AMWL earnings analysis
What we found in AMWL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Amwell delivered Q2 revenue of $52.048 million and a diluted loss per share of $0.59, with revenue down 27% year over year but the net loss narrowing 51% to $9.625 million. Cost actions materially improved operating margin to negative 18.4% from negative 28.7% a year ago and produced $9.734 million of first-half operating cash flow. Liquidity is substantial at $195.946 million of cash and no debt, but the outlook remains constrained by subscription-revenue timing, declining utilization, customer concentration, and the need to extend the Defense Health Agency relationship beyond Q3 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- GAAP losses narrowed sharply
- Q2 net loss narrowed 51% year over year to $9.625 million from $19.531 million, while diluted loss per share improved to $0.59 from $1.24. Sequentially, EPS improved from a $0.66 loss in Q1 2026.
- Operating-margin improvement continued
- Operating loss improved to $9.556 million from $20.379 million a year earlier, lifting operating margin to negative 18.4% from negative 28.7%; it also improved from negative 31.8% in Q1 2026.
- Sequential gross-margin expansion
- Gross margin was 52.9%, up from 51.0% in Q1 2026, as cost of revenue fell 21% year over year to $24.486 million. Gross margin remained below 56.1% a year ago.
- Operating cash flow turned positive
- First-half operating cash flow swung to positive $9.734 million from negative $29.832 million. After $5.630 million of capitalized software and $0.013 million of equipment purchases, six-month free cash flow was approximately positive $4.091 million.
- Strong net-cash liquidity position
- Cash and cash equivalents increased $13.618 million year to date to $195.946 million, and the company reported no debt at June 30, 2026.
- Visits and adjusted EBITDA improved
- Visit revenue grew 7% year over year to $24.426 million, partly offsetting subscription revenue's $14.752 million decline; adjusted EBITDA loss improved to $1.150 million from $4.674 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue contraction remains material
- Revenue fell 27% year over year to $52.048 million from $70.898 million and declined from $55 million in Q1 2026. Subscription revenue decreased $14.752 million to $25.708 million, driven by timing of strategic-customer revenue recognition.
- Customer concentration intensified
- Customer concentration increased: one client represented 65% of accounts receivable at June 30, 2026, versus 53% at December 31, 2025. Two clients represented 38% and 17% of Q2 revenue.
- DHA renewal and utilization risk
- Management cites the continuation of the Defense Health Agency relationship beyond Q3 2026 on comparable terms as a forward-looking risk. Platform visits also fell to 1.9 million in the first half from 2.5 million a year earlier, due to customer churn and summer seasonality.
- Profitability and restructuring execution risk
- Management expects operating losses in future periods despite a first-half operating loss of $26.980 million. The company also recorded a $3.424 million impairment after abandoning its corporate headquarters and has $3.597 million of remaining transformation costs to pay.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.59
- Gross margin
- 52.95%
- Operating margin
- -18.36%
- Segment
- Single reportable segment: total revenue $52.048 million; platform subscription $25.708 million, visits $24.426 million, and other revenue $1.914 million.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states it expects operating losses in future periods and believes its $195.9 million of cash and cash equivalents will fund working-capital and capital-expenditure needs for at least the next 12 months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- American Well reported Q1 2026 results showing revenue of $54.9 million, down from $66.8 million in the prior year, while EPS loss improved to -$0.66 from -$1.19. The company is focusing on operational improvements,…
- 10-K · February 12, 2026
- Amwell positions itself as a B2B hybrid care platform powering digital care for payers and health systems (approximately 50 health plans representing more than 90 million covered lives and ~80 health systems) and…
- 10-Q · May 1, 2025
- Revenue improved to $66,833 (in thousands) in Q1 2025 from $59,522 (in thousands) a year earlier, while gross margin expanded to ~52.8% and operating loss narrowed materially. EPS (net loss per share) improved to…
- 10-K · February 12, 2025
- Amwell positions itself as a B2B hybrid-care platform provider focused on migrating clients to its Amwell Converge™ platform and expanding clinical services (AMG) and device (Carepoint) offerings. Platform adoption…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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