American Well Corp 10-Q for FY2026 Q3
American Well Corp (AMWL)
About this 10-Q
American Well Corp filed this 10-Q on November 3, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
For the nine months ended September 30, 2026, American Well Corporation reported revenue down 20% and net loss narrowed 56%. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $48.99M
- down 13.0% from $56.29M a year earlier
- Net loss
- $11.36M
- compared with a net loss of $32.38M a year earlier
- Diluted EPS
- -$0.67
- compared with -$2.00 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
(State of incorporation) |
(I.R.S. Employer |
(Address of registrant’s principal executive offices)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of October 23, 2026, the number of shares of the registrant’s Class A common stock outstanding was
American Well Corporation
QUARTERLY REPORT ON FORM 10-Q
For the period ended September 30, 2026
TABLE OF CONTENTS
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Page
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PART I |
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Item 1. |
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Condensed Consolidated Balance Sheet as of September 30, 2026 (unaudited) and December 31, 2025 |
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Notes to the Unaudited Condensed Consolidated Financial Statements |
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Item 2 |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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PART II |
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Item 1. |
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Item 1A. |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN WELL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
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September 30, 2026 |
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December 31, 2025 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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Restricted cash |
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Accounts receivable ($ |
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Inventories |
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Deferred contract acquisition costs |
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Prepaid expenses and other current assets |
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Total current assets |
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Restricted cash |
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Property and equipment, net |
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Intangible assets, net |
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Operating lease right-of-use asset |
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Deferred contract acquisition costs, net of current portion |
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Other assets |
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Total assets |
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$ |
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$ |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses and other current liabilities |
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Operating lease liability, current |
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Deferred revenue ($ |
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Total current liabilities |
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Other long-term liabilities |
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Operating lease liability, net of current portion |
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Deferred revenue, net of current portion |
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Total liabilities |
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Stockholders’ equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive income (loss) |
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Accumulated deficit |
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Total American Well Corporation stockholders’ equity |
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Non-controlling interest |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
AMERICAN WELL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
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($ |
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$ |
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$ |
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Costs and operating expenses: |
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Costs of revenue, excluding depreciation and amortization of |
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Research and development |
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Sales and marketing |
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General and administrative |
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Depreciation and amortization expense |
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Total costs and operating expenses |
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Loss from operations |
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Interest income and other (expense) income, net |
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Net gain (loss) on divestiture |
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Loss before expense from income taxes and loss from equity method investment |
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Income tax expense |
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Loss from equity method investment |
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Net loss |
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Net income attributable to non-controlling interest |
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Net loss attributable to American Well Corporation |
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$ |
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$ |
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$ |
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Net loss per share attributable to common stockholders, basic and |
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$ |
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$ |
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$ |
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$ |
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Weighted-average common shares outstanding, basic and diluted |
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Net loss |
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$ |
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$ |
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Other comprehensive income (loss), net of tax: |
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Foreign currency translation |
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Comprehensive loss |
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Less: Comprehensive income attributable to non-controlling interest |
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Comprehensive loss attributable to American Well Corporation |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
AMERICAN WELL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share amounts)
(unaudited)
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Common Stock |
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Additional |
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Accumulated |
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Accumulated |
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American Well |
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Noncontrolling |
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Total |
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Shares |
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Amount |
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Capital |
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Income (Loss) |
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Deficit |
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Equity |
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Interest |
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Equity |
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Balances as of January 1, 2026 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Vesting of restricted stock units, including units with a market condition |
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Shares repurchased and retired |
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— |
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— |
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— |
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Issuance of stock under employee stock purchase plan |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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Currency translation adjustment |
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Net loss |
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— |
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— |
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— |
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— |
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( |
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( |
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Balances as of March 31, 2026 |
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Vesting of restricted stock units, including units with a market condition |
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— |
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— |
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— |
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— |
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— |
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Shares repurchased and retired |
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( |
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— |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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Net loss |
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— |
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— |
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— |
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— |
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( |
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( |
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( |
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Balances as of June 30, 2026 |
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( |
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Vesting of restricted stock units, including units with a market condition |
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— |
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— |
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— |
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— |
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Shares repurchased and retired |
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( |
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— |
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— |
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— |
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( |
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( |
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— |
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Issuance of stock under employee stock purchase plan |
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— |
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Stock-based compensation expense |
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Currency translation adjustment |
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— |
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— |
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( |
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— |
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— |
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Net loss |
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— |
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— |
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— |
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— |
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( |
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Balances as of September 30, 2026 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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5
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Common Stock |
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Additional |
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Accumulated |
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Accumulated |
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American Well |
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Noncontrolling |
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Total |
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Shares |
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Amount |
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Capital |
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Income (Loss) |
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Deficit |
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Equity |
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Interest |
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Equity |
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Balances as of January 1, 2025 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Vesting of restricted stock units, including units with a market condition |
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( |
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— |
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— |
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— |
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— |
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— |
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Shares repurchased and retired |
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( |
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— |
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— |
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— |
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( |
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( |
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— |
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Issuance of stock under employee stock purchase plan |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Currency translation adjustment |
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— |
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— |
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— |
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( |
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— |
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( |
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— |
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( |
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Net loss |
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— |
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— |
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— |
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— |
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( |
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( |
) |
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( |
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Balances as of March 31, 2025 |
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( |
) |
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( |
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Vesting of restricted stock units, including units with a market condition |
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( |
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— |
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— |
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— |
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— |
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— |
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Shares repurchased and retired |
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( |
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— |
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— |
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— |
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( |
) |
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( |
) |
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— |
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( |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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Net loss |
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— |
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— |
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— |
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— |
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( |
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( |
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( |
) |
|
Balances as of June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||||||
Vesting of restricted stock units, including units with a market condition |
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Shares repurchased and retired |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Issuance of stock under employee stock purchase plan |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||||
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Balances as of September 30, 2025 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
AMERICAN WELL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share and per share amounts)
(unaudited)
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Impairment on right of use asset |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
|
|
|
|
||
Provisions for credit losses |
|
|
|
|
|
|
||
Amortization of deferred contract acquisition costs |
|
|
|
|
|
|
||
Amortization of deferred contract fulfillment costs |
|
|
|
|
|
|
||
Inventory provisions |
|
|
( |
) |
|
|
|
|
Net gain on divestiture |
|
|
( |
) |
|
|
( |
) |
Stock-based compensation expense |
|
|
|
|
|
|
||
Loss on equity method investment |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
|
|
|
( |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
( |
) |
|
|
|
|
Inventories |
|
|
|
|
|
|
||
Deferred contract acquisition costs |
|
|
( |
) |
|
|
( |
) |
Prepaid expenses and other current assets |
|
|
|
|
|
|
||
Other assets |
|
|
( |
) |
|
|
|
|
Accounts payable |
|
|
|
|
|
|
||
Accrued expenses and other current liabilities |
|
|
|
|
|
( |
) |
|
Deferred revenue |
|
|
( |
) |
|
|
( |
) |
Net cash used in operating activities |
|
|
( |
) |
|
|
( |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
( |
) |
|
|
( |
) |
Capitalized software development costs |
|
|
( |
) |
|
|
|
|
Purchases of investments |
|
|
|
|
|
( |
) |
|
Proceeds from divestiture, net of cash divested |
|
|
|
|
|
|
||
Net cash (used in) provided by investing activities |
|
|
( |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from employee stock purchase plan |
|
|
|
|
|
|
||
Payments for the purchase of treasury stock |
|
|
( |
) |
|
|
( |
) |
Net cash provided by financing activities |
|
|
|
|
|
|
||
Effect of exchange rates changes on cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
||
Net decrease in cash, cash equivalents, and restricted cash |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
|
|
|
|
||
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
|
|
$ |
|
||
Cash, cash equivalents, and restricted cash at end of period: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
|
||
Restricted cash |
|
|
|
|
|
|
||
Total cash, cash equivalents, and restricted cash at end of period |
|
$ |
|
|
$ |
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
AMERICAN WELL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)
(unaudited)
1. Organization and Description of Business
American Well Corporation (the “Company”) was incorporated under the laws of the State of Delaware in June 2006. The Company is headquartered in Boston, Massachusetts. The Company is a leading enterprise software company enabling digital delivery of care for healthcare’s key stakeholders. The Company empowers our clients with the core technology and services necessary to successfully develop and distribute virtual care programs that meet their strategic, operational, financial and clinical objectives under their own brands.
