Investment Thesis
American Well exhibits severe profitability challenges with operating losses of $105.3M despite 4721.6% revenue growth, indicating the growth is not translating into operational efficiency or profitability. Negative operating cash flow of -$66.0M and deteriorating net margins of -38.4% signal structural business model issues that require fundamental resolution.
AMWL Strengths
- Exceptional revenue growth of 4721.6% YoY demonstrates significant market demand and business scaling
- Strong balance sheet with $182.3M cash and minimal debt (0.00x debt-to-equity), providing financial runway
- Excellent liquidity position with 3.37x current ratio and 3.35x quick ratio, ensuring near-term solvency
AMWL Risks
- Severe and worsening profitability: -$105.3M operating loss and -38.4% net margin indicate inability to monetize growth
- Negative operating cash flow of -$66.0M means the company is burning cash from operations despite massive revenue growth
- Deteriorating return metrics: -40.6% ROE and -29.6% ROA show shareholder capital is being destroyed despite growth
- 12 Form 4 insider filings suggest potential insider activity that may indicate lack of confidence in the business trajectory
Key Metrics to Watch
- Path to operating profitability and timeline for positive operating cash flow
- Gross margin trends and cost structure improvements as revenue scales
- Cash burn rate and remaining runway given current cash position and negative operating cash flow
- Operating leverage improvements and operating margin trajectory
AMWL Financial Metrics
AMWL Profitability Ratios
AMWL Balance Sheet & Liquidity
AMWL 5-Year Financial Trend
5-Year Trend Summary: American Well Corp's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $-47.50 indicates the company is currently unprofitable.
AMWL Growth Metrics (YoY)
AMWL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $56.3M | -$32.4M | $-2.00 |
| Q2 2025 | $62.8M | -$19.7M | $-1.24 |
| Q1 2025 | $59.5M | -$18.7M | $-1.19 |
| Q3 2024 | $61.0M | -$43.5M | $-2.87 |
| Q2 2024 | $62.4M | -$49.9M | $-3.36 |
| Q1 2024 | $59.5M | -$72.1M | $-0.25 |
| Q3 2023 | $61.9M | -$70.1M | $-0.25 |
| Q2 2023 | $62.4M | -$69.1M | $-0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMWL Capital Allocation
AMWL SEC Filings
Access official SEC EDGAR filings for American Well Corp (CIK: 0001393584)