American Well Q2 Earnings Call Highlights

American Well NYSE: AMWL , which operates as Amwell, reported second-quarter 2026 revenue of $52 million, down 26.6% from a year earlier, while narrowing its adjusted EBITDA loss and raising its full-year profitability outlook as the company pursues operating and cash-flow breakeven in the fourth quarter. The virtual-care technology company said its adjusted EBITDA loss was $1.15 million, compared with a $4.7 million loss in the second quarter of 2025. Operating loss improved 53% year over year to $9.6 million. Amwell ended the quarter with $196 million in cash and marketable securities and no debt. Chairman and CEO Dr. Ido Schoenberg said the company has shifted from being primarily a telehealth vendor to providing infrastructure for technology-enabled and AI-powered care programs. He said subscription revenue now accounts for more than half of total revenue and described recurring subscription revenue as a more stable foundation for the business. A key development during the quarter was the Defense Health Agency’s intent to award Amwell a direct sole-source contract. Schoenberg called the notice an important milestone that could expand and strengthen Amwell’s relationship with the Military Health System, which serves 9.6 million service members, families and retirees. Amwell’s platform is integrated with MHS GENESIS, the federal health IT platform used by the Military Health System. Schoenberg said the platform has connected deployed military units in combat zones with hospitals in the U.S. Chief Financial Officer and Chief Operating Officer Mark Hirschhorn said the DHA is negotiating direct contracts with five companies that provide separate core capabilities: Amwell, Oracle Health, Philips, Solventum and Henry Schein. The DHA had initially targeted July 30, 2026, for some contracts to become active, but Hirschhorn said parties needed additional information and time for negotiations. The DHA’s deadline to execute the contracts is July 2027, though it intends to transition as soon as possible. Hirschhorn said a direct contract could create opportunities for Amwell to provide a broader scope of services previously handled through third parties. He also said Amwell is discussing the potential reintroduction of its SilverCloud behavioral health offering within the DHA environment, with the earliest opportunity to activate those services expected in 2027. Subscription revenue was $25.7 million, down 36.5% from the prior-year period but up 3.2% sequentially. Hirschhorn attributed the year-over-year decline to previously disclosed customer churn and a one-time subscription-revenue benefit recognized in the second quarter of 2025 related to the DHA platform deployment. He said the seque...