An excellent Q-2 is Anticipated
LOTM is anticipating a very good Q-2 report due out in mid-August.
We like HealWell as a company for a one to two year holding period. The August ’25 Q-2 earnings repoer is an event we might trade ‘the stock,” depending on how the share price reacts to the Q-2 report.
WHY is LOTM anticipating a very good Q-2 report due out in mid-August.?
- HEALWELL achieved record annual revenue from continuing operations of approximately C$39 million in fiscal 2024, an increase of 433% compared to fiscal 2023. HEALWELL achieved record quarterly revenue from continuing operations of C$15.2 million in Q4-2024, 692% higher than the $1.9 million generated in Q4-2023 and 11% higher than the $13.7 million generated in Q3-2024
- HEALWELL achieved quarterly revenue from continuing operations of C$14.1 million in Q1-2025, 208% higher than the C$4.6 million generated in Q1-2024. Revenue growth was driven by acquisitions in the past year and record growth of 224% in the Company’s AI and Data Science business.
- One April 1 of 2025, Healwell closed on an acquistion of a company more than twice it size. Q2 2025 will be the first reporting period for the combined companies, plus any organic growth HealWell might achieve on its own.
Here is a quick review of what HealWell AI does from their website description:
HEALWELL is a healthcare artificial intelligence company focused on preventative care. Our mission is to improve healthcare and save lives through early identification and detection of disease.
Using our proprietary AI technology and competencies, including data science, electronic health records, and clinical research offerings, HEALWELL is developing and commercializing advanced clinical decision support systems. These tools help healthcare providers detect rare and chronic diseases, improve the efficiency of their practice, and ultimately help improve patient health outcomes.
Two-year weekly chart
Pros and Cons of Owning Healwell AI (HWAIF) Stock:
Here’s an analysis of the potential advantages and disadvantages of investing in Healwell AI (HWAIF) sourced from multiple internet locations.
Pros:
- Strong Revenue Growth: Healwell AI has demonstrated exceptional revenue growth, particularly in its AI and Data Science division, with significant increases in Q1 2025 and projections for continued growth. This indicates a strong market demand for their AI-driven solutions.
- Strategic Acquisitions and Expansion: The acquisition of Orion Health is expected to be a major catalyst, significantly enhancing revenue and expanding the company’s global footprint. This move positions Healwell AI for continued growth in the healthcare data interoperability and AI space.
- Potential for Profitability: With cost optimization measures and the Orion acquisition, Healwell AI is poised to become Adjusted EBITDA positive in 2025. This suggests a potential path to profitability in the near future.
- Focus on a Growing Market: The company operates in the rapidly expanding digital health market, specifically targeting the preventative care AI market, which is projected to grow significantly.
- Diversified Revenue Streams: Healwell AI generates revenue from multiple areas, including AI and data science, healthcare software, and clinical research and patient services, providing some resilience to market shifts.
- Strategic Partnerships: Collaborations with companies like WELL Health USA and Circle Medical Technologies indicate a commitment to expanding their reach and integrating their AI solutions within existing healthcare infrastructure.
Cons:
- Net Losses: The company has reported net losses, due in part to costs associated with strategic growth initiatives and investments in scaling the business.
- Integration Risks: Successfully integrating acquired companies like Orion Health is crucial, and potential delays or challenges in this process could negatively impact the company’s performance.
- Competition: Healwell AI operates in a competitive healthcare AI market and faces the challenge of staying ahead of competitors.
- Dependence on M&A Strategy: While M&A has fueled growth, it also carries the risk of overpaying for acquisitions and potential difficulties in integrating acquired businesses.
- Uncertainties: External factors like tariffs and government initiatives (e.g., “Buy Canadian”) could potentially impact their market positioning.
- Technical Sell Signals: Some technical analysis suggests a falling trend and potential weakness in the near term.
- Liquidity Concerns: While the company has a low debt-to-equity ratio, the current ratio indicates potential liquidity concerns that need to be monitored.
Should the price of HealWell rally above the US$1.60 level, some accounts related to LOTM would probably sell up to 30% of their position. The remaining position is anticipated to be held longer-term. Eventually we expect HealWell AI to be acquired by a larger healthcare company in the AI field.
Please keep in mind that any decision to buy, sell or hold HealWell might change for a multitude of reasons. We are sharing our current thoughts at this moment in time.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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