Amwell, formerly known as American Well, boasted the Defense Health Agency’s (DHA) intent to award the telehealth platform “a sole source contract” as it kicked off its second-quarter earnings call.
Amwell Chairman and CEO Ido Schoenberg, M.D., said during Tuesday’s earnings call the DHA’s intent-to-award notice is a “powerful vote of confidence.”
“It deepens the partnership at the heart of the military health system and affirms our position as core infrastructure for the unified federal health IT ecosystem, an opportunity we expect to build on for many years,” Schoenberg said.
The DHA, which oversees services for the Military Health System, renewed its contract with the telehealth platform in August 2025. During its 2026 first-quarter earnings call, Schoenberg said the company was “laser-focused” on renewing the agreement within its current scope.
Chief Financial Officer Mark Hirschhorn said the company is currently negotiating with DHA, adding that the agency put out a release in June calling for sole contracts with Amwell and four other vendors.
“They've noted that they would like to transition over as soon as possible,” Hirschhorn said.
DHA discontinued its payment for behavioral health and automated care services with Amwell last year. Schoenberg said the cessation was due to the Department of Defense’s cost-cutting measures—not the department’s satisfaction with the services.
Hirschhorn said conversations to reinstate those services are also “underway.” “We would expect that the opportunity to turn those services on, the soonest opportunity would be in 2027,” he added.
Amwell has been repositioning itself from a telehealth vendor to a company that provides infrastructure for AI-powered care programs.
Amwell brought in $52 million in Q2 revenue, according to second quarter financial results published Tuesday afternoon. Revenue was down approximately 26.6% year-over-year, Hirschhorn said. Subscription revenue was $25.7 million, which Hirschhorn said was down 36.5% year-over-year but up “approximately 3.2% sequentially from the first quarter.”
“The year-over-year decline continues to reflect the previously disclosed churn, as well as a one-time subscription revenue benefit recognized in last year's second quarter, related to the deployment of our platform across the DHA,” he said.
Schoenberg said subscription revenue has grown to “more than half” of Amwell’s total revenue.
“That is recurring, stable, high-quality revenue,” Schoenberg said. “It is the foundation of a healthier, more predictable business. Throughout 2026, we're delivering a better user experience. We've also greatly enhanced our ability to engage members and activate them into care.”
The company reported a net loss of $9.6 million during the quarter, compared to a loss of $19.5 million the same period a year ago. The telehealth and care platform company's Q2 results topped Wall Street expectations on both earnings and revenue. The company reported adjusted loss per share was 59 cents, narrower than the 89-cent loss analysts expected.
Amwell also raised its full-year outlook for adjusted EBITDA and the low end of its 2026 revenue guidance. The company expects revenue in the range of $200 million to $205 million, increased from $195 million to $205 million and adjusted EBITDA in the range between a loss of $9 million to loss of $7 million, as compared to its previous guidance of a loss of $16 million to a loss of $12 million.
Amwell shares fell 3% during trading on Tuesday, then rebounded Wednesday, growing 31% as investors reacted to the beat and the company's upbeat guidance for full-year results.
Amwell's visit volume was flat year-over-year at 315,000 paid visits. Hirschhorn noted visit revenue was $24.4 million, up approximately 7.4% year-over-year. Moreover, virtual primary care visits increased approximately 30% year-over-year.
Total platform visits, however, were down 28.4% year-over-year at approximately 835,000 visits. Hirschhorn noted the decline was “consistent with” previously discussed platform changes.
Hirschhorn said Q2 was “another step forward on our path to right-sizing the company and working towards achieving profitability.”
“Continued subscription stability, a favorable visit mix, and a leaner cost structure give us confidence that we remain on track to achieve our cash flow break-even goal in the fourth quarter,” Hirschhorn said.