WELL Health Technologies Corp.

WELL reported Q2 2026 revenue of approximately CAD 400 million, up 12% year over year, or CAD 395.6 million on a normalized basis excluding Circle Medical deferred revenue effects. Adjusted EBITDA was CAD 48.1 million, down 3%, and adjusted EBITDA attributable to WELL shareholders was CAD 35 million, down about 6%; normalized adjusted EBITDA was CAD 43.3 million, up 8%, and normalized adjusted shareholder EBITDA was CAD 32 million, up 4%. Adjusted gross profit was CAD 178.4 million, up 12%, with adjusted gross margin of 44.6%; normalized adjusted gross profit was CAD 173.6 million, up 17%, with margin of 43.9%. Adjusted net income was CAD 11.6 million, or CAD 9.2 million normalized. For 2026, management raised guidance to revenue of CAD 1.58 billion-CAD 1.65 billion from CAD 1.55 billion-CAD 1.65 billion, and adjusted EBITDA of CAD 185 million-CAD 195 million from CAD 175 million-CAD 185 million. WELL Canada revenue was CAD 176.6 million, up 32%, and WELL Canada adjusted EBITDA was CAD 27.4 million, up 19%; Canadian clinics revenue was CAD 151.6 million and adjusted EBITDA was CAD 22.3 million. WELLSTAR revenue was CAD 23 million, up 37%, and adjusted EBITDA was CAD 5.8 million, or CAD 5.6 million after one-time public company costs. Adjusted free cash flow attributable to shareholders was CAD 11.7 million, in line with Q2 2025. Cash and cash equivalents were CAD 130.6 million at June 30, 2026, and total loans and borrowings were CAD 628.7 million. Management said the Circle Medical deferred revenue impact is now fully recognized and no more deferrals remain.

Hamed Shahbazi framed the quarter as a strategy-execution update rather than just a financial print, saying WELL hit key milestones across profitability, balance sheet strength, and growth capital. He highlighted the early achievement of the CAD 100 million WELL Canada EBITDA run rate, the CAD 150 million bond, the CAD 50 million WELLSTAR financing, and the acquisitions of Ontario Imaging Diagnostics and UnionMD. His tone was upbeat and confident, with repeated emphasis that the company is shifting toward higher-margin growth and that June’s stronger exit rate supports the upgraded outlook.

Eva Fong focused on the earnings bridge and the sources of year-over-year change. She showed that Q2 2026 revenue rose from CAD 356.7 million in Q2 2025 to CAD 404 million, while adjusted EBITDA moved from CAD 49.7 million to CAD 48.1 million, with normalization adjustments tied mainly to Circle Medical deferred revenue and a prior-year reimbursement uplift. She also noted CAD 11.7 million of adjusted free cash flow attributable to shareholders, CAD 130.6 million of cash, CAD 628.7 million of borrowings, compliance with all covenants, and that higher CapEx tied to clinic upgrades should ease slightly as the investment phase normalizes.

Analysts focused on WELLSTAR’s e-referral growth, Canada M&A, capital allocation, leverage, organic clinic growth, and Competition Bureau matters. Management said the Ontario procurement win was a major step-up for OceanMD, while BC remains smaller but still growing. On M&A, Hamed said WELL is more selective, favoring higher-margin assets and absorptions where its clinic transformation team can add the most value, and he expects a more normalized cadence going forward. On the Competition Bureau, he said all requested information was submitted, there have been no further discussions, and the company believes it is in an excellent position. Asked about Circle Medical deferrals, management said Q2 was the last quarter and all deferred revenue from 2025 is now fully recognized.