Boston-based telehealth company Amwell Health recently received notice from the New York Stock Exchange (NYSE) that it is no longer in compliance with the minimum stock price requirement. The NYSE requires a company’s stock price to be over $1 for 30 consecutive days, but Amwell was trading at $0.74 per share at the time of the announcement. To regain compliance, Amwell plans to implement a reverse stock split, pending approval from its board and stockholders at its upcoming annual meeting.
Since going public in September 2020, Amwell Health has faced both successes and challenges. In Q4 of the same year, the company reported significant revenue growth of 65%, following its $742 million IPO. However, in Q1 2021, Amwell missed revenue expectations despite launching its Converge platform, which aims to facilitate a transition from episodic telehealth to longitudinal hybrid care.
In addition to these challenges, Amwell also partnered with DarioHealth last year to provide patients with programs focused on managing chronic conditions like diabetes, weight loss, and high blood pressure. Despite these efforts, the company recorded a substantial loss of nearly $400 million in Q1 2023, including a non-cash charge related to a decline in its share price.
Amwell’s financial results for 2023 showed a drop in revenue and an increase in losses compared to the previous year. The company anticipates an adjusted EBITDA loss in 2024 but projects revenue growth and improved EBITDA in 2025 and 2026, aiming to break even in adjusted EBITDA by 2026.
The date for Amwell’s annual meeting has not been set yet according to a spokesperson for the company.