2. Summary of Significant Accounting Policies
There have been no material changes to the significant accounting policies described in the Company’s Form 10-K for the fiscal year ended December 31, 2025, that have had a material impact on the consolidated financial statements and related notes.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals and adjustments) necessary for the fair statement of the Company’s financial position, results of operations and cash flows at the dates and for the periods indicated. The interim results for the three and nine months ended September 30, 2026 are not necessarily indicative of results for the full 2026 calendar year or any other future interim periods. The information included in the interim financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes included in the Form 10-K.
The unaudited condensed consolidated financial statements include the accounts of American Well Corporation, its wholly-owned subsidiaries, those of professional corporations, which represent variable interest entities in which American Well has an interest and is the primary beneficiary (“PC”), and National Telehealth Network (“NTN”), an entity in which American Well controls fifty percent or more of the voting shares. Intercompany accounts and transactions have been eliminated in consolidation.
The Company’s reporting currency is the U.S. dollar. The Company determines the functional currency of each subsidiary based on the currency of the primary economic environment in which each subsidiary operates. Items included in the financial statements of such subsidiaries are measured using that functional currency. Foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in interest income and other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.
For consolidated entities where American Well owns or is exposed to less than
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, the useful lives of intangible assets and the valuation of common stock awards. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions.
8
Segment Information
The Company’s chief operating decision maker (CODM), its Chief Executive Officer, is provided financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company operates and manages its business as
Variable Interest Entities
The Company evaluates its ownership, contractual and other interests in entities to determine if it has any variable interest in a variable interest entity (“VIE”). These evaluations are complex and involve judgment. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its condensed consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. Changes in consolidation status are applied prospectively.
The aggregate carrying value of total assets and total liabilities included on the condensed consolidated balance sheets for the PCs after elimination of intercompany transactions were $
Total revenue included on the condensed consolidated statements of operations and comprehensive loss for the PCs after elimination of intercompany transactions was $
Investment in Minority Owned Joint Venture
In 2019, the Company and Cleveland Clinic partnered to form a joint venture, under the name CCAW, JV LLC, to provide broad access to comprehensive and high acuity care services via digital care delivery. During 2025, the companies entered into an agreement for the complete liquidation and dissolution of the joint venture. As part of this agreement the Company will continue to support virtual second opinion services that were previously provided by CCAW, JV LLC, though our existing relationship with Cleveland Clinic. Certain business activities will continue through the transition period which will conclude in 2026.
For the three and nine months ended September 30, 2026 and the three months ended September 30, 2025 the Company did
Concentrations of Credit Risk and Significant Clients
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments and accounts receivable. The Company invests its excess cash with large financial institutions. Cash and cash equivalents are invested in highly rated money market funds. At times, the Company’s cash balances with individual banking institutions are in excess of federally insured limits. The Company’s investments are invested in U.S. government agency bonds. The Company has not experienced any losses on its deposits of cash, cash equivalents or investments. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
The Company performs ongoing assessments and credit evaluations of its clients to assess the collectability of the accounts based on a number of factors, including past transaction experience, age of the accounts receivable, review of the invoicing terms of the contracts, and recent communication with clients. The Company has not experienced significant credit losses from its accounts receivable. As of September 30, 2026, two clients accounted for
9
During the three months ended September 30, 2026, sales to two clients represented
Intangible Assets
Intangible assets acquired in a business combination are recognized at fair value using generally accepted valuation methods deemed appropriate for the type of intangible asset acquired and reported net of accumulated amortization, separately from goodwill. Definite-lived intangible assets, which primarily consist of customer relationships, contractor relationships, technology and trade name, are stated at historical cost and amortized over the assets’ estimated useful lives. Intangible assets are re-evaluated whenever events or changes in circumstances indicate that their estimated useful lives may require revision and/or the carrying value of the related asset group may not be recoverable by its projected undiscounted cash flows. If the carrying value of the asset group is determined to be unrecoverable, an impairment charge would be recognized in an amount equal to the amount by which the carrying value of the asset group exceeds its fair value. The Company did not identify a triggering event in the nine months ended September 30, 2026 and 2025.
Impairment of Long-Lived Assets
Long-lived assets consist primarily of property and equipment and intangible assets. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets, among others. When testing for asset impairment, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset group are less than the asset’s carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value. The Company did not identify a triggering event in the nine months ended September 30, 2025 and
Recently Issued Accounting Pronouncements and Disclosure Rules
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of income statement expenses (“ASU 2024-03”), which requires disaggregated information about certain income statement expense line items on an annual and interim basis. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and can be applied prospectively or retrospectively. We are evaluating the effect that this guidance will have on our consolidated financial statement disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to the Accounting for and Disclosure of Software Costs. The new guidance eliminates the prior stage-based model (e.g., preliminary, development, post-implementation) and introduces a principles-based approach. Software costs may be capitalized once (1) management commits to funding the project and (2) it is probable the software will be completed and used for its intended function. Entities must assess whether significant development uncertainty exists. The standard is effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, with early adoption permitted. Transition options include prospective, modified prospective, or retrospective application. The Company is currently evaluating the impact of ASU 2025-06 on its financial statements and related disclosures.
3. Segment Information
The Company operates and manages its business as
10
assets. In addition, the Company derives revenue primarily in the United States and manages the business activities on a consolidated basis.
The Company generates revenues from the use of the Amwell Platform in the form of recurring subscription fees for use. We also generate revenue from the performance of patient visits and other related professional services and hardware sales. The accounting policies are the same as those described in the summary of significant accounting policies.
The Company’s chief operating decision maker (CODM), its , reviews financial information presented on a consolidated basis and decides how to allocate resources based on net loss.
The significant expense categories and amounts align with information that is regularly provided to the CODM. Significant segment expenses, consist of the following:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
||||
Employee compensation |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||
Consulting costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provider cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other segment expense items (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total costs and operating expenses |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||
(1)
4. Revenue
The following table presents the Company’s revenues disaggregated by revenue source:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Platform subscription |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Visits |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Accounts Receivable, Net
Changes in the allowance for credit losses were as follows:
|
|
Nine Months Ended September 30, 2026 |
|
|
Year Ended December 31, 2025 |
|
||
Allowance for credit losses, beginning of the period |
|
$ |
|
|
$ |
|
||
Provisions |
|
|
|
|
|
|
||
Write-offs |
|
|
( |
) |
|
|
( |
) |
Allowance for credit losses, end of the period |
|
$ |
|
|
$ |
|
||
The Company has rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are recorded as receivables when the Company has the right to invoice the client. The amount of unbilled accounts receivable included within accounts receivable on the condensed consolidated balance sheet was $
11
Deferred Revenue
Contract liabilities consist of deferred revenue and include collections in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended September 30, 2026 and 2025, the Company recognized revenue of $
Changes in the Company’s deferred revenue balance for the nine months ended September 30, 2026 and year ended December 31, 2025 were as follows:
|
|
Nine Months Ended September 30, 2026 |
|
|
Year Ended December 31, 2025 |
|
||
Total deferred revenue, beginning of the period |
|
$ |
|
|
$ |
|
||
Additions |
|
|
|
|
|
|
||
Recognized |
|
|
( |
) |
|
|
( |
) |
Total deferred revenue, end of the period |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Current deferred revenue |
|
|
|
|
|
|
||
Non-current deferred revenue |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
Transaction Price Allocated to Remaining Performance Obligations
As of September 30, 2026 and December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $
As it pertains to the September 30, 2026 amount, the Company expects to recognize
5. Fair Value Measurements
The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:
|
|
September 30, 2026 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Money market funds |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
Total financial assets: |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Money market funds |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
Total financial assets: |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
The Company’s cash equivalents were invested in money market funds and were valued based on Level 1 inputs. During the nine months ended September 30, 2026, there were
12
6. Divestiture
On January 8, 2025 (the "Closing Date"), the Company and the Company's wholly owned subsidiary, Aligned Telehealth, LLC ("Aligned") entered into an asset purchase agreement relating to the sale of all property and assets owned, leased or licensed by Aligned that are primarily used or held for use in connection with the Company’s business of providing telepsychiatry services to hospitals and correctional programs (the "APC Business"), subject to certain specified exclusions such as cash. In connection with such purchase and sale, the buyer assumed specified contracts and the related accounts receivable and all accounts payable and accrued expenses of the APC Business, and Dr. Cynthia Horner transferred the ownership of Asana Integrated Medical Group (“Asana” and together with Aligned, “APC”), the affiliated clinical partner of Aligned, to a doctor affiliated with the buyer.
