success depends on its ability to attract and retain clients, differentiate its offerings, and achieve widespread adoption of its platform.
• Technology and Platform Reliability [medium — operational]: The company's platform is critical to its service delivery. Any disruptions, security breaches, or failures in technology could lead to service interruptions, loss of customer trust, and financial losses.
• Dependence on Key Customers [medium — financial]: While not explicitly detailed in the provided summary, a concentration of revenue from a few large clients could pose a risk if those relationships deteriorate or are terminated.
• Litigation and Legal Proceedings [low — legal]: Like many companies, AMWL may be subject to various legal claims and litigation, which could result in significant financial liabilities and divert management attention.

Industry Context

The telehealth industry continues to evolve rapidly, driven by technological advancements and changing consumer preferences for convenient healthcare access. However, the sector faces intense competition from established healthcare providers, technology companies, and specialized telehealth platforms. Reimbursement policies and regulatory landscapes are critical factors influencing growth and profitability.

Regulatory Implications

American Well Corp operates within a heavily regulated healthcare environment. Compliance with HIPAA for data privacy, state-specific telehealth licensing, and evolving reimbursement rules from payers like Medicare and Medicaid are crucial. Non-compliance or adverse changes in these regulations could significantly impact the company's operations and financial performance.

What Investors Should Do

1. Monitor revenue trends in the three-month periods.
2. Assess the sustainability of expense reductions.
3. Evaluate the impact of the reverse stock split.
4. Analyze cash burn rate and runway.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported reduced net loss of $69.798M and revenue of $194.017M, with significant operating expense reductions.
• 2025-09-30: Three months ended September 30, 2025 — Reported revenue of $56.286M, a decrease from the prior year's period.
• 2024-12-31: December 31, 2024 — Company held $228.316M in cash and cash equivalents.
• 2024-07-10: Effective date of 1-for-20 reverse stock split — Implemented to increase the per-share market price of its common stock.

Glossary

Net loss

The total expenses incurred by a company exceed its total revenues over a specific period. (AMWL reported a reduced net loss for the nine months ended September 30, 2025, indicating improved profitability.)

Revenue

The total income generated by the sale of goods or services related to the company's primary operations. (AMWL's revenue showed growth for the nine-month period but a decline for the latest quarter, highlighting mixed performance.)

Operating expenses

Costs incurred by a company in its normal course of business, excluding cost of goods sold. (Significant reductions in operating expenses, particularly costs of revenue and sales and marketing, contributed to AMWL's improved net loss.)

Net cash used in operating activities

The amount of cash a company has spent on its core business operations during a period. (AMWL used $48.598 million in operating activities for the nine months ended September 30, 2025, an improvement from the prior year.)

Divestiture

The sale or disposal of an asset or business unit. (A net gain on divestiture contributed positively to AMWL's net loss reduction.)

Reverse stock split

A corporate action to reduce the number of outstanding shares of stock, increasing the per-share price. (AMWL executed a 1-for-20 reverse stock split to address its stock price.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, American Well Corp has demonstrated a significant improvement in its bottom line, with net losses reduced by 58.59% to $69.798 million, aided by a substantial 23.33% decrease in total operating expenses and a one-time gain on divestiture. Revenue for the nine-month period saw a modest increase of 5.81%. However, a concerning trend emerged in the latest three-month period, where revenue declined by 7.79%, suggesting potential headwinds. The company also implemented a reverse stock split to address its share price.

Key Financial Figures

• $0.01 — d Class A common stock, par value of $0.01 per share AMWL The New York Stock E

Filing Documents

• amwl-20250930.htm (10-Q) — 2661KB
• amwl-ex10_1.htm (EX-10.1) — 79KB
• amwl-ex10_2.htm (EX-10.2) — 132KB
• amwl-ex10_3.htm (EX-10.3) — 100KB
• amwl-ex10_4.htm (EX-10.4) — 127KB
• amwl-ex10_5.htm (EX-10.5) — 95KB
• amwl-ex31_1.htm (EX-31.1) — 20KB
• amwl-ex31_2.htm (EX-31.2) — 20KB
• amwl-ex32_1.htm (EX-32.1) — 8KB
• amwl-ex32_2.htm (EX-32.2) — 8KB
• 0001193125-25-264718.txt ( ) — 10700KB
• amwl-20250930.xsd (EX-101.SCH) — 1329KB
• amwl-20250930_htm.xml (XML) — 1824KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheet as of September 30, 2025 (unaudited) and December 31, 2024 3 Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) for the three and nine months ended September 30, 2025 and 2024 4 Condensed Consolidated Statement of Stockholders' Equity (unaudited) for the three and nine months ended September 30, 2025 and 2024 5 Condensed Consolidated Statement of Cash Flows (unaudited) for the nine months ended September 30, 2025 and 2024 7 Notes to the Unaudited Condensed Consolidated Financial Statements 8 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 34 PART II Other Information 35 Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 36 Item 6. Exhibits 36

- FINANCI AL INFORMATION

PART I - FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements AMERICAN WELL CORPORATION CONDENSED CONSOLIDA TED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 200,888 $ 228,316 Accounts receivable ($ 1,184 and $ 616 , from related parties and net of allowances of $ 7,149 and $ 7,236 , respectively) 55,578 71,885 Inventories 1,823 2,858 Deferred contract acquisition costs 2,626 2,513 Prepaid expenses and other current assets 10,253 11,421 Total current assets 271,168 316,993 Restricted cash 795 795 Property and equipment, net 249 376 Intangible assets, net 74,556 101,538 Operating lease right-of-use asset 4,760 7,203 Deferred contract acquisition costs, net of current portion 4,874 5,350 Other assets 3,023 2,213 Investment in minority owned joint venture (Note 2) — 1,500 Total assets $ 359,425 $ 435,968 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 5,965 $ 5,015 Accrued expenses and other current liabilities 47,349 49,326 Operating lease liability, current 3,678 3,690 Deferred revenue ($ 45 and $ 198 from related parties, respectively) 29,495 53,232 Total current liabilities 86,487 111,263 Other long-term liabilities 1,253 1,170 Operating lease liability, net of current portion 1,782 4,511 Deferred revenue, net of current portion ($ 0 and $ 10 from related parties, respectively) 2,540 2,780 Total liabilities 92,062 119,724 Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock, $ 0.01 par value; 100,000,000 shares authorized, no shares issued or outstanding as of September 30, 2025 and as of December 31, 2024 — — Common stock, $ 0.01 par value; 1,000,000,000 Class A shares authorized, 14,672,254 and 13,922,877 shares issued and outstanding, respect

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