Amwell Beats Q2 Expectations on Subscription Revenue Strength

Telehealth provider Amwell on Wednesday (July 31) reported second-quarter revenue of $62.8 million (above guidance of $61.1 million), driven by $27.5 million in subscription revenue and $28.7 million from visits to Amwell Medical Group (AMG).

Despite a net loss of $49.9 million — down from $73.4 million in Q1 2024 — Amwell achieved a reduced adjusted EBITDA loss of $35 million, compared to $45.7 million in the prior quarter. Amwell’s gross margin stood at 37% while total visits reached 1.5 million, with about 70% occurring on the Converge telehealth platform.

“We’re very focused on making sure Converge becomes a reliable asset in the market,” Amwell CEO Ido Schoenberg said during the earnings call.

In mid-June, Amwell announced that co-founder Roy Schoenberg stepped down from his position as president and co-CEO to become executive vice chairman of the board. Ido Schoenberg became the sole CEO. Roy Schoenberg, who co-founded the company in 2006, has been instrumental in advancing digital healthcare, shaping its integration into modern patient and clinician experiences.

“In Q2, we advanced on all fronts,” Ido Schoenberg said. “Our focus remains sharp as we implement key strategies supporting our growth trajectory for 2025, aiming for adjusted EBITDA breakeven in 2026.” He highlighted ongoing efforts in cost alignment and strategic deployments, including for the U.S. Military Health System.

The company’s revenue and visit projections for the year remain unchanged, with expected revenue between $259 million and $269 million and AMG visits between 1.6 and 1.7 million.

Ido Schoenberg noted that Amwell’s digital-first approach is “resonating. We offer an end-to-end comprehensive solution that’s dependable, safe and secure with a proven track record at scale. We believe our deep integrations and vast deployments form long-term bonds with healthcare organizations.”

Despite the progress, ongoing net losses reflect the challenges in achieving profitability within the competitive telehealth sector. But Amwell leaders remained optimistic.

“We are executing well and are energized by our results,” Ido Schoenberg said. “Converge is rapidly becoming a clear best of breed in the market with 70% of our volume. We are pleased to see people are using this platform across the board for multiple programs.”

Providers are looking for efficiency and growth and better ways to serve their patients, he added.

“What’s resonating is the peace of mind” users receive when using the Converge system, he said. “We believe that trend will become stronger and stronger as more people begin their interactions with digital health online. We’re enabling technology that allows them to do well and achieve their business goals through what we created.”

Ido Schoenberg addressed a question about AI: “AI is enormously important in our industry. There are many areas AI will influence our roadmap in the coming years. The promise of AI has an impact on pretty much every activity of our operation, and we’re thrilled about the opportunity.”

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