The divestiture was completed on Closing Date, and the total consideration was comprised of (i) an upfront cash payment of $
The divestiture of APC did not represent a strategic shift that would have a major effect on the Company's consolidated results of operations, and therefore, its results of operations were not reported as discontinued operations.
As of the Closing Date, the carrying amounts of the following major assets were derecognized from our condensed consolidated balance sheet:
Accounts receivable |
$ |
|
|
|
Intangibles, net |
|
|
|
|
Other liabilities |
|
( |
) |
|
Net assets divested |
$ |
|
|
APC generated
Upon completion of the divestiture of APC the Company recognized a gain of $
13
7. Intangible Assets
Identified intangible assets consist of the following:
|
|
Gross |
|
|
Accumulated |
|
|
Carrying |
|
|
Weighted |
|
||||
September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
|
|
$ |
( |
) |
|
|
|
|
|
|
|||
Trade name |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Technology |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Internally developed software |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Gross |
|
|
Accumulated |
|
|
Carrying |
|
|
Weighted |
|
||||
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
|
|
$ |
( |
) |
|
|
|
|
|
|
|||
Trade name |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Technology |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Internally developed software |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
The Company capitalized $
8. Accrued Expenses and other current liabilities
Accrued expenses and other current liabilities consist of the following:
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
Employee compensation and benefits |
|
$ |
|
|
$ |
|
||
Professional services |
|
|
|
|
|
|
||
Provider services |
|
|
|
|
|
|
||
Legal accrual |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
9. Stockholders’ Equity
Undesignated Preferred Stock
The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of
14
Common Stock
In the three and nine months ended September 30, 2026 and 2025,
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|||
|
|
Shares Authorized |
|
|
Shares Issued and Outstanding |
|
|
Shares Issued and Outstanding |
|
|||
Class A |
|
|
|
|
|
|
|
|
|
|||
Class B |
|
|
|
|
|
|
|
|
|
|||
Class C |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
As of September 30, 2026 and December 31, 2025, the Company had reserved
Stock Plans
The Company maintains the 2006 Employee, Director and Consultant Stock Plan as amended and restated (the “2006 Plan”), the 2020 Equity Incentive Plan (the “2020 Plan”) and 2024 Inducement Plan (the “2024 Plan”), together, the “Plans,” under which it has granted incentive stock options, non-qualified stock options, cash based awards, restricted stock units and performance stock units to employees, officers, and directors of the Company. In connection with the adoption of the 2020 Plan, the then-remaining shares of common stock reserved for grant or issuance under the 2006 Plan became available for issuance under the 2020 Plan, and no further grants will be made under the 2006 Plan.
Stock Options
Activity under the Plans is as follows:
|
|
Number of |
|
|
Weighted |
|
|
Weighted Average |
|
|
Aggregate |
|
||||
Outstanding as of January 1, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
Granted |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
||
Forfeited |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Expired |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Outstanding as of September 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
Vested and expected to vest as of December 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
Vested and expected to vest as of September 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
Options exercisable as of December 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
Options exercisable as of September 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
— |
|
|||
15
Restricted Stock Units
Activity for the restricted stock units is as follows:
|
|
Shares |
|
|
Weighted Average |
|
||
Unvested as of January 1, 2026 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
( |
) |
|
|
|
|
Forfeited |
|
|
( |
) |
|
|
|
|
Unvested as of September 30, 2026 |
|
|
|
|
$ |
|
||
The total grant date fair value of RSU’s granted for the nine months ended September 30, 2026 and 2025 was $
Restricted Stock Units with a Performance or Market Condition
Activity for the restricted stock units with a performance or market condition is as follows:
|
|
Shares |
|
|
Weighted Average |
|
||
Unvested as of January 1, 2026 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
|
|
||
Cancelled/Forfeited |
|
|
( |
) |
|
|
|
|
Expired |
|
|
( |
) |
|
|
|
|
Unvested as of September 30, 2026 |
|
|
|
|
$ |
|
||
The total grant-date fair value of performance-based share units granted during the nine months ended September 30, 2026 and 2025 was $
2020 Employee Stock Purchase Plan
During the nine months ended September 30, 2025, the Company issued
Stock-Based Compensation
Stock-based compensation expense, related to all of the Company's stock-based awards, was classified in the condensed consolidated statements of operations and comprehensive loss as follows:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Cost of revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Research and development |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
As of September 30, 2026, the unrecognized stock-based compensation expense related to unvested common stock-based awards was $
16
10. Commitments and Contingencies
Indemnification
The Company’s arrangements generally include certain provisions for indemnifying clients against third-party claims asserting infringement of certain intellectual property rights in the ordinary course of business. The Company also regularly indemnifies clients against third-party claims that the company’s products or services breach applicable law or regulation or from claims resulting from a breach of the business associate agreement in place with the client. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in their capacities. Through September 30, 2026 and December 31, 2025, there have been
Litigation
From time to time, and in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. As of September 30, 2026 and December 31, 2025, the Company did
11. Income Taxes
As a result of the Company’s history of net operating losses (“NOL”), the Company continues to maintain a full valuation allowance against its domestic net deferred tax assets. For the three and nine months ended September 30, 2026, the Company recognized an income tax expense of $
12. Related-Party Transactions
Cleveland Clinic
Cleveland Clinic is a related party because a member of the Company’s board of directors is an executive advisor to Cleveland Clinic. As of September 30, 2026 and December 31, 2025, the Company held current deferred revenue of $
During the three months ended September 30, 2026 and 2025, the Company recognized revenue of $
CCAW, JV LLC
CCAW, JV LLC is a related party because it is a joint venture formed between the Company and Cleveland Clinic for which the Company has a minority owned interest in. During 2025, the companies determined that these care services could be provided through partnering between the two entities and that the joint venture was no longer necessary to achieve care delivery. During the year ended December 31, 2025, the companies entered into an agreement for the complete liquidation and dissolution of the joint venture. As part of this agreement the Company will continue to support virtual second opinion services that were previously provided by CCAW, JV LLC, though our existing relationship with Cleveland Clinic. Certain business activities will continue through the transition period which will conclude in 2026.
During the nine months ended September 30, 2026 and 2025, the Company made
As of September 30, 2026 and December 31, 2025, the Company held
During the three months ended September 30, 2026 and 2025, the Company recognized approximately $
17
13. Net Loss per Share
Basic and diluted net loss per share attributable to common stockholders was calculated as follows:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Net income attributable to non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss attributable to American Well Corporation |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding—basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders—basic and diluted |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
The Company’s potential dilutive securities, which include stock options, unvested restricted stock units and unvested performance market-based stock units, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Unvested restricted stock units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unvested performance market-based stock units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Options to purchase shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
14. Severance and strategic transformation costs
The Company has executed a series of individual actions, referred to as strategic transformation actions. Strategic transformation costs include one-time employee termination benefits, strategic transformation consulting expenses, as well as other incremental costs resulting from these actions. Employee termination benefits are recorded in accordance with standard Company policy. Charges are recorded when such actions are approved, communicated, and/or implemented. Amounts remaining to be paid for any strategic transformation costs are $
In the three months ended September 30, 2026 and 2025, the Company of $
18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations, including descriptions of our business plan and strategies, are forward-looking statements. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions, although not all forward-looking statements contain these words.
