HEALWELL AI Provides Additional Information Regarding November 3, 2025, Release Where it Announced Strategic Divestments

Executive Summary

• HEALWELL AI clarifies that its Q3‑2025 revenue of $30.4 M (annualized ≈ $120 M) represents a 354 % increase versus Q3‑2024 and marks the second consecutive quarter of positive Adjusted EBITDA.
• Adjusted EBITDA improved to $0.7 M in Q3‑2025 from a loss of $2.8 M in Q3‑2024, while net loss from continuing operations remained at $16 M.
• The company attributes the turnaround to the April 1 2025 acquisition of Orion Health and outlines assumptions and risks underlying its forward‑looking statements.

Key Details

• Revenue Run‑Rate: Quarterly revenue of $30.4 M in Q3‑2025, annualized ≈ $120 M (up 354 % YoY from $6.7 M in Q3‑2024).
• Adjusted EBITDA: Positive $0.7 M in Q3‑2025 versus a loss of $2.8 M in Q3‑2024.
• Net Loss (Continuing Operations): $16 M loss in Q3‑2025; $8.7 M loss in Q3‑2024.
• Strategic Transactions: Completion of three divestments – two non‑core businesses sold, two contributed to a new clinical‑research joint venture – positioning HEALWELL as a pure‑play digital SaaS, services and AI business.
• Acquisition Impact: Orion Health acquisition (effective 1 Apr 2025) cited as a key driver of the positive Adjusted EBITDA trend.
• Assumptions Underlying Forward‑Looking Statements:
• Continuation and expansion of commercial partner relationships and contract renewals.
• Ongoing adoption of HEALWELL’s software tools and solutions by new customers and markets.
• Stable macro‑economic conditions and sufficient working capital/access to financing.
• Compliance with evolving AI‑related regulations and IP rights.
• Competitive dynamics, pricing pressures, and successful integration of future acquisitions.
• Risk Factors Highlighted: Potential impacts from customer demand shifts, contract execution risk, competition, acquisition integration challenges, personnel retention, cost fluctuations, and one‑time expenses.
• AI Capability Claims Clarified: Statements about “industry‑leading” AI solutions refer to external recognitions (e.g., Prix Galien USA 2024 winner) and peer‑reviewed studies; they are not financial performance metrics.

Notable Quotes

“Quarterly revenue from continuing operations of $30.4 million in Q3‑2025, which annualizes to an approximate revenue run‑rate of $120 million… Positive Adjusted EBITDA of $0.7 million in Q3‑2025…” – James Lee, Chief Executive Officer, HEALWELL AI Inc.