This article first appeared on GuruFocus.
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Revenue: $365 million in Q3 2025, up 56% year over year.
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Adjusted EBITDA: $59.9 million in Q3 2025, a 296% increase from Q3 2024.
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Gross Margin: Improved by 510 basis points to 45.5% from 40.4% last year.
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Free Cash Flow: $30.2 million in Q3 2025, including a divestiture; $15.1 million without it.
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Canadian Clinics Revenue: $325.3 million for the nine months ended September 30, 2025.
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Patient Visits: 2.7 million in Q3 2025, a 29% increase year over year.
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Number of Clinics: 227 clinics in Canada as of Q3 2025.
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Wellstar Revenue: $18.3 million in Q3 2025, a 67% increase year over year.
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HealWell Revenue: $30.4 million in Q3 2025, a 354% increase year over year.
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Circle Medical Revenue: $42 million in Q3 2025, a 120% increase year over year.
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CRH Revenue: $125.1 million in Q3 2025, a 32% increase year over year.
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Adjusted Net Income: $41 million or $0.16 per share in Q3 2025.
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Cash and Cash Equivalents: $82.5 million as of September 30, 2025.
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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WELL Health Technologies Corp (WHTCF) reported a significant revenue increase of 56% year-over-year, reaching approximately $365 million for Q3 2025.
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The company achieved a remarkable growth in adjusted EBITDA, which increased by 296% to $59.9 million compared to the previous year.
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WELL Health Technologies Corp (WHTCF) improved its gross margins by 510 basis points to 45.5% from 40.4% last year.
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The Canadian clinics business showed strong performance with a compound annual growth rate exceeding 50% over the past four years.
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WELL Health Technologies Corp (WHTCF) has a robust M&A pipeline, with approximately $235 million in clinics under letters of intent (LOI), indicating strong future growth potential.
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Circle Medical’s patient visits were lower than last year due to a significant focus on compliance, impacting overall system-wide organic growth.
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The strategic review process for US assets, including Circle Medical, is expected to take longer, potentially delaying divestment plans.
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Free cash flow attributable to shareholders decreased slightly to $15.1 million in Q3 2025 from $16.1 million in Q3 of last year.
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The company incurred a $10.5 million impairment charge related to the divestment of HealWell’s clinical operations.
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There is a slower organic growth in patient visits system-wide, attributed to Circle Medical’s compliance focus, which could affect future revenue growth.
Q: How should we be looking at the margin profile in the coming quarters, assuming you don’t sell any of your US businesses? A: Hamed Shahbazi, CEO, explained that the margin improvements are due to a shift in revenue mix, focusing on higher-margin assets like preventative health and executive health businesses. The growth of Wellstar and Healwell, which have higher margins, also contributes. These trends are expected to continue as they focus on balanced growth in Canadian clinics.
Q: How much of the margin uplift in Canadian clinics is due to the clinic transformation team versus revenue mix? A: Shahbazi highlighted that the clinic transformation team plays a significant role, with technology improvements leading to a 19% increase in patient visits per provider year over year. This success is also driving physician recruitment, which is nearing the rate of acquisitions through M&A.
Q: What are you looking for in potential acquisition targets for Wellstar, and what framework are you applying in terms of multiples? A: Shahbazi stated that Wellstar focuses on three key areas: billing, electronic medical records, and digital health applications. They aim for a 20% IRR on acquisitions, evaluating opportunities on a price-to-sales and EBITDA basis.
Q: Can you provide more details on the CRH divestment and its financial impact? A: Shahbazi noted that the CRH divestment was at a high multiple, adding cash to the treasury without significantly impacting revenue or EBITDA guidance. Such transactions occur when private equity firms consolidate assets in the US GI space.
Q: Are valuation expectations for virtual care assets more aligned with market conditions now? A: Shahbazi mentioned that valuation expectations are in line with market trends, with digital health seeing different valuation profiles. Transactions are occurring at reasonable rates, often around double-digit EBITDA or one-time sales multiples.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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