American Well Corporation (Amwell) reported its financial results for the third quarter of 2025, revealing a revenue of $56.3 million, a decrease of 8% from $61.0 million in the same period last year. For the nine months ended September 30, 2025, revenue increased by 6% to $194.0 million compared to $183.4 million in the prior year. The company experienced a net loss of $31.9 million for the quarter, an improvement from a net loss of $44.0 million in Q3 2024. The nine-month net loss also decreased significantly to $69.8 million from $168.1 million year-over-year.
The company’s operational metrics showed a notable decline in visit revenue, primarily due to the divestiture of its telepsychiatry business, which resulted in a $5.5 million decrease in visit revenue for the quarter. However, subscription revenue increased by $4.7 million, attributed to the timing of revenue recognition related to strategic customer arrangements. The total number of virtual care visits facilitated by Amwell's platform reached 3.6 million in the nine months ended September 30, 2025, down from 4.5 million in the same period last year.
Amwell has undertaken significant cost-cutting measures, resulting in a 21% reduction in total operating expenses to $85.6 million for the third quarter, down from $108.4 million in Q3 2024. This reduction was driven by decreased costs in sales and marketing, research and development, and general and administrative expenses, reflecting a strategic transformation aimed at improving profitability. The company reduced its workforce by approximately 29% year-over-year, contributing to a decrease in employee-related costs.
In terms of strategic developments, Amwell completed the divestiture of its telepsychiatry business, which was deemed no longer aligned with its growth objectives. This divestiture resulted in a net gain of $8.7 million recognized during the nine months ended September 30, 2025. The company continues to focus on its core platform, the Amwell Converge, which aims to enhance digital care delivery across various healthcare settings.
Looking ahead, Amwell anticipates continued challenges in the digital care market, including competition and regulatory changes. The company expects to leverage its existing cash reserves of $200.9 million to support ongoing operations and strategic initiatives over the next year. Amwell remains committed to enhancing its platform and expanding its market share, despite the ongoing operational losses and the need for further investment in growth initiatives.
About American Well Corp
American Well Corporation (Amwell) provides a cloud-based enterprise platform and software enabling hybrid healthcare delivery across in-person, virtual, and automated care settings. Serving health systems, health plans, employers, and government entities, Amwell offers configurable digital care solutions including urgent care, primary care, behavioral health, and chronic disease management. Its scalable platform integrates with existing systems, supports client-branded experiences, and is complemented by a nationwide clinical network, enhancing care accessibility and coordination.
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