American Well Q1 2026 earnings snapshot

American Well (AMWL) opened 2026 with Q1 revenue of US$54.9 million and a basic EPS loss of US$0.66, alongside a trailing twelve month EPS loss of US$5.40 on revenue of US$237.4 million. The company reported a change in quarterly revenue from US$66.8 million in Q1 2025 to US$54.9 million in Q1 2026, while quarterly EPS losses across that period have ranged between about US$0.66 and US$2.77. These figures provide the context for assessing current profitability. With the stock trading around US$7.15, the latest numbers keep the focus on how efficiently American Well is converting revenue into margin over time.

See our full analysis for American Well.

With the headline figures available, the next step is to compare them with the widely followed narratives around American Well's growth potential and profitability path to see which views are supported and which may be challenged.

Losses Narrow, But Revenue Base Shrinks

• Net income loss improved from US$24.9 million in Q4 2025 to US$10.9 million in Q1 2026, even as revenue for those quarters stayed close together at about US$55 million. This points to a smaller loss being supported by roughly the same quarterly revenue base.
• What stands out for the bullish narrative is that trailing twelve month losses have moved from US$208.1 million in Q4 2024 to US$87.9 million in Q1 2026. This lines up with the view that cost actions and a shift toward higher margin software can support better margins, yet
  • trailing twelve month revenue over the same stretch sits in a tight range around US$237 million to US$269.8 million, so the improvement in losses so far is not backed by rapid top line expansion,
  • and analysts still forecast that the company will remain unprofitable over the next three years, which limits how far the bullish case on margin improvement can go without clearer evidence of earnings turning positive.

Bulls argue that the recent pullback in losses could be an early sign of operating discipline paying off, while the earnings data still show work to do before that view is fully reflected in the bottom line. 🐂 American Well Bull Case

Extended Losses Keep Profitability Out Of Reach

• On a trailing twelve month basis, the company recorded a basic EPS loss of US$5.40 and a net income loss of US$87.9 million on US$237.4 million of revenue. This underlines that the business is still some distance from break even.
• Bears focus on this ongoing unprofitability, and the numbers back up several of those concerns, because
  • the company has been unprofitable across every quarter in the data set, with quarterly net income losses ranging from US$10.9 million to US$42.7 million, and analysts expect losses to continue for at least the next three years,
  • while revenue is forecast to grow only about 0.8% per year compared with 11.3% per year for the wider US market, which fits the bearish view that the current revenue profile may not be strong enough to offset ongoing cash burn and competitive pressures.

Skeptics point to the combination of continued losses and modest revenue growth as a key reason to stay cautious on how quickly the business model can scale to sustainable profitability. 🐻 American Well Bear Case

Low P/S Multiple Highlights Valuation Tension

• With the stock trading around US$7.15 and trailing twelve month revenue of US$237.4 million, the company sits at a P/S of about 0.5x, compared with a peer average of 1.1x and a US Healthcare Services industry average of 2.3x.
• Supporters of the more optimistic view see this lower multiple as leaving room for re rating, yet the data also build in some of the risks highlighted by bears, because
  • the company is forecast to remain unprofitable over the next three years, so the discount versus peers is attached to a business that does not yet generate earnings,
  • and recent share price volatility and insider selling over the past three months suggest the market is already weighing those operational and governance risks alongside the cheaper sales multiple.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for American Well on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of optimism and caution in these numbers may feel finely balanced. Move quickly to review the details and test the assumptions that matter most to you, then weigh up the 2 key rewards and 3 important warning signs

See What Else Is Out There

American Well pairs ongoing net income and EPS losses with modest revenue trends and an extended timeline to profitability, which keeps risk relatively elevated for investors.

If you want stocks where current financials lean more toward resilience than prolonged losses, compare this profile against 74 resilient stocks with low risk scores now while the contrast is fresh in your mind.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.