American Well (NYSE:AMWL) Announces Earnings Results, Beats Expectations By $0.11 EPS

American Well (NYSE:AMWL) released its earnings results on Tuesday. The company reported ($0.67) earnings per share for the quarter, topping the consensus estimate of ($0.78) by $0.11, FiscalAI reports. American Well had a negative net margin of 27.03% and a negative return on equity of 23.92%. The company had revenue of $48.99 million for the quarter, compared to the consensus estimate 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 Down 4.9%

Shares of NYSE:AMWL traded down $0.61 during trading on Thursday, reaching $11.74. 62,659 shares of the company’s stock traded hands, compared to its average volume of 101,261. American Well has a fifty-two week low of $3.71 and a fifty-two week high of $15.16. The company has a 50-day simple moving average of $12.96 and a 200-day simple moving average of $9.03. The firm has a market cap of $194.33 million, a PE ratio of -3.41 and a beta of 1.72.

Insider Transactions at American Well

In other news, insider Dmitry Zamansky sold 8,442 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $13.00, for a total value of $109,746.00. Following the completion of the sale, the insider directly owned 224,178 shares in the company, valued at $2,914,314. The trade was a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Phyllis Gotlib sold 6,677 shares of the stock in a transaction 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 transaction, the insider directly owned 142,504 shares in the company, valued at approximately $1,852,552. The trade was a 4.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,457 shares of company stock valued at $248,519 in the last ninety days. 12.84% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on AMWL. Truist Financial set a $12.00 price objective on shares of American Well and gave the company a “hold” rating in a report on Thursday, August 13th. TD Cowen increased their price objective on American Well from $12.00 to $13.00 and gave the company a “hold” rating in a report on Wednesday. Needham & Company LLC restated a “hold” rating on shares of American Well in a research note on Wednesday, August 5th. Stifel Nicolaus increased their price target on shares of American Well from $11.00 to $12.00 and gave the stock a “hold” rating in a report on Wednesday. Finally, Wells Fargo & Company upped their price objective on shares of American Well from $16.00 to $18.00 and gave the company an “overweight” rating in a report on Wednesday. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $12.30.

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.