HEALWELL Reports Record Revenue Growth of 645% in Q2-2025 and Achieves First Quarter of Positive Adjusted EBITDA

Executive Summary

• HEALWELL AI Inc. reported unaudited Q2 2025 financial results, achieving a record quarterly revenue of $40.5 million from continuing operations, a 645% increase year-over-year, driven primarily by the acquisition of Orion Health.
• The company reported its first quarter of positive Adjusted EBITDA at $1.9 million, a significant turnaround from a $3.7 million loss in Q2 2024, marking a major inflection point in its financial trajectory.
• The Board of Directors has initiated a process to seek strategic alternatives for the clinical research and patient services business units (PolyClinic and Biopharma Services) to transition HEALWELL into a pure-play digital SaaS and AI company.

Key Details

• Revenue Performance:
  • Q2 2025 Revenue: $40.5 million (vs. $5.4 million in Q2 2024).
  • Gross Profit: $21.3 million (vs. $2.5 million in Q2 2024), representing a 764% increase.
  • Gross Margin: 52.5% (vs. 45.2% in Q2 2024), improved by the addition of higher-margin healthcare software revenue from Orion Health.
• Profitability Metrics:
  • Adjusted EBITDA: Positive $1.9 million in Q2 2025 (vs. loss of $3.7 million in Q2 2024).
  • This marks the first quarter of positive Adjusted EBITDA for the company.
• Cash Position:
  • Cash on hand as of June 30, 2025: $19 million (vs. $9.4 million as of December 31, 2024).
• Strategic Acquisitions & Corporate Actions:
  • Orion Health Acquisition: Completed on April 1, 2025. Orion Health is a leading provider of healthcare data interoperability solutions based in Auckland, New Zealand.
    • Expected to contribute approximately $100 million in annual SaaS and services revenue.
    • Adds over 70 large enterprise customers across 11 countries.
  • WELL Health Takeover: On April 1, 2025, WELL Health Technologies Corp. exercised its call right to acquire a majority controlling interest in HEALWELL.
    • Acquired 30.8 million Class A Subordinate Voting Shares and 30.8 million Class B Multiple Voting Shares.
    • Converted all convertible debentures and exercised all outstanding share purchase warrants.
    • Post-exercise ownership: ~37% economic interest and 69% voting rights on a non-diluted basis.
  • Pentavere Acquisition: On July 14, 2025 (subsequent to quarter-end), HEALWELL 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.
• Operational Highlights:
  • U.S. Market Entry: Officially entered the U.S. healthcare market on June 11, 2025, leveraging Orion Health’s infrastructure to launch AI-enabled tools for clinical search, patient summarization, and risk stratification.
  • AI Segment Growth: The AI segment achieved $5.1 million in revenue in the first half of 2025, representing 223% year-over-year growth.
• Strategic Divestiture:
  • The Board has signed non-binding Letters of Intent (LOIs) to investigate the divestiture of the clinical research and patient services business units.
  • Goal: Become a pure-play digital SaaS and Services company focused on enterprise-grade data science and AI offerings.

Notable Quotes

• James Lee, CEO: "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."
• James Lee, CEO: "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."
• Anthony Lam, CFO: "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."