The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections.
Important factors that may materially affect such forward-looking statements and projections include the following:
The foregoing list of factors is not exhaustive and does not necessarily include all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. The information in this Quarterly Report should be read carefully in conjunction with other uncertainties and potential events described in our Form 10-K filed with the SEC on February 12, 2026.
The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date of this Quarterly Report. Except as required by law or regulation, we do not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances
19
Overview
Amwell is a leading enterprise platform and software company digitally enabling hybrid care. We empower health providers, payers, and innovators to achieve their digital ambitions, enabling a coordinated experience across in-person, virtual and automated care. We provide our clients with the core technology and services necessary to successfully develop and distribute digital care programs that meet their strategic, operational, financial and clinical objectives under their own brands. We offer our clients products to help weave digital care across all care settings. We bring technology and services that facilitate new models of care, strategic partnerships, consistent execution and better outcomes.
Founded in 2006, Amwell pioneered virtual healthcare. Today, Amwell extends digital care beyond telehealth, enabling care across in-person, virtual and automated modalities and providing an open, scalable platform that can flex and grow alongside our clients. We bring technology and services that facilitate new models of care, strategic partnerships, consistent execution and better outcomes. Together with our clients and innovation partners, we forge a new hybrid model of care delivery that adapts as needs evolve and makes care more accessible for all.
As of December 31, 2025, we powered the digital care programs of approximately 50 health plans, which collectively represent more than 90 million covered lives, as well as approximately 80 of the nation’s largest health systems. Since inception, we have powered approximately 40.3 million virtual care visits for our clients, including approximately 2.7 million in the nine months ended September 30, 2026.
The Amwell Platform
Our enterprise platform and software as a service solutions (“Amwell Platform”) was designed to be future-ready, reliable, flexible, scalable, secure and integrated with other healthcare software systems. The Amwell Platform offers state-of-the-art data architecture and video capabilities, flexibility and scalability, as well as a user experience focused on the needs of patients, members and providers. It has been designed from the ground up with the holistic understanding that the future of care of any one person will inevitably blend a mix of in-person, virtual and automated care experiences. The telehealth of yesterday has grown to encompass hybrid care delivery models and the flow of data that drives healthcare.
The Amwell Platform delivers the digital capabilities that health systems and health plans care about — for example, virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing — and aligns them into a single digital care operating system that aggregates all of the data from these care experiences to provide real-time insight. By providing a single platform for the digital distribution of care, the Amwell Platform accelerates innovation and interoperability for health system and health plan clients as well as other healthcare innovators who aim to offer a seamless experience for providers, patients and members.
The Amwell Platform, is our go-forward strategy to digitally enable a scalable healthcare experience across all care settings. The development of the platform provides our customer base with an improved and more robust healthcare solution that is designed to connect seamlessly with clients' existing investments as well as Amwell-owned and partner programs.
Our Business Model
We sell the Amwell Platform on a subscription basis, which with our modular platform architecture allows our clients to introduce innovative digital care use cases over time, expanding our subscription revenue opportunity. To support the Amwell Platform, we offer professional services on a fee-for-service basis and a range of patient and provider Carepoint devices and software that support hospital and home use cases and access to AMG, our affiliated medical group that provides clinical services on a fee-for-service basis. The combination of the Amwell Platform, professional services and Carepoint hardware allows our clients to deploy digital care solutions across their full enterprise, deepening their relationships with existing and new patients and members through improved care access and coordination, cost and quality. Our contracts are typically three years in length but may be longer for our largest strategic client partners.
Total subscription fees received were $23.9 million and $30.9 million for the three months ended September 30, 2026 and 2025, respectively, and $74.6 million and $103.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Health Systems
For health systems, the Amwell Platform enables provider-to-provider virtual care for use cases ranging from stroke to virtual nursing and e-sitting. Our suite of Carepoint devices can enhance in-person care, whether the clients want to turn existing equipment such as televisions or iPads into digital access points or use Amwell CarepointTM carts and peripherals. The Amwell Platform also helps extend care outside the care setting by enabling both on-demand and scheduled provider-to-patient care for a range of use cases.
20
This includes, but is not limited to, urgent care, primary care, behavioral health, chronic disease management, and specialty follow-up care. To augment in-person and virtual care, our automated care programs and digital mental health services help clinicians and health plans engage patients, members, and consumers before, after, or in-between visits to improve care plan adherence and prevent costly escalations.
To supplement a health system’s own network of healthcare providers, health systems often choose to purchase clinical services from AMG to deliver care for certain specialties such as behavioral health therapy and general urgent care, or to simply operate as backup providers on nights and weekends. AMG services are provided on a fee-for-service basis.
Health Plans
For health plans, employers and government entities, the Amwell Platform enables a member-centric hybrid care experience, seamlessly connecting with current technology investments and offering an open architecture that allows simple integration of future innovation. The Amwell Platform enables a broad set of use cases, including primary, urgent, mental health, specialty, and chronic care. Our virtual primary care solution offers a primary care navigation hub that supports a whole-person, longitudinal care experience for members, integrating virtual visits with digital behavioral health tools and condition-specific automated care programs, with escalation back to virtual and/or in person care, if needed. Our urgent care solution helps members conveniently and effectively address unplanned care needs without visiting the emergency department or local urgent care facility, driving quality outcomes at a lower cost.
Our typical health plan contract includes a recurring subscription fee based on the number of members who have access to the Amwell Platform plus additional subscription fees associated with add-on programs that extend from urgent care services to longitudinal care. As the health plan expands its offerings on the Amwell Platform through additional programs or additional covered lives, there is a corresponding increase in subscription fees.
Our health plan clients also purchase clinical services that leverage our AMG network. These visit consultations are charged on a fee-for-service basis and range in price based on the type of consultation and the specialty of the provider.
Government Healthcare Services
We offer new tailored healthcare solutions for government clients that provide efficient and accessible care options to meet the diverse needs of government healthcare systems, personnel and their families.
The Amwell Platform enables government healthcare providers to extend care beyond traditional settings, reaching personnel wherever they are stationed. With both on-demand and scheduled care options, we support a wide range of healthcare needs, including urgent care, primary care, behavioral health, chronic disease management, and specialty consultations.
Visits
Amwell’s clinical affiliate AMG has built a network of providers who are licensed and credentialed to deliver care on the Amwell Platform across the entire United States. This clinical network is designed and operated in a way that allows us to meet the aggregate visit demand requirements of our health plan and health system clients, spanning a broad mix of specialties, including Family Medicine, Lactation, Nutrition, Psychiatry, Therapy and Women's Health.
AMG earns fee-for-service revenue for each episode of care delivered on the Amwell Platform by its providers with fees varying by physician specialty or clinical program. These clinical fees vary significantly per consultation or case based on the specialty and may require an additional module subscription.
Fees received from AMG-related visits were $23.7 million and $21.2 million for the three months ended September 30, 2026 and 2025, respectively, and $77.0 million and $70.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Services & Carepoint Devices
We offer a full suite of paid, supporting services to our clients to enable their virtual care offerings, including professional services to facilitate virtual care implementation, workflow design, systems integration and service expansion. To help our clients promote adoption and utilization, we offer patient and provider engagement services through our internal digital engagement agency.
Amwell CarepointTM devices enable healthcare providers to leverage proprietary carts and transform existing tablets and TVs into digital access points in clinical settings, helping to address personnel shortages and access limitations. Our proprietary Carepoint devices coupled with our Carepoint Calling technology enables providers to deliver digital care into clinical locations, such as the emergency department, community hospitals, clinics, and hospital-at-home as well as into community settings such as retail stores,
21
employer sites, skilled nursing facilities, correctional facilities, and schools. Our Virtual Nursing and patient monitoring (eSitter) offerings leverage these Carepoint devices to augment on-site nurse teams with virtual staff, and leverage technology to increase patient safety and nurse efficiencies. These devices are built to rigorous safety and clinical standards and have advanced features including far-end camera controls, fleet monitoring and connectivity to a variety of peripherals, including diagnostic scopes and heart, lungs, stomach, and ear examination tools. Our Carepoint portfolio supports a range of uses, including multi-way video, phone connectivity and secure messaging to bring care teams to patients and members in the most efficient way possible.
