-
HEALWELL achieved quarterly revenue from continuing operations of $40.5 million in Q2-2025, 645% higher than the $5.4 million generated in Q2-2024. Revenue growth in the quarter was largely driven by the Orion Health acquisition, resulting in a record 1,064% year-over-year increase in the Company’s Healthcare Software business compared to Q2-2024.
-
During Q2-2025, HEALWELL reported positive Adjusted EBITDA of $1.9 million, compared to an Adjusted EBITDA loss of $3.7 million in Q2-2024. This marks the Company’s first quarter of positive Adjusted EBITDA, reflecting strong operating fundamentals and accelerating business momentum.
-
HEALWELL’s Board of Directors has decided to seek strategic alternatives for the Company’s clinical research and patient services business units and has signed a number of non-binding LOIs to investigate this effort with the goal to become a pure-play digital SaaS and Services company with a focus on enterprise grade data science and AI offerings to health systems globally.
TORONTO, ON, August 13, 2025 – HEALWELL AI Inc. (“HEALWELL” or the “Company”) (TSX: AIDX, OTCQX: HWAIF), a healthcare artificial intelligence company focused on preventative care, is pleased to announce its unaudited interim condensed consolidated financial results for the quarter ended June 30, 2025. A summary of the Company’s financial and operational results is set out below, and more detailed information is contained in the interim financial statements and related management discussion and analysis, which are available on the Company’s SEDAR+ page at www.sedarplus.com. Financial measures described as “Adjusted” in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.
James Lee, Chief Executive Officer of HEALWELL, commented, “Q2 represents an exciting and major inflection point for HEALWELL as we achieved positive Adjusted EBITDA for the first time. This milestone marks a shift in our financial trajectory and validates the scalability of our healthcare software business and AI-driven business model. With Orion Health now part of our ecosystem, we gain access to one of the world’s most advanced healthcare data infrastructures, enabling us to seamlessly deploy our AI solutions into both public and private health systems. Our software business is seeing significant revenue integration benefits already and we are seeing tremendous opportunities from cross platform synergies globally. HEALWELL’s strategy focuses on deeply embedding AI and data science into our software platforms, accelerating adoption and enhancing value for healthcare providers. This approach provides a direct path to market, leveraging existing customer bases and contracts to enable healthcare systems worldwide to adopt AI solutions more readily. Our focus is now firmly on AI and healthcare software innovation.”
James Lee further adds, “We are also very pleased to have the Board’s support to divest of our PolyClinic and Biopharma Services businesses. This will allow us to become a pure-play software and services company with a keen focus on enterprise grade data science and Artificial Intelligence offerings with healthy margins and excellent growth prospects. We also have several strong potential tuck-in M&A opportunities that we’ve identified as we move forward and execute on our growth plan.”
Anthony Lam, Chief Financial Officer of HEALWELL, commented, “Our Q2 results reflect the strength of HEALWELL’s expanding AI and healthcare software business. Revenue increased by 645%, driven by the acquisition of Orion Health, which is already making a significant contribution to our financial performance. Our AI segment delivered record revenues—exceeding $5 million in the first half of the year—driven by strong momentum across our platforms. We’re focused on optimizing our operations, integrating our acquisitions, and continuing to upsell our AI-driven products. With $19 million in cash, we are well positioned to capitalize on future organic growth and acquisition opportunities. HEALWELL as part of the WELL Health family is a unique platform to deliver data driven insights at scale and is determined to focus and capture that opportunity.”
Second Quarter 2025 Financial Highlights
Significant financial highlights for the Company’s continuing operations during the three months ended June 30, 2025 included:
- HEALWELL achieved quarterly revenue from continuing operations of $40.5 million in Q2-2025, an increase of 645% compared to revenue of $5.4 million generated in Q2-2024. The increase in revenue is driven primarily by the acquisition of Orion Health.
- HEALWELL achieved Gross Profit of $21.3 million during Q2-2025, an increase of 764% compared to $2.5 million in Q2-2024. The increase is due to the acquisitions of Verosource, Mutuo and Orion and strong performance in the Khure Health business.
