WELL Health Technologies Corp.

Q2 2026 revenue was approximately CAD 400 million, up 12% year over year, or CAD 395.6 million on a normalized basis after deferred revenue adjustments. Adjusted EBITDA was CAD 48.1 million, down 3%, and adjusted EBITDA attributable to WELL shareholders was CAD 35 million, down about 6%; on a normalized basis, adjusted EBITDA was CAD 43.3 million, up 8%, and 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% versus 44.5% a year ago; normalized adjusted gross profit was CAD 173.6 million, up 17%, with margin at 43.9%. Adjusted net income was CAD 11.6 million, or CAD 9.2 million normalized. Adjusted free cash flow attributable to shareholders was CAD 11.7 million, in line with Q2 2025. For 2026, guidance is revenue of CAD 1.58 billion to CAD 1.65 billion and adjusted EBITDA of CAD 185 million to CAD 195 million, both raised from prior ranges.

Hamed Shahbazi framed the quarter as an execution story more than a single financial print, emphasizing Canadian clinic expansion, higher-margin mix, balance sheet strengthening, and WELLSTAR growth capital. He said WELL reached its CAD 100 million adjusted EBITDA milestone ahead of schedule, that June was particularly strong, and that the underlying business is compounding faster than reported results show because of prior-year deferrals and one-time items. His tone was confident and strategic, repeatedly highlighting higher-margin growth, One WELL integration, and the company’s ability to scale with technology and AI.

Eva Fong focused on the bridge from reported to normalized results, explaining that Circle Medical deferrals and a prior-year reimbursement lift distorted year-over-year comparisons. She said cash and cash equivalents were CAD 130.6 million at June 30, 2026, total loans and borrowings were CAD 628.7 million, and the company remained in compliance with all financial covenants. She also noted CAD 54.4 million of cash from operating activities in the first six months, CAD 176.6 million used in investing activities, and CAD 118.3 million from financing activities, and said adjusted free cash flow conversion should improve as elevated CapEx tied to clinic upgrades and renovations eases.

Analysts pressed on WELLSTAR e-referral growth, especially the Ontario rollout and the pace in British Columbia; management said Ontario was a major step-function win, BC is progressing but remains smaller and slower to ramp. Questions also focused on M&A competition, capital allocation, and leverage: management said it is seeing some competition but is increasingly using an AI-enabled M&A process to target higher-margin assets, while expecting leverage to come down as EBITDA grows and capital is recycled from divestitures. Another key question was on Circle Medical deferrals, and management confirmed Q2 fully recognized the remaining 2025 deferred revenue, saying those deferrals are now done.