Fees received from the provision of services and Carepoint devices were $1.4 million and $4.2 million for the three months ended September 30, 2026 and 2025, respectively, and $4.4 million and $19.8 million for the nine months ended September 30, 2026 and 2025, respectively.
Key Metrics and Factors Affecting Our Performance
We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. While these metrics present significant opportunities for us, they also represent the challenges that we must successfully address in order to grow our business and improve the results of our operations.
Digital Care Utilization
Digital and hybrid care utilization is a key driver of our business. A client’s overall utilization of its digital care platform provides an important measure of the value they derive and drives our business in three important ways. First, to the extent a client succeeds with its digital care program and sees good usage, they are more likely to renew and potentially expand their contract with us. Second, our health systems agreements typically include a certain number of visits conducted by their own providers annually and provide that as certain volume thresholds are exceeded, its annual license fees will rise to reflect this growing value. Third, to the extent that clients utilize provider services from AMG, Amwell derives revenue from clinical fees. We expect that our future revenues will be driven by the growing adoption of digital and hybrid care and our ability to maintain and grow market share within that market.
In the nine months ended September 30, 2026, our clients completed a total of 2.7 million visits using the Amwell Platform, while in the nine months ended September 30, 2025, 3.6 million visits were completed. AMG providers accounted for 38% and 27% of total visits performed using the Amwell Platform during the nine months ended September 30, 2026 and 2025, respectively. Visits have declined in the current period due to lower urgent care and behavioral visits as a result of customer churn, combined with lower seasonal illness volume in the summer months.
Total Overall Quarterly Visits |
|
|||||||
Quarter Ended |
|
Overall Visits |
|
|
Performed by Client Providers |
|
||
September 30, 2026 |
|
|
760,000 |
|
|
|
60 |
% |
June 30, 2026 |
|
|
840,000 |
|
|
|
62 |
% |
March 31, 2026 |
|
|
1,050,000 |
|
|
|
64 |
% |
December 31, 2025 |
|
|
980,000 |
|
|
|
65 |
% |
September 30, 2025 |
|
|
1,090,000 |
|
|
|
73 |
% |
Regulatory Environment
Our operations are subject to comprehensive United States federal, state and local regulations as well as international regulation in the jurisdictions in which we do business. Our ability to operate profitably will depend in part upon our ability, and that of our affiliated providers, to maintain all necessary licenses and to operate in compliance with applicable laws and rules. During the COVID-19 pandemic, state and federal regulatory authorities loosened or removed a number of regulatory requirements in order to increase the availability of digital care services. For example, changes were made to the Medicare and Medicaid programs (through waivers and other regulatory authority) to increase access to digital care services by, among other things, increasing reimbursement, permitting the enrollment of out of state providers and eliminating prior authorization requirements. Most Medicare reimbursement flexibilities have been extended through December 31, 2027, including a waiver for geographic site restrictions (patient may be located at home), the expansion of eligible provider types, and coverage for audio-only consults.
22
Seasonality
Visit volumes typically follow the annual flu season, rising during quarter four and quarter one and falling in the summer months. While we sell to and implement our solutions to clients year-round, we experience some seasonality in terms of when we enter into agreements with our clients and when we launch our solutions to members.
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with GAAP, we believe adjusted EBITDA, a non-GAAP measure, is useful in evaluating our operating performance. We use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial measure, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a metric used by management in assessing the health of our business and our operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison. A reconciliation is provided below for our non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measure and the reconciliation of this non-GAAP financial measure to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Adjusted EBITDA
Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities.
We calculate adjusted EBITDA as net loss adjusted to exclude (i) interest income and other (expense) income, net, (ii) net gain (loss) on divestiture, (iii) income tax expense, (iv) depreciation and amortization, (v) stock-based compensation expense and (vi) severance and strategic transformation costs.
The following table presents a reconciliation of adjusted EBITDA from the most comparable GAAP measure, net loss, for the three and nine months ended September 30, 2026 and 2025:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
(in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net loss |
|
$ |
(10,958 |
) |
|
$ |
(31,911 |
) |
|
$ |
(30,884 |
) |
|
$ |
(69,798 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
5,240 |
|
|
$ |
9,443 |
|
|
|
19,824 |
|
|
|
25,467 |
|
Interest income and other (expense) income, net |
|
|
(1,465 |
) |
|
|
(638 |
) |
|
|
(1,161 |
) |
|
|
(4,171 |
) |
Net gain (loss) on divestiture(2) |
|
|
— |
|
|
|
2,000 |
|
|
|
(7,027 |
) |
|
|
(8,713 |
) |
Income tax expense |
|
|
769 |
|
|
|
1,217 |
|
|
|
438 |
|
|
|
1,060 |
|
Stock-based compensation |
|
|
2,333 |
|
|
|
4,027 |
|
|
|
6,665 |
|
|
|
17,375 |
|
Severance and strategic transformation costs(1) |
|
|
483 |
|
|
|
3,193 |
|
|
|
4,317 |
|
|
|
9,199 |
|
Adjusted EBITDA |
|
$ |
(3,598 |
) |
|
$ |
(12,669 |
) |
|
$ |
(7,828 |
) |
|
$ |
(29,581 |
) |
Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these capital expenditures. Our adjusted EBITDA may not be comparable to similarly titled
23
measures of other companies because they may not calculate adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. In evaluating adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. Adjusted EBITDA should not be considered as an alternative to loss before benefit from income taxes, net loss, earnings per share, or any other performance measures derived in accordance with U.S. GAAP. When evaluating our performance, you should consider adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results.
Severance and strategic transformation costs
In the three months ended September 30, 2026 and 2025, the Company recorded charges of $0.5 million and $3.2 million, respectively, in connection with severance and strategic transformation costs. In the nine months ended September 30, 2026 and 2025, the Company recorded charges of $4.3 million and $9.2 million, respectively, in connection with severance and strategic transformation costs. The Company has executed a series of individual actions designed to maintain or improve our operating results and profitability. The Company continues to evaluate potential actions and may incur additional strategic transformation costs in future periods.
Our strategic transformation actions include headcount reductions, lease abandonment impairments and other related transitional amounts to maintain our competitive footprint. With the lease abandonment of our corporate headquarters we recognized $3.4 million in accelerated right of use asset amortization in the period. Strategic transformation actions are generally funded within twelve months of initiation and are funded by cash flows from operating activities and existing cash balances. We may incur additional strategic transformation costs in order to align our recurring cost structure with our current revenue profile. The timing and amount of the incurrence of such future strategic transformation costs are dependent on market conditions, customer actions and other factors.
For further information, see Note 14, "Severance and strategic transformation costs," to the condensed consolidated financial statements included in this Report.
Components of Statement of Operations
Revenue
The Company has demonstrated the strength of our revenue as a direct result of the increasing acceptance of digital care, our penetration of the market, and the successful launch of new and expanded products that enable broadened applications for care delivered virtually. Revenue performance is reflective of the strong foundation that has been built, focused around health plans, health systems, and our provider network.
We generate revenues from the use of the Amwell Platform in the form of recurring subscription fees for use, and related services and Carepoint sales. We also generate revenue from the performance of AMG patient visits. Subscription revenue is impacted by timing of revenue recognition. Services and Carepoint revenue depends on implementation timing.
Cost of Revenues, Excluding Amortization of Intangible Assets
Cost of revenues primarily consist of hosting fees paid to our hosting providers, costs incurred in connection with our professional services, technical and hosting support, and costs for running our affiliated provider network operations team. These costs primarily include employee-related expenses (including salaries, bonuses, benefits, stock-based compensation and travel).
Cost of revenues are primarily driven by the hosting and technical support required to service our clients and the size of our provider network. Our business model is designed to be scalable and to leverage fixed costs to generate higher revenues. While we currently expect increased investments to further enhance our offering, we also expect increased efficiencies and economies of scale. Our quarterly cost of revenues as a percentage of revenues is expected to fluctuate from period to period depending on the interplay of these aforementioned factors.
