AMWL Stock Forecast & Price Target

American Well Corp has demonstrated a strong financial performance, marked by a notable 29.4% year-over-year increase in higher-margin subscription revenue, specifically linked to its Digital Health Applications (DHA). Furthermore, the company reported an adjusted EBITDA of ($12.2 million), surpassing both its guidance and consensus estimates, indicating improved operational efficiency. Looking ahead, American Well anticipates a sequential increase in subscription revenue from the second quarter of 2025 to the third quarter of 2025, bolstered by the anticipated rollout of automated programs and digital behavioral health services.

American Well Corp is experiencing significant declines in its general and administrative (G&A) expenses, projected to decrease by 25.1% year-over-year in CY25, which is more aggressive than the company’s own guidance of a 20% reduction. Additionally, sales and marketing (S&M) expenses are anticipated to fall by 28.2% year-over-year, further highlighting challenges in their operational efficiency and growth strategy. These reductions in expenses could indicate underlying difficulties in revenue generation and market competitiveness, contributing to a negative outlook on the company's financial health.