Amwell, a telehealth vendor, has shown improvement in its financial performance in the first quarter of the year. The company reported a net loss of $18.4 million, a significant decrease from the previous year. Revenue also saw growth, reaching $66.8 million compared to $59.5 million in the same period last year.
One of the key factors contributing to this positive trajectory is the ongoing rollout of products under a contract with the Department of Defense. Amwell has deployed scheduled virtual visits across the Military Health System, with plans to introduce automated and digital behavioral health programs in the third quarter.
Amwell has been focused on turning around its financial situation after facing challenges that led to a warning of delisting from the New York Stock Exchange last year. The company implemented a reverse stock split to improve its stock price and is now aiming to achieve positive cash flow by 2026.
The defense contract with the Department of Defense, in collaboration with Leidos, has been a major growth driver for Amwell. The initial deal, valued at up to $180 million, aims to replace the military’s telehealth product with Amwell’s technology. Software revenue has seen significant growth due to strategic deployments, including the implementation across the Military Health System.
Despite economic uncertainty and tariffs affecting other healthcare companies, Amwell remains optimistic about its outlook. The company believes that its telehealth solutions can help customers improve efficiency and revenue during these challenging times. With a focus on serving the military community and their families, Amwell is confident in the potential for the contract’s renewal and continued success in the market.