Research and Development Expenses
Research and development expenses include personnel and related expenses for software and hardware engineering, information technology infrastructure, security and compliance and product development (inclusive of stock-based compensation for our research and development employees). Research and development expenses also include the periodic outsourcing of similar functions to third party specialists. We have made an effort to optimize our resourcing structure with a mix of nearshore and offshore employees and contractors, resulting in a more efficient cost structure. We continue to enhance the Amwell Platform through additional functionality. We believe increased spending in prior years was a temporary investment to accelerate development of a more scalable and
24
economically beneficial solution that will properly position the Company to benefit in the long term and have seen decline during the year as we return to normal levels of spend in future periods.
Our research and development expenses may fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our research and development expenses based on customer demand and emerging market trends.
Sales and Marketing Expenses
Sales expenses consist primarily of employee-related expenses, including salaries, benefits, commissions, travel and stock-based compensation costs for our employees engaged in commercial activities. We will continue to invest appropriately in sales expenses as we look to grow with new prospects and expand the business of our existing clients. We will continue to elevate the skills and impact of our sales personnel and related account management teams as we look to provide a differentiated and enhanced client experience to our growing client base as well as identifying new strategic market opportunities.
Marketing costs consist primarily of personnel and related expenses (inclusive of stock-based compensation) for our marketing staff that primarily support the sales organization and client engagement. Marketing costs also include third-party independent research, digital marketing campaigns, participation in trade shows, brand messaging, public relations costs, and the costs of communication materials that are produced to generate awareness and utilization of the Amwell Platform among our clients and their users.
We expect sales and marketing expense to remain consistent in future periods. Our sales and marketing expenses may fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our advertising and marketing expenses.
General and Administrative Expenses
General and administrative expenses include personnel and related expenses, and professional fees incurred by finance, legal, human resources, information technology, our executives, and executive administration staff. They also include stock-based compensation for employees in these departments and expenses related to auditing, consulting, legal, and corporate insurance.
We expect our general and administrative expenses to remain relatively flat in future periods. Our general and administrative expenses may fluctuate as a percentage of our total revenue from period to period due to the timing and extent of our general and administrative expenses.
Depreciation and Amortization Expense
Depreciation and amortization expense includes the amortization of intangible assets and depreciation related to our fixed assets. Amortization of intangible assets consists of the amortization of acquisition-related intangible assets, which are customer relationships, technology and trade names, as well as the amortization of capitalized software costs.
Interest Income and Other Income (Expense), Net
The balance of interest income and other income (expense), net, consists predominantly of interest income on our money-market investments and foreign currency gains and losses. We did not incur material interest expenses in the period as there were no outstanding debts or notes payables.
Gain on divestiture
The Company and Aligned entered into an asset purchase agreement relating to the sale of all property and assets owned, leased or licensed by Aligned that are primarily used or held for use in connection with the APC Business. In connection with such purchase and sale, the buyer assumed specified contracts and the related accounts receivable and all accounts payable and accrued expenses of the APC Business, and Dr. Cynthia Horner transferred the ownership of Asana to a doctor affiliated with the buyer. We divested the APC Business as it was determined the offering no longer fit our goals around profitability and growth. Streamlining our service offerings will enable us to focus our resources on the Amwell Platform, strategic customers, and our path to profitability. The
25
divestiture of APC did not represent a strategic shift that would have a major effect on the Company's consolidated results of operations, and therefore, its results of operations were not reported as discontinued operations.
Provision for Income Taxes
The income tax expense is primarily due to state and foreign income tax expense.
Deferred tax assets are reduced by a valuation allowance to the extent management believes it is not more likely than not to be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management makes estimates and judgments about future taxable income based on assumptions that are consistent with our plans and estimates.
Consolidated Results of Operations
The following table sets forth our summarized condensed consolidated statement of operations data for the three and nine months ended September 30, 2026 and 2025 and the dollar and percentage change between the respective periods:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
(in thousands) |
|
2026 |
|
|
2025 |
|
|
Change |
|
|
% |
|
|
2026 |
|
|
2025 |
|
|
Change |
|
|
% |
|
||||||||
Revenue |
|
$ |
48,991 |
|
|
$ |
56,286 |
|
|
$ |
(7,295 |
) |
|
|
(13 |
)% |
|
$ |
155,922 |
|
|
$ |
194,017 |
|
|
$ |
(38,095 |
) |
|
|
-20 |
% |
Costs and operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Costs of revenue, excluding depreciation and |
|
|
23,032 |
|
|
|
26,779 |
|
|
|
(3,747 |
) |
|
|
(14 |
)% |
|
|
74,437 |
|
|
|
89,496 |
|
|
|
(15,059 |
) |
|
|
(17 |
)% |
Research and development |
|
|
9,595 |
|
|
|
18,582 |
|
|
|
(8,987 |
) |
|
|
(48 |
)% |
|
|
32,326 |
|
|
|
58,921 |
|
|
|
(26,595 |
) |
|
|
(45 |
)% |
Sales and marketing |
|
|
7,285 |
|
|
|
9,078 |
|
|
|
(1,793 |
) |
|
|
(20 |
)% |
|
|
20,874 |
|
|
|
34,172 |
|
|
|
(13,298 |
) |
|
|
(39 |
)% |
General and administrative |
|
|
15,493 |
|
|
|
21,736 |
|
|
|
(6,243 |
) |
|
|
(29 |
)% |
|
|
47,095 |
|
|
|
66,083 |
|
|
|
(18,988 |
) |
|
|
(29 |
)% |
Depreciation and amortization expense |
|
|
5,240 |
|
|
|
9,443 |
|
|
|
(4,203 |
) |
|
|
(45 |
)% |
|
|
19,824 |
|
|
|
25,467 |
|
|
|
(5,643 |
) |
|
|
(22 |
)% |
Total costs and operating expenses |
|
|
60,645 |
|
|
|
85,618 |
|
|
|
(24,973 |
) |
|
|
(29 |
)% |
|
|
194,556 |
|
|
|
274,139 |
|
|
|
(79,583 |
) |
|
|
(29 |
)% |
Loss from operations |
|
|
(11,654 |
) |
|
|
(29,332 |
) |
|
|
17,678 |
|
|
|
(60 |
)% |
|
|
(38,634 |
) |
|
|
(80,122 |
) |
|
|
41,488 |
|
|
|
(52 |
)% |
Interest income and other (expense) income, net |
|
|
1,465 |
|
|
|
638 |
|
|
|
827 |
|
|
|
130 |
% |
|
|
1,161 |
|
|
|
4,171 |
|
|
|
(3,010 |
) |
|
|
(72 |
)% |
Net gain (loss) on divestiture |
|
|
— |
|
|
|
(2,000 |
) |
|
|
2,000 |
|
|
|
100 |
% |
|
|
7,027 |
|
|
|
8,713 |
|
|
|
(1,686 |
) |
|
|
(19 |
)% |
Loss before expense from income taxes and loss from equity method investment |
|
|
(10,189 |
) |
|
|
(30,694 |
) |
|
|
20,505 |
|
|
|
(67 |
)% |
|
|
(30,446 |
) |
|
|
(67,238 |
) |
|
|
36,792 |
|
|
|
(55 |
)% |
Income tax expense |
|
|
(769 |
) |
|
|
(1,217 |
) |
|
|
448 |
|
|
|
(37 |
)% |
|
|
(438 |
) |
|
|
(1,060 |
) |
|
|
622 |
|
|
|
(59 |
)% |
Loss from equity method investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0 |
% |
|
|
— |
|
|
|
(1,500 |
) |
|
|
1,500 |
|
|
|
(100 |
)% |
Net loss |
|
|
(10,958 |
) |
|
|
(31,911 |
) |
|
|
20,953 |
|
|
|
(66 |
)% |
|
|
(30,884 |
) |
|
|
(69,798 |
) |
|
|
38,914 |
|
|
|
(56 |
)% |
Net income attributable to non-controlling interest |
|
|
403 |
|
|
|
467 |
|
|
|
(64 |
) |
|
|
(14 |
)% |
|
|
1,290 |
|
|
|
980 |
|
|
|
310 |
|
|
|
32 |
% |
Net loss attributable to American Well |
|
$ |
(11,361 |
) |
|
$ |
(32,378 |
) |
|
$ |
21,017 |
|
|
|
(65 |
)% |
|
$ |
(32,174 |
) |
|
$ |
(70,778 |
) |
|
$ |
38,604 |
|
|
|
(55 |
)% |
Revenue
For the three months ended September 30, 2026, subscription revenue decreased $7.0 million due to timing of revenue recognition with our strategic customers. Other revenue decreased $2.8 million primarily related to a decline of $2.1 million in professional services performed around the integration of our strategic customers and a decline in hardware revenue of $0.4 million. These decreases were offset by an increase in visit revenue of $2.5 million due to the visit mix being weighted more to special program visits, partially offset by fewer visits.
