American Well Corp

American Well operates with a highly liquid capital structure, as evidenced by $276.9 million in cash and equivalents, which significantly exceeds its total liabilities of $143.9 million, resulting in a current ratio of 3.21. The company's price-to-book ratio of 0.36 and price-to-tangible-book ratio of 0.36 indicate that the market values the company at a substantial discount to its book value. Despite this, the company has no long-term debt, which reduces its financial leverage and exposure to interest rate risk.

Profitability metrics are negative, with a return on equity of -13.72% and a return on assets of -9.83%, both well below industry norms. The company reported a net loss of $49.9 million and an operating loss of $52.4 million, indicating ongoing operational challenges. Gross profit of $23.5 million suggests some margin generation, but it is insufficient to offset operating expenses.

Geographically and segment-wise, the company's revenue concentration is not disclosed in the available data, but the absence of segment-specific revenue breakdowns implies a lack of diversification. This could pose a risk if demand in its primary market or service line declines.

The company's growth trajectory is uncertain, with no specific revenue growth projections provided in the available data. However, the negative operating and free cash flows of -$81.5 million and -$46.8 million, respectively, suggest that the company is not generating sufficient cash to fund operations or expansion. The capital expenditure of -$8.1 million indicates some investment in infrastructure, but it is minimal relative to the company's overall financial position.

Risk factors include the company's negative net income and operating income, which could affect its ability to sustain operations without external financing. The risk assessment indicates low liquidity and dilution risk, but the absence of long-term debt does not eliminate the need for ongoing cash flow management. No immediate filing-based liquidity or dilution flags were detected, but the company's financial performance suggests a need for continued monitoring.

Recent events, including analyst estimates, show a mean price target of $6.50 and a median of $5.50, with a mean recommendation of 2.89, indicating a generally cautious outlook. The lack of strong buy ratings and the presence of eight hold ratings suggest that analysts are not optimistic about the company's near-term prospects.

Free cash flow improved by 69.1% year-over-year to -$59.3 million in FY2026, signaling significant operational efficiency gains.

The company maintains a zero long-term debt position, providing a strong balance sheet with no interest obligations.

Gross profit increased to $134.1 million in FY2026, demonstrating an ability to generate top-line margin despite revenue declines.

Net income losses narrowed by 54.0% year-over-year to -$95.7 million in FY2026, indicating a clear path toward profitability.

Cash conversion ratio of 1.63 exceeds the healthcare facilities cohort median of 1.36, suggesting superior cash management.

Revenue declined 0.3% annually over four years, falling to $249.3 million in FY2026, indicating persistent top-line stagnation.

Return on equity of -13.7% ranks in the bottom quartile, reflecting poor capital efficiency compared to peers.

The company carries a high credit risk flag, suggesting potential difficulties in securing favorable financing terms.

Revenue $54.9M, −17,9% YoY.

• ▍Revenue $54.9M, −17,9% YoY

Revenue $55.3M, −22,1% YoY; Operating income +38,6% YoY.

• ▍Revenue $55.3M, −22,1% YoY
• ▍Operating income +38,6% YoY
• ▍Net income +41,6% YoY
• ▍Free cash flow +56,7% YoY
• ▍Net margin -45.1%

Revenue $56.3M, −7,8% YoY; Operating income +33,9% YoY.

• ▍Revenue $56.3M, −7,8% YoY
• ▍Operating income +33,9% YoY
• ▍Net income +25,5% YoY
• ▍Free cash flow +43,5% YoY
• ▍Net margin -57.5%

Revenue $70.9M, +12,9% YoY; Operating income +61,1% YoY.

• ▍Revenue $70.9M, +12,9% YoY
• ▍Operating income +61,1% YoY
• ▍Net income +60,5% YoY
• ▍Free cash flow +77,4% YoY
• ▍Net margin -27.8%

Revenue $66.8M; Operating income -$19.7M.

• ▍Revenue $66.8M
• ▍Operating income -$19.7M
• ▍Net margin -28.0%

Revenue $71.0M; Operating income -$42.8M.

• ▍Revenue $71.0M
• ▍Operating income -$42.8M
• ▍Net margin -60.1%

Revenue $61.0M; Operating income -$47.4M.

• ▍Revenue $61.0M
• ▍Operating income -$47.4M
• ▍Net margin -71.2%

Revenue $62.8M; Operating income -$52.4M.

• ▍Revenue $62.8M
• ▍Operating income -$52.4M
• ▍Net margin -79.5%

Revenue $249.3M, −2,0% YoY; Operating income +55,1% YoY.

• ▍Revenue $249.3M, −2,0% YoY
• ▍Operating income +55,1% YoY
• ▍Net income +54,0% YoY
• ▍Free cash flow +69,1% YoY
• ▍Net margin -38.4%

Revenue $254.4M, −1,8% YoY; Operating income +68,6% YoY.

• ▍Revenue $254.4M, −1,8% YoY
• ▍Operating income +68,6% YoY
• ▍Net income +69,2% YoY
• ▍Free cash flow +71,0% YoY
• ▍Net margin -81.8%

Revenue $259.0M, −6,5% YoY; Operating income −150,9% YoY.

• ▍Revenue $259.0M, −6,5% YoY
• ▍Operating income −150,9% YoY
• ▍Net income −149,7% YoY
• ▍Free cash flow −159,9% YoY
• ▍Net margin -260.6%

Revenue $277.2M, +9,7% YoY; Operating income −54,0% YoY.

• ▍Revenue $277.2M, +9,7% YoY
• ▍Operating income −54,0% YoY
• ▍Net income −53,4% YoY
• ▍Free cash flow −60,7% YoY
• ▍Net margin -97.6%