WELL Health Reports Impressive Q4 and Full Year 2024 Results with Record Revenue Growth

WELL Health Achieves Record Revenue in 2024

On April 15, 2025, WELL Health Technologies Corp. announced its financial results for the fourth quarter and the full fiscal year of 2024, revealing a record annual revenue of $919.7 million. This figure marks a 19% increase from the previous year, showcasing the company's resilience and growth trajectory despite facing some operational challenges.

Financial Summary

While WELL Health reported strong overall revenue, the company faced some hurdles under the applicable International Financial Reporting Standards (IFRS). Key among these was a $56.6 million delay in revenue recognition related to Circle Medical and a $24.5 million uncertainty arising from a cyberattack on Change Healthcare (CRH). Despite these setbacks, WELL Health indicated that organic growth primarily drove its impressive financial results.

For the year 2024, excluding the aforementioned impacts, WELL was on track to achieve a revenue figure close to $1 billion, representing an ambitious 29% growth from 2023. Additionally, the company reported a record Free Cash Flow Attributable to Shareholders (FCFA2S) of $49.3 million, up approximately 16% from $42.4 million in the previous year.

Adjusted EBITDA was recorded as $46.7 million for 2024, which was impacted by both Circle Medical and CRH matters. However, WELL estimates that without these influences, Adjusted EBITDA would have reached approximately $127 million, reflecting a healthy 12% growth from the year prior.

Positive Outlook for 2025

Looking ahead, WELL Health is optimistic about its performance in 2025. It announced revenue guidance between $1.40 billion and $1.45 billion, along with projected Adjusted EBITDA of $190 million to $210 million. These projections incorporate the anticipated consolidation of HEALWELL and the recognition of deferred revenues from Circle Medical.

Hamed Shahbazi, Chairman and CEO, stated that despite recent challenges affecting revenue, the fundamental aspects and future outlook of the company have never been stronger. The total number of patient visits in 2024 climbed to 5.7 million, marking a notable 32% increase year-over-year, indicating strong demand for WELL's services.

Segmented Performance

The financial performance varied across different segments of WELL's business. In Canada, services generated approximately $387.4 million with an Adjusted EBITDA increase of 30%. Conversely, U.S. patient services, totaling around $532.2 million, saw a modest growth of 11.6%.

WELL Health's Canadian operations are pivotal to its business, with expectations of reaching $800 million in revenue and $100 million in Adjusted EBITDA in Canada alone by 2026. In summary, the company's strategic investments and expansions position it well for sustained growth, driven by technological enhancements and operational efficiencies.

Challenges and Strategic Adjustments

Despite the optimistic outlook, WELL Health addressed the impact of two significant events: the revenue deferral related to Circle Medical's billing practices and the cybersecurity breach affecting CRH’s revenue cycle management. These instances forced the company to consider alternative strategies and highlight the need for rigorous risk management moving forward.

As part of its strategy, WELL Health has been pursuing a series of acquisitions and partnerships aimed at boosting its operational capabilities in digital healthcare. Recent major acquisitions in 2024 have expanded its presence not only in Canada but also internationally, enhancing its capacity to provide advanced health technologies.

Eva Fong, CFO of WELL Health, emphasized the importance of maintaining a robust balance sheet to support these strategic moves, ensuring that the company remains agile in an ever-evolving market.

Conclusion

In conclusion, WELL Health Technologies Corp. has posted remarkable financial results for 2024, setting a strong foundation for the forthcoming year. With a strategic focus on technological innovation and a commitment to providing excellent healthcare services, the company is poised for continued success in the evolving landscape of digital health.