American Well Corporation Reports Q1 2026 Financial Results with 18% Revenue Decline

American Well Corporation reported its financial results for the first quarter of 2026, revealing a total revenue of $54.9 million, a decrease of 18% from $66.8 million in the same period last year. The decline in revenue was attributed primarily to a $7.3 million drop in subscription revenue, which was impacted by the timing of revenue recognition with strategic customers, and a $6.9 million decrease in other revenue related to professional services performed in the prior period. However, visit revenue increased by $2.3 million, reflecting a shift towards special program visits.

The company's operating expenses for the quarter totaled $72.3 million, down 26% from $97.2 million in the prior year. This reduction was driven by significant cuts in research and development, sales and marketing, and general and administrative expenses, which fell by 44%, 38%, and 24%, respectively. The company reported a loss from operations of $17.4 million, an improvement from the $30.4 million loss recorded in the same quarter of 2025. The net loss attributable to American Well Corporation was $10.9 million, compared to a net loss of $18.7 million in the previous year, marking a 42% reduction.

In terms of operational metrics, American Well facilitated approximately 1.1 million virtual care visits in the first quarter of 2026, down from 1.3 million visits in the same period last year. The company continues to expand its client base, serving around 50 health plans and 80 of the largest health systems in the U.S., which collectively cover over 90 million lives. The company’s cash and cash equivalents stood at $179.2 million as of March 31, 2026, slightly down from $182.3 million at the end of 2025.

Strategically, American Well has undertaken significant organizational changes, including a 30% reduction in headcount, which contributed to the decrease in operating expenses. The company also recorded a $3.4 million impairment charge related to the abandonment of its corporate headquarters lease. Additionally, American Well recognized a net gain of $7.0 million from the divestiture of its telepsychiatry business, which was completed in early 2025. This divestiture is part of a broader strategy to streamline operations and focus on the Amwell Platform.

Looking ahead, American Well anticipates continued challenges in the digital care market, including competition and regulatory changes. The company expects to leverage its existing cash reserves to support growth initiatives and maintain operations over the next 12 months. However, it acknowledges the potential need for additional financing in the future to support its strategic objectives and operational needs.