For the nine months ended September 30, 2026, subscription revenue decreased $29.0 million due to timing of revenue recognition with our strategic customers. Other revenue decreased $15.5 million primarily related to a decline of $9.2 million in professional services performed around the integration of our strategic customers and a decline in marketing revenue of $5.4 million. These decreases were offset by an increase in visit revenue of $6.4 million due to the visit mix being weighted more to special program visits, partially offset by fewer visits.
Costs of Revenue, Excluding Amortization of Acquired Intangible Assets
For the three months ended September 30, 2026, the decrease in cost of revenue was primarily driven by a decrease in employee costs of $1.0 million due to a headcount reduction of 14% period over period. There was also a decrease in marketing services for customers of $1.1 million. Hardware costs also declined $0.5 million in line with the decline in revenue and second opinion costs declined $0.5 million compared to the three months ended September 30, 2025.
For the nine months ended September 30, 2026, the decrease in cost of revenue was primarily driven by a decrease in employee costs of $7.8 million due to a headcount reduction of 23% period over period. There was also a decrease in marketing services for customers of $6.1 million. Hardware costs also declined $0.6 million in line with the decline in revenue.
26
Research and Development Expenses
For the three months ended September 30, 2026, there was a decrease in employee-related costs of $6.9 million (due to headcount reduction of 19% period over period and reduced stock compensation expense). There was also a decrease of $1.5 million in consulting spend due to $3.0 million more software development costs meeting the capitalization criteria, partially offset by increased costs.
For the nine months ended September 30, 2026, there was a decrease in employee-related costs of $21.0 million (due to headcount reduction of 25% period over period and reduced stock compensation expense). There was also a decrease of $5.2 million in consulting spend due to $8.6 million more software development costs meeting the capitalization criteria, partially offset by increased costs.
Sales and Marketing Expenses
For the three months ended September 30, 2026, there was a decrease in employee-related costs of $1.9 million (due to headcount reduction of 39% period over period and reduced stock compensation expense).
For the nine months ended September 30, 2026, there was a decrease in employee-related costs of $11.4 million (due to headcount reduction of 47% period over period and reduced stock compensation expense), and due to cost savings measures put into place a decrease in conference and marketing spend of $1.2 million.
General and Administrative Expenses
For the three months ended September 30, 2026, the decrease in general and administrative expense was driven by a decrease in employee-related costs of $1.6 million. The employee related costs were driven primarily by the decrease in stock compensation expense as higher value historic awards had become fully expensed, as well as headcount reductions of 16% period over period. The decrease was also due to a decrease in legal expense during the period of $5.5 million. These decreases were partially offset by an increase in third party software spend of $1.1 million.
For the nine months ended September 30, 2026, the decrease in general and administrative expense was driven by a decrease in employee-related costs of $16.4 million. The employee related costs were driven primarily by the decrease in stock compensation expense as higher value historic awards had become fully expensed, as well as headcount reductions of 26% period over period. The decrease was also due to a decrease in legal spend during the period of $6.4 million. These decreases were partially offset by an increase in bad debt related to historical visits of $2.2 million and an increase in third party software expense of $1.2 million.
Depreciation and Amortization Expense
Depreciation expense remained consistent for the three and nine months ended September 30, 2026 and 2025. Amortization expense for the three and nine months ended September 30, 2026 decreased $4.2 million and $5.6 million due to certain intangible assets being fully amortized.
Interest Income and Other (Expense) Income, net
For the three and nine months ended September 30, 2026 and 2025, interest income and other (expense) income, net consist predominantly of interest income and gains from our cash equivalents and short-term investments and foreign currency gains and losses.
Gain on divestiture
The gain of divesture relates to the gain from finalization of the contingent consideration related to the APC sale.
Expense from Income Taxes
Income tax expense was $0.8 million and $0.4 million for the three and nine months ended September 30, 2026, compared to income tax expense of $1.2 million and $1.1 million for the three and nine months ended September 30, 2025.
27
Loss from Equity Method Investment
In 2019, the Company and Cleveland Clinic partnered to form a joint venture, under the name CCAW, JV LLC, to provide broad access to comprehensive and high acuity care services via virtual care. The Company does not have a controlling financial interest in CCAW, JV LLC, but it does have the ability to exercise significant influence over the operating and financial policies of CCAW, JV LLC. Therefore, the Company accounts for its investments in CCAW, JV LLC using the equity method of accounting.
During 2025, the companies determined that these care services could be provided through partnering between the two entities and that the joint venture was no longer necessary to achieve care delivery, as a result the companies entered into an agreement for the transfer of the VSO Business and complete liquidation and dissolution of the joint venture. Certain business activities will continue through the transition period which will conclude in 2026.
During the three and nine months ended September 30, 2026 and the three months ended September 30, 2025, the Company recognized no loss or income as its proportionate share of the joint venture as the investment was written down to zero. During the nine months ended September 30, 2025, the Company recognized a loss of $1.5 million, as its proportionate share of the joint venture results of operations.
Liquidity and Capital Resources
The following table presents a summary of our cash flow activity for the periods set forth below:
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Consolidated Statements of Cash Flows Data: |
|
|
|
|
|
|
||
Net cash used in operating activities |
|
$ |
(1,934 |
) |
|
$ |
(48,598 |
) |
Net cash (used in) provided by investing activities |
|
|
(1,590 |
) |
|
|
19,391 |
|
Net cash provided by financing activities |
|
|
541 |
|
|
|
841 |
|
Total |
|
$ |
(2,983 |
) |
|
$ |
(28,366 |
) |
Sources of Financing
Our principal sources of liquidity were cash and cash equivalents totaling $180.8 million and $182.3 million as of September 30, 2026 and December 31, 2025, respectively, which were held for a variety of growth initiatives and investments as well as working capital purposes. Our cash and cash equivalents are comprised of money market funds.
As shown in the accompanying condensed consolidated financial statements, the Company incurred a loss from operations of $38.6 million and a net loss of $30.9 million for the nine months ended September 30, 2026 and had an accumulated deficit of $2,093.8 million as of September 30, 2026.
The Company has no debt as of September 30, 2026 or December 31, 2025 and continues to progress to breakeven in cash used in operations, but do expect to generate some operating losses in future periods.
We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months from the issuance date of the financial statements. Our future capital requirements will depend on many factors including our growth rate, contract renewal activity, number of consultations on the Amwell Platform, the timing and extent of spending to support product development efforts, our expansion of sales and marketing activities, the introduction of new and enhanced services offerings, and the continuing market acceptance of digital care services. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies and intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, financial condition and results of operations would be adversely affected.
Nine months ended September 30, 2026, vs. Nine months ended September 30, 2025
Cash Used in Operating Activities
Cash used in operating activities was $1.9 million for the nine months ended September 30, 2026. The primary driver of this was the use of cash from our net loss of $30.9 million. The net loss was partially offset by non-cash expenses of $27.6 million
28
(primarily depreciation and amortization of $19.8 million, stock-based compensation of $6.7 million and impairment of right of use asset of $3.4 million, offset by net gain on divestiture of $7.0 million).
