American Well Corporation reported fourth‑quarter revenue of $55.31 million, down 22% from $70.5 million in the same period a year earlier, and full‑year revenue of $249.3 million, a decline of 6% from $265.5 million in 2024. The company posted a quarterly earnings per share of –$1.43, beating the consensus estimate of –$1.59 by $0.16, and a net loss of $95 million for the year, a substantial improvement over the $212.6 million loss recorded in 2024.
Subscription revenue, largely driven by the Converge platform, accounted for 53% of total revenue in 2025, up from 45% in 2024. This shift toward a higher‑margin SaaS model is a key element of the company’s transformation strategy, which aims to replace lower‑margin legacy services with predictable, recurring revenue.
Gross margin expanded to 51.2% in Q4 and 53% for the full year, reflecting the higher mix of subscription contracts and disciplined cost management. While the company’s operating expenses rose modestly, the improved revenue mix and scale of the Converge platform helped offset the impact of higher support costs.
Looking ahead, American Well guided 2026 revenue to $195 million–$205 million and an adjusted EBITDA loss of $24 million to $18 million, while reaffirming its target of positive cash flow from operations in the fourth quarter of 2026. The guidance signals management’s confidence that the platform pivot and cost‑control initiatives will continue to drive profitability.
Investors responded positively to the results, citing the company’s progress in narrowing losses, strengthening its cash position of $182 million, and the strategic shift toward a higher‑margin, subscription‑based business model. The company’s transformation narrative and improved financial metrics are expected to influence long‑term investment decisions.
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