WELL Health Trims 2026 Revenue Outlook to CAD 1.58 Billion

WELL Health Technologies (TSX: WELL) now expects 2026 revenue of approximately CAD 1.58 billion, the low end of its previous guidance range, while holding its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance at CAD 185 million to CAD 195 million. The company slowed acquisitions in the second half of the year to concentrate on integrating earlier deals. Growth, it turns out, has a queue.

What drove the revised guidance?

On the third-quarter earnings call, Chairman and CEO Hamed Shahbazi said the revised outlook primarily reflects acquisition timing and the integration of the OID and UnionMD transactions. Third-quarter revenue rose 12 percent to CAD 407.4 million, while adjusted EBITDA fell 15 percent to CAD 50.9 million. Both measures grew, however, against prior-year results normalized for a Circle Medical revenue deferral: on that basis, revenue climbed 17 percent and adjusted EBITDA 20 percent. The normalization excludes CAD 17.6 million of deferral-related Circle Medical revenue recognized a year earlier.

Shahbazi also said weakness at the Radar staffing business had weighed on revenue, while CRH's core anesthesia operations and the Harmony staffing business performed strongly. Segment detail, in brief:

• WELL Canadian Clinics revenue: CAD 164.9 million, up 49 percent.
• Division adjusted EBITDA margin: 15.6 percent, up from roughly 12.8 percent.
• Same-clinic sales growth: 12 percent, or just under 10 percent excluding retroactive reimbursement.
• Canadian patient visits: approximately 1.3 million, up 20 percent, including 6 percent organic growth.

How strong is the clinic engine?

The Canadian clinics division reached an annualized adjusted EBITDA run rate of approximately CAD 100 million, one quarter ahead of its year-end target. The figure rests on quarterly adjusted EBITDA of CAD 25.7 million, up 82 percent from a year earlier. Shahbazi attributed the margin improvement to acquisitions, a shift toward higher-margin services and the company's clinic transformation program. The company operated 302 clinics across 179 Canadian physical facilities at the end of September, under a revised clinic definition that counts multiple distinct services within one facility separately, with historical counts restated.

Canadian clinics remain the company's primary destination for additional capital, Shahbazi said. WELL completed seven clinic transactions in the first nine months of 2026, adding approximately CAD 102 million in annual revenue. Its acquisition pipeline holds more than 20 targets representing CAD 390 million in total revenue, though not all have been agreed upon. A pipeline is a promise; a signature is a fact.

Why the CAD 135.5 million net loss?

WELL reported a net loss of CAD 135.5 million, compared with adjusted net income of CAD 27.3 million. CFO Evelyn Sutherland said the loss included non-cash impairment charges of approximately CAD 67.5 million and accounting charges tied to the WELLSTAR transaction and listing. The impairments included CAD 39.8 million related to HEALWELL; Sutherland said the charge reduced goodwill recognized after WELL obtained control of HEALWELL in 2025, though the attributed value remained above WELL's original investment cost.

Operating adjusted free cash flow attributable to shareholders declined to CAD 13.3 million from CAD 15.1 million. Sutherland cited clinic investment, higher cash taxes and higher interest payments, and said improving cash conversion remains a priority.

What changed in the capital structure?

WELLSTAR began trading on the TSX Venture Exchange on October 1. Approximately CAD 155 million of its redeemable preferred shares converted into common equity upon listing, removing that liability from WELL's consolidated balance sheet; WELL remains WELLSTAR's majority controlling shareholder. WELL also issued CAD 150 million of senior unsecured notes due 2031 at 6.875 percent, using proceeds to repay CAD 70 million of convertible debentures.

Shahbazi said the strategic review of U.S. care delivery assets CRH Medical, wisp and Circle Medical has advanced, with two of the three processes now involving focused counterparties. He offered no names, terms or timing, promising disclosure only when an agreement is binding.

Are public sector contracts the next act?

WELL is pursuing more than CAD 100 million in potential public sector contracts through OneWELL, which combines clinical services, technology and artificial intelligence capabilities. Shahbazi emphasized the figure is a pipeline, not contracted revenue, and that procurement timing and outcomes are uncertain. The company reaffirmed its goal for WELL Canada, comprising WELL Clinics and WELLSTAR, to reach a CAD 1 billion annual revenue run rate by the end of 2028.