Amwell, the telehealth platform formerly known as American Well, brought in $54.9 million in first-quarter revenue, down approximately 18% the same period a year ago, as executives discussed artificial intelligence and key contract renewals with investors on Tuesday.
The company is shifting towards subscription revenue, and in Q1, subscription software revenue was 53% of total revenue at $24.9 million, which Chief Financial Officer Mark Hirschhorn said was down “approximately 23%” year-over-year in a May 5 call to discuss Q1 results.
“Encouragingly, renewals and retention were higher than budgeted in the first quarter, providing greater confidence in the stability of our subscription base going forward,” Hirschhorn said.
Amwell's visit volume was down approximately 19% compared to a year ago, according to Hirschhorn, with 1.1 million visits in Q1. Hirschhorn said the figure is “is in line with the portfolio changes” previously disclosed by the company.
The company also reported adjusted EBITDA of negative $3.1 million in Q1 compared to negative $12.2 million in Q1 2025. During the latest quarter, Amwell reported a net loss of $10.3 million, compared to a net loss of $25.2 million in the fourth quarter of 2025.
The company has set a goal to reach positive cash flow from operations in the fourth quarter of 2026.
"We have ample cash, no debt and a clear path to cash flow breakeven in Q4 with real confidence in multiyear growth beyond it," Amwell Chairman and CEO Ido Schoenberg, M.D., told investors.
In the past year, the company has divested assets to focus on its core offering. In January 2025, it sold its Amwell Psychiatric Care business to Avel eCare.
Entering 2026, Amwell’s main focus was to consolidate its platform to fulfill the unmet needs of payer and provider customers, Schoenberg said. "The technology-enabled care infrastructure we have developed to fill that gap in the market continues to gain traction as customers recognize its clear advantages: lower costs, better outcomes, stronger market share and an increased level of control and agility," he said."
“Q1 was a promising start to the year,” Hirschhorn said. “Visit volume momentum, stable subscription revenue and a leaner cost structure give us confidence that we are on the right path.”
Schoenberg told investors technology-enabled care and AI-driven clinical programs are “one of the most critical levers players have,” adding that such tools help control costs and improve outcomes.
“This is no longer speculative,” Schoenberg said. “It is a survival imperative, but adoption remains hard.”
An April survey from Solera Health found that digital health vendor management is creating operational and administrative costs that potentially rival savings, with 90% of respondents reporting spending more than $1 million and 42% managing 8 or more vendors. In terms of AI adoption, an April report from Qventus found 74% of health system leaders cite electronic health record (EHR) vendor reliance as an obstacle to executing AI.
Schoenberg said Amwell offers customers a “unified engagement and navigation platform,” which reduces acquisition and retention costs. As healthcare increasingly adopts agentic AI solutions, Schoenberg said customers are preparing for the shift—and Amwell’s platform is “positioned to be the governed environment where these agents operate safely, effectively and at scale.”
“We are not positioning Amwell as an AI feature,” he said. “We are the infrastructure layer where AI-powered care becomes operational and measurable.”
Schoenberg also told investors that Elevance Health signed a three-year contract renewal. “That is a strong vote of confidence in our platform and the value we deliver in one of the most sophisticated operating environments in the markets,” Schoenberg said.
The Defense Health Agency (DHA), which oversees services for the Military Health System, also renewed its contract with the telehealth platform in August. Schoenberg said the company is “laser focused” on renewing the agreement within the current scope. “We are hopeful that’s going to be the case,” he said, adding that the platform plans to expand into behavioral health.
DHA discontinued its payment for behavioral health and automated care services with Amwell last year. During a Q2 2025 earnings call, Schoenberg said the discontinuation was due to the Department of Defense’s cost-cutting measures as directed by President Donald Trump—not the department’s satisfaction with the services.
Hirschhorn said the renewal is expected to be completed at the end of Q2 or the beginning of Q3, adding “perhaps July.”
“We also believe that the opportunity to expand that will take place after the initial renewal,” Hirschhorn said.
The company reaffirmed its 2026 revenue and Amwell Medical Group visits guidance with full-year revenue in the range of $195 to $205 million and AMG visits between 1.32 and 1.37 million. Amwell also updated its adjusted EBITDA guidance, projecting a loss between $16 million to $12 million.
For the second quarter, Amwell expects revenue in the range of $48 million to $52 million and adjusted EBITDA in the range of a loss of $4 million to a loss of $2 million.