- HEALWELL achieved a Gross Margin percentage of 52.5% during Q2-2025, compared to 45.2% in Q2-2024. The increase in Gross Margin percentage is due to the addition of higher margin healthcare software revenue from the Orion Health acquisition.
- During Q2-2025, HEALWELL reported positive Adjusted EBITDA of $1.9 million, compared to an Adjusted EBITDA loss of $3.7 million in Q2-2024. This marks the Company’s first quarter of positive Adjusted EBITDA, reflecting strong operating fundamentals and accelerating business momentum, a year-over-year improvement of approximately 152% in Adjusted EBITDA performance.
As of June 30, 2025, HEALWELL had $19 million in cash, compared to $9.4 million as of December 31, 2024.
Second Quarter 2025 Business and Operational Highlights
Significant business and operational highlights for the Company during the three months ended June 30, 2025 included:
- Acquisition of Orion Health: On April 1, 2025, HEALWELL completed the acquisition of Orion Health, a leading provider of healthcare data interoperability solutions based in Auckland, New Zealand. The acquisition of Orion Health is expected to contribute approximately $100 million in annual SaaS and services revenue and to propel the Company to being profitable on an Adjusted EBITDA basis. Furthermore, Orion Health expands HEALWELL’s global reach, adding over 70 large enterprise customers across 11 countries, providing HEALWELL with a significant new channel of distribution for its AI and disease detection services. This acquisition establishes HEALWELL as a global leader in healthcare AI and interoperability, with the combined company poised to deliver innovative healthcare solutions at scale across multiple regions.
- Exercise of Call Option by WELL Health: On April 1, 2025, WELL Health Technologies Corp. (“WELL”) exercised its call right to acquire a majority controlling interest in HEALWELL AI, coinciding with HEALWELL’s acquisition of Orion Health. As part of this strategic move, WELL acquired 30.8 million Class A Subordinate Voting Shares and 30.8 million Class B Multiple Voting Shares of HEALWELL. Additionally, WELL converted all of its convertible debentures and exercised all outstanding share purchase warrants, resulting in post-exercise ownership of approximately 37% of the economic interest and 69% of the voting rights in HEALWELL on a non-diluted basis.
- Strategic Expansion into the U.S. Market: On June 11, 2025, HEALWELL announced its official entry into the U.S. healthcare market, marking a major milestone in the Company’s international growth strategy. Leveraging Orion Health’s two-decade presence across eight U.S. states and its established health data infrastructure, HEALWELL is launching a suite of modular, AI-enabled tools designed to support AI-powered clinical search, patient summarization, risk stratification, and real-world evidence generation—targeting health systems, payers, HIEs, and life sciences organizations.
Events Subsequent to June 30, 2025
Significant business and operational highlights for the Company subsequent to June 30, 2025 included:
- Full Acquisition of Pentavere: On July 14, 2025, the Company exercised its call option to acquire the remaining 49% of Pentavere Research Group Inc., gaining full ownership of the developer behind the DARWEN™ AI-driven patient identification platform. With full control of Pentavere, HEALWELL is accelerating integration across its AI portfolio and expanding commercialization of its solutions into global healthcare systems, reinforcing its leadership in AI-powered preventative care.
- AI Segment Growth: On July 16, 2025, HEALWELL provided a corporate update highlighting strong momentum in its AI business segment. In the first half of 2025, this business segment achieved revenues of $5.1 million, representing 223% year-over-year revenue growth.
Webcast and Conference Call Details:
HEALWELL will be holding a conference call and simultaneous webcast to discuss its financial results on Wednesday, August 13, 2025 at 1:00 pm ET (10:00 am PT). The call will be hosted by James Lee, Chief Executive Officer, Dr. Alexander Dobranowski, President, and Anthony Lam, Chief Financial Officer. Please dial-in 10 minutes prior to the start of the call.