Cash used in operating activities was $48.6 million for the nine months ended September 30, 2025. The primary driver of this use of cash was our net loss of $69.8 million and decreases in accounts receivable and deferred revenue which resulted in decreases of cash of $15.5 million. The net loss was partially offset by non-cash expenses of $38.9 million (primarily stock-based compensation of $17.4 million and depreciation and amortization of $25.5 million, offset by net gain on divestiture of $8.7 million).
Cash (Used in) Provided by Investing Activities
Cash used in investing activities was $1.6 million for the nine months ended September 30, 2026. Cash used in investing activities consisted of $8.6 million of capitalized software costs partially offset by $7.0 million in proceeds from divestiture.
Cash provided by investing activities was $19.4 million for the nine months ended September 30, 2025. Cash provided by investing activities consisted of $20.4 million in proceeds from divestiture offset by $1.0 million minority investment in a strategic technology partner.
Cash Provided by Financing Activities
Cash provided by financing activities for the nine months ended September 30, 2026, was $0.5 million, consisting of proceeds from the employee stock purchase plan.
Cash provided by financing activities for the nine months ended September 30, 2025, was $0.8 million, consisting of proceeds from the employee stock purchase plan.
Off-Balance Sheet Arrangements
During the periods presented, we did not have, nor do we currently have, any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We are therefore not exposed to the financing, liquidity, market or credit risk that could arise if we had engaged in those types of relationships.
Contractual Obligations and Commitments
As of September 30, 2026, there have been no material changes from the contractual obligations and commitments previously disclosed in our Form 10-K.
Critical Accounting Estimates
Our condensed consolidated financial statements and the related notes thereto are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions that the Company believes are necessary to consider to form a basis for making judgments about the carrying values of assets and liabilities, the recorded amounts of revenue and expenses, and the disclosure of contingent assets and liabilities. The Company is subject to uncertainties such as the impact of future events, economic and political factors, and changes in the Company’s business environment; therefore, actual results could differ from these estimates. Accordingly, the accounting estimates used in the preparation of the Company’s condensed consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment evolves. For a discussion of our critical accounting estimates see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the 2025 Form 10-K.
Recently Issued Accounting Pronouncements Adopted
For more information on recently issued accounting pronouncements, see Note 2 to our condensed consolidated financial statements covered under Part I, Item 1 of this Quarterly Report on Form 10-Q.
29
New Accounting Pronouncements Not Yet Adopted
For more information on new accounting pronouncements not yet adopted, see Note 2 to our condensed consolidated financial statements covered under Part I, Item 1 in this Quarterly Report on Form 10-Q.
Item 3. Qualitative and Quantitative Disclosure about Market Risk
Interest Rate Risk
We had cash and cash equivalents totaling $180.8 million, and $182.3 million as of September 30, 2026 and December 31, 2025, respectively. These amounts were primarily invested in money markets. The Company held no investments as of September 30, 2026 and December 31, 2025. The cash and cash equivalents are held for a variety of growth and investments as well as working capital purposes.
We do not believe that an increase or decrease of 100 basis points in interest rates would have a material effect on our business, financial condition or results of operations. However, our cash equivalents are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. Due in part to these factors, our future investment income may fall short of expectation due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates.
Fluctuations in the value of our money market funds caused by a change in interest rates (gains or losses on the carrying value) are recorded in other income and are realized only if we sell the underlying securities.
Foreign Currency Exchange Risk
To date, a substantial majority of our revenue from client arrangements has been denominated in U.S. dollars. We have limited operations outside the United States. As of September 30, 2026 and December 31, 2025, the Company has foreign subsidiaries in Israel, Ireland, the United Kingdom and Australia, the functional currency of each subsidiary being the New Israeli Shekel, Euro, British pound and Australian dollar, respectively. The Company also has a branch with a functional currency of the New Israeli Shekel. The transactional activity for these entities in the nine months ended September 30, 2026 and 2025 was not considered significant. Accordingly, we believe we do not have a material exposure to foreign currency risk. We may choose to focus on international expansion, which may increase our exposure to foreign currency exchange risk in the future.
Inflation Risk
We do not believe that inflation had a material effect on our business, financial condition or results of operations in the last two years. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition or results of operations.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Our management, with the participation of our principal executive officers and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officers and principal financial officer concluded that as of September 30, 2026, our disclosure controls and procedures were effective. Disclosure controls and procedures are our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officers and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
30
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, in the opinion of our management, would individually or taken together have a material adverse effect on our business, financial condition, results of operations or cash flows. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity, reputational harm and other factors.
Item 1A. Risk Factors
There have been no material changes to the risk factors previously disclosed in our Form 10-K. For a discussion of potential risks and uncertainties related to our Company see the information in our Form 10-K in the section entitled “Risk Factors.”
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Recent Sales of Unregistered Securities
There were no sales of unregistered equity securities during the quarter ended September 30, 2026.
Issuer Purchases of Equity Securities
The following table provides information about the Company’s purchases of its common stock for each month during this quarterly period covered by this report:
Period |
|
(a) Total |
|
|
(b) Average |
|
|
(c) Total number |
|
|
(d) Maximum |
|
||||
July 1 to July 31 |
|
|
67 |
|
|
$ |
9.12 |
|
|
|
— |
|
|
|
— |
|
August 1 to August 31 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
September 1 to September 30 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
|
67 |
|
|
$ |
9.12 |
|
|
|
— |
|
|
|
— |
|
* Shares withheld to cover tax withholding obligations under the net settlement provision upon vesting of restricted stock units and exercising of options.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
31
Item 5. Other Information
Insider Trading Arrangements and Policies
During the three months ended September 30, 2026,
Item 6. Exhibits
The documents listed below are incorporated by reference or are filed with this Quarterly Report on Form 10-Q, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K).
31.1* |
|
|
|
|
|
31.2* |
|
|
|
|
|
32.1* |
|
|
|
|
|
32.2* |
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
|
|
|
104 |
|
Cover page formatted as Inline XBRL and contained in Exhibit 101 |
* |
Filed herewith |
# |
Indicates a management contract or compensatory plan |
32
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
|
|
|
AMERICAN WELL CORPORATION |
|
|
|
|
|
Date: |
November 3, 2026 |
|
By: |
/s/ Ido Schoenberg, MD |
|
|
|
|
Chief Executive Officer |
|
|
|
|
(Principal Executive Officer) |
|
|
|
|
|
Date: |
November 3, 2026 |
|
By: |
/s/ Mark Hirschhorn |
|
|
|
|
Chief Financial Officer |
|
|
|
|
(Principal Financial Officer) |
|
|
|
|
|
Date: |
November 3, 2026 |
|
By: |
/s/ Paul McNeice |
|
|
|
|
Chief Accounting Officer |
|
|
|
|
(Principal Accounting Officer) |
33
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PERIODIC REPORT UNDER SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Ido Schoenberg, certify that:
Date: November 3, 2026 |
|
|
|
|
By: |
|
/s/ Ido Schoenberg |
|
|
|
Ido Schoenberg |
|
|
|
Chief Executive Officer |
|
|
|
(Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER PERIODIC REPORT UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Mark Hirschhorn, certify that:
Date: November 3, 2026 |
|
|
|
|
By: |
|
/s/ Mark Hirschhorn |
|
|
|
Mark Hirschhorn |
|
|
|
Chief Financial Officer |
|
|
|
(Principal Financial Officer) |
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS
ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Ido Schoenberg, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of American Well Corporation for the fiscal quarter ended September 30, 2026 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of American Well Corporation.
Date: November 3, 2026
|
|
By: |
/s/ Ido Schoenberg |
Name: |
Ido Schoenberg |
Title: |
Chief Executive Officer |
|
(Principal Executive Officer) |
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Mark Hirschhorn, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of American Well Corporation for the fiscal quarter ended September 30, 2026 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of American Well Corporation.
Date: November 3, 2026
|
|
By: |
/s/ Mark Hirschhorn |
Name: |
Mark Hirschhorn |
Title: |
Chief Financial Officer |
|
(Principal Financial Officer) |