American Well Corporation Reports 27% Revenue Decline in Q2 2026

American Well Corporation (Amwell) reported its financial results for the second quarter of 2026, revealing a significant decline in revenue and ongoing operational challenges. For the three months ended June 30, 2026, the company generated $52.0 million in revenue, a decrease of 27% from $70.9 million in the same period last year. For the first half of 2026, total revenue was $106.9 million, down 22% from $137.7 million in the first half of 2025. The decline in revenue was attributed to timing issues in revenue recognition with strategic customers and a decrease in professional services and marketing revenue.

Despite the drop in revenue, Amwell's total costs and operating expenses also decreased significantly, falling to $61.6 million for the second quarter of 2026 from $91.3 million a year earlier, a reduction of 33%. This reduction was driven by lower employee-related costs due to a headcount reduction of approximately 24% and decreased spending on marketing and consulting services. The company reported a loss from operations of $9.6 million for the quarter, an improvement compared to a loss of $20.4 million in the same quarter of 2025. The net loss attributable to American Well Corporation was $9.9 million, compared to a net loss of $19.7 million in the prior year.

Operationally, Amwell reported a total of 1.9 million virtual care visits in the first half of 2026, a decrease from 2.5 million visits in the same period of 2025. The decline in visits was attributed to customer churn and seasonal factors affecting urgent care and behavioral health visits. The company continues to focus on expanding its client base, which includes approximately 50 health plans and 80 of the largest health systems in the U.S., representing over 90 million covered lives.

In terms of strategic developments, Amwell completed a divestiture of its telepsychiatry services business, which generated a gain of $7.0 million in the first half of 2026. The company is also undergoing a strategic transformation, which includes headcount reductions and cost-saving measures aimed at aligning its cost structure with current revenue levels. As of June 30, 2026, Amwell had cash and cash equivalents of $195.9 million, providing a buffer for ongoing operations and potential growth initiatives.

Looking ahead, Amwell's management expressed cautious optimism about future performance, emphasizing the importance of adapting to market conditions and enhancing product offerings. However, the company acknowledged the challenges posed by a competitive digital care market and the need for continued investment in technology and services to drive growth. The outlook remains uncertain, with potential risks including slower adoption of digital care services and regulatory changes impacting the healthcare landscape.