Date: Wednesday, August 13, 2025
Time: 1:00 PM ET / 10:00 AM PT
Webcast link: https://www.gowebcasting.com/14139
Toll-Free North America: 1-833-752-3509
International Toll: 1-647-846-7993
When connecting to the conference call via phone, please dial in 10 minutes prior to the start of the call and ask to be joined into the “HEALWELL AI Inc. Conference Call.”
Selected Financial Information
(in thousands of dollars, except percentages and per share amounts)
Non-IFRS Financial Measures
The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled “Non-IFRS Financial Measures” in the Company’s management discussion and analysis for the quarter ended June 30, 2025, available on the Company’s SEDAR+ page at www.sedarplus.com, for a detailed explanation of the composition of these measures and their uses.
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three-months ended June 30, 2025 and June 30, 2024:
(1) Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures. Please see “Non-IFRS Measures” above for an explanation of the composition of these measures and their usefulness, and “Reconciliation of Non-IFRS Measures” below for a reconciliation of these measures to the IFRS measures found in the Financial Statements.
Segmented Revenue
James Lee
Chief Executive Officer
HEALWELL AI Inc.
HEALWELL is a healthcare artificial intelligence company focused on preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary technology, the Company is developing and commercializing advanced clinical decision support systems that can help healthcare providers detect rare and chronic diseases, improve efficiency of their practice and ultimately help improve patient health outcomes. HEALWELL is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the Company’s road map. HEALWELL is publicly traded on the Toronto Stock Exchange under the symbol “AIDX” and on the OTC Exchange under the symbol “HWAIF”. To learn more about HEALWELL, please visit https://healwell.ai/
Certain statements in this press release, constitute “forward-looking information” and “forward looking statements” (collectively, “forward looking statements”) within the meaning of applicable Canadian securities laws, including statements about the potential for HEALWELL and its partners to continually leverage advancements in expert AI technologies to develop new products and services or enhance existing ones; the anticipated impact of the addition of Orion Health on the Company’s financial performance; the potential for one or more transactions to divest all or a portion of the Company’s clinical research and patient services businesses; and potential M&A opportunities; and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements are often, but not always, identified by words or phrases such as “accelerating”, “explore”, “possible”, “opportunities”, “potential”, “future”, “expected”, “to propel”, “poised to”, “is launching”, “expanding”, “subject to” or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can” be taken, occur or be achieved, or the negative of any of these terms . Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by HEALWELL as of the date of such statements, are outside of HEALWELL’s control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: HEALWELL’s ability to integrate Orion Health personnel, products, services, customers and relationships; HEALWELL’s ability to maintain and leverage is relationships with its commercial partners; the continued adoption of the software, tools and solutions created by HEALWELL; that HEALWELL will be successful in identifying, executing and integrating new acquisitions, investments and/or partnerships; HEALWELL’s ability to successfully negotiate one or more transactions to divest of all or a portion of its clinical research and patient services business units, the terms on which those transactions may be negotiated, and the ability of the parties to obtain any necessary approvals to implement those transactions; the stability of general economic and market conditions; sufficiency of working capital and access to financing; HEALWELL’s ability to comply with applicable laws and regulations; HEALWELL’s continued compliance with third party intellectual property rights; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; technologies working as intended or at all; trends in customer growth and the adoption of new technologies in the industry; and that the risk factors noted below, collectively, do not have a material impact on HEALWELL’s business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.
Known and unknown risk factors, many of which are beyond the control of HEALWELL, could cause the actual results of HEALWELL to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled “Risk Factors” in HEALWELL’s most recent annual information form dated March 31, 2025, which is available under HEALWELL’s SEDAR+ profile at www.sedarplus.ca. The risk factors are not intended to represent a complete list of the factors that could affect HEALWELL and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. HEALWELL disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the expected annual revenue contributions of Orion Health, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraphs. The actual financial results of Orion Health may vary from the amounts set out herein and such variation may be material. HEALWELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, HEALWELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about HEALWELL’s anticipated future business operations for the coming year. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
For more information:
Pardeep S. Sangha
Investor Relations, HEALWELL AI Inc.
Phone: 604-572-6392
ir@healwell.ai