WELL Health Technologies (TSE:WELL) reported second-quarter revenue of approximately C$404 million, up 12% from a year earlier, while adjusted EBITDA was C$48.1 million, down 3% on a reported basis. The company raised its full-year 2026 adjusted EBITDA outlook by C$10 million, citing stronger execution in its Canadian operations, recent acquisitions and a stronger June exit rate.
For 2026, WELL now expects revenue of C$1.58 billion to C$1.65 billion, compared with prior guidance of C$1.55 billion to C$1.65 billion. It raised adjusted EBITDA guidance to C$185 million to C$195 million from C$175 million to C$185 million.
Results affected by prior-year items and deferred revenue
WELL said reported year-over-year comparisons were affected by deferred revenue at Circle Medical and a C$8.7 million one-time retroactive reimbursement item in its Canadian patient services business during the second quarter of 2025.
On a normalized basis excluding the deferred-revenue effects, second-quarter revenue rose 14% to C$395.6 million, while adjusted EBITDA increased 8% to C$43.3 million. Adjusted EBITDA attributable to WELL shareholders was C$32 million on that basis, up 4% year over year.
Adjusted gross profit increased 12% to C$178.4 million, and adjusted gross margin improved by 10 basis points to 44.6%. On a normalized basis, adjusted gross profit increased 17% and margin expanded by 90 basis points to 43.9%.
Adjusted net income was C$11.6 million, compared with C$25.8 million a year earlier. CFO Eva Fong said the year-over-year decline reflected the absence of the prior-year reimbursement benefit, C$8.2 million in legal and other costs, C$3.9 million in higher interest expense and other items. Normalized adjusted net income was C$9.2 million.
Adjusted free cash flow attributable to shareholders was C$11.7 million, in line with the prior-year period. Fong said higher spending on corporate activities and WELL Research, higher cash interest expense and higher capital expenditures were partly offset by lower cash taxes and operating growth.
Canadian operations and acquisitions drive growth
WELL Canada, which includes the company’s Canadian clinics, WELLSTAR and CYBERWELL operations, generated C$176.6 million in revenue, up 32% year over year. Adjusted EBITDA increased 19% to C$27.4 million. Excluding the prior-year reimbursement item, WELL Canada revenue would have increased about 41% and adjusted EBITDA about 56%, management said.
Canadian clinics generated C$151.6 million in revenue and C$22.3 million in adjusted EBITDA, compared with C$114.9 million and C$18.2 million, respectively, a year earlier. The company said its primary-care adjusted EBITDA margin expanded to 8.6% from 5.2%, supported by acquisitions and its clinic transformation program.
During the quarter, WELL completed three transactions that added 23 clinics, 117 providers, C$67.8 million in annual revenue and the bulk of the contributions from Ontario Imaging Diagnostics and UnionMD. Shahbazi said the two acquisitions add approximately C$22 million in annual EBITDA.
Patient visits in the Canadian clinics network rose 28% to 1.36 million, while billable providers increased 26% to 2,444. The company said visits per provider have benefited from AI transcription and digital workflows. WELL’s overall system-wide patient visits, excluding HEALWELL AI, increased 19% to 2 million.
Shahbazi said the company has more than 30 Canadian acquisition targets engaged, representing more than C$340 million in annual revenue and over 70 clinics, including approximately C$193 million in revenue under signed or advanced-stage letters of intent.
WELLSTAR financing and longer-term targets
WELLSTAR generated C$23 million in quarterly revenue, up 37%, and C$5.8 million in adjusted EBITDA, up 32%. After approximately C$193,000 in public-company preparation costs, adjusted EBITDA was C$5.6 million.
Last week, WELLSTAR completed a C$50 million brokered private placement in advance of its planned September listing on the TSX Venture Exchange. The financing included C$36.2 million in new treasury subscription receipts and C$13.8 million in a secondary offering by an existing shareholder other than WELL. WELLSTAR is expected to generate roughly C$95 million in 2026 revenue, with an expected adjusted EBITDA margin of about 21%, according to management.
WELL also completed a C$150 million senior unsecured notes offering carrying a 6.875% coupon and maturing in 2031. Proceeds are intended to repay convertible debentures due in December 2026 and support general corporate purposes.
At June 30, WELL held C$130.6 million in cash and cash equivalents and C$628.7 million in total loans and borrowings. The company said it remained in compliance with its financial covenants.
Looking beyond 2026, Shahbazi said WELL Canada is targeting a revenue run rate above C$1 billion by the end of 2028, including organic growth and acquisitions. WELL Clinics is targeting an adjusted EBITDA run rate above C$100 million by the end of 2026.
U.S. assets and operating updates
WELL said strategic-alternatives processes for its U.S. care delivery assets—CRH Medical, Wisp and Circle Medical—have more than 10 parties engaged across strategic and financial buyers. Shahbazi said no process had advanced to a stage warranting disclosure.
Wisp reported quarterly revenue of C$29.3 million and an adjusted EBITDA loss of C$200,000, though management said the business returned to profitability in June with more than C$1.2 million in adjusted EBITDA for the month.
Circle Medical reported revenue of C$29.5 million, versus C$34 million a year earlier, reflecting IFRS 15 deferred-revenue timing, according to management. Fong said the company fully recognized the revenue deferred in 2025 during the second quarter and does not expect further deferrals.
CRH Anesthesia and provider staffing generated combined revenue of C$129.6 million, up 5%, and adjusted EBITDA of C$24.9 million, up 4%. Management said customer attrition at the Radar staffing business affected growth, while the GI-focused anesthesia services operation and the rest of the staffing business continued to perform well.
About WELL Health Technologies (TSE:WELL)
WELL Health Technologies Corp. (TSX: WELL) is Canada’s largest outpatient healthcare company and a leading provider of technology-enabled healthcare solutions. WELL is building the infrastructure for a healthier Canada, where every patient gets better care, every provider is empowered by AI, and every piece of health data is protected. WELL owns and operates more than 250 clinics in Canada, supporting more than 5 million annual patient visits. Through its subsidiary WELLSTAR, WELL provides electronic medical records, AI-powered clinical tools, patient engagement platforms and IT management services.
