Well Health has reported record revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter of 2025, just hours after its long-time partner Healwell AI, in which it holds a controlling interest, also posted positive results.
The Vancouver digital healthcare firm saw its revenue climb to $294.1 million in Q1, a 32-percent year-over-year increase. Its adjusted EBITDA grew 36 percent over the same period, to $27.6 million.
“These results demonstrate the growing strength of our platform and our ability to help support healthcare providers with our unique tech enabled platform.”
Hamed Shahbazi
CEO,
Well Health
Well Health’s net income was down from $17.2 million to $7.5 million year over year, but the company attributed this to a $11.3-million gain from the sale of Intrahealth in the first quarter of last year, which left it with an unusual windfall at the time. It added that its net income this quarter would have been $10.8 million without deferring $6.5 million in revenue from its United States (US) subsidiary Circle Medical, which faced government scrutiny over its billing practices.
CEO Hamed Shahbazi said his company was “particularly proud” of its Canadian business, which saw its adjusted EBITDA grow 29 percent year-to-year, versus 23 percent in Q1 2024. There were 1.6 million patient visits in Q1 2025, a 23-percent jump.
“These results demonstrate the growing strength of our platform and our ability to help support healthcare providers with our unique tech enabled platform,” Shahbazi said.
Well Health also noted that it would start recognizing revenue from Healwell AI in Q2, and expected roughly $40 million in revenue per quarter in 2025. Well Health used its call rights to buy a majority controlling interest in Healwell at the start of April. Healwell was simultaneously closing its acquisition of New Zealand healthcare data management provider Orion Health.
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At the time, Shahbazi claimed the purchase would combine Well Health’s scale, Healwell’s AI expertise, and Orion’s knowledge of global health data systems to offer “cutting-edge” AI solutions for patients.
Toronto-based Healwell announced that its revenue had more than doubled in Q1 to $14.1 million, owing largely to acquisitions and a thriving AI business. However, it also posted a $14-million net loss and had begun cost-cutting efforts that included layoffs. It expected the Orion Health purchase to contribute roughly $100 million in annual revenue and to keep adjusted EBITDA positive for the “full year.”
Feature image courtesy of Nappy on Unsplash.