WELL Health Q2 2025 slides: Record revenue and EBITDA with 57% growth

WELL Health Technologies Corp (TSX:WELL) delivered record financial results in its Q2 2025 earnings presentation on August 14, 2025, reporting substantial revenue growth across all segments and a dramatic increase in adjusted EBITDA.

Quarterly Performance Highlights

WELL Health reported Q2 2025 revenue of $356.7 million, representing a 57% year-over-year increase, while adjusted EBITDA surged 231% to $49.7 million. The company also reported improved adjusted gross margins of 44.5% (including Circle Medical) and 43.0% (excluding Circle Medical).

As shown in the following financial highlights chart, free cash flow available to shareholders increased 34% year-over-year to $11.6 million:

The strong Q2 results mark a significant improvement from Q1 2025, when the company reported revenue of $294.1 million and adjusted EBITDA of $27.6 million. This acceleration in performance comes as WELL continues to expand its Canadian operations while exploring strategic alternatives for its US assets.

Canadian Operations Growth

WELL’s Canadian operations showed particularly impressive growth, with revenue reaching $131.4 million, up 40% year-over-year, including 25% organic growth. The Canadian segment’s adjusted EBITDA grew 76% year-over-year to $23.0 million.

The following chart illustrates the consistent growth trajectory of WELL’s Canadian clinics over the past several years:

WELL’s Canadian operations are experiencing accelerating growth, as demonstrated by the quarterly revenue and EBITDA progression:

The company has established itself as Canada’s largest network of outpatient clinics with 222 locations, yet it accounts for only approximately 1.6% of total patient visits in the Canadian market. This suggests significant room for expansion, with WELL targeting a future market share of 8-10%.

Patient visits per billable provider have also improved, increasing from 429 in Q2 2023 to 548 in Q2 2025, indicating enhanced operational efficiency across the clinic network.

HEALWELL AI Transformation

One of the most dramatic developments in the quarter was the transformation of HEALWELL AI (TSX:AIDX), which experienced extraordinary growth with revenue increasing 645% year-over-year to $40.5 million. More significantly, HEALWELL achieved its first quarter of positive adjusted EBITDA at $1.9 million, compared to a loss of $3.7 million in the same period last year.

The following chart illustrates HEALWELL’s transformational quarter:

WELL’s investment in HEALWELL has created substantial value for shareholders. The company invested approximately $28.9 million in HEALWELL, which now has a market value of $158.5 million, representing a 450% return and creating over $129 million in shareholder value.

Strategic Initiatives & M&A Activity

WELL continues to pursue an active M&A strategy, particularly in the Canadian market. During Q2 2025, the company completed three clinic acquisitions, adding $8.0 million in annual revenue and 46 providers. The M&A pipeline remains robust with seven signed letters of intent for Canadian clinics representing $48 million in revenue and 25 clinics.

The company is also exploring strategic alternatives for its US assets, including Circle Medical, Wisp, and CRH Medical. This strategic realignment appears focused on concentrating resources on the high-growth Canadian market while potentially monetizing US operations.

The following chart breaks down the components contributing to WELL’s record revenue and adjusted EBITDA in Q2 2025:

Forward-Looking Statements

WELL Health provided optimistic guidance for 2025 and beyond, projecting full-year revenue in the upper half of its $1.40-1.45 billion range and adjusted EBITDA in the upper half of $190-210 million. Excluding Circle Medical, guidance remains in the upper half of $1.35-1.40 billion for revenue and $140-160 million for adjusted EBITDA.

For its Canadian operations, WELL is targeting over 25% adjusted EBITDA growth in 2025 and has set a two-year target of exceeding $800 million in revenue and $100 million in adjusted EBITDA.

The company’s outlook and guidance are summarized in the following slide:

WELL’s stock closed at $5.02 on August 13, 2025, up 4.15% ahead of the earnings release, suggesting positive market expectations for the quarter.

The company’s continued focus on its Canadian operations, coupled with the transformation of HEALWELL AI and strategic review of US assets, positions WELL Health for potential continued growth as it executes on its vision of becoming the dominant player in the Canadian healthcare technology and services market.

Full presentation:

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