CORRECTED-Canada's WELL Health 2025 revenue rises 52% on acquisitions, organic growth

Overview

• Canada digital healthcare firm's fiscal 2025 revenue rose 52% to record C$1.40 bln

• Adjusted EBITDA for fiscal 2025 jumped 336% to C$203.7 mln, margin improved to 14.5%

• Company guided 2026 revenue of C$1.55 bln to C$1.65 bln, adjusted EBITDA C$175 mln to C$185 mln

Outlook

• WELL Health sees 2026 revenue between C$1.55 bln and C$1.65 bln

• Company expects 2026 Adjusted EBITDA of C$175 mln to C$185 mln

• WELL Health targets over C$800 mln in Canada revenue and C$100 mln Adjusted EBITDA within 18 months

Result Drivers

• ACQUISITIONS - Co said revenue and adjusted EBITDA growth were mainly driven by acquisitions completed over the last twelve months, including 19 clinic transactions

• ORGANIC GROWTH - Co said organic growth contributed to higher revenue, including 13% organic growth in Canadian Patient Services and growth in WELLSTAR

• HIGHER-MARGIN BUSINESS MIX - Co attributed improved adjusted gross margin to revenue mix and addition of higher-margin HEALWELL revenue

Company press release: ID:nBw9Xr3na

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for WELL Health Technologies Corp is C$7.50, about 78.1% above its March 18 closing price of C$4.21

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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