American Well (NYSE:AMWL), which operates as Amwell, reported second-quarter 2026 revenue of $52 million, down 26.6% from a year earlier, while narrowing its adjusted EBITDA loss and raising its full-year profitability outlook as the company pursues operating and cash-flow breakeven in the fourth quarter.
The virtual-care technology company said its adjusted EBITDA loss was $1.15 million, compared with a $4.7 million loss in the second quarter of 2025. Operating loss improved 53% year over year to $9.6 million. Amwell ended the quarter with $196 million in cash and marketable securities and no debt.
Defense Health Agency Contract Discussions Continue
A key development during the quarter was the Defense Health Agency’s intent to award Amwell a direct sole-source contract. Schoenberg called the notice an important milestone that could expand and strengthen Amwell’s relationship with the Military Health System, which serves 9.6 million service members, families and retirees.
Amwell’s platform is integrated with MHS GENESIS, the federal health IT platform used by the Military Health System. Schoenberg said the platform has connected deployed military units in combat zones with hospitals in the U.S.
Chief Financial Officer and Chief Operating Officer Mark Hirschhorn said the DHA is negotiating direct contracts with five companies that provide separate core capabilities: Amwell, Oracle Health, Philips, Solventum and Henry Schein. The DHA had initially targeted July 30, 2026, for some contracts to become active, but Hirschhorn said parties needed additional information and time for negotiations. The DHA’s deadline to execute the contracts is July 2027, though it intends to transition as soon as possible.
Hirschhorn said a direct contract could create opportunities for Amwell to provide a broader scope of services previously handled through third parties. He also said Amwell is discussing the potential reintroduction of its SilverCloud behavioral health offering within the DHA environment, with the earliest opportunity to activate those services expected in 2027.
Revenue Mix Shifts Toward Higher-Acuity Visits
Subscription revenue was $25.7 million, down 36.5% from the prior-year period but up 3.2% sequentially. Hirschhorn attributed the year-over-year decline to previously disclosed customer churn and a one-time subscription-revenue benefit recognized in the second quarter of 2025 related to the DHA platform deployment. He said the sequential increase reflected stability among core payer and government subscription customers.
Amwell Medical Group visit revenue rose 7.4% year over year to $24.4 million. Paid visits totaled about 315,000, flat from the year-earlier period, while revenue per visit increased approximately 6% to about $77. The company attributed the higher revenue per visit to a mix shift toward higher-acuity clinical programs and virtual primary care, where visits rose about 30% year over year.
Total platform visits declined 28.4% to approximately 835,000, which Hirschhorn said was consistent with previously discussed portfolio changes.
Gross profit was $27.6 million, producing a 53% gross margin, down from 56.1% a year earlier but up about 200 basis points sequentially. The company said it expects its revenue mix to move toward higher-margin software-as-a-service offerings over time.
Total operating expenses, including depreciation and amortization, fell 38% year over year to $37.1 million. Expenses represented 71.3% of revenue, compared with 84.8% in the prior-year quarter, reflecting the company’s restructuring efforts and cost controls.
Company Raises Full-Year EBITDA Outlook
For the third quarter, Amwell forecast revenue of $46 million to $48 million and an adjusted EBITDA loss of $3 million to $5 million. Hirschhorn said the outlook reflects normal summer seasonality in visit volumes and costs tied to internal projects expected to be completed before year-end.
For full-year 2026, Amwell narrowed its revenue outlook to $200 million to $205 million, raising the lower end of its prior $195 million to $205 million range. The company raised its adjusted EBITDA outlook to a loss of $7 million to $9 million, from prior guidance for a loss of $12 million to $16 million.
- Second-quarter revenue: $52 million, down 26.6% year over year.
- Second-quarter adjusted EBITDA loss: $1.15 million, versus a $4.7 million loss a year earlier.
- Second-quarter cash and marketable securities: $196 million, with no debt.
- 2026 revenue guidance: $200 million to $205 million.
- 2026 adjusted EBITDA guidance: loss of $7 million to $9 million.
Management reiterated its goal of reaching adjusted EBITDA breakeven and positive operating cash flow in the fourth quarter. Hirschhorn said the company expects the majority of its planned cost reductions to be completed in the second half of 2026.
Looking beyond 2026, Hirschhorn said Amwell would provide more detail on 2027 expectations later in the year. He said the company internally aims to return to double-digit revenue growth if contracts currently under discussion, particularly with government customers, are completed.
Schoenberg said Amwell is concentrating its commercial efforts on government and payer customers, while continuing to support its health-system customer base. He said the company is also divesting non-core assets and intends to operate around a single platform and product framework rather than developing customized solutions for individual customers.
About American Well (NYSE:AMWL)
American Well, operating under the trade name Amwell, is a Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients. Through its cloud-based platform, the company enables secure virtual visits, remote patient monitoring and integrated care coordination across a range of medical disciplines, including primary care, behavioral health, chronic disease management and urgent care.
The company’s core offering, the Amwell Telehealth Platform, facilitates live video consultations, asynchronous messaging, e-prescribing and electronic